Indian Bollywood Celebrity Poppies, Christine Pado Honored OPPO Smartphone
September 16 news, IDC's data show that China's mobile phone manufacturers in the Indian smart phone market share has exceeded 50%. Just two years ago, local Indian manufacturers such as Micromax and Karbonn Mobiles also shared more than 54% of the total. Why are they losing to Chinese manufacturers in the local market? Indian media Gadgets 360 has recently conducted an in-depth interpretation of the article.
The following is the main content of the article:
“The government should provide more support for its own people.†Narendra Bansal, the founder of Indian technology company Intex Technologies, pleaded for this earlier this year. Less than two years ago, the company was the second largest mobile phone manufacturer in India in terms of sales volume. In addition to Bansell, several other executives from Indian smart phone manufacturers are very angry about the loss of their market share to Chinese companies over the past two years.
Bansell -- along with other Indian smart phone makers such as Micromax and Karbonn Mobiles -- accused China's smartphone makers of dumping low-priced smartphones in India, making it harder for local companies to survive. Those CEOs pointed out that the government should implement "anti-dumping" tariffs on such mobile phones. "Every child needs the care of his parents," Bansell said at the time.
In the past two years, India's smartphone manufacturers have lost about 35% of their market share to Chinese companies. Just two years ago, according to market research firm Counterpoint, Micromax, Karbonn Mobiles, Lava, and other local vendors still accounted for more than 54% of the market. IDC's data shows that in the quarter ended in June of this year, the Chinese company’s market share in this market exceeded 50%, marking the first time since entering the Indian market.
To a certain extent, the strong protest of the Indian smart phone company is tantamount to publicly admitting that they are unable to counter China's brand merchants - they are inferior to China in terms of marketing efforts, reduction of mobile phone retail prices, and embracing online sales strategies. Manufacturers. But to understand in depth why the market is going to change drastically, you must first understand the history of the Indian mobile phone market and the changes in the relationship between those companies.
Create "India" brand
Ten years ago, just as Apple was preparing to release its first-generation iPhone, India's mobile phone shops were still full of feature phones. Smart phones were still a few years away from them. Jayanth Kolla, founder and partner of Converence Catalyst, pointed out that the growth of feature phones has slowed in China and China, Taiwan's two largest electronics manufacturing centers. At the same time, he said, the equipment manufacturing business in both places began to become commercialized, leaving the company with minimal profit margins. “The business has become a home-based industry in those areas. Any small company can easily try to make a mobile phone,†he added.
While Apple co-founder Steve Jobs is trying to transform the entire smart phone industry, the mobile phone industry in India is exploring a revolutionary idea. Over the years, these companies have been serving as distribution partners for companies such as Nokia, Motorola, Sony Ericsson, and LG.
Do they now make feature phones themselves? Executives are puzzled. Kola said that Micromax, Spice, Lava and Jaina Group (later renamed Karbonn Mobiles) have entered the OEM (OEM) field, marking a milestone in the history of the Indian mobile phone industry. Several Indian brands worked with Chinese ODMs (Original Design Manufacturers) to explore the "White Label" deal, where one company designs and manufactures mobile phones, and the other company puts its own brand on mobile phones.
These Chinese ODMs bring in two areas of expertise: First, they can create feature phones at unprecedentedly low prices, bringing powerful weapons to Indian manufacturers to counterattack from Nokia, Motorola and several other owners of their own manufacturing. The factory's international giant's products.
Second, Micromax and other Indian manufacturers can bring new products to market in a much shorter time. Nokia and other companies usually spend more than a year completing the cycle of conceptualizing, manufacturing and launching mobile phones. In contrast, according to Colla, Chinese ODMs can complete the process in 3 months or even less and transfer inventory to Indian smart phone manufacturers.
As a result, the trend of “dumping†cheap feature phones in India and rapidly gaining market share came into being. Micromax and other companies began to spend a lot of money to promote marketing, aiming for two things that Indians like most: cricket and Bollywood.
However, it was not long before the company’s shareholders and consumers began to complain. All of these feature phones look no different. Investors continuously recommend that companies invest heavily in R&D to achieve differentiated competition.
No product talent
However, according to a local executive who once worked for one of the companies, they faced a much deeper problem. He pointed out that Micromax and other Indian local companies do not have the right talent team to lead them. The top managers are businessmen. No one has experience or expertise in product development.
Four co-founders of Micromax
"The problem is that Micromax founders don't have a product talent. They have expertise in marketing and distribution," the executive said. But when the action of the right product leader is started, another thing is coming into sight: smart phones.
By the end of 2010 and early 2011, market demand began to turn to smart phones. That changed everything. First, it put most of the Indian companies in the same level playing field as the international giants of the time: They are all trying to find the secret to conquer smart phones. At the same time, however, according to informed sources, investors at Micromax and other Indian companies are still calling for them to invest in R&D.
In entering the smartphone space, Indian brand owners have introduced a feature that sets the tone for the industry in the next few years: dual-card dual standby. At that time, India's traffic and telephone costs were much more expensive than it is now, and people often replaced SIM cards to save money. According to Counterpoint's data, by 2017, over 90% of smartphones shipped in India were equipped with dual-card dual standby.
Micromax and other Indian companies have further leveraged their relationship with China ODM to begin offering low-priced smartphones in China. These phones are quite popular because many Indians want to get their first smart phone, but those devices look nothing like the hardware configuration and software features are very similar.
Market demand for low-cost mobile phones is high, and Indian smart phone manufacturers can profit from it. From the end of 2010 to the middle of 2011, the total share of these companies in the smartphone market was less than 10%. By 2015, this figure had climbed to more than 50%. As a result, they finally entered a good operating state. After that, turning point appears.
After years of continuous growth, the Chinese smart phone market has become saturated, and it has been difficult for Huawei, Jinli, Xiaomi and other local companies to maintain growth. As a result, many of these companies have begun to focus on foreign markets: India, Indonesia and other regions soon became their focus markets.
India is a natural choice for many Chinese companies, especially vivo, OPPO and Gionee, because they used to be ODM partners with Micromax and many other Indian companies. “They are very aware of what types of smart phones Indian consumers want. With years of experience in China, the world’s largest smart phone market, they already know what kind of development strategy to implement.†Kola of Converence Catalyst pointed out.
Led Coaster, Led Light Up Music Coaster, Flashing Led Coaster
AST Industry Co.,LTD , https://www.astsoundchip.com