Mobile Retailing

Mobile retailing in India is estimated to rs. 28000 crore per year. It is divided among organized trade and unorganized trade. organize trade has only 10-12% share of it rest is done by unorganized trade. Major players in organized trade are The mobile store (Essar group), Hotspot spice (BK Modi group), Planet M (Videocon), One mobile (Pantaloon). Following four players have pan india presence. other than these mobile retailing also done by small players like sangeeta, global access, xcite, reliance digital and croma.

The mobile store so far has been biggest retailer in India.  It has Pan India presence from Kashmir to Kerala and Gujrat to Guwahati. It has currently 1300 touch point. Second in the list is Hotspot spice. They are on expansion mode and diverged to franchise model for expansion. company own company operated store are pain to operate on little margin. In mobile industry turn over is high while margins shrink to 2-3%. Hotspot has been first to innovate franchise model and run it successful. after testing prototype they are gunning on it. In Rajasthan itself they have made 300 franchise.  Plan for them is to have 5000 touch point by 2012.

The mobile store as said biggest mobile retail chain has not come with something conclusive. It has been reported that they are in pipeline to purchase a biggy in ‘One Mobile’. so when Hotspot is banking on franchise to expand its net ‘The mobile store’ is looking for acquisition and merger. It will be interesting to see how economy revive will boost mobile retailing and particularly these two giants.

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