The cell phone has become an important part of our daily lives. With expensive smartphones like iPhones and Samsung Galaxies becoming popular, there is a growing demand for items like phone covers and glass guards that protect these expensive devices. This offers a rich business chance for entrepreneurs looking to capitalize on this growing market. In this piece, we will do an in-depth study of the mobile cover and glass guard business and provide useful tips on how to start and run this business successfully.
Market Opportunity
The global market for smartphone accessories like covers and glass guards is expected to grow at a CAGR of 13.4% from 2022 to 2028 and be worth $284.06 billion according to Grand View Research. India alone is projected to have 1.25 billion smartphone users by 2025 according to Deloitte. With the average smartphone user changing their phone cover once every 3-6 months and glass guard every 6-12 months, this offers an ongoing revenue business plan. Even with sales of just one cover and guard per customer yearly, the market size with 1.25 billion smartphone users is enormous in India.
The market can be split into three price ranges:
Premium (Rs 500-1000)
Mid Range (Rs 100-500)
Low Range (Rs 50-100)
Though the luxury range offers better margins, the turnover lies in the low and mid ranges. Having things across price levels allows capturing customers across the spectrum and diversify business risk.
Product Mix
The product list should contain:
Covers: Clear View Covers, Flip Covers, Back Covers, Designer Cases, Battery Cases, Pouch Cases etc in different materials like Plastic, TPU, Leather, Silicon, Acrylic etc.
Glass Guards: 2.5D Curved Glass, 3D Curved Glass, Tempered Glass etc with and without oleophobic coats.
Accessories: Screen Protectors, Charging Cables, Power Banks, Selfie Sticks.
The catalogue has to be varied with styles and materials to appeal to different customer types. Partnerships with design houses and licensing famous entertainment names like Marvel, Disney allows building attractive designer cases. Software like Photoshop and Illustrator helps make unique pictures and case designs.
Sourcing and Private Labeling
Importing covers and guards from Chinese markets like Alibaba and reselling under own brand name allows building a private label at low costs. This saves effort of production while allowing unique branding. The minimum order number is around 500 units which is easily sold in a few months. Quality checks have to be done on the samples before large scale buying.
Local production is better for premium segment items. Acrylic and leather cases can be made by local tanneries and plastics companies at cheap rates. Low labor prices and abundant raw materials in India are helpful for local production.
Distribution Channels
An omnichannel marketing plan should be followed with both offline and online shopping channels:
Offline: Physical stores in malls and local markets, small kiosks in company offices, institutional sites and metro stops. Promotional stands can also be set up during big sales seasons and holidays.
Online: Selling via e-commerce marketplaces like Amazon, Flipkart and SnapDeal gives nationwide reach from day one. An independent website and app also help get straight orders. Social media advertising methods target relevant customer profiles.
Wholesale: Selling to multi-brand mobile shops, distributors and modern trade places gives volume sales. But earnings tend to be smaller.
Pricing and Brand Positioning
The pricing has to be kept competitive with rivals and online stores. The brand has to be positioned as a value for money, mass market player. Innovative designs and use of licensed brands help make a price premium and brand memory. Bundling covers and guards as combos gives impression of good value. Limited time savings and cashback offers promote trials and improve customer acquisition.
Promotions
Social media marketing on Facebook and Instagram has to be leveraged strongly for a business aimed at young smartphone users. Hashtags, influencer marketing and contests spread brand information. Search and show ads on Google and YouTube give exact targeting. Radio and mall activations build area buzz. Tie ups with smartphone names like Oppo, Vivo etc help cross-promote around product launches.
Operations and Customer Service
Manpower has to be treated smartly to keep overheads low in this high turnover, low margin space. Automated order handling and transportation through technology lowers costs. Multi-channel order fulfillment skills have to be built – for example ability to ship online orders and refill retail store goods from the same warehouse. Self-service choices on website and app lowers customer help overhead. Customer questions have to be answered quickly. Fast repairs have to be given for faulty pieces.
Financial Estimates
Estimated Capital Required: Rs 20-25 lakhs for starting off including buying of goods, retail and online channel setting costs.
income: Rs 50 lakhs income can realistically be achieved in Year 1 by selling 50,000 boxes and guards altogether. With reinvestment of gains to spread, income can grow to Rs 5 crore in 2 years.
Profit Margins: After costs, 10% profit margin is possible. So Rs 5 lakh profit in Year 1. This can improve to 15% with scale. So Rs 75 lakh profit by Year 2.
Conclusion
The mobile cover and glass guard market presents a great business chance, especially in India with its huge and growing smartphone user base. Following the product, pricing, promotion and channel strategies stated in this piece improves the chances of success greatly. With diligent customer service and cost control, a sustainable, profitable business can be made. The market potential is huge and by performing well, a company with scale can be built up across India.
