Will launch TVs, super cycles in India by the end of this year, says Jain of LeEco

The Indian smartphone market is one of the fastest growing markets in the world, attracting many international players. The past couple of years witnessed several Chinese brands such as Xiaomi, Vivo, OnePlus, Gionee, etc. enter the Indian market and quickly gain some market share. LeEco, formerly known as LeTv, entered the Indian market this year with just two smartphones in its portfolio. The company has been aggressively advertising about the devices too. Atul Jain, COO - Smart Electronics Business, LeEco India in conversation with Business Today talks about the company's strategy for India.

BT: Since the launch in January 2016, just over a month, how has been LeEco's journey so far in India?
Jain: Our journey has proved to be an exciting one. In the past few months we have successfully wooed the Indian consumers with the launch of our Superphones - Le 1s and Le Max. Introducing Le Ecosystem to India, the company has also announced content partnerships with Yupp TV and Eros International for Video-on-demand (VOD) and TV content streaming respectively. Our Le 1s has already captured a significant share of the massive middle-class market as in last one month we have managed to achieve 220,000 total orders of Le 1s through flash sales.

BT: What market share do you think LeEco will be able to achieve by the end of your first year of operations in India?
Jain: In India, we aim to be among the top-three smartphone brands in the next one year and number 1 in terms of online business within six months. Our target will be driven by our unique ecosystem proposition that has a four-pronged approach: devices, content, cloud and platform. We believe the integration of these four will enable us to deliver towards the entertainment needs of all our customers in India, making us a distinctive brand in the country. LeEco is keen to bring the latest internet-based technological products to India, and offer people an enhanced user experience not only through the innovative tech specs of our Superphones but also through the integrated ecosystem that we have across our devices.

BT: Do you plan to set up an R&D facility or manufacturing facility in India? If yes, can you share some details?
Jain: LeEco is committed to the Indian market and has plans to manufacture in India. The company also greatly values the talent pool here and to this effect has already set in motion a recruitment drive for 1,000 people to man an R&D operation at Bangalore. The centre will work on product R&D for India as well as for other global markets.

BT: What kind of marketing budgets do you have for the Indian market?
Jain: Since our plans for India are long term, we would certainly be looking at sizeable investments here. It would be premature for me to assign a figure at this stage. We are already on course to build our R&D centre here and a manufacturing plant could be in the pipeline.

BT: Which markets and geographies are you focusing in India?
Jain: LeEco is looking at tapping pan-India market. Initially we have given more weightage to the top 10 markets, aligning with the purchase pattern data for our products.  But as we move forward, we believe there is huge untapped demand in smaller towns too, which we plan to pursue aggressively.  
 
BT: Do you plan to move to offline retail as well?
Jain: We follow a sales model that we believe would provide access to the widest number of buyers. We recognise the key role played by e-commerce companies and will definitely look at appropriate tie-ups in this space. We also have our own e-commerce platform LeMall.com, which will be activated soon in India as well.  This does not mean that we rule out the brick-and-mortar route as we also wish to reach out to certain sections of Indian consumers who like to feel and experience a product prior to buying, but as of now these remain a part of our long-term plans for India.

BT: What kind of service support do you have in India?
Jain: Considering how important after-sales service is for Indian customers, LeEco India has given its complete attention to its after-sales service setting up 555 service centres across more than 300 cities and towns in the country.  We are ensuring the best after-sales experience for our customers by providing a 24-hour hotline that is accessible through the internet and telephone.
 
Also, in case of any physical damage to the device, we offer users a replacement within 3-5 days. Instead of repairing the damaged device, all our 555 service centres are equipped to exchange damaged devices with another device only at a bare minimum cost of Rs 6,000 plus applicable taxes.
 
We are also providing free pick- up and drop off for our premium phone - Le Max - in case of any damage related issues.

BT:  Within a month of launching in India, you are already hosting LeEco Day. What is the reason behind hosting the festival so quickly and selling Le 1s without flash sales?
Jain: We are humbled by the Indian consumers' response to our superphone and achieved 220,000 orders and 2,028,000 registrations through three flash sales. We recognise that there is huge demand for our flagship killer - Le 1s and the super-premium Le Max - which has become the prime motivator for us to come up with LeEco Day
 
LeEco Day was planned as an expression of gratitude towards LeEco's growing number of customers and loyal fan base in India. This was also undeniably a grand celebration of LeEco's incredible start in the country.  

BT: Will you be launching more smartphone models in India?
Jain: We have a strategic plan in place for the rest of 2016, and aim to launch more smartphone models in India followed by our super TVs in the second quarter. We have already announced content partnerships with Yupp TV and Eros International, and we plan to expand our reach to offer our consumers a rich library and provide superb experiences.

We have just announced the Le Max Pro at MWC and will be bringing to India later during this year.

BT: LeEco has various products in its portfolio - Internet TV, large screen appliances, electric cars, etc. Do you have any plans to launch them in India?
Jain: We have an extensive product pipeline lined up for the Indian market, as a part of which we are also looking at bringing some of our other products such as TVs and super cycles to the country, by the end of the year.
 
We will also be integrating more content in a month or so, and cloud services too will be available in India in a few months. We are already setting up content delivery networks (CDNs) across 10 locations in India that allow LeEco smartphone or television users to stream audio, video or internet television content on-demand seamlessly and reliably, wherever they are.

We further aim to provide consumers with new, alternative ecosystem-based products consisting of platform, content, devices as well as applications.