What Happened to Micromax? Rise, Fall, and Future Story!
Micromax was once India’s largest smartphone brand as it experienced a rapid rise during the early 2010s by offering affordable feature packed smartphones to the mass market. Micromax was known for competing with global giants like Samsung. However, by the mid-2010s, Micromax faced a sharp decline.
The entry of Chinese smartphone manufacturers, rapid technological advancements and internal challenges disrupted its dominance. Once celebrated for its innovation and value driven offerings. Micromax struggled to maintain its market position, which resulted in one of the most dramatic rise and fall stories in the Indian technology industry.
In this blog, we will explore the rise and fall of Micromax, its achievements and the company’s future prospects.
The Story of the Rise of Micromax
Micromax was founded in 2000 as a software company operating in the field of embedded systems, before entering the mobile handset market in 2008. Micromax’s country of origin is India, and its rise began with the introduction of affordable and budget friendly smartphones that cater to the India’s price sensitive consumers. This strategy allowed it to compete with global giants, and by 2014, Micromax sales exceeded those of Samsung, and it became one of the lаrgest smartphone brands in the world.
You might be wondering, products of Micromax were manufactured in which country? Its phones were largely manufactured in China like many other companies in the industry, although it later emphasized local manufacturing under the “Make in India” initiative. However, the brand’s inability to innovate and adapt to changing market dynamics in the fast evolving electronics sector led to its fall.
What Height Did Micromax Reach?
At the height of its success between 2014 and 2015, Micromax became the second largest smartphone manufacturer in India and ranked among the top 10 global smartphone brands. Its success was due to affordable smartphones with competitive features that appealed to the Indian middle class. By 2014, it had captured nearly 17% of the Indian smartphone market and surpassed global giants like Samsung and Nokia.
Micromax’s success wasn’t limited to smartphones. The company also ventured into other electronics such as televisions and tablets. Its focus on “Made in India” devices and localization with an understanding of the consumer preferences played a significant role in its rise. The brand was synonymous with value for money products with a wide range of models at different price points.
However, its dominance was short-lived as Chinese smartphone manufacturers like Xiaomi, Oppo, and Vivo offered better smartphones at competitive prices and gradually eroded Micromax’s market share. By 2016, the company struggled to compete with the innovation and aggressive marketing strategies of its Chinese rivals.
Other Products by Micromax
Micromax, once a dominant player in the Indian smartphone market, launched several other electronic products to regain its market position, particularly in the consumer electronics sector. The company tried to adapt to changing consumer demands and expand its focus beyond smartphones. Notable innovations include:
- One of Micromax’s significant innovations is the affordable smart TVs that served a growing demand for high-quality and feature-rich devices. These smart TVs offer Android-based interfaces, seamless streaming options, and an integration with popular apps. This made Micromax a major player in the Indian TV market back in 2016.
- One of the most popular devices launched by the company was the Micromax Funbook. It was an affordable tablet as compared to its competitors.
- Micromax also offered ovens, air conditioners, refrigerators and other smart wearables to its customer base in the past.
What Happened to Micromax – Factors That Led to the Fall?
Micromax was a dominant force in India’s smartphone market and witnessed a sharp decline after reaching its peak around 2014-2015. Several factors contributed to the fall of the company, which was once celebrated for offering affordable smartphones to a massive consumer base.
- Competition from Chinese Brands: One of the most significant factors that led to Micromax’s decline was the entry of Chinese smartphone manufacturers like Xiaomi, Oppo, Vivo and Huawei. These brands flooded the Indian market with phones that offered superior features, advanced technology and sleek designs at competitive prices.
- Entry of Reliance Jio: Reliance launched Jio in 2016 and offered 4G services to its customers. Unfortunately, the entire smartphone lineup of Micromax didn’t support 4G, which made their huge inventory of 3G phones obsolete. Moreover, the company didn’t have enough financial resources to order a new batch of 4G mobile phones, as the Chinese manufacturers offered customizations only if the orders were large enough.
- Lack of Innovation: Micromax’s initial success was driven by providing the budget friendly smartphones that most consumers demanded. However, the company failed to innovate and evolve in line with changing consumer expectations.
