Between the fourth quarter of 2017 and 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 away the market share from Samsung Electronics No. 1 (calculated by unit shipments The throne of the).
According to statistics from Counterpoint, a Hong Kong market research company, Xiaomi’s shipment volume in India was 31.1% from January to March, ranking first in two consecutive quarters. Samsung’s 26.2%, followed by companies such as vivo and OPPO in China. .
On May 30, 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 produced locally, and 95% of Xiaomi's smartphones sold in India are Made in India.
The first Indian millet house Picture Source: Nihon Keizai Shimbun reported that Xiaomi entered the Indian market in 2014 and was only sold through online channels. However, in 2017, Xiaomi added direct sales stores and started to cooperate with other mobile phone shops.
Since about 70% of India's mobile terminals are sold through offline store channels, Xiaomi’s transformation strategy has become inevitable. By raising popularity with popular actresses and increasing exposure in outdoor advertising, Xiaomi has increased its visibility in India.
However, the most effective is the low-cost strategy. Millet's smart phones are priced between 5,000 and 20,000 rupees (approximately 470 to 1,880 yuan). Indian consumers just like to buy cheap products. 5,000 to 15,000 rupees (approximately 470 to 1410 yuan).
Singh, the chief analyst of the US survey company's international data (IDC), pointed out that Xiaomi's price of 5,000 rupees (about 470 yuan) is an example of the product, '16GB RAM, camera, and other brands with the same price. No such performance'.
To lower prices, it is necessary to achieve localized production. According to India’s “Economic Times” report, Raghu Reddy, head of India’s online sales department for millet, said that 95% of Xiaomi’s smartphones sold in India are 2 factories in Andhra Pradesh, South India.
At present, Xiaomi purchases parts from China, South Korea, Japan, and other parts of the world. However, millet India’s legal executives stated that they are 'participating in making parts suppliers build their parts factories next to the assembly plant'.
Millet Factory in India Video Screenshot
Although Xiaomi took the championship, but “Nihon Keizai Shimbun” said that Samsung’s brand influence is still strong and the sales network is also very stable. Although the competitors are attracting suppliers and retailers with favorable conditions, they are currently facing Samsung. The impact is smaller.
Samsung's countermeasures are to place online sales exclusively for models. According to Indian local media reports, Samsung plans to sell exclusive online models at prices of 5,000 to 15,000 rupees, similar to millet's pricing.
In terms of other Chinese smart phone 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 had previously relied on store sales. In the future, it will adopt a combination of online and offline sales strategy. Oppo (4th place, 5.6%), which won the championship in the Indian market, will also adopt the same strategy.
OPPO and vivo mobile phone store in central India Image Source: Japan Economic News On the other hand, the share of Apple in the United States is less than 2%. It seems to ignore the Indian market, but Apple began assembling smartphones in India in 2017. As it has about 13 The billion population of the Indian market will bring growth opportunities. It is expected that various smartphone manufacturers will continue to explore ways to expand sales.