Chinese Expand Share in Booming Smartphone Market of India

GURGAON, India - July 19, 2016 - PRLog -- Chinese phone makers are increasing their share in the thriving Indian market for smartphones, thanks to the diminishing sales of android phones in China in the past three years. Their expanding share in the Indian economy has been challenging the dominant position of local competitors who are now offering discounts while trying to boost the marketing spend.

India is among the fastest growing android phone markets worldwide as only a fifth of over a billion cellphone users have high-speed internet devices. This leaves enough room to experience a sales boom. According to a study, by the end of 2017, India may surpass the United States to become the biggest android phone market in this world after China.

China-Based Manufacturers Rule

Chinese players eyeing new growth avenues have started chipping away the top names dominating in the country. The verdict was out in 2015 when the topmost smartphone maker of India saw its market share fall to 26.2 percent from 29.3 percent in the previous year. Likewise, another home-grown competitor saw its share dip from 18.9 percent to 16.1 percent.

Operating in the country since last year, Vivo, the android phone manufacturer has been able to carve out a good 1.1 percent of the market. Other smartphone manufacturers from China also witnessed a promising rise in their market share, one of them going from 1.6 percent to 2.8 percent in just a year. Findings by a research firm showed that the Chinese manufacturers were disrupting the market trend with their cut-throat pricing and specifications.

Good Pricing and Specifications

These players actually offer great value proposition to Indian customers. They are obviously at an advantage because they have already built phones at scale for their native market, which is by far the biggest in the world. Besides, since most of these makers sell their products online, it gives them enough room to stay competitive in the Indian subcontinent by keeping their costs down and their prices attractive.

Splurging on Generous Marketing

A China-based smartphone maker revealed that it spends around 10 million dollars over a quarter in marketing products online and in print. On the same lines, Vivo Mobile, a brand of China's BBK Communication Technology hit the jackpot by signing a two-year title sponsorship deal with the Indian Premier League in 2016. For the uninitiated, IPL is a money-spinning annual cricket tournament that draws huge crowds. Similarly, yet another brand owned by BBK entered into a global partnership with the International Cricket Council for the sole aim of building their brand.

Needless to say, this act of brand building plays a key part in the expansion plans of all Chinese android phone manufacturers. And their journey, as they say, has just about begun.

For More infomation visit:http://www.vivo.co.in/category/newsroom-corporate/

For Reference: http://asia.nikkei.com/Business/Trends/India-smartphone-C...