Chinese Smartphones Brands gain boost in India
The main competitors who are being chased by Apple, Samsung, LG are Vivo, Oppo, Gionee, LeEco, and Lenovo are the world’s second largest smartphone market which all are of Chinese brands.
According to the IDC report till the end of 2015 the Chinese smartphone offering their device at a meager price, command 22% of the market up from 12% share early in 2015. At the same period, some of the renowned brands like Apple and Samsung saw their market share drop steeply from 44% to 37% in the same period. At year-end, 38% market share was lower than the 44% recorded in late 2014.
According to the stats, the low price Chinese smartphones outperform in the Indian market where product penetration is 30% as Chinese brands could be having bright wins in the future.
As we know most of the Chinese smartphones are priced below ₹10,000 or less and even offering 4G compatibility.
Aggressive marketing of Chinese brands is one of the reasons to sell off the smartphones. Vivo, Oppo, Gionee, and LeEco together accounted for 55% of ₹1200 Crore Indian Smartphone advertising market.
The amount spent by these companies is equal to the amount spent by Apple, Samsung, and Micromax which results in a faster mode of distribution.
Counterpoint also has data that supports the Chinese market onslaught. Chinese brands doubled their combined share to 18% in 2015; year-on-year basis. Non-Chinese international players saw their market share drop from 43% in 2014 to 39% in 2015. Indian players took a hit as well, from 48% in 2014 to 43% in 2015, but the fall was smaller.
According to IDC data, Lenovo, Motorola became the third largest smartphone brand in India in Dec 2015, coming to India brands Intex and Lava dropped down. Samsung and Micromax to be the top two sellers.
Chinese markets are thinking newly for refining the domestic smartphone market with high-quality products.
According to two industry executives, Samsung has a marketing and promotion budget of ₹300-320 Crore whereas Micromax has ₹120-130 Crore.
While coming to Oppo, it had spent ₹140-150 crore, while Vivo which entered the Indian market had spent ₹125-140 Crore in an early stage.
Even LeEco India which has a new startup going to spend about 6-8% of its turnover on marketing and sales. 2016 will be the highly competitive year for Chinese giants to keep aggressive strategies in a market.