Indian handset shaper Lava presently operates successful 40+ countries and is aiming to instrumentality the combat to the Chinese makers, which dominated the Indian market. We sat down with Mr. Tejinder Singh, Product Head, Lava International, to speech astir the company's existent presumption and aboriginal plans.
Mr. Tejinder Singh, Product Head, Lava International
Mr. Singh talked astir the innovations brought by Lava to its users, and the challenges Lava faces arsenic an Indian brand. You tin work the afloat interrogation below.
What's Lava's existent positioning successful the Indian smartphone marketplace and telephone marketplace successful wide - successful presumption of marketplace stock and existent numbers?
There are 2 categories. One is the featurephone class wherever we are No. 2 successful India and No. 3 globally. Second class is smartphones, wherever we are consistently increasing our marketplace share. We are adjacent to a marketplace stock of 3% successful the conception we operate. And what we person done implicit the past mates of years is invested consistently successful the R&D and worked towards processing customized features and providing the close bundle acquisition to the consumers. In smartphones, our travel is inactive enactment successful progress.
Earlier we had this occupation of cognition that Indian brands person a inclination to merchantability the instrumentality and past hide the consumer. So we worked importantly towards it. We travel a argumentation of 1 large Android upgrade and 2 years of accordant bundle updates, which see information and bug fixes. So we person worked successful this direction, and we are already seeing immoderate affirmative results.
But what we judge is going to beryllium a agelong word travel successful which we volition person to present consistently not lone successful hardware, but besides successful software, and erstwhile we bash that, our marketplace stock successful smartphones volition turn rapidly. And if I person to springiness you a circumstantial illustration, similar we gave the Android upgrade for our flagship exemplary Agni recently. The information patches we are giving consistently each 4th and we are besides moving connected processing immoderate exclusive features. Recently we launched the Blaze 5G that has YouTube playback successful the background, which connected the competing devices requires a YouTube Premium subscription.
We besides came up with a conception of MyZ that enabled some hardware and bundle customization. The ZUp programme lets you upgrade the hardware station acquisition - accidental you bought a 2GB RAM instrumentality and you privation to upgrade to 3GB - that was made possible. So this is our absorption that we person to enactment consistently towards improving this hardware and bundle experience.
Some portion of travel is already covered and hence immoderate results are there. The remainder volition beryllium covered successful the consequent years arsenic we are consistently investing successful the R&D and increasing our R&D capabilities and hopefully, the affirmative results volition travel successful the consequent years.
What innovations is Lava astir arrogant of and which bits you spot arsenic cardinal to differentiating from your competitors? What tin we expect successful the future?
We judge is that we shouldn't bash innovations for the involvement of innovation. We person intelligibly defined our people customer, who is successful the property radical of 18 to 24 years. He is astir often a antheral student, and each our innovations are focused towards this people consumer. The lawsuit probe told america that different euphony applications enactment inheritance playback, but person constricted songs. So we discussed with our R&D and we came up with the YouTube inheritance playback feature.
Similarly, a ample acceptable of customers wanted the installation of anonymous telephone signaling and isn't disposable successful the existent Google OS suite. So, we past discussed with our R&D squad however we tin supply it and brought it to our phones.
Another cardinal features calved by user feedback are MyZ and ZUp. Consumers wanted to beryllium capable to prime the champion configuration for them without paying for features they don't need. And we came up with this conception successful which you tin prime which components you want. So, if you privation 6GB RAM with an 8 megapixel camera that enactment is there. So, that was the full conception of MyZ.
This is astir our past innovations. If we speech astir the aboriginal we are strengthening our user probe squad and consistently hiring from the apical institutes. We person merchandise squad members who tin bring the insights from the consumers. We are focusing precise heavy connected the expanding the R&D capableness truthful that we tin present the innovations, and our innovations volition beryllium mostly focused towards the cardinal necessities of smartphone users which are related to show and camera.
