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Chinese brands dominate India's smartphone market
   2017-01-25 21:12:21    Chinadaily.com.cn/CRIENGISH.com      Web Editor: Zhang Peng

A salesman shows the function of a Xiaomi smartphone to his customers in India. [Photo: sina.com.cn]

Chinese brands have captured the biggest share of the Indian smartphone market, The Paper reported on Wednesday citing new industry figures.

In the fourth quarter of 2016, Chinese brands such as Vivo, Lenovo, Xiaomi and Oppo, took 46 percent of the total smartphone market - up from 14 percent a year ago, a report from tech research firm Counterpoint revealed.

Samsung, with a market share of 24 percent, continued to lead the Indian smartphone market, followed by Vivo (10 percent), Xiaomi (9 percent), Lenovo (9 percent) and OPPO (8 percent).

The month of November saw Chinese brand share reach an all-time high, accounting for 51 percent of the total smartphone market.

The success of the Chinese vendors was attributed to a variety of factors including aggressive portfolio strategies and substantial spending on marketing, as well as better access to components that were in limited supply, the report said.

With a large population, India has been seen as a second "Chinese market" by many smartphone makers across the world. Chinese vendors even see the Indian market as their most significant strategic market. Currently, Indian market scale has reached 10 billion USD with fast growth expected in the future.

William Lu, president of China-based smartphone maker Gionee, said earlier during an interview with the paper that the operation mode of Chinese smartphone brands in China have turned out to be successful. Therefore, Chinese brands intend to replicate the mode across Indian market. "Gionee utilizes the same market strategy targeting Chinese consumers in India and so do other Chinese brands like OPPO and Vivo. The two companies even bring their dealers from China to the Indian market." Lu added.

After Indian Prime Minister Narendra Modi launched his government's ambitious "Made in India" campaign, Gionee then launched its first "India made" smartphone in Visakhapatnam in October of 2015, which won the support and praise of Shri N.Chandrababu Naidu, Chief Minister of Andhra Pradesh.

Xiaomi, which just entered into the Indian market two years ago, has announced that its 2016 annual sales in India reached a record 1 billion US dollars, double of what it made last year. It is said that over 75 percent of its smartphones sold in India are produced in the country.

OPPO and Vivo also copied their "Chinese mode" to the Indian market by establishing a large-scale and dense sales network in the country. Vivo is said to have opened over 15,000 retail stores in India.

India outpaced the United States last year to become the world's second-largest smartphone market, according to GSMA, an industry organization made up of around 800 telecom operators.

GSMA also predicted that India will have one billion mobile subscribers by 2020, compared with 616 million users in June 2016.



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