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Chinese smartphone brands dominate India market with aggressive prices, turn to offline expansion, ET Telecom

Chinese smartphone brands dominate India market with aggressive prices, turn to offline expansion, ET Telecom


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NEW DELHI: Chinese smartphone brands have transitioned their focus from online to offline channels to secure a larger share of the Indian mobile market.

Despite legal challenges and government scrutiny, these brands have captured 75% of the Indian smartphone market in 2024 till third quarter.

Initially, the smartphone makers focussed heavily on online sales. In recent years, they have ramped up their offline presence. By establishing extensive distribution networks and building partnerships with local retailers, these companies have made it easier for Indian consumers to experience their products firsthand and make purchases in physical stores.

Between the calendar year 2022 and the third quarter of 2024, Vivo and Oppo’s volume share increased while OnePlus and Xiaomi’s share declined.

Brand Volume share in 2022 Volume share in 2023 Volume share in 2024 till Q3
vivo
16% 17% 19%
Xiaomi
20% 17% 18%
OPPO
10% 11% 12%
Realme
14% 12% 11%
OnePlus
5% 7% 4%
Others
10% 11% 11%
Source: Counterpoint Research

Xiaomi, Realme and OnePlus which were traditionally strong online channel players have ventured into the offline channel for wider consumer reach. The affordability and value-for-money features of models are helping the Chinese brands to remain popular in the India smartphone market, says Shilpi Jain, Senior Analyst at Counterpoint Research.

The growth can be attributed to a variety of strategies employed by these brands to capture and expand their consumer base in India, which is one of the largest and fastest growing mobile phone markets in the world, she said.

Faisal Kawoosa, founder, TechARC, says Chinese smartphone manufacturers over the years have focused on several key strategies that appear to be yielding positive results.

“Firstly, they have significantly strengthened their commitment to India as a key global smartphone supply chain hub. They have become crucial players in India’s exports, taking advantage of the PLI scheme through their strategic local partners. Companies like Vivo, Oppo, Realme serve as prime examples of this approach,” he said.

India’s smartphone market is on track to achieve its highest-ever value in 2025, crossing $50 billion, according to the latest research from Counterpoint’s India Smartphone Outlook.

Chinese brands are attempting to offer very rich experiences, at times India centric and India relevant to consumers to maximize the overall value of the product, Kawoosa added.

Xiaomi and OnePlus have been trying to make a mark in the premium segment.

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“It takes time for brands to really build up in premium segments. We can look at Google Pixel as an example, which has been trying for many years now. For Xiaomi, it’s still sometime to build a sizeable equity in the premium segments. For now it will remain a niche player in the segment. OnePlus definitely has great prospects, especially after the OnePlus 13 launch. However, its mass series Nord still dilutes its brand equity as in premium segments consumers also want to enjoy brand exclusivity,“ Kawoosa said.

Chinese smartphone players have led the front in India through aggressive pricing and localized offerings. And offline is a major part of this strategy. By providing feature-rich devices at competitive prices, they have made high-quality smartphones accessible to price-sensitive consumers. Additionally, these brands tailor their products to local preferences, including larger batteries, multiple camera setups, and other features suited to Indian users.

The Indian smartphone market is shifting towards premiumization, with a growing focus on premium and ultra-premium segments, Jain said.

Apple continues to lead this shift, capitalizing on its strong brand equity and ecosystem to attract consumers in the premium category. Brands are targeting the affordable premium category, offering advanced features such as sophisticated camera systems and high-quality designs to appeal to consumers seeking better value.

Looking ahead, the premium segment (>Rs 30,000), is projected to exceed a 20% market share by 2025. Innovations in AI-powered features, enhanced camera capabilities, and improved user experiences will likely be key trends driving consumer interest and market growth, according to Counterpoint.

  • Published On Jan 10, 2025 at 06:07 PM IST

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