Reliance’s LYF Brand Expected to Be Worth One Billion Dollars by FY17

Reliance Industries is making progress by leaps and bounds. If the recent CLSA reports are anything to go by, Reliance Retail’s LYF brand could soon be worth one million dollars by the financial year 2017.

These findings have been arrived at bearing in mind the smart phone boom in the country as well Reliance’s expected success in the 4G network sector. Reliance’s retail arm has already garnered positive reviews for its line of smart phones and the much-awaited 4G launch is likely to make LYF a tough rival for other brands like Samsung.

Strong distribution network

The smart phone brand has a lot more going for it than its specifications and visual appeal. Apart from its unparalleled network support and entry-level brand appeal, LYF scores with the innumerable 4G services that Jio offers. All these are likely to up the sales of the smart phone brand in the country.

Fifth largest smart phone brand

According to a report by Counterpoint Research, Reliance Retail’s LYF brand has battled it out to emerge as the fifth largest smart phone brand in the country. This will be beneficial to the upcoming launch of Jio whose strategy is headed by Akash Ambani. Therefore, it comes as no surprise that the company has already succeeded in cornering a seven percent share in the market in the first quarter itself. CLSA deems this an encouraging start for the company and attributes the success to channel filling.

Seven percent market share

CLSA reported that the seven percent market share of approximately 137 million smart phone sales in the current fiscal year is likely to result in sales of ten million units. This rapid growth according to CLSA could make LYF a one billion dollar brand in the country using an average selling price of 100 dollars. The same could drive in 31 percent revenues for Reliance.

VoLTE smart phones

The retail company is said to have shipped 1.7 million LYF handsets into India from January to March. Additionally, the company has been associated with reputed brands like ZTE, CK Telecom, Wingtech and Tinno for sourcing Voice over LTE (VoLTE) smart phones.

Invite system

The invite-based program spear-headed by the company is also expected to yield beneficial results in terms of LYF phone sales according to CLSA. The scheme entails free data services comprising a substantial amount of voice minutes and SMS facilities for invited members.

Reasonably priced handsets

LYF brand phones are available across varied prices to cater to diverse preferences. Currently, eight models have hit the market within the price range of Rs. 4,799 to Rs. 19,399. The Flame 2 at Rs. 4,799 and the Wind at Rs. 6,799 are attractively priced and is certain to give tough competition to existing brands as per the report by CLSA. Reliance has also tapped the Smart TV sector with its range of advanced television sets and also intends to delve into manufacturing of mobile accessories in the future.

So far, Reliance has promoted the brand by roping in famous celebrities and cricketers. The brand has also remained in constant limelight by sponsoring events like the Lakme Fashion Week where Isha Ambani launched Ajio an online fashion retailer and through its active presence on social media.

Summary

Reliance Retail’s LYF brand is expected to be worth one billion dollars by FY17 according to a CLSA report.

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