From a mere 2% share in the Indian smartphone market to gaining over 18% market share in just a span of 8-12 months, the Chinese mobile manufacturing companies are taking over the Indian market by storm. The major companies that are crushing now are Vivo, Oppo, and Xiaomi from China and Honor from the Philippines. The market leader in India for smartphones is the Samsung till date, but at this speed of growth, there is no doubt in saying that we might see a change of positions very soon.
Redmi acquired a very loyal user base with the release of Mi 4 and Note 3. But, in the case of Oppo and Vivo there are many models that they can boast about to be the best sellers in India. The kind of marketing done for the products of these Chinese companies is something which no one has ever seen before say many industry personals.
These companies have completely disrupted the smartphone distribution structure in India. Both the major companies have their offices setup in India, but operate at various levels. Both the companies, Vivo and Oppo have their own distribution network. They have other companies which they like to call as agents who handle the various activities of business at the state level, such as import of handsets to local distribution, marketing, sales and after-sales service, etc.
Apparently, Vivo has more than 24 such agents in India, whereas Oppo has 13 companies under them to get the work done.
“Oppo and Vivo want to make a rapid rise in India and hence have laid out the same disruption strategy in India like in China,” said Subhashish Mohanty, director at cell phone retailer, Hotspot.
“While every other brand has national, state and local distributors who are responsible for taking the products to the local level, Oppo and Vivo control this activity almost till the last mile and hence have far greater control which is leading to such rapid rise in market share,” he said.
The China brands Oppo and Vivo collectively hold 18% market share in India and Samsung holds 24% share in the market, according to the last quarter. We will have to wait and see how the tables will turn in this brand war in the market.
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