Navkendar Singh, head of research at market research firm IDC, said: 'These two companies have reduced channel profit and retail spending. Now they are looking at the depth of distribution rather than the width. They are also doing distribution. Made reasonable adjustments and chose to sell mobile phones on fewer counters.
According to industry experts, in New Delhi, India alone, the number of stores selling these two brands dropped by nearly one-fifth to about 8,000. Vivo confirmed the change in strategy.
A spokesperson for Vivo India stated: 'About Vivo's sales channel strategy, we have redeployed our distribution strategy to focus on providing consumers with diverse choices and experiences. ' The spokesperson added that the company After launching its own e-shop in India, more attention will be paid to online sales.
A spokesman for Oppo India stated that the company's business is as usual.
The spokesman said: 'We want to reiterate that our business operations are normal at this stage.'
An important retailer in the Indian capital stated that the two companies would have paid large amounts of advertising money to shop owners in advance, even though shopkeepers only sold one or two mobile phones per month. Now, they require retailers not to offer discounts, and they Has increased the sales target.
The initial impact of this contraction seems to be negative. Oppo is no longer in the top five smartphone market, the company’s market share in January was 4%, and the company’s market share was 9% a year ago. , Vivo's market share is halved to 7%.
Industry experts and analysts said that in the medium to long term, the two companies will benefit from this strategic change.