In a bid to target specific consumer segment and increasing sales, Used Mobiles, top of the handset makers will reduce the number of models it offers by a third to 16 in the next 6 months. Not only this, the company is also reorganizing its business model and limiting its inventory to 15 days as against the normal industry standards of up to 60 days.
Used mobile is among the top handset makers in market and of late it has cut down the number of models from 40 to 60 and in the coming months it will trim 4 to 5 models. The MD of Used Mobiles said that the company is developing long term plans which reduce the choice for consumers but give them more features in the rest of the models.
The move undertaken by Used Mobiles is quite surprising considering the fact that smaller players in the handset market try to come out with maximum models to lure consumers. At the same time consumer looks forward to more models to have a wide variety of choice.
Meanwhile used Mobiles will continue to focus on the lower market segment hovering between R s 1000 and R s 3000, bulk of whose sales come from small towns. The further added that that as of now the company will limit its presence in the mid-end and high-end category.
The strategy of used mobile is opposite to its rival firms such Olive Mobiles and all mobile which have decided to focus on the high end segment. Experts believe that the strategy of used can be because of the weak valuation of Rupee as against dollar which has forced companies to raise prices as imports have become costlier. It is to be noted that most of the handset maker depend on other countries for spare parts, after sales service network and R&D.