Huawei, the second largest smartphone brand in the world, has found a new support in India. Indian smartphone maker Micromax will soon distribute and sell Huawei smartphones across the country. Both the companies have reportedly agreed to a pan India partnership. The announcement could give Micromax to stay relevant in a space where it lost big time to Chinese smartphone makers. A formal announcement of this new partnership is expected within the next 48 hours.
The partnership means Micromax will help Huawei reach its target customers in India. It will be responsible for creating strategy and achieve a competitive edge in the market. According to The Mobile Indian, Micromax will also help Huawei with marketing and brand placement for select products. The partnership details come to light ahead of Huawei Y9 Prime (2019) launch, its first smartphone with pop-up selfie camera in India. The partnership will allow these companies to focus on their core strengths in the competitive landscape.
“Micromax is going to an exclusive billing partner for Huawei in India for all the channels. It will include organized, open market and Online channels,” a source familiar with the plan told The Mobile Indian.
After the formal announcement, Micromax will reportedly focus on its core strengths of distribution, design, research and development. The company once used to be a major player in the Indian smartphone market. As Chinese players entered the market, Micromax lost its edge and failed to stay competitive. Its products eventually became irrelevant to consumers and Micromax pivoted to offline market completely. Huawei also stands to benefit from such an arrangement with Micromax.
The Chinese smartphone maker can focus on design and R&D while Micromax focuses on marketing. Huawei, despite being second major player, has less than 1 percent market share in India. Its name does joy even appear in the top five smartphone brands despite having support from its e-brand Honor. Huawei has set its sights on becoming smartphone leader this year. In order to achieve that goal, it will need to grow in the fastest growing smartphone market.
For Huawei, the deal could mean faster access to the offline market. While online market remains viable thanks to Amazon India and Flipkart, the offline market remains elusive. Among the top five brands, only Samsung has created a strong inroads in offline segment. With Micromax’s network, Huawei can aim to reach more consumers than previously possible.