Blaupunkt, a German tech firm focused on cars and consumer electronics, is moving into the mobile market with mobile accessories followed by its own smartphone and tablet offerings. These products, which are expected to launch as early as the next year, are going to be made available in the large and already-crowded Indian market.
For German tech, why India?
India gives Blaupunkt a very good test market. It’s a growing market for potential buyers of mid and high-range smartphones that has seen a 20% growth in the last year, with a projected growth of 25% in 2017.
Additionally, India is an optimal location for additional manufacturing if the market demand turns out to exceed expectations.
When asked about Blaupunkt’s reasoning behind launching its mobile accessories and devices in this market, Andrzej Cebrat, managing director of global intellectual property development at Blaupunkt, said: “India builds the case study lesson for global markets. If we are successful in the Indian market, the reviews we get here will be valid in other markets.”
Roughly 80% of Blaupunkt’s revenue comes from televisions and other information and entertainment devices. The mobile accessories market is a growing space. It offers a whole new opportunity for the German company to reach the global market and tap into a class of devices that is increasingly becoming consumer’s focus of attention.
The importance of chasing consumer attention
Last year, entertainment giant Neilson released a report explaining why. It showed that smartphones are becoming the preferred method for media consumption among consumers. Television, in the meantime, is on a quick decline.
Major networks like HBO have already started offering mobile-focused streaming services to their customers. This is an effort to recapture the growing number of cord cutters. These folks are currently spending their media dollars on online services like Netflix and Hulu for their entertainment.
Traditional cable service providers have seen a steady decrease in customers year-over-year, as well.
This is all the more reason for Blaupunkt, and companies like it, to start venturing into the mobile sector.