- Poor After Sales Service: Customer service is a critical aspect of sustaining brand loyalty. Micromax struggled to provide quality after sales support, which led to customer dissatisfaction. In contrast, Chinese brand’s focus on building stronger network to provide after sales services enhanced their reputation and trust among consumers.
- Demonetization: The Government of India demonetized INR 500 and INR 1,000 notes in 2016, which had a severe impact on the sales of Micromax. The majority of the smartphones manufactured by Micromax were priced below INR 10,000. Most of its customers paid in cash and were not very familiar with online payments, which caused the revenues of the company to decline significantly.
Many wonder, “Is Micromax dead?” Today, Micromax continues to exist, though its presence has diminished considerably. It still tries to rebuild by focusing on manufacturing smartphones and other electronics but faces stiff competition in a market dominated by global players. Whether it will rise again remains to be seen.
Future Plans of Micromax
Micromax has been struggling for quite some time and now aims to regain its position in the Indian market. The future plans of Micromax are:
- Micromax has announced its plans to venture into the AI and Internet of Things (IoT) sector in 2024. The company plans to manufacture AI-integrated home appliances, such as smart air conditioners, smart lighting systems, etc., that can be controlled via mobile apps, offering customers convenience, energy efficiency and control through smartphones.
- Micromax placed a significant emphasis on “Make in India” by increasing its local manufacturing capacity. This strategic move not only supports the Indian government’s initiative but also reduces reliance on imports and enhances the profitability of Micromax. Localized manufacturing allows Micromax to offer competitive pricing, giving it an edge in the competitive electronics sector.
Micromax’s diversification strategy can be seen as a positive signal in its turnaround story, and its focus on growth industries such as AI, IoT, and smart consumer devices can help it regain its dominant market position.
The Rise Again?
The company, which had lost ground to Chinese manufacturers like Xiaomi, Oppo and Vivo, is ready to enter the Indian electronics market once again by capitalizing on the rising wave of nationalism and the “Made in India” sentiment. Amid the geopolitical tensions between India and China, Micromax has positioned itself as a local alternative and is ready to challenge the dominance of Chinese brands once again.
In November 2020, The Micromax announced “IN” serіes of smartphones designed to offer solid features at competitive prices. The “IN” serіes was launched with the promise of delivering powerful hardware, stock Android and 4G capabilities, all the while keeping products affordable for Indian consumers. The company’s re-entry also saw significant investments in R&D, manufacturing with a pledge to bring in innovative products built for Indian needs.
Conclusion
Micromax’s journey reflects both the rise and fall of a homegrown brand in India’s competitive smartphone market. After achieving significant success in the early 2010s, the company struggled to keep up with technological advancements and aggressive pricing of Chinese competitors. However, in 2020, the company made a comeback with the “IN” serіes to reclaim market share and take advantage of favorable local manufacturing policies and national sentiment. While challenges remain, Micromax’s strategic focus on budget smartphones could help it gain a foothold in the Indian consumer electronics industry.
Frequently Asked Questions (FAQs)
What is Micromax known for?
Micromax is primarily known for manufacturing affordable smartphones, tablets, and other electronic devices.
Who owns Micromax?
Micromax is owned by its founders Rahul Sharma, Vikas Jain, Sumeet Kumar, and Rajesh Agarwal. Rahul Sharma is the most prominent face of the brand and serves as one of its key leaders.
How much is Micromax worth?
As of recent estimates, Micromax’s valuation is significantly lower than its peak in 2015 when it was worth approximately $3-5 billion. Its current worth depends on its business revival and market presence, which have seen a decline.
Is Micromax profit or loss?
Micromax has been struggling financially and operating at a loss for several years due to reduced market share and stiff competition. However, its recent efforts, like the “IN” series of smartphones and focus on local manufacturing, aim to improve profitability.
Where can I purchase Micromax products?
Micromax products can be purchased through e-commerce platforms such as Amazon, Flipkart, etc., as well as in physical retail stores across India. Check Micromax’s website for updates on new launches and authorized sellers.
