In the early days, the Indian mobile phone retail industry was highly fragmented and unorganised. Mobile handsets were expensive, the grey market dominated and there were few showrooms around to showcase mobile products. It was then that seeing an opportunity, Sathish Babu entered the scene selling postpaid mobile connections as a skycell teleshop. Within a decade of launching himself in business, he started UniverCell in 2000 in Chennai. From a single store with 32 employees in 2000, UniverCell has grown to 200 stores with over 1,300 employees. Satish Babu, Founder, UniverCell, shares his journey with IndiaRetailing.
IndiaRetailing: From selling vacuum cleaners as a door-to-door salesman to owning a business selling mobile telephone sets, how does it feel?
Satish Babu: It gives me great satisfaction to move from an employee to an employer of over 1,300 people. I also feel more responsible as whatever decision I take can influence the lives of over thousand families, for good or bad.
IR: With 300 million mobile users, how do you analyse the nature of mobile retailing in India?
SB: Still just around 10 per cent of the sales happen from organised retail, balance is from unorganised. A definite shift to organised retail will happen. There is a great scope for organised trade to grow especially in the next two years.
Most of the retailers currently are not providing a comfortable ambience, touch, feel and buy experience. In the coming days retailers who do not upgrade their stores will perish.
IR: You have recently launched mobile theft insurance plan. How has the launch contributed to your sales figures?
SB: The response to the mobile theft insurance has been very encouraging. Response today is 50 per cent conversion. Once the awareness about the theft insurance increases, it might go up to 80 per cent of our sales.
IR: With big corporate houses already in the mobile retailing arena, what additional value can a consumer find at a UniverCell showroom?
SB: Univercell stands for customer service. We have been in this area of business for over 11 years. Most of the so called ‘corporate houses’ are around for less than 2 years. When we started our business we were selling postpaid connections by going to the consumers’ place through cold calling. We understand this business much better than most of them as we have seen the transformation in this industry from almost day one.
Our sales people are hired for their attitude and are trained for skills. Then they are put through an extensive 15 day training on product knowledge and in soft skills before they are put on the shop floor.
IR: Your target consumers?
SB: Our primary target consumers are young achievers, upwardly mobile, educated, SEC A, and consumers who seek an experienced retailer.
IR: How has been your sales figures during the ongoing financial slowdown? What measures do you find essential to further boost up the sales?
SB: The sales when compared with last year’s April to November period have grown by 55 per cent. Over all we will be growing 45 to 50 per cent over last year.
To boost sales we need exciting products and developments like launch of 3G services and banning of Chinese handsets. Three to six more operators are expected in the next few months per circle. All these will excite the market.
IR: Please share your expansion plans.
SB: We have over 200 touch points and we are still expanding. We will expand now taking advantage of the falling rentals. Currently all stores are company owned and company operated. But going forward we are exploring the franchise route. We will continue expanding in the coming future more into South and look at options in other regions.
