In 2011, Okie Ventures began off as importers and manufacturing facility assemblers of smartphones, function telephones, LED TVs, and sound programs. As the buyer electronics area in India is altering quickly, EFY’s Vaishali Yadav chatted with the Managing Director of Okie, Mr Jitin Masand, to grasp why the corporate isn’t logging on for gross sales, the way it claims to keep up high quality with low costs, the rising market tendencies, and far more. Learn on for the excerpts…
Q. Might you temporary me a bit bit about Okie and your background?
A. I began a cell phone enterprise in 2006. Initially, we centered on distribution till 2009 once we started importing cellphones from China. In 2011, we ventured into creating our personal model known as Pace Cellular.
It was an thrilling time for the cell phone business, with many new manufacturers rising, equivalent to Micromax and Lava. We had an amazing expertise working with 400 distributors and promoting over 4 million telephones.
Nonetheless, in 2017, we realised that the know-how panorama was altering, particularly with the rise of Chinese language manufacturers. We determined to shift our focus and discover the buyer electronics market, notably LED TVs. In 2018 and 2019, we engaged in buying and selling enterprise and found vital alternatives. This led us to ascertain a correct Indian model that caters to the market’s wants. Presently, we function within the leisure sector, supplying LCD TVs and audio merchandise.
Q. Because it has been greater than 16-17 years because you began on this enterprise, how have you ever seen the tendencies evolve?
A. Initially, once we began in 2006, cellphones have been thought of a necessity for communication. Folks have been amazed by the concept of a tool that allowed interplay between people. Equally, TVs have been primarily used for broadcasting data with out a lot person interplay. Over the previous 5 to 6 years, we now have witnessed vital modifications.
These gadgets have turn into extra user-friendly, enabling customers to not solely use them but additionally work together with them. As an example, Sensible TVs have reworked into digital companions for people, providing a personalised person expertise. Customers can swap between purposes for leisure, data, and gaming.
Q. How has the market focus shifted over time?
A. The market has shifted its focus to screens, as individuals now choose utilizing screens for varied functions. Screens are current in eating places for menu ordering and in industrial places of work for data and displays. Moreover, Sensible TVs have turn into as succesful as smartphones, permitting customers to browse the web, store, and have interaction in gamification. We anticipate additional developments in Sensible TVs, equivalent to improved video capabilities and AI integration.
Q. How has your organization managed to remain afloat amid all of the altering tendencies within the final decade? How do you assess your efficiency?
A. Up to now 10 years, our focus has been on being product-oriented and understanding market calls for. We all the time set our expectations in step with business leaders. Within the TV business, for instance, Samsung and Sony are outstanding leaders, and folks anticipate comparable high quality from different manufacturers. Whereas surpassing their technological improvements is difficult, our purpose is to supply comparable options and high quality at an reasonably priced worth.
Our procurement course of is powerful, guaranteeing high-quality parts for our merchandise. We try to match the product high quality of LG and Samsung however at a extra reasonably priced worth level. Moreover, we now have a large attain in tier two and tier three markets, with a presence in 2,500 shops.
Q. How do you handle to attain this whereas sustaining comparable high quality to different manufacturers like Samsung and Sony?
A. Our strategy includes procuring spare elements instantly from producers with out intermediaries, which helps us save on prices. We additionally hold our revenue margins restricted in comparison with giants like Samsung and Sony, permitting us to go on the profit to the tip shopper. We now have wholesome margins that don’t considerably inflate our costs. This ensures that our merchandise stay aggressive whereas sustaining high quality requirements.
Q. Please present some insights into the developments occurring within the varied segments that your organization operates in, together with sound programs and gaming.
A. By way of our principal product, TVs, we now have three classes: primary, common, and premium. Presently, we specialise within the common class however are working in direction of getting into the premium class as nicely. Relating to premium TVs, we’re specializing in 65-inch merchandise with 4K OLED screens.