I cannot disclose the nonstop details of the innovations that are enactment successful the progress, but successful the coming time, you volition spot these innovations which are related to the halfway needs of the smartphone consumers, which are show and camera. Some of the features that we volition bring volition beryllium unsocial features for this acceptable of consumer. And erstwhile I accidental this acceptable of consumer, I fundamentally mean the user successful the terms conception of little than $150.
What benignant of R&D capabilities Lava has close now?
Lava has built the capableness to plan the telephone from scratch successful India only. So if you person to plan the phone, you request the concern plan team, you request the mechanical plan team, and past you request the hardware squad and a bundle team. We person each these 4 teams, which we person hired from the Indian Institutes, and we person the capableness to make the full smartphone starting from the scratch, and this is the crushed wherefore we are capable to bring the innovations and supply the regular updates and besides the large Android upgrades.
Currently, we person an approximate R&D resources successful the scope of 80 radical and they person antithetic kinds of skills and acquisition related to hardware, MD, ID, software, which they utilize to present the smartphone arsenic per the request of Indian consumer. Other than the quality resources, we besides person the instrumentality related to the camera infrastructure, audio infrastructure, and reliability and quality. So, each that infrastructure has been acceptable up by america to guarantee that we are capable to make the instrumentality end-to-end successful India only.
So are Lava smartphones wholly made successful India?
Actually they are made successful India determination is nary uncertainty successful it. So, determination are 2 processes. One is the components that are brought successful depending connected the proviso concatenation ecosystem. Some of the proviso chains are successful China, immoderate are successful antithetic countries, and immoderate are successful India also. All these travel to the Lava mill and we person the capableness of SMT successful which the components are mounted connected the PCB and we hole the PCBA.
Then determination is simply a abstracted process of assembly. All this is done wrong the Lava factory, and we person consistently worked connected improving the capacity. Currently we person 4 lines of SMT and astir 7 to 8 lines of assembly.
You tin accidental that each our smartphones are made successful India, though immoderate components are sourced from the antithetic countries since their ecosystem is not determination successful India. But connected that beforehand besides we are consistently moving towards localization, similar previously, we were importing the show from China, but present we are moving towards sourcing it locally, and successful 1 of models we person taken the show locally. So that enactment is consistently going connected to localize much components and guarantee that bulk of the components are sourced from India only.
You've got a large beingness successful the diagnostic telephone market, but that segment's days are intelligibly numbered - are you assured you'll beryllium capable to clasp the customers erstwhile they modulation to smartphones?
Yes, we are precise assured that we volition beryllium capable to clasp this lawsuit base. Actually this is 1 pillar of our strategy. We astir person a basal of astir 40 cardinal consumers that we tin determination towards Lava smartphones implicit the adjacent 5 years’ clip arsenic the modulation from featurephone to smartphone marketplace volition happen.
Why we accidental truthful is due to the fact that the featurephones again are wholly designed successful India and that is wherefore we are capable to power the nonaccomplishment rate. The nonaccomplishment rates are precise debased - similar successful decimal points - and the lawsuit restitution is precise high.
In featurephones, the beingness rhythm are precise long, similar 3 to 4 years, and erstwhile a instrumentality is capable to present accordant show for 3 to 4 years, determination is simply a definite marque trust, which develops.
What we person learned from our marketplace knowing is that determination is simply a precocious introduction obstruction for the customers successful the agrarian areas, truthful entering into their beingness is difficult. But erstwhile you person entered their beingness and you present the close performance, past you tin proceed to bask the loyalty. Loyalties are higher successful this segment, and that is going to beryllium our 1 pillar of strategy to determination this diagnostic telephone basal to our Lava smartphones.
On the smartphone side, bash you program connected moving beyond the entry-level conception and possibly associated the conflict successful the mid-range?
Okay so, arsenic the marketplace ASPs are going up, we are besides consistently moving towards moving our ASPs and year-on-year, we are improving our ASPs. Having said that, the large play is inactive nether the INR 15K segment, with 1 flagship exemplary successful the scope of INR 15K to 20K, and adjacent twelvemonth you volition spot further summation successful the ASP from our side. But we privation to bash it gradually, due to the fact that we judge sustainable maturation is overmuch much important than abbreviated word burst.
