Within a decade of launching himself in business, Babu started UniverCell in 2000 in Chennai. Since then, Babu and UniverCell have spun a success story to be the largest mobile phone retailer and among the better known brands in India. The tag- line of the company reads UniverCell, the mobile expert. UniverCell’s customer base stands at a vast 3 million, with 100,000 people buying handsets from their stores every month. In an exclusive chat with IndiaRetailing, Babu reveals his take on the industry. Excerpts:
IR: From selling vacuum cleaners as a door-to-door salesman to owning a business selling mobile telephone sets, how did the transformation happen?DSB: It's given me great satisfaction to move from being an employee to an employer of over 1,300 people. I also feel more responsible, because whatever decision I take can influence the lives of over a thousand people, for good or bad.
IR: What were the initial business days of Univercell like?
DSB: Well, when we started our business, we were really cold calling — selling postpaid connections door to door!
IR: What is your vision for the mobile retail industry in India?
DSB: Currently, just around 10 per cent of the sales happen from organised retail, the balance being accounted for by the unorganised sector. However, a definite shift to organised trade is increasingly evident. So I see a great scope for organised trade to grow — especially during the next two years. Most retailers currently are not providing a comfortable ambience, and a touch-feel-and-buy experience. In the coming days retailers who do not upgrade their stores will perish.
Mobile phones are constantly getting upgraded and new phones mean that we use phones for more that just calls or texting. Being a low-margin business, mobile retailing is a challenge — developing innovation at the retail end is key.
IR: How would you like Univercell to grow?
DSB: Univercell stands for Customer service. Customers continue shopping at our stores because our sales service is excellent. Our sales people are hired for their attitude and trained for skill. Then they are put through an extensive 15-day training on product knowledge and in soft skills before they are let out on the shop floor.
Most new retailers in this category have been around for less than two years. We have been in this arena for over 11 years. We understand this business much better than most of them as we have seen the transformation in this industry from almost day one.
Our basics are sound. We have a solid foundation and good understanding of this format, and I am sure we will keep moving from strength to strength.
We feel that there are enough growth opportunities within the telecom sector to grow, and hence would like to retail focus on telecom.
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