The newest development in screens is the introduction of Polaris OLED screens, and the subsequent step can be 8K decision. We now have partnered with LG to acquire licenses for his or her software program and good distant management. This collaboration permits us to supply prospects with the expertise of utilizing LG’s worldwide software program, which is already acquainted to many customers. By specializing in software program, we make sure that prospects have a seamless and user-friendly expertise with varied apps obtainable on our TVs.
Moreover, we now have designed a brand new line of audio system particularly for TVs above 55 inches. These audio system present a encompass sound expertise, eliminating the necessity for extra soundbars or audio system in smaller homes. Design-wise, we intention to make our merchandise look premium, utilizing high-quality panels to ship top-class visible high quality. The 4 principal parts we give attention to in our TVs are design, panel high quality, audio system, and software program.
Transferring past TVs, within the full leisure zone, we provide three classes of music programs. We proceed to enhance the standard of our merchandise and plan to enter the laptop computer class, focusing on tier two and tier three markets. These laptops can be designed for leisure functions. We’re planning to launch our laptops within the subsequent quarter.
Q. Might you briefly clarify the steps concerned within the manufacturing and assembling course of at Okie?
A. Definitely. Relating to cellphones, for instance, there are round 40 elements concerned. We work with about eight to 9 suppliers to acquire these elements. The manufacturing ecosystem in India has improved considerably, and we now have recognized a easy provide chain system. We procure the supplies, verify their high quality, and produce them to our manufacturing facility. Then, there are round 20 steps concerned within the meeting course of. These steps embrace assembling varied elements such because the panel, chipset, electronics, physique, speaker system, wiring, and extra. Presently, round 50% of the supplies used within the manufacturing course of are sourced from India, whereas the remaining 50% is imported.
The purpose is to additional improve the native manufacturing of parts and scale back dependency on imports. India has been progressing on this regard, with extra elements being manufactured throughout the nation. Though there’s nonetheless some dependency on imports, the main focus is on establishing factories and plastic extrusion amenities in India. This fashion, we will depend on native manufacturing and regularly scale back the necessity for imports.
Q. How vital would it not be if semiconductor manufacturing began in India?
A. Whereas it could not instantly result in a rise within the amount of electronics manufacturing, it will vastly scale back dependency on different international locations for semiconductors. This might be an important step in direction of self-reliance and make sure that the remaining digital parts are sourced from inside India.
Q. Are you current on on-line platforms like Flipkart and Amazon?
A. No, we primarily give attention to offline distribution. We’re constructing a powerful community of over 15,000 retailers within the shopper electronics enterprise. Our intention is to supply a bodily demonstration of our merchandise via these retailers. Nonetheless, we do have listings on e-commerce platforms, however we don’t promote instantly via them.
Q. Do you have got any plans to broaden your presence on on-line channels sooner or later?
A. Whereas we acknowledge the rising recognition of e-commerce platforms, at the moment, a good portion of our gross sales, round 70%, comes from offline channels. We might contemplate increasing our presence on on-line platforms sooner or later, however it’s not a right away precedence. We wish to set up a powerful offline presence and guarantee prospects have the chance to expertise our merchandise firsthand earlier than exploring on-line channels.
Q. Why is your presence extra outstanding within the southern a part of India in comparison with the northern half?
A. Our firm is predicated in Bangalore, Karnataka, which has been one in every of our high markets. We initially centered on constructing a powerful distribution community in South India, the place we discovered the market dynamics and community to be extra beneficial. Nonetheless, we now have just lately expanded our presence to Maharashtra as nicely. Whereas we might ultimately give attention to increasing to different elements of India, for now, we’re concentrating on consolidating our place in South India.
Q. Are there any plans to export your merchandise internationally?
A. Sure, we now have plans to export our merchandise. We now have ongoing discussions with potential companions in Saudi Arabia, and there’s curiosity in exporting our merchandise to African international locations as nicely.
