Mxit is betting on feature phones and social change in India

More and more people in developing nations are turning to mobile messaging apps instead of SMS. As they do so, they’ll find that there’s a huge variety of social messaging apps to choose from.
WhatsApp goes for cool simplicity; Line and WeChat try to throw as many features at people as possible; Viber and Nimbuzz have the option of phone-calls. There’s something for everyone. The African messaging app Mxit is trying another angle – placing an emphasis on feature phone users, group gatherings, and discussing social change.
Mxit already has over 10 million registered users across Africa. To be as accessible as possible, it comes with apps for Nokia, BlackBerry, and various Java-based phones, as well as for more modern platforms like iOS, Android, and Windows Phone.
There’s an now an Indian office, headed by Mxit India CEO Sam Rufus, who wants to see the messaging app grow in what he calls a “previously excluded segment” in India – among feature phone users.

Over half a billion feature phones

The latests figures from IDC show that 78 percent of new phones shipped in India last year were feature phones. That means 212.3 million new sub-$100 basic phones versus a mere 44 million smartphones. Rufus adds that, in grand total, India has about half a billion 2G-equipped features phones in use – most of which are Nokias. That’s the area Mxit is aiming at.
Mxit is placing an emphasis on public group chats – called Chat Zones in the app – as it battles rival apps for new users. As a country that’s embracing mobile web usage over desktops or laptops, it could be the first destination for new internet users in India, just as BBS and forums are in many nations. Rufus adds that the social network isn’t troubled by growing uptake of smartphones: “We’re not threatened by it. We can graduate with users as they upgrade.”
Those chat zones within Mxit can bridge the gap to smartphones, he adds, so that public group discussions can take place between people on iPhones and feature phones. Groups can be about anything, as they’re created by users.

Social change

In addition to those groups, Mxit is setting itself apart from rival messaging apps with Mxit Citizens forums, which are being used by a number of NGOs to discuss social issues with ordinary people. These other forums are created and moderated by Mxit. These forums can also be used for other purposes, such as for e-learning or counseling sessions with certified experts. The Indian crew is now talking to UNICEF about starting online classes inside the app – something that has already been done in Africa on Mxit.

All those extra features, including profile pages, make Mxit into a broader social network – a bit like a mobile-only Facebook. That’s something apps like Line and WeChat are trying to do as well. Mxit also has brand and celebrity pages.
But Rufus sees Mxit co-existing with Facebook in India, and says that the app-within-the-app feature – that’s also how things like the NGOs are accessed – allows people to login to a sort of Facebook mobile site from within Mxit. So the experience is complementary.

Aiming at over 10 million Indian users next year

Mxit India CEO Sam Rufus

But Mxit faces more direct competition from other messaging apps. WhatsApp already has over 30 million monthly active users in India. Line, a much more recent entrant to the country, has over 10 million registered users. With both of those apparently growing at the rate of a few million new users per month (WhatsApp’s growth is more impressive, as it counts active users, not merely those who sign up) it’s hard to fight that kind of momentum – especially as a messaging app is only as good as the number of friends who are also on it.
Rufus (pictured above) says that Mxit is aiming at 10 to 12 million registered users in India by midway through 2015. It got off to a solid start with 350,000 new sign-ups in just the first two and a half weeks after its high-profile launch in India, with cricketer and former team India coach Gary Kirsten brought in as brand ambassador. To be more inclusive, the company hopes to have the app running with a choice of 11 Indian languages in the coming months.
While a new messaging app is a tough sell to India’s mobile users, the company has plenty of plans to make money from the service while keeping it free for regular people. Aside from making money from brands and NGOs that use the app-within-the-app feature, there are plans to sell banner ads and splashscreens as well as offering market surveys. That last idea is intriguing. Rufus says the messaging app could help brands get feedback, or help political parties to get some idea of their level of support. The app, with enough traction, could be uniquely placed to connect brands and politicians with people in India’s rural areas.
Mxit has apps for iOS, Android, Windows Phones, BlackBerry (legacy OS), and Java-based devices.

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China’s Xiaomi is working on phone launches in India, Indonesia, and other Asian markets

Chinese phone-maker Xiaomi held an event in Singapore this morning. Aside from launching the Redmi and Mi3 phones in Singapore, Xiaomi’s Hugo Barra and Lin Bin talked a lot about Xiaomi’s ambitions around the world.
Xiaomi’s Hugo Barra explained to the event’s Singapore audience that the company will use the same customer-focused tactics in Singapore as it does in China – such as listening to users and making small changes to the product throughout its lifecycle based on what they say. Xiaomi will have a service store in Singapore that’s only for repairs, just as it does in China. Sales will be conducted online or via partner telcos, but telcos may set their own prices.

No plans yet for US and Europe

Barra also explained why the startup chose Singapore as its first stop in Southeast Asia – indeed, as its international HQ – by saying that it was tempted by the small but very sophisticated market, which would allow them to iterate fast. Xiaomi can then use those lessons in neighboring markets like Malaysia, Indonesia, and Thailand.
Xiaomi is also looking closely at India, Barra says, where it’s actively looking for partners. Those four, mentioned specifically by the company at today’s event, look to be the next markets for launch.
However, Barra described the US and European markets as far too difficult at the moment. And so the disruptive Chinese phone-maker looks set to focus on Asia for growth of its brand.
Xiaomi isn’t actually the first Chinese smartphone brand to look to Asia for expansion, as Oppo, Meizu, and Coolpad have been doing the same thing with their Android-based phones in the past year.

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Amazon Pilots Cash On Delivery Model With India Post

There is no doubt that Amazon India will come up with their own logistics service sooner rather than later, given the growth they are experiencing in India since their launch in June this year. However, even with their own logistics in place, it is going to be extremely difficult for them to reach to interiors of India. While it is relatively easy to cover the Metros and A cities, expanding their logistics coverage to smaller towns and villages will always remain a challenge. And, Amazon understand that.
To overcome this issue, Amazon has started a pilot with India Post, reports ET. While Amazon India already uses India Post to deliver packages, they are now piloting Cash on Delivery model with them, where India post personnel will not only deliver the package, but also collect payment on Amazon’s behalf.

If the pilot with India post is successful, it will give Amazon a huge edge over others, as it means they will be able to reach hinterland of India, giving them unbeatable logistics coverage. Even today, other Indian players like Flipkart, Myntra and others are unable to deliver packages to many villages and smaller towns in India.
India Post covers a total of 25,000 pin codes in India, whereas none of private courier services have coverage of more than 10,000 pin codes, which gives India post a huge edge over others when it comes to coverage.
While this is great for Amazon, the successful pilot will also be a shot in the arm for India Post, which has been struggling for a while due to increased reliance on email and mobile for communication. Many India Postal services that were once a mainstay for Indians for communicating across the country are now hardly used due to telecom revolution.
Successful pilot with Amazon means India post can start offering these services to other players as well. And given the way e-commerce is growing in India, this channel could become a big revenue generating channel for India post as well.
ET has quoted a senior post official saying,  “We are trying to add capabilities like cash on delivery and reverse logistics. Consumers don’t want to make an upfront payment. We are developing software to start the cash-on-delivery service with Amazon,”.
It is interesting to note the stark difference between western world and India when it comes to e-commerce logistics. While Amazon has been in news in regards to testing deliveries via unmanned drones in the US, here in India they have to rely on humble post man to increase their reach

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