Micromax was once touted as an iconic smartphone brand to the likes of Nokia and Samsung, the company has tasted success by re-branding the Chinese smartphone and selling them in India with good price/spec ratio. But with rapidly changing markets and Chinese behemoths capturing the market share relentlessly the Indian company has failed to grasp changing markets and consumer expectations.
Micromax achieved its maiden goal of Rs. 10,000 crore revenue in FY 2016 in contrast to a bleak 2018 with a full year revenue of Rs. 4,430 crore with operating profit of Rs. 108 crore. According to Prabhu Ram, Head-Industry Intelligence Group, CMR (CyberMedia Research), “Micromax failed to grasp the fundamental market shifts in the India handset market. The failure to grasp changing market realities and consumer expectations meant a rapid erosion of market share for the likes of Micromax.”
Earlier in 2018 Micromax has bagged Chhattisgarh Government deal of Rs. 1500 crore to distribute 50 lakh smartphone. This election the company can hope to capitalize on more sops from the government but it won’t be viable strategy to stay afloat in a competitive market.