Micromax to sell Huawei smartphones in India across all channels
What's the story
Gurugram headquartered Micromax will soon distribute and sell Huawei smartphones across India as part of a country-wide partnership forged between the Indian and the Chinese smartphone makers, according to The Mobile Indian.
The report adds that a formal announcement on this matter is expected to happen in the next 24 hours.
Here's more on this development.
Pan India partner
Micromax will manage all sales channels for Huawei
"Micromax is going to be an exclusive billing partner for Huawei in India for all the channels. It will include organized, open market and online channels," the report said, citing an anonymous source familiar with the matter.
Moreover, Micromax will also support the Chinese tech giant in marketing and brand placement for select products across the country.
Viewpoint
The deal opens up a new revenue stream for Micromax
Micromax, which was once a strong player in the Indian market, lost its edge to giants like Xiaomi, OPPO, and Vivo. Hence, the home-grown company has since shifted to the offline market.
As a result of this partnership, Micromax will now be able to focus on distribution, which remains one of its core strengths. Evidently, it will be a new revenue stream for Micromax.
Growth
What's in the deal for Huawei?
Notably, Huawei is not a preferred brand in India.
Despite being the world's second-largest smartphone manufacturer, it has less than 1% market share in India. And this is because the company has failed to make much headway in the offline space.
With this deal, it can focus on design and R&D while leveraging Micromax's expertise in the offline space to reach new customers.
Fight for #1 spot
Huawei's bid to become the world's largest smartphone maker
To note, Huawei has beaten Apple to take the spot of the world's second-biggest smartphone company. However, in order to take on Samsung and topple it from the top spot, the Chinese tech giant needs to grow in India, the world's fastest-growing smartphone market.
It also needs to grow faster than Samsung which has already revamped its strategy to reclaim lost ground from Xiaomi.