The concept stores will offer a complete range of handsets from top five brands, 100 accessories, after sales services, value added services, data transfer facilities and an exchange programme. They will also have kiosks from which music, ringtones and wallpapers can be downloaded, he said.
Romy Juneja, Founder and COO, MobileNXT, says the Bangalore headquartered company is being backed by a consortium of investors with $5 million investment.
According to founder and CEO Vijay Menon, the chain store model in telecom business is proven globally.
- In the first year, 31 stores will be opened, followed by 97 in the second and 170 in the third year.
- A Rs 380 crore turnover is our business plan for the third year.
- Primary focus will be on Tier-II and Tier-III cities.
I think the company has identified a definite business opportunity as the Indian mobile user is indeed underserved as far as the after sales service is concerned. The average lifetime of a mobile is 18-24 months and if the chain manages to keep the customer happy, he will continue to give business by way of service fees, accessory sales and handset upgrades. Mobile content and other VAS offer the upside to such businesses. The key to success in any service business is customer service and responsiveness to his needs.
It also remains to be seen if the strategy and execution succeed in making it a viable business and how do they address the following issues.
- Capital expenditure required for setting up a nationwide retail chain
- Choice of retail route - in Malls, Superstores or Shopping area
- Thinning of margins on hardware
- Cost of human-support and service
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