Top Indian mobile phone company Micromax had created a sub brand YU long before the other brands did but somewhere along the line, Chinese brands like Oppo and Vivo have pushed Micromax and YU to the background. But the company is making a comeback of sorts with the launch of the YU Ace, a phone being retailed at Rs 5,999 with decent specs and features.
YU, in its original avatar was an online only brand; but this time possibly Micromax might change its strategy and offer the products through offline retail stores as well. The company claims it took the decision to reintroduce the YU brand after seeing a dramatic change in the market following the launch of Reliance Jio which has resulted in the expansion of internet connectivity and the demand for smartphones of a category the company is able to make and sell.
It may be important to note that Micromax is not directly selling the YU brand under its name but through a 100% subsidiary. After the launch of the YU Ace, the company is expected to launch three more models soon, the company claims.
Micromax and YU are hoping that they can regain the market share they held in the Indian market. Till the end of 2016, Micromax could muster 8.8% market share, behind only Samsung and Xiaomi. But in the period since then, it has slipped out of the frame and does not even figure in the top 5 brands in the market. This is the first objective as Micromax works on the YU brand to make its mark again. The company will try and target the mass market and hope that there is sufficient space for an Indian brand in the 33.5 million mobile phones market.