Indian handset maker Lava presently operates in 40+ nations and is aiming to take the combat to the Chinese language makers, which dominated the Indian market. We sat down with Mr. Tejinder Singh, Product Head, Lava Worldwide, to speak in regards to the firm’s present place and future plans.
Mr. Tejinder Singh, Product Head, Lava Worldwide
Mr. Singh talked in regards to the improvements introduced by Lava to its customers, and the challenges Lava faces as an Indian model. You may learn the total interview under.
What’s Lava’s present positioning within the Indian smartphone market and cellphone market on the whole – when it comes to market share and precise numbers?
There are two classes. One is the featurephone class the place we’re No. 2 in India and No. 3 globally. Second class is smartphones, the place we’re persistently rising our market share. We’re near a market share of three% within the section we function. And what we now have finished over the previous couple of years is invested persistently within the R&D and labored in the direction of growing custom-made options and offering the best software program expertise to the shoppers. In smartphones, our journey continues to be work in progress.
Earlier we had this downside of notion that Indian manufacturers generally tend to promote the system after which overlook the buyer. So we labored considerably in the direction of it. We comply with a coverage of 1 main Android improve and two years of constant software program updates, which embrace safety and bug fixes. So we now have labored on this route, and we’re already seeing some constructive outcomes.
However what we imagine goes to be a long run journey wherein we must ship persistently not solely in {hardware}, but in addition in software program, and as soon as we try this, our market share in smartphones will develop quickly. And if I’ve to provide you a particular illustration, like we gave the Android improve for our flagship mannequin Agni not too long ago. The safety patches we’re giving persistently each quarter and we’re additionally engaged on growing some unique options. Lately we launched the Blaze 5G that has YouTube playback within the background, which on the competing gadgets requires a YouTube Premium subscription.
We additionally got here up with an idea of MyZ that enabled each {hardware} and software program customization. The ZUp program enables you to improve the {hardware} put up buy – say you got a 2GB RAM system and also you wish to improve to 3GB – that was made doable. So that is our route that we now have to work persistently in the direction of enhancing this {hardware} and software program expertise.
Some a part of journey is already coated and therefore some outcomes are there. The remainder might be coated within the subsequent years as we’re persistently investing within the R&D and rising our R&D capabilities and hopefully, the constructive outcomes will comply with within the subsequent years.
What improvements is Lava most pleased with and which bits you see as key to differentiating out of your rivals? What can we count on sooner or later?
We imagine is that we should not do improvements for the sake of innovation. We’ve clearly outlined our goal buyer, who’s within the age group of 18 to 24 years. He’s most frequently a male pupil, and all our improvements are targeted in the direction of this goal client. The shopper analysis informed us that different music purposes assist background playback, however have restricted songs. So we mentioned with our R&D and we got here up with the YouTube background playback function.
Equally, a big set of consumers wished the ability of nameless name recording and is not obtainable within the present Google OS suite. So, we then mentioned with our R&D workforce how we will present it and introduced it to our telephones.
One other key options born by client suggestions are MyZ and ZUp. Shoppers wished to have the ability to choose the perfect configuration for them with out paying for options they do not want. And we got here up with this idea in which you’ll be able to choose which parts you need. So, if you’d like 6GB RAM with an 8 megapixel digital camera that possibility is there. So, that was the complete idea of MyZ.
That is about our previous improvements. If we discuss in regards to the future we’re strengthening our client analysis workforce and persistently hiring from the highest institutes. We’ve product workforce members who can convey the insights from the shoppers. We’re focusing very closely on the increasing the R&D functionality in order that we will ship the improvements, and our improvements might be principally targeted in the direction of the important thing requirements of smartphone customers that are associated to efficiency and digital camera.
I can not disclose the precise particulars of the improvements which might be work within the progress, however within the coming time, you will notice these improvements that are associated to the core wants of the smartphone shoppers, that are efficiency and digital camera. Among the options that we’ll convey might be distinctive options for this set of client. And once I say this set of client, I mainly imply the buyer within the worth section of lower than $150.
What sort of R&D capabilities Lava has proper now?
Lava has constructed the aptitude to design the cellphone from scratch in India solely. So if it’s a must to design the cellphone, you want the commercial design workforce, you want the mechanical design workforce, and then you definitely want the {hardware} workforce and a software program workforce. We’ve all these 4 groups, which we now have employed from the Indian Institutes, and we now have the aptitude to develop the complete smartphone ranging from the scratch, and that is the explanation why we’re capable of convey the improvements and supply the common updates and likewise the key Android upgrades.
At the moment, we now have an approximate R&D sources within the vary of 80 folks and so they have totally different sorts of abilities and expertise associated to {hardware}, MD, ID, software program, which they make the most of to ship the smartphone as per the necessity of Indian client. Aside from the human sources, we even have the tools associated to the digital camera infrastructure, audio infrastructure, and reliability and high quality. So, all that infrastructure has been arrange by us to make sure that we’re capable of develop the system end-to-end in India solely.
So are Lava smartphones solely made in India?
Truly they’re made in India there is no such thing as a doubt in it. So, there are two processes. One is the parts which might be introduced in relying on the provision chain ecosystem. Among the provide chains are in China, some are in numerous nations, and a few are in India additionally. All these come to the Lava manufacturing facility and we now have the aptitude of SMT wherein the parts are mounted on the PCB and we put together the PCBA.
Then there’s a separate means of meeting. All that is finished inside the Lava manufacturing facility, and we now have persistently labored on enhancing the capability. At the moment we now have 4 strains of SMT and roughly seven to eight strains of meeting.
