A white paper presentation on IMPACT OF BRANDED MOBILE ACCESORRIES ON THE CONSUMER BUYING BEHAVIOUR
The normal purchase of mobile accessories happens along with the handset.
There are umpteen types of accessories which include,
High priced authentic mobile accessories from the manufacturers of handsets
Moderately priced unbranded mobile accessories
Cheaper spurious ones.
About 90 per cent of it is traded in the unorganised market.
The Indian handset industry expects to sell 60 million handsets this year. If we look at 200 million mobile subscribers by 2007. Even if each of them spends $5 a year on phone accessories, the market will expand in a big way.
Explore potentials in the market.
To understand the attitude of the consumers towards a Mobile Accessory Brand.
To understand the buying behavior of the consumers.
There is huge potential in the branded mobile accessories segment.
Map the markets to be considered for the research.
Prepare a questionnaire for the consumers’ response.
CLASSIFICATION OF STORES
TYPE A: High End Stores Like Croma/Shop-in-shop At Shopper’s Stop.
TYPE B: A store which deals in 1st hand mobile handsets and accessories and other electronic items. (Area: 800-1000 sq. feet)
TYPE C: A store which deals in 2nd mobile handsets and mobile accessories. (Area: 50*50 sq. feet)
ACTIVITIES OF THE GREY MARKET TRADERS
Grey market goods, wholesaling at significantly lower prices than authorised imports.
Strong consumer demand attracts grey market traders to the mobile handset and accessories sector.
The ease of distribution.
Quick financial gains. The increasingly compact size of mobile phone accessories
Dubai is the major logistics hub for the mobile phones and accessories.
CHALLENGES FOR THE TRADERS IN THE GREY MARKET
Original source cannot be determined.
No guarantee their quality.
Lack of intervention from officials in the region, vendors and distributors is increasing.
Impacts the brand-equity as they are often stored and transported in a such a way that they are easily damaged.
The threat of parallel imports is prompting the region’s mobile handset vendors to step up their ‘brand building’ activities.
Retailers must be encouraged to only deal with authorised resellers and distribution channels and be provided with incentives
AT THE RETAILERS END
Among the local shops
50% stores, stock 40 – 60 % of branded mobile accessories.
30 % stores, stock 100% branded mobile accessories.
20 % stores keep varying their ratio
Among the Multi Brand Outlets(MBOs)
70% stores, stock 00 – 20 % branded mobile accessories.
5% stores, stock 100% branded mobile accessories.
25 % stores keep varying their ratio
Q1] Name –
Q4] What is your occupation?
Q5] What is your income per month?
Below Rs. 10,000
Rs. 10,001 – 25,000
Rs. 25,001 – 50,000
Rs. 50,001 – 1, 00,000
Above 1, 00,001
Q6] Which age group do you belong?
15 – 21
22 – 27
Q7] Which mobile phone do you use?
Q8] Do you purchase Mobile Accessories?
Q9] IF YES which accessory/ies
Q10] Where do you buy it from?
Q11] If yourself, was it a Spot decision or influence by some add ?
Q12] How often do you buy the accessories?
ONCE IN 6 MONTHS
ONCE A YEAR
ONCE IN 2 YEARS
Q13] Reason for buying a new accessory
Up gradation (requirement)
Q14] At what price do you buy it
BELOW 100 200 – 400
100 – 200 400 - 600
200 – 300 600 - 800
ABOVE 300 ABOVE 800
Q15] Apart from nokia if any other brand enters into market would you prefer it?
The debate still remains that the grey market can operate/sustain at the local shop level, but, n the near future the unorganized traders will face many legal hindrances.
As the number in the mobile subscribers increase, the opportunities for mobile accessories market will also increase.
As the consumers are becoming more brand conscious, there will be a demand for branded mobile accessories.
Although it a fact that unbranded products do sell well in the market, a lot of manufacturers will have to brand their products, which involves cost, if they want to survive in the market.
The manufacturers in the grey market will have to undergo a branding exercise, since the type A and Type B stores, stock a relatively higher % of branded mobile accessories.
If majority of the people say that the price range that they buy within is low but they would still go for branded products are the potential consumers.
Also from the questionnaire, the higher selling items(volume) can be found out and manufacturers can focus on the quality of those products.