Lava to launch new sub-brand of Xolo to recreate Xiaomi’s online-only model

By January 22nd, 2015 AT 5:13 PM

Following the steps of Micromax, another Indian smartphone maker, Lava is going to replicate Xiaomi and Motorola’s online-only business model for selling its smartphones. To take this decision forward, the company has announced that it will soon launch a sub-brand of its popular Xolo brand along with an exclusive e-commerce portal for conducting the online sales smoothly.

The news also received a confirmation from the founder of Lava, Vishal Sehgal, via Economic Times. Although, Sehgal refused to unleash the name of the sub-brand and he also did not disclose a set timeline for the launch.

Lava

However, he mentioned that both the e-commerce website and the online-only sub-brand will be launched at the same time. This move is being compared to what local brand Micromax has done by launching ‘Yu Televentures’ along with the exclusive Yureka store through Amazon India. In the year 2012, Lava collaborated with Intel to launch the Xolo brand in India. Now, with the Xolo sub-brand, Lava is looking at a larger perspective in order to expand its reach further and also to compete with the other online-only smartphone sale brands.

Founder of Lava, Vishal Sehgal, also stressed that the company is not going to decrease the prices, the primary focus is to expand its reach. “We don’t want to do e-commerce for discounting and reducing the price, rather reach out to people who want to interact with the brand digitally,” he said.
The smartphone industry in India has witnessed major changes ever since e-commerce entered the sales arena. Last year, we observed global brands like Motorola, Xiaomi and OnePlus, making a smooth entry in the Indian smartphone market through the unconventional online-only selling model. Lava, surely does not want to be left behind.
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FahadcvaSudhakarRama Recent comment authors
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Sudhakar
Sudhakar

What$im has been released.

Rama
Rama

*I personally don’t understand why don’t retail chains oppose against companies like Micromax and Lava. *At least in case of companies like One Plus,Xiaomi and Motorola,retail chains can’t do anything against them because they are fully dependent on the online sales model and don’t take any help from retail chains. *But in case of companies like Micromax and Lava they have a online only subsidy and are making use of retail chains as well. Most of the smartphone sales in India still occur from retail channels alone. In other words retail channels still have some weight to throw around manufacturers… Read more »

cva
cva

in retail bargaining is biggest factor; people earning their own sweet marging, in last festival season one of sony moile priced @ rs11,300 in online sites like flipkart but when checked with The mobile store, poorvika, reliance digital, universal etc of retail stores Rs.12,100 as least price am getting you could see Rs.800 of difference is there; so retailers are earning rs800+undisclosed of some additional money as well, this too much. so online marketing preferred and increased….. and moving..

Fahad
Fahad

Retails chains will eact.. THey need some time to recover and understand whats going on. And collective action requires patience.. So they WILL react in the end..

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