Q. What sort of partnerships do you search within the Indian market to broaden your buyer base?
A. We consider that partnering with large-format retail (LFR) shops like Reliance Digital and native manufacturers equivalent to Reliance and Chroma may help us attain a wider buyer base. These shops present a superb retail base for displaying our merchandise.
Moreover, we’re planning to collaborate with Google for the event of Google TV, which is a globally recognised know-how. The affiliation with Google for Google TV is already in place.
Q. How did the COVID-19 pandemic have an effect on shopper digital gamers like your organization?
A. Happily, when the COVID-19 pandemic hit, we have been well-prepared. We had established our provide chain and advertising and marketing plans simply earlier than the pandemic started. Regardless of the challenges, we managed to proceed supplying our merchandise and even expanded our market presence in Tamil Nadu by protecting 100 shops in simply three months.
The pandemic offered a novel alternative for the buyer electronics business, notably within the LED TV phase, as individuals began realising the significance of getting a number of TVs at house.
Q. As you have got unbiased mental property rights (IPR), are you able to inform us extra about your analysis and growth (R&D) actions?
A. Our R&D focus primarily lies within the gaming area. Within the shopper electronics discipline, we’re notably engaged on enhancing sound high quality, particularly in audio system. Moreover, we conduct high quality analysis to make sure that the merchandise we provide meet the market’s expectations. Our principal R&D hub is positioned at Kundli in Sonipat, Haryana.
Q. How is AI impacting your small business and buyer expertise?
A. AI performs a major position in enhancing the person expertise and comfort, particularly within the fields of social media, digital media, and e-commerce algorithms. Within the TV business, AI is predicted to enhance the person expertise for our prospects, making it extra handy.
Q. What are some use circumstances of AI within the shopper electronics area?
A. As an example, think about watching a film on Netflix the place the hero is consuming pizza. With AI integration, a bar window might seem on the TV display, displaying close by pizza locations related with meals supply platforms like Swiggy and Zomato, permitting prospects to order pizza instantly from the TV. AI will make the person’s decision-making course of simpler and improve comfort throughout varied sectors, together with looking for furnishings via TVs and different such purposes.
AI can improve the buying expertise by routinely looking and recommending merchandise primarily based on person preferences. It may possibly additionally play a job in digital studying via interactive panels and good TVs, permitting for extra participating and in-depth explanations.
Q. Is digital actuality (VR) anticipated to have a major affect on the buyer electronics market?
A. There may be scepticism in regards to the potential of VR within the shopper electronics market. It’s seen as a distinct segment product fairly than a mass-market know-how, and there’s restricted demand and curiosity from each companies and customers.
Q. Going ahead, what are the challenges within the shopper electronics area?
A. Worth competitors is a persistent problem, with some corporations providing cheaper alternate options that will compromise high quality and after-sales service. To face out, corporations must construct belief and guarantee product high quality. Moreover, maintaining with evolving know-how and assembly shopper expectations are ongoing challenges.
Q. Can India turn into a worldwide chief within the shopper electronics business?
A. India is on its method to changing into a worldwide chief within the shopper electronics business. We now have already made vital progress, notably within the cell phone enterprise. With authorities initiatives and a rising pool of expert engineers, India’s potential as a worldwide chief is promising.
Q. Does India have sufficient expert engineers within the shopper electronics discipline?
A. Sure, India has a ample variety of expert engineers within the shopper electronics discipline. Varied states have established polytechnic and engineering faculties, and the brand new technology is keen to contribute to the business. Whereas there could also be a niche between theoretical information and sensible expertise, with time and coaching, recent graduates can purchase the required expertise.
Q. How is sustainability being included within the shopper electronics area?
A. Firms within the shopper electronics area in India observe authorities tips and insurance policies for sustainability. These embrace procurement planning and disposal planning to make sure merchandise meet requirements and observe sustainable practices, minimising environmental affect.