You may say that every one our smartphones are made in India, though some parts are sourced from the totally different nations since their ecosystem shouldn’t be there in India. However on that entrance additionally we’re persistently working in the direction of localization, like beforehand, we had been importing the show from China, however now we’re working in the direction of sourcing it domestically, and in one in all fashions we now have taken the show domestically. In order that work is persistently happening to localize extra parts and be certain that majority of the parts are sourced from India solely.
You have acquired an enormous presence within the function cellphone market, however that section’s days are clearly numbered – are you assured you’ll retain the shoppers after they transition to smartphones?
Sure, we’re very assured that we will retain this buyer base. Truly that is one pillar of our technique. We roughly have a base of about 40 million shoppers that we will transfer in the direction of Lava smartphones over the following 5 years’ time because the transition from featurephone to smartphone market will occur.
Why we are saying so is as a result of the featurephones once more are utterly designed in India and that’s the reason we’re capable of management the failure price. The failure charges are very low – like in decimal factors – and the client satisfaction may be very excessive.
In featurephones, the life cycle are very lengthy, like three to 4 years, and when a tool is ready to ship constant efficiency for 3 to 4 years, there’s a sure model belief, which develops.
What we now have realized from our market understanding is that there’s a excessive entry barrier for the shoppers within the rural areas, so getting into into their life is tough. However after you have entered their life and also you ship the best efficiency, then you may proceed to benefit from the loyalty. Loyalties are larger on this section, and that’s going to be our one pillar of technique to maneuver this function cellphone base to our Lava smartphones.
On the smartphone aspect, do you propose on shifting past the entry-level section and perhaps joint the battle within the mid-range?
Okay so, because the market ASPs are going up, we’re additionally persistently working in the direction of shifting our ASPs and year-on-year, we’re enhancing our ASPs. Having mentioned that, the key play continues to be below the INR 15K section, with one flagship mannequin within the vary of INR 15K to 20K, and subsequent yr you will notice additional improve within the ASP from our aspect. However we wish to do it step by step, as a result of we imagine sustainable development is way more necessary than quick time period burst.
What would be the focal factors when designing your subsequent telephones? Is it going to be digital camera, show, battery life, or one thing else solely?
The shopper section we’re concentrating on is youth, and our analysis has informed us that the largest want and the ache level of client is efficiency. So the large key level that we’re going to focus goes to be efficiency, adopted by digital camera and design, as a result of the buyer is pretty happy with battery life from a 5,000mAh battery.
Nevertheless we have observed that in some segments there may be demand for quick charging. That could be a totally different demand, however shoppers are pretty happy with the battery life from a 5,000 mAh battery.
The show high quality within the entry-level section is HD, which is not ideally suited in case you evaluate with FHD, however shoppers are able to make that compromise. Nevertheless, efficiency, design, and digital camera are elements the shoppers do not wish to compromise with. Therefore, these are going to be the focal factors for us.
How exhausting is it for an Indian handset maker to compete with Chinese language and Korean rivals, and the way necessary is the Made in India program on your competitiveness?
It’s difficult, however additionally it is thrilling, and the way we see that is that now, we’re the one one representing India as a result of different Indian manufacturers have nearly left the market. So we stock the hopes of 1.3 billion those who there ought to be an Indian model capable of present the cellular gadgets. So I’ll say it’s difficult, however it’s an inspirational problem, and that is how we see it.
Associated to the Made in India program, below the federal government PLI scheme, the Indian manufacturers get profit within the sub-$200 section. So that could be a profit for us as we now have utilized for a similar and we’re a part of that program. The PLI program is an enormous assist from the federal government to the Indian manufacturers.
Do you propose on pursuing wider worldwide availability, and what would your subsequent steps in that regard be?
Sure we’re pursuing worldwide enlargement. Lately we acquired an organization in Latin America by the title of “bmobile.” That acquisition was solely to hurry up our worldwide enlargement. That can also be one agenda that we’re driving. However our key focus market will stay India for the following couple of years together with the expansion within the India market.
There might be development within the worldwide market additionally, however the core market goes to be India. And the following steps for which might be investing in each the buyer analysis and R&D to supply the merchandise which might be proudly Indian and each Indian will be pleased with.
We’ll give attention to investing in R&D within the subsequent years to steer by the product as a result of we imagine we perceive the Indian shoppers in a greater approach, particularly within the section wherein we’re working.
How lengthy do you assume it can take for Lava as an Indian model to succeed in the extent of its Chinese language and Korean rivals and be a widely known model on the world stage?
I’ll divide this. If you’ll say inside the section that we’re working, say lower than INR 20K, then this journey will be traveled in subsequent one to 2 years. It’s doable if we’re capable of execute our plans of extending the R&D and dealing on persistently enhancing the product. Nevertheless, enhancing the ASPs additional and going to the upper ASPs goes to be a long-term plan, like a five-year plan.
Are you able to inform us one thing about Lava’s upcoming smartphone?
We’re planning to provide one other system for the 4G client at an reasonably priced worth level. Its focus goes to be efficiency and we might be utilizing a MediaTek G Sequence chipset.
Anything you wish to inform our viewers?
I wish to inform the viewers that they need to purchase Lava gadgets, and I am fairly certain regardless of the doubts they’ve of their thoughts associated to the Indian manufacturers on the whole might be cleared. They may have a really totally different expertise since we now have constructed the product in a really totally different method in comparison with different Indian manufacturers. That’s the reason we’re capable of nonetheless maintain within the aggressive market.
We don’t imagine in promoting the system after which forgetting the client. We work persistently in the direction of enhancing the client expertise in the course of the lifecycle by offering correct updates, upgrades, and bug fixes. So that’s going to be an enormous distinction which an Indian client will discover.
I can inform all of the Indians that Lava is definitely a model they will belief and they are often pleased with. Lava’s telephones are made by Indian engineers and they are often pleased with this work being finished in India.
