If there is something we failed to understand in the Indian tech scene over the past few years, it has to be Lava’s branding strategy. Xolo was launched as a premium brand for Lava’s devices back in 2012. And since then, both the brands – Lava and Xolo have managed to co-exist, and at times, competing against each other. Now we hear, that Lava is looking to cut losses at Xolo and will keep it online exclusive.
According to our sources within and outside the company, Lava has already fired several employees under Xolo – mostly from the sales and marketing teams. Over the years, the unusual strategy of having multiple brands had resulted in several teams overlapping with one another, and now the company is trimming down its resources to cut the losses. Xolo has been dealing in losses for a while, unable to take the burnt of competing with Micromax and Chinese onslaught from the likes of Xiaomi and Lenovo. In fact, we hear that Xolo is sitting on unsold inventory worth over 250 crores (~$37.5 million). On the contrary, Lava is going strong with its own sales, specially in the northern parts of the country.
Lava invested quite heavily on Xolo which always got better treatment in terms of technology and software. Xolo even went on to have its own Android ROM developed in-house, the Hive UI. We now hear that Hive UI will be part of some of Lava’s smartphones going forward. Most of the team members have been retained and will be absorbed into Lava.
For the past few days, We were hearing about Lava shutting down Xolo for good, but for now, Xolo phones will be sold online only. We are still not sure if the company is tying up with any ecommerce player like Flipkart or Amazon, but that should be known very soon. With such a huge unsold inventory, it’s not surprising that they decided to keep the brand alive. So don’t be surprised if you see some Xolo phones being sold at heavily discounted prices to clear the stocks (and eventually shutting shop?) Even the newly launched Xolo Black which carried impressive specs and design isn’t doing too well, we hear.
We are awaiting for official confirmation on this and will update the post as and when that comes through.
Pic credits: Nimish Dubey