From the fourth quarter of 2017 to the first quarter of 2018, the market size of the world’s second-largest smartphone market in India is changing. During this time, Xiaomi took the 1st (in terms of shipments) market share from Samsung Electronics.
According to statistics from Counterpoint, a Hong Kong market research company, Xiaomi’s shipment volume in India was 31.1% in January-March, and it ranked first in two consecutive quarters. Samsung is 26.2%, followed by companies such as vivo and OPPO in China.
On May 30th, the "Japan Economic News" issued a document saying that the key to Xiaomi's success lies in its low-cost strategy, but to achieve a low-cost strategy, it must be localized, and Xiaomi sells 95% of its smartphones in India. Made in India.
The first Indian house of millet Photo source: Japan Economic News reported that Xiaomi entered the Indian market in 2014 and was only sold through online channels at the time. However, in 2017, Xiaomi added direct sales stores and started to cooperate with other mobile phone shops.
Since about 70% of mobile terminals in India are sold through offline channels, Xiaomi’s strategy of transformation becomes inevitable. Through the use of popular actress endorsement, while increasing the exposure in outdoor advertising, Xiaomi increased visibility in India.
However, the most effective is the low-cost strategy. Millet's smart phones sell for between 5,000 and 20,000 rupees (approximately 470 to 1,880 yuan). Indian consumers just like to buy cheap goods, most choose models priced from 5,000 to 15,000 rupees (approximately 470 to 1,410 yuan).
Singh, the chief analyst of the US survey company International Data Corporation (IDC), took Xiaomi's price of 5,000 rupees (about 470 yuan) as an example to point out that "16GB memory, camera, and other brands with the same price No such performance."
To drive down prices, we must achieve localized production. According to India’s “Economic Times,†Raghu Reddy, head of India’s online sales department at Xiaomi, said that 95% of Xiaomi’s smartphones sold in India are in two factories in Andhra Pradesh, South India. Assembly.
Currently millet purchases parts from China, South Korea, Japan, and other parts of the world, but executives of millet India’s legal person stated that “we are working to make parts suppliers build parts factories next to the assembly plant.â€
Millet's factory video capture in India
Although Xiaomi took the championship, but the "Japan Economic News" said that Samsung's brand influence is still strong, and the sales network is also very stable. Although competitors are attracting suppliers and retailers with favorable conditions, the current impact on Samsung is relatively small.
Samsung’s countermeasures are to place online sales exclusively for models. According to Indian local media reports, Samsung plans to sell exclusive online models for 5,000 to 15,000 rupees, similar to millet's pricing.
In other Chinese smartphone manufacturers, vivo's market share in India in the first quarter was 5.8%, which was only half of the same period of last year. Vivo has been relying on store sales before, and will adopt a combination of online and offline sales strategy. The OPPO (4th place, 5.6%), which strives to win the championship in the Indian market, will also adopt the same strategy.
OPPO and vivo cell phone store in central India Source: Japan Economic News On the other hand, the United States' share of Apple is less than 2%, it seems that it ignores the Indian market, but Apple began assembling smartphones in India in 2017. As the Indian market with a population of approximately 1.3 billion will bring growth opportunities, it is expected that various smartphone manufacturers will continue to explore ways to expand sales.
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