GENXT
Q: Could you provide a brief overview of the company and its operations in Sri Lanka?
A: Generation Next Communications (GENXT) is a mobile distributor established in Singapore in 2003 and operates in 12 countries.
Based on substantial monthly growth in the smartphone sector and the potential for expansion, the company set up operations in Sri Lanka in 2017.
GENXT is the authorised distributor of Apple and Xiaomi products in the Sri Lankan market. While the company commenced operations on a small scale, it has become a key player in the mobile distribution market, catering to a wide cross section of customers. In terms of coverage, we cater to all four corners of the island when it comes to Xiaomi products and key districts in terms of the Apple portfolio.
Q: How do you view the smartphone sector?
A: Smartphones are used by virtually everyone with many people using them to access social media and emails. And as technology continues to progress so will our requirements.
On a monthly basis, we believe that about 150,000 smartphones are sold in the country while between 200,000 and 225,000 are imported. Although the market is not expanding as quickly as expected, growth is estimated to amount to between five and 10 percent each quarter. If the sector performs well in 2020, we anticipate that sales will increase to 180,000 a month in the first half of the year.
There is also anticipation with regard to the implementation of 5G technology and several brands such as Xiaomi have announced that they’re working on 5G enabled devices. I believe that this is the future and as a result, the entire smartphone segment and hands-on experience will change. In addition, we hope that this technology will lead to a decline of the feature phone market, which will help boost smartphone sales.
Q: So how has GENXT performed in recent years?
A: While our team consists of individuals with over 10 years’ experience in this market, setting up the business was not an easy task.
In 2018, we had to contend with exchange rate fluctuations. It can be difficult for importers to survive in such an environment because the mobile sector operates on narrow margins so this directly impacts the bottom line – more so with the Apple brand, when we strive to provide the market with the right price.
Following this challenging stretch, business picked up at the beginning of 2019. While the period following the Easter Sunday attacks was difficult for everyone, we were fortunate that after September, the situation began to improve. In fact, because of the hard work and dedication of our team, we were able to launch the new portfolio of Apple products within two months of its announcement – a month earlier than in previous years.
As part of GENXT’s drive for growth, it looked into expanding its portfolio of products by partnering with other brands such as Xiaomi. And we believed that there were great opportunities for growth in Sri Lanka. Moreover, working with leading brands such as Apple and Xiaomi was an ideal scenario as it would enable GENXT to offer entry level smartphones while also catering to high end customers.
A fan base for Xiaomi already existed in Sri Lanka as there was a grey market for these phones through parallel imports. Young customers were also more familiar with it as they were aware of its positioning as a brand that offers devices with the best specs at the lowest prices through Xiaomi’s honest pricing strategy.
While this journey has been challenging, it has also enabled us to witness the Xiaomi brand gain acceptance in the local market – especially among young customers.
Q: Could you offer insights into the company’s customer oriented approach?
A: As a distributor, GENXT’s first line of customers would be the retail partners that sell the products. Currently, many retailers are frustrated by deteriorating margins arising from prices being undercut in the market. So our approach is to look after these customers by not permitting this practice especially as we strive to offer honest prices. Simultaneously, we look to ensure that partners are satisfied with these prices and offer solutions to any issues.
In my opinion, word of mouth is the best form of publicity so we need to adopt a positive approach
to ensure that customers return in the future.
Q: And could you describe the culture that you look to nurture in the organisation?
A: The market has been challenging in recent years and the company found itself in a ‘do or die’ situation. GENXT has to display results to maintain its momentum in Sri Lanka and our dedicated team worked hard to ensure that we were able to cater to the demand.
A transparent environment and family culture have been nurtured at GENXT. In addition, honesty is a quality that I seek in everyone who works with me. Along with the workforce’s dedication, these factors have helped the company achieve success.
I attribute these achievements to my mentor Ashok Pathirage as much of my experience was gained while working with him. This involves studying what he does and says – including the concept of identifying solutions to any problem – as he always offers guidance to his people.
Q: How has GENXT been supported by its parent company’s global operations?
A: GENXT Managing Director Kailash Gupta is a young entrepreneur who has helped the company grow quickly in the Southeast Asian region. This has prompted world renowned brands such as Apple and HP to place their confidence in him, and enabled the company to expand its operations.
His support and that of Business Development Director Karthik Arasu have been immense, and they provided us with more assistance during the challenging period in 2018 in terms of financing. Furthermore, their experience in handling different markets proved useful when it came to logistics and planning for Sri Lanka.
At the moment, the head office is focussing on the Sri Lankan market and looking for the local operation to expand its focus to areas such as IoT since this segment is set to grow across the world. In keeping with this global trend, we must look to expand the company’s focus, which will also serve local communities.
Moreover, branches in other countries offer firsthand experience with regard to how trends progress and each product works – especially in the case of the Apple portfolio. So we share our experiences and gather important information related to sales and competitors, and brainstorm on the way forward. This process takes place every quarter before our quarterly review with a team from Apple.
In the case of Xiaomi products, we obtain information from a centralised system that provides an indication of Sri Lanka’s and other countries’ imports.
Q: What were the reasons behind setting up the GENXT service centre?
A: In 2018, GENXT was appointed an authorised service provider by Apple. As a result, products distributed by the company such as iPhones, iPads and iMacs can be serviced by a team of qualified professionals at its state-of-the-art service centre in Marino Mall.
We strive to offer customers the best experience possible. And as many original Apple accessories are not easily available in the country, we have taken steps to stock these products at the centre and will be focussing on this area going forward.
Q: And finally, what is your outlook for the rest of the year?
A: We’re focussing on expanding our Apple portfolio by introducing Apple Watches and Apple TVs in the near future. Given the demand for the brand and our pricing strategy, we believe that sales could almost double compared to last year.
As for Xiaomi, we can see that there’s a great journey ahead of us. With the demand from retailers located around the country, it’s clear that there is an established trend in the marketplace. As such, it is GENXT’s duty to keep the momentum going so that the brand can reach greater heights in this country.
