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Marketing Smartphone

China topples Indian smartphone makers with strategic innovation and marketing

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By Taruka Srivastav, Reporter

June 22, 2017 | 2 min read

Indian smartphone maker's slow innovation has become China's gain as their mobile phone manufacturers saw 3.4x growth in market share to 51% in Q1 2017 according to India Ratings and Research (Ind-Ra).

China topples down Indian smartphone makers with strategic innovation and marketing

China topples down Indian smartphone makers with strategic innovation and marketing

According to Ind-Ra, better technological capabilities of Chinese players and superior product offerings have also contributed to their success. The large investments by Chinese players towards brand building and manufacturing facilities in India signal their long-term strategic intent.

Chinese smartphone brand Oppo have also signed a deal with Indian Cricket team and Bollywood top stars to promote its brand. The top five Indian smartphone players in financial year 2017 (FY17) were Micromax Informatics, Lava International Ltd. and Karbonn Mobiles Pvt Ltd were replaced by Xiaomi Inc., Vivo Mobile India Private Limited’s (Vivo India; ‘IND BB’/Stable) and Oppo Mobiles India Private Limited’s (Oppo; ‘IND BB’/Stable).

While the global vendor Samsung Electronics Co Ltd (Samsung) remained the market leader with 28% share in 1Q 2017 (1QCY16:25%), the share of Indian vendors shrunk a mere 14% to 40% market share. Lenovo also sustained its position due to its products in the diversified price segments. Oppo and Vivo India have recorded sales increases of seven to nine times over FY17 respectively.

Ind-Ra expects Vivo India and Oppo’s smartphone sales to grow by around 40% to 50% over FY18.

Oppo and Vivo India have recorded sales increases of seven to nine times over FY17 respectively. India-Ratings expects Vivo India and Oppo’s smartphone sales to grow by around 40 to 50% over FY18.

Marketing Smartphone

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