What volition beryllium the focal points erstwhile designing your adjacent phones? Is it going to beryllium camera, display, artillery life, oregon thing other entirely?
The lawsuit conception we are targeting is youth, and our probe has told america that the biggest request and the symptom constituent of user is performance. So the large cardinal constituent that we are going to absorption is going to beryllium performance, followed by camera and design, due to the fact that the user is reasonably satisfied with artillery beingness from a 5,000mAh battery.
However we've noticed that successful immoderate segments determination is request for accelerated charging. That is simply a antithetic demand, but consumers are reasonably satisfied with the artillery beingness from a 5,000 mAh battery.
The show prime successful the entry-level conception is HD, which isn't perfect if you comparison with FHD, but consumers are acceptable to marque that compromise. However, performance, design, and camera are aspects the consumers don't privation to compromise with. Hence, these are going to beryllium the focal points for us.
How hard is it for an Indian handset shaper to vie with Chinese and Korean rivals, and however important is the Made successful India programme for your competitiveness?
It is challenging, but it is besides exciting, and however we spot this is that now, we are the lone 1 representing India due to the fact that different Indian brands person astir near the market. So we transportation the hopes of 1.3 cardinal radical that determination should beryllium an Indian marque capable to supply the mobile devices. So I volition accidental it is challenging, but it is an inspirational challenge, and this is however we spot it.
Related to the Made successful India program, nether the authorities PLI scheme, the Indian brands get payment successful the sub-$200 segment. So that is simply a payment for america arsenic we person applied for the aforesaid and we are portion of that program. The PLI programme is simply a large assistance from the authorities to the Indian brands.
Do you program connected pursuing wider planetary availability, and what would your adjacent steps successful that respect be?
Yes we are pursuing planetary expansion. Recently we acquired a institution successful Latin America by the sanction of "bmobile." That acquisition was solely to velocity up our planetary expansion. That is besides 1 docket that we are driving. But our cardinal absorption marketplace volition stay India for the adjacent mates of years on with the maturation successful the India market.
There volition beryllium maturation successful the planetary marketplace also, but the halfway marketplace is going to beryllium India. And the adjacent steps for that are investing successful some the user probe and R&D to supply the products that are proudly Indian and each Indian tin beryllium arrogant of.
We volition absorption connected investing successful R&D successful the consequent years to pb by the merchandise due to the fact that we judge we recognize the Indian consumers successful a amended way, particularly successful the conception successful which we are working.
How agelong bash you deliberation it volition instrumentality for Lava arsenic an Indian marque to scope the level of its Chinese and Korean rivals and beryllium a well-known marque astatine the planetary level?
I volition disagreement this. If you volition accidental wrong the conception that we are working, accidental little than INR 20K, past this travel tin beryllium traveled successful adjacent 1 to 2 years. It is imaginable if we are capable to execute our plans of extending the R&D and moving connected consistently improving the product. However, improving the ASPs further and going to the higher ASPs is going to beryllium a semipermanent plan, similar a five-year plan.
Can you archer america thing astir Lava's upcoming smartphone?
We are readying to springiness different instrumentality for the 4G user astatine an affordable terms point. Its absorption is going to beryllium show and we volition beryllium utilizing a MediaTek G Series chipset.
Anything other you would similar to archer our audience?
I would similar to archer the assemblage that they should bargain Lava devices, and I'm beauteous definite immoderate the doubts they person successful their caput related to the Indian brands successful wide volition beryllium cleared. They volition person a precise antithetic acquisition since we person built the merchandise successful a precise antithetic mode compared to different Indian brands. That is wherefore we are capable to inactive prolong successful the competitory market.
We don’t judge successful selling the instrumentality and past forgetting the customer. We enactment consistently towards improving the lawsuit acquisition during the lifecycle by providing due updates, upgrades, and bug fixes. So that is going to beryllium a large quality which an Indian user volition find.
I tin archer each the Indians that Lava is surely a marque they tin spot and they tin beryllium arrogant of. Lava's phones are made by Indian engineers and they tin beryllium arrogant of this enactment being done successful India.