We are aiming at $60 mn worth of sales from India over 3 years: Capdase
The rise in the sales of smartphones, especially in developing economies, led to a corresponding rise in global mobile accessories market which is expected to grow at a CAGR of 6.17 per cent between 2016 and 2020.
Capdase, a global pioneer in mobile accessories, is all set to tap this opportunity with a market presence in over 45 countries.
Eyeing India as its next biggest export market, the company recently joined hands with YMS Mobitech, an app-based e-distribution company in the country and plans to capitalise on its network of 11,262 retailers and 361 distributors spread across 383 cities.
Stanley Chu, Founder and Director, Capdase and Ajay Laddha, Co-founder, YMS Mobitech spoke to The Dollar Business (TDB) about inking this partnership and the business potential of the Indian market for mobile accessories.
TDB: Can you shed some light on your upcoming investment plans in India?
Stanley Chu (SC): The Indian government is motivating foreign companies to invest and set up manufacturing units in India. It is a good sign and gives us the right push for framing our future plans. Having said this, our business performance in 2017 and 2018 in India is critical and will drive our investments here.
TDB: Can you brief us about your presence across the globe?
SC: We have major markets in countries like Indonesia, Philippines and China. We have a strong network across most of the Asia Pacific markets as well.
TDB: You already export to over 45 countries. So, do you have plans to reach to other markets as well?
SC: We obviously plan to capture the Indian market. But outside India, we are also looking at the Middle East markets like UAE, Saudi Arabia and South Africa which hold high potential for major growth.
TDB: How much sales are you targeting for financial year 2017-2018?
SC: For 2017-2018, we are targeting sales of around 30 million units.
TDB: How much does India contribute to your sales globally?
SC: India used to make up 20-25 per cent of our total business. However, with our partnership with YMS Mobitech and the new-planned strategy, we are confident to scale that number.
TDB: Can you tell us more about your partnership with YMS Mobitech and how it works?
SC: We are working on an exclusive distribution model with YMS Mobitech for the whole of India. YMS has a strong network across India and our strength lies in creating high value, innovative products. We believe we are the perfect match for each other.
TDB: How do you see this partnership after five years?
SC: Our first phase of the partnership with YMS Mobitech will involve reaching out to the metros and over 100 tier-1 cities and towns. Our target is to reach sales more than $10 million in the financial year 2017-18, and then focus on increasing it further. We aim to clock in sales worth $60 million over the next three years from the Indian market.
TDB: What are YMS Mobitech’s future plans to reach out to global customers?
Ajay Laddha (AL): YMS Mobitech currently has a sales channel across 26 states and 383 cities across India. Our e-distribution platform, with 361 distributors and 11,262 retailers, is helping high-end accessories players like Capdase and handset makers like LeEco and Xiaomi make a successful transition from being an online player to having its presence in the offline channels of sales as well. By using our platform, manufacturers can directly bill to retailers as per their need, thus making the process more efficient involving lesser cost.
TDB: How is demonetisation impacting the distribution industry in India?
AL: Demonetisation has been the defining move of 2016 for India. Its impact will be felt across business and service verticals. The mobile handset market in India has witnessed exponential growth over the last few years, leading to a surge in demand for mobile phone accessories. Demonetisation will lead to an increase in cash-less transactions and hit the grey market massively. There will be increased acceptability for e-payments for small and big retailers alike, leading to an increased number of retailers going digital with higher acceptance for e-based offline distribution.