Mobile chains get retail variety

Mobile handset retail is fast giving way to technology retail. Soon you can walk into the popular mobile retail outlets such as HotSpot
, MobileNXT or the Mobile Store and pick up laptops, iPods, Xbox, computer software, music systems, speakers and gadgets, besides a range of latest technology mobile handsets. To improve brand recognition and revenues, players in this segment are fast looking at options to offer a gamut of products and services other than mobile handsets to provide their consumers with an end-to-end service option. Branded mobile chains currently account for 15 per cent of the handset sales in the country and the figure is expected to touch 40 per cent by 2010. With more players entering the mobile retail segment, the innovations are on a high scale. Apart from offering mobile handsets, these stores are bundling it with high-end services like full movie viewing option, play stations along with utility-based offers like discounts, extended warranty and repair as well as replacement services. Now many of the branded chains are migrating to the next step by expanding to technology-based products. “Currently we are operating 350 stores all over India and we will expand this number to around 1,500 by the end of this year. Through our stores we want to provide our customers with a complete package wherein they can shop for latest technology in mobile handsets as well as in laptops, camera, iPods, and mobile movie viewing. We seek to grow from mobile retailing to technology retailing," explains Sanjeev Mahajan, CEO, HotSpot. Ditto with Mobile Store. “We are offering a host of products and services at our stores like DTH connection, gaming devices, pouches, screen protectors and data cards, pen drive, storage device along with mobile and accessories. This has significantly increased footfall at our stores and have also added to our margins," the company's CEO Rajeev Aggarwal said.
Mobile Store currently has 800 stores across the country and Aggarwal said that the company had already chalked out plans to rollout an additional 1700 outlets by the March 2010. MobileNxt has gone a step ahead and launched an online shopping portal partnership with India Post. “Through this initiative we are looking at a pan-India presence, where India Post will help us deliver more than 1,200 towns across India,” said Vijay Menon, CEO, MobileNxt. “Since the margins from mobile handsets alone is not much, we are offering products like iPod, MP3 players, and speakers also to our customers through our portal as well as through our physical stores. Although right now we are in no dialogue to introduce gadgets like camera and laptops, however, sometime in the future we will look into the option,” added Menon. MobileNxt currently has 50 stores across 12 states and is expected to add 150 stores to their existing chain. “The key is differentiation by offering multiple products, such that all the technological needs are taken care of once the consumer walks into our stores.” adds Mahajan. “The reason is not lesser margins from mobile handsets but it is about market maximization. It is a smart marketing move and will bring as well as retain the number of footfalls in the stores. The industry is maturing and in near future it is going to see far better marketing innovations”, says Harvinder Sahini, an analyst with retail consultancy firm Technopak.