With an annual worldwide sale of over 23 million handsets, Gionee ranks No.10 by its market share, In a candid conversation with Joyshree Saha Arvind Vohra, MD & CEO, Gionee India shares about brand's fast emerging network in global markets.
Please tell us in detail about the inception and growth of the brand?
After completing two successful years in India, Gionee aims to become a $1 billion company by end of FY 16. In 2013, the company has entered India and reported revenues of Rs 500 crore in 2013-14 and Rs 2,750 crore in 2014-15 from the domestic market, a growth of 550 percent. Gionee also plans to invest 300cr in the next two to three years to set up a manufacturing plant in India. The brand is targeting a turnover of Rs 6,000 crore in the current fiscal as it has set a target to sell 40 million units globally by this year, as against 28 million last year. It also expects 8 million units to be shipped to India.
How are you going to maintain the equilibrium between the offline and online channels?
Gionee is now omnipresent and we have well planned channels both online and offline. Our offline partners include leading retail players such as Spice, The Mobile Store, Mobiliti World, Jumbo Electronics, Croma Retail and Planet M to boost up our offline presence. While we cater to our online customers through e-commerce portals such as Snapdeal and Flipkart.
How many offline stores and service centres will Gionee look at opening in the coming year?
Our handsets are available at more than 1000 POS aiming to sell 35000 plus additional devices every month. We aim to open 250 brand stores by next year and take the existing 800 service centres to 1000 by this year. Simultaneously, filing of the application in the Department of Industrial Promotion and Policy (DIPP) is on for single-brand retail licence. We also plan to take the number of franchise outlets to 100 by March and 250 by December.
What is your roll out plan for future?
Gionee plans to invest 50 million US$ in the next three years on manufacturing in India at the facilities of Dixon Technologies and Foxconn, in Delhi-NCR and Andhra Pradesh respectively. It will also increase the investment in R&D team in India, which will work on the software to give better consumer experience and will have a team to work on the Gionee UI, Amigo to make it much more customised for Indian consumers.