Reliance Jio - Revolutionizing the future (B&E charges)

If you want to learn something about planning, these are the guys you would want to talk to. Planning their 4G launch for the past five years, Reliance has been doing their homework really well.

The Past:
We all remember those tiny Reliance handsets which took the market by the storm and created a near monopoly for Reliance in that specific market segment. My mom still has one of those phones and believe me, they're durable. With the advent of severe technological changes and shortening of a product's (mobile phones) consumable life cycle, along with a rise in standard of living, Reliance has realized that the same model won't work twice.

That's the good part, learning. Now comes their implementation.

Breaking & Entering: 
Airtel has bought the frequencies and the ad spots, launching it's 4G in certain specific regions and are publicizing it as much as they can. Airtel played it safe and kept their image and branding solely limited to the whole "Service Provider" idea. RelianceJio is not following the same thing. They're working on creating a Telecom Brand, rather than just a service provider. Essentially breaking the singular 'Service Provider' outlook and entering Retail again.

What RelianceJio is now doing will shape the telecom market for the next few years. This change will not only be restricted to the "Service Provider" market, but will also leave profound imprints on the "Device Manufacturers" & "Mobile Retailers" industry.

So What Are They Doing Exactly..?
Taking references from the Economic Times, RelianceJio is using the following:

a. MakeInIndia campaign - Reliance is talking to Micromax. Lava, Karbonn, Intex & Lenovo already, while these brands are getting ready to setup their manufacturing plants in India. If the specifications of the phones manufactured by these brands match with the one Reliance needs, Reliance will buy all of the handsets with the required specifications that they produce in India. This shows the dedication Reliance has towards capturing and dominating the market. The mobile manufacturers mentioned above hold a significant market share themselves (Micromax [17.9%], Intex [10.2%] & Lenovo [7.6%]). This shows that there already exists a reasonable demand for these products and with a new technology in hand, it is not only going to benefit the users but also the manufacturers, who will enter into India's newly created 4G market, hand in hand with Reliance Jio.

b. ReConnect - ReConnect is Reliance's consumer electronics brand which will sell these 4G handsets throughout India. If they're only selling these handsets through the ReConnect brand, then Reliance is following Tesla's footsteps in terms of creating a powerful monopoly. In any other case, this is still an extremely strong technique to push forward not only RelianceJio but also ReConnect as a consumer electronics brand.

Killing two birds with one stone?

c. Market Segment Choice - Unlike the last time, Reliance is playing it differently. Keeping in mind the new market at hand, all the new handsets with 4G will be priced between Rs. 4,000 - Rs.25,000. This opens up a huge market for Reliance to enter, as this price range covers the maximum volume of buyers. This is a change from the previous Reliance CDMA wave, as at that time the mobile handset market was very restricted, there were less number of choices in terms of devices which could support the technology combined with the limited number of phones which were "Reliance approved" and the target was primarily the "affordability" of the phone. This time, Reliance is opening its doors to consumers from all brackets of the consumer chain.



Now all we have to do is, wait for it. The chips are in place, the show is ready, we just need to wait for the curtains to shift and give way to the spotlight on the stage.



Economic Times - Market Segments Study with Cybex Exim Solutions [Jun '15]
Economic Times - Reliance Jio & MakeInIndia

Comments

Popular posts from this blog

Today, I cannot believe in anything

Singularity - A short story (Part 1)

NaMo ya na NaMo?