G'Five plans to unseat Nokia from top spot in India

How did you grow to be a big brand in India?

Shenzhen-based Kingtech Electronics started manufacturing phones for various companies in 2003 and launched the G’Five brand around 2007. It sold G’Five via its trading company in Hong Kong to distributors who brought the brand to India. It was a good product at a competitive price. There was no marketing, no service, no warranty, nothing. As a brand we love our anonymity and, therefore, no one noticed us until we were doing over 1 million units a month last year, which was good.

You continue to do business like this?

No. Last year we repositioned ourselves. We set up an India office in 2010, and in January 2011, we launched a product with a projector, and we plan to introduce touch screen and Qwerty keypad phones. Today we have 500 service centres that will double to 1,000 by the end of this year.

Why are the market leaders in India hurting?

Our lead-time for coming up with products is very short. It only takes 45 days from ideation to delivery of a new product. Any European or American company just cannot compete with us. They are very high-cost and margin-driven. We are market-share driven.

How did G’Five take share from Nokia?

Two years ago, customers asked handset sellers for Nokia phones and the trade didn’t have to push the brand. But when it came to dual-SIM (subscriber identity module), Nokia believed that it killed the prospect of selling another phone.

So wholesalers and retailers pushed other branded dual-SIM products, which were a boon in the absence of number portability. We realized that this is one space that Nokia is unlikely to come, and brought out several variants.

How do you manage such a wide range of models and variants, and how can you keep costs low?

We are the largest exporter of handsets out of China. We have a manufacturing capability of 5 million handsets a month. Economies of scale are in our favour. We have more than 300 models in our range. Our capability to launch is two models a week.

Why would you want to launch so many models every week?

Technology changes very fast and component prices also reduce. Every product becomes obsolete in months and the process to manufacture it becomes expensive. We keep launching new products and models to take advantage of the dropping prices of the components, and also offer a product that is contemporary and cost effective.

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