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20
December 2017
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Chinese smartphone players (The Total Investment & Insurance
Solutions)
There
are nearly 650 million mobile phone users in India -- and over 300 million of
them have a smartphone. For these users, Chinese players became the first
choice this year as they launched devices with compelling features, thus
dominating the budget and mid-range price segment in the country.
Chinese
vendors captured 49 per cent of the Indian mobile phone handset market in the
first quarter of 2017 -- with a 180 per cent (year-on-year) revenue growth --
threatening to wipe out domestic players from the overall handset segment.
Among
the top Chinese brands, Xiaomi witnessed the biggest growth this year.
With
a market share of 23.5 per cent and having shipped 9.2 million smartphones in
the third quarter this year, Xiaomi became the fastest-growing smartphone brand
with a growth rate of nearly 300 per cent (year-on-year) in the third quarter
this year. The
Total Investment & Insurance Solutions
According
to IDC, Samsung had 23.5 per cent market share in India, similar to Xiaomi, the
Lenovo-Motorola combine was at 9 per cent, Vivo at 8.5 per cent and OPPO at 7.9
per cent. The
Total Investment & Insurance Solutions
For
Xiaomi, its Redmi Note 4 device that was launched in January at Rs 9,999 for
the base model (2GB RAM and 32GB onboard storage) proved to be a game-changer
and its best-selling smartphone too. The company shipped approximately four
million units of the device in this quarter, said IDC.
Chinese
brands like Huawei (which sells its youth-centric sub-brand Honor in India),
Vivo, Motorola (a Lenovo brand) and OPPO's performance remained strong and
contributed to more than half of the total smartphone shipments in the country. The Total Investment & Insurance
Solutions
Aiming
to push its position up in the highly competitive Indian market, Honor launched
flagship products at "unbeatable prices", like the highly-successful
Honor 8 Pro (Rs 29,999) and Honor 7X (starting at Rs 12,999).
Vivo
and OPPO's aggressive marketing spends also paid them hefty dividends. With
smartphone growth nearing saturation in metros, Chinese players were also busy
building their base in the tier II and III cities.
When
it comes to manufacturing in India, Xiaomi announced its third plant in the
country based out of Noida and the first facility for power banks in
partnership with Hipad Technology.
The Total Investment & Insurance Solutions
Spread
across 230,000 square feet, the Noida unit is a dedicated facility for Xiaomi
power banks where the Mi Power Bank 2i will be assembled. The company already
has two smartphone manufacturing plants in Sri City, Andhra Pradesh, where more
than 95 per cent of its smartphones sold in India are assembled locally. The Total Investment & Insurance
Solutions
Meanwhile,
South Korean giant Samsung also announced that it would invest Rs 4,915 crore
in expanding its Noida manufacturing plant to double the production capacity of
both mobile phones and consumer electronics.
The
Foreign Investment Promotion Board approved OPPO's request to open single-brand
retail stores in the country. With this decision, OPPO became the first
smartphone company to get this opportunity in India.
The
Chinese players also handled the post-demonetisation ripples well with high
decibel marketing, increased credit line to distributors and efficient channel
management. The
Total Investment & Insurance Solutions
Global
vendors, led by Samsung, were able to withstand the aggressive Chinese players
post-demonetisation owing to their good distributor coverage and penetration in
the Indian market.
The Total Investment & Insurance Solutions
Aiming
to gain a further foothold in the offline smartphone market, Xiaomi opened its
first "Mi Home" store in Bengaluru in May and plans to add 100 such
stores in the next two years.
The Total Investment & Insurance Solutions
Similarly,
Lenovo-owned Motorola opened six "Moto Hubs" in Delhi-NCR and Mumbai
and plans to open 50 more by the end of this year.
Huawei's
sub-brand Honor announced opening four more exclusive service centres in
Kolkata, Hyderabad, Lucknow and Guwahati. Its service centres are already
operating in 17 cities.
The Total Investment & Insurance Solutions
India
this year surpassed the US to become the second-largest smartphone market in
the world after China. Yet, according to Counterpoint Research, only one fourth
of India's population uses smartphones, thus making the country an attractive
destination for Chinese players in the mobile ecosystem.
Highlights:
*
Chinese vendors captured 49 per cent of the Indian mobile phone handset market
in the first quarter of 2017.
*
Among the top Chinese brands, Xiaomi witnessed the biggest growth this year.
*
South Korean giant Samsung announced it would invest Rs 4,915 crore in
expanding its Noida manufacturing plant.
*
The Foreign Investment Promotion Board approved OPPO's request to open
single-brand retail stores in the country.
*
Xiaomi announced its third manufacturing plant in the country based out of
Noida and the first facility for power banks in partnership with Hipad
Technology.The Total Investment & Insurance
Solutions
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