Indian smartphone companies lost in the race, China effect.

India being ruled by Chinese phones.Why so?

4 out of every 5 smartphones sold in India is a Chiness phone. Chinese smartphone manufacturers have nearly 66% market share in Indian smartphone market. Companies such as Vivo, Oppo, Honor, Xiaomi, Real me and soon have thrown out every other players except Samsung from Indian market. India is the world’s fastest growing market for smartphones that’s extremely price sensitive to say the least.

Smartphones companies from China have understood our market better than our own companies. After the entrant of Xiaomi companies such as Lava, Micromax and Karbon has been kicked out of the competition completely. Even Korean giant Samsung has faced severe completion from Xiaomi, Honor and Real me in the budget segment and from likes of Oneplus in the premium segment.

Strategies’ they followed for the Indian market

Indian market is very different from European or American market. Hence brands that understood the needs of the customers in India and designed their strategies according to them did well in the Indian market. Let’s see some of their strategies for Indian market

Xiaomi-

a)5% Profit-Xiaomi follows the principle of 5% profit margin. They aim in high sales, which in long term nullifies the low profit margin and results in high revenue.

b) MI UI-  MI UI has been criticized by various critics for not being easy to use and clattered but if Xiaomi had to go with the stock android they had to pay for some google apps that comes preloaded with stock android further Xiaomi’s own apps are very famous for showing advertisements each and every time you open it helping the company increase its revenue and nullify the low profit margin of 5%.

Reference-https://www.advantexe.com/hubfs/Blogs/xiaomi-dashboard.png

Vivo-Oppo-Oneplus-

a)       Aggressive marketing and high investment in promotion has made them undisputed king (Oppo-Vivo) in the offline market. There is a joke in India that if you don’t see a Vivo/Oppo banner outside than you are probably not in India. It may seen a laughable joke but its actually true. In any place within India the most probable banner that you would spot would be from Vivo or Oppo.

b)      High margin to the dealer in the phones of Oppo and Vivo. Hence the salesmen is more aggressive in selling the phones of these brands than others. They would compele you to buy these phones and would push the product towards you by brainwashing the customer.

c)      Oneplus-The flagship killer had directly hit at the Apple’s market reducing its sales to almost 50% while being very much affordable when compared to Iphone and other premium phones. High on performance and quality low on price has really helped Oneplus to win the Indian consumers heart. Initially they were only in Online market but now they have entered the Offline market to garner additional sales.

Reference-https://data1.ibtimes.co.in/en/full/683998/vivo-v9-launched.png

Why Indian smartphone manufacturers got lost in the race?

sa)Innovation -The smatphone companies did not innovate anything which was a downer.Even they did not add any new features that would draw customers towards their phones.

b)Main focus was on profit making-They were operating at 20-30% profit strategies as compared to Chinese 5% profit.

c)Low quality product-Chinese companies such as Xiaomi, Oppo,Vivo and Oneplus started proving high-quality product at much cheaper price comaprd to Indian manufacturer.

d)Make in India initiative taken by the government persuade the Chinese companies to assemble their products in India hence a huge amount of money was save as form of custom duty which ultimately helped them to price their product immediately.

Indian smartphone market is flooded by Chinese phones and the future of Indian companies is not promising to say the least.

Reference-https://img.etimg.com/thumb/height-450,width-800,imgsize-48592,msid-10488286/.jpg