Above 50,000 crore has been spent by consumers in India in FY18 on acquiring smartphones which are just made by the known top 4 brands in China.
This was nearly a double of what the consumers spent on them in the past financial year. The objective of that trend is to go on with the Chinese brand dominating the Indian smartphone market. This is according to the analysts and industry executives.
The four famous brands- Vivo, Oppo, Xiaomi and Honor- together with other few Chinese brands such as Infinix, One-Plus, Lenovo and Motorola are by estimation known to make up more than half of the total Indian smartphone market in terms of sales. This year, there is a rapid growth realised in sales of Chinese brand as revealed by the available data.
Higher- specification models are launched by the Chinese brands. These models are then sold at lower prices as compared to those models from India, Japan and Korea. The Chinese brands have also succeeded in establishing themselves as global brands, this is in line by Indian consumer’s preference for the products from multinationals manufacturers.
According to the Counterpoint Research associate director Mr. Tarun Pathak, the top Chinese brands find it very easy in accessing the Shenzhen hardware and R&D hub including the supply chain ecosystem. “This has greatly helped them to be innovators and to be always on top of trends”, added Mr. Tarun.
India is still on standstill to gain with Lenovo-Motorola, Vivo, Xiaomi and Oppo investing in local manufacturing and also creating jobs. Recently, there was announcement by Xiaomi on its plans of investing about Rs 15,000 crore in smartphone in manufacturing of smartphone components in the month of April. Currently, in Uttar Pradesh, Oppo is establishing two new manufacturing industries.
More than 5,000 individuals are employed by Vivo in its plant. When he was being interviewed, the chief of one of the largest cell phone retail chains stated that the Chinese brands have established themselves in key price segments. And those segments are as follows: Oppo and Vivo in the Rs 10,000-22,000 one, Xiaomi in the Rs 6,000-13,000 band while Honor is gaining share in the Rs 8,000-12,000 segment.
“These price segment accounts for above 80 percent of the entire market where no any Indian brand which has managed to successfully cut the ice and Samsung is the sole non-Chinese brand expected to fight it out” Added the Chief, as he request to remain unknown because of some business reasons.
As per the information in the Register of Companies (RoC) fillings for FY18, Xiaomi Technology India’s revenue from operations stands at Rs 22,947.3 crore (Rs 8,334.4 crore in FY17); that of Vivo Mobile India was found to be Rs 11,179.3 crore (Rs 6,292.9); that of Oppo Mobile India was 11,994.3 crore (Rs 8,050.8) and Huawei Telecommunications India’s business stood at Rs 5, 601.3 crore (Rs 3,584.2 crore).
When the sales of these of these top four Chinese smartphone manufactures are combined in FY18, the result almost doubled to Rs 51,722.1 crore from the previous Rs 26,262.4 crore in FY17, despite being on the higher foundation.