In the universe of electronic accessories, India and Bharat are two distinct worlds as characterized by their unique market and brand dynamics.
Metro and tier 1 markets, also known as India, is dominated by the likes of boAt, noise, Fire Boltt, pTron, Apple, Samsung, and OnePlus. These brands are adored by the urban consumers and largely bought via digital channels or modern retail stores! I call these brands, the India brands!
Underneath this India market, lies the huge, less organized and fragmented Bharat – the tier 2 and below market. Some lesser-known brands like ERD, U&I, Ubon, Dvaio, and Ambrane rule the roost here. I call these brands, the Bharat brands! Despite being low on awareness, some of the brands have significant toplines – in a few hundred crores range, and a few ‘claim’ to have crossed the coveted thousand crore mark too. Surprising, isn’t it?
The likes of ERD, U&I, Ubon & others are practically the kings of the offline channel. They were born and now thrive on the back of extraordinary distribution capabilities. In the Bharat market, the retail stores are filled with endless assortment of product from the Bharat brands. The distribution channel is well oiled with lucrative credit and agile supply chain system boasting quick delivery and responsive after sales service. The countless offline retailers operating in smaller towns have traditionally adored these brands as it allows them to earn better margins! And, they in turn push the products to their customers.
On the other hand, the online first brands like boAt, noise, Fire Boltt, pTron etc. are built on the digital channels on the back on good marketing and product development capabilities. The channel, however, had restricted reach to Metros and Tier 1 cities, and therefore, the India brands did not natively have presence in the Bharat market. They are now taking the baby steps towards this market in search of growth.
It is natural that both worlds would converge at some point in time. India brands have already set their eyes on the large Bharat market and scaling up the offline distribution capabilities at the break neck speed. The are building the good old distribution muscle!
The Bharat brands, on the other hand, are becoming aggressive on the digital channels. They have realized their limitations and now attempting to build marketing and product development muscle. Not only do they have to win on the digital channels but also have to defend their home turf!
Who will come out as winners?
Only time will tell but the battle is already fascinating. And at the centre of this battle lies the consumers – the India consumers and the Bharat consumers. These consumers are the true kings/queens of the electronic accessories universe.
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