Print Edition - 2014-09-30 | MONEY
Mobile phones among fastest selling products
Sep 29, 2014-
Mobile phones are the third most popular purchase after clothes and footwear among festival shoppers, said traders. No wonder people can be seen thronging mobile shops at Pako off New Road which has developed as a cell phone hub. A close observation of the market reveals that mobile shops are a key draw among customers with the festival buying binge in full swing.
To cash in on the festive season when city dwellers with bulging wallets are exploring the bazaars, cell phone dealers of various brands like Samsung, Micromax, Karbonn, Colors, Nokia, Huawei, Lava, DTC and Videocon
have been offering cash discounts and prizes targeting Dashain shoppers.
Due to the stiff competition in the market, companies have been spending lavishly on advertisements. According to Purushottam Basnet, former president of the Nepal Mobile Traders Association, the domestic mobile market is estimated to be worth Rs 15 billion a year and the festive season accounts for 20-25 percent of the total annual sales.
Among the varied schemes, Samsung has been running a cash back plan under which customers get refunds of up to Rs 16,000 on purchase of its mobile phones. Similarly, Huawei offers free accessories including Bluetooth speaker, Bluetooth headset and USB dongle with any mobile from Huawei. It also offers a bundling scheme with Nepal Telecom.
Micromax offers prizes like motorcycles, televisions and mobiles through a lucky draw for its customers. Karbonn offers a two-year warranty along with cash discounts of up to Rs 100,000 and a trip to Goa.
“Many companies offer various schemes and new models targeting the festival season, so people see the festive season as the right time to buy mobiles,” said Shirish Murarka, director of Pashupati Trade Link, the authorised distributor of Micromax mobiles in Nepal.
“And the trend is that people have been increasingly shifting towards smartphones as they are becoming more affordable.” Pashupati Trade Link expects their sales to go up 20-25 percent during the festive season.
Prices of the smartphones available in the domestic market range from Rs 4,000 to Rs 70,000. There is a wide selection ranging from entry level smartphones costing Rs 10,000 to Rs 15,000 to high-end models in the Nepali market, said traders.
“The young generation always looks for new handsets arriving in the market, and as they get extra spending money during the festive season, they plan to buy their desired phones. So we try to tap the market by launching new handsets at attractive prices,” said Sachin Udas, sales head at Teletalk, the owner of Color mobiles and the authorised distributor of Gionee mobiles in Nepal. He added that the company had launched eight smartphone models targeting festive buyers.
“We have launched festive offers and new models to create a buzz among buyers during the Dashain festival,” said Sama Shrestha, marketing manager of Ctv Mobiles. Ctv Mobiles offers mobiles, wall clocks, torch lights, T-shirts and silver coins as a gift to purchasers of any mobile from Ctv.
Similarly, Karbonn’s authorised distributor Allied Trade Link has recently launched new smartphones in the market. “Along with new models, we are running festive schemes to attract customers,” said Manish Rajbhandari, managing director of the company.
With the entry of new smartphones in the market, established brands have been compelled to slash prices. Global Chinese brand Gionee entered the Nepali market by launching a wide range of smartphones this month. Likewise, Japanese multinational electronics company Panasonic is also planning to aggressively market its products with a new range of smartphones in the domestic market.
Published: 30-09-2014 10:01