Chinese Smartphones Rule Indian Market This Diwali

by Priyanka Pugaokar    Oct 29, 2016


While the social media in India is abuzz for boycotting of Chinese goods, the sales of Chinese smartphones are on the rise due to growing acceptance of brands like Vivo, Oppo, Huawei, Xiaomi and Lenovo. These brands are all set for a big Diwali bang with their aggressive sales plans. The Chinese handset vendors which gained huge traction in the Indian smartphone industry within a short span of time, have rolled out a slew of offers and schemes for customers. Vendors are also betting big on the E Commerce marketplaces such as Amazon, Flipkart and Snapdeal to generate maximum sales and brand recall.

Shower Of Offers On E Commerce

E Commerce has been a preferred sales and marketing platform for Chinese smartphone brands with exception of brands such as Xiaomi are focusing on their offline presence as well. However, all the Chinese smartphone vendors seem to have opted for E Commerce platforms this festive season and have announced a slew of offers and schemes for online customers.

 Read more: Chinese Smartphone Brands Rule India Market In Q2′16

LeEco has announced its second Diwali sale that is slated to commence from October 26 and will end on October 30. Like its previous Diwali sale, the company is offering buyers discounts on its online store LeMall and on Flipkart. LeEco is also offering exchange offers on Flipkart where users can also exchange their old TVs for up to Rs. 25,000 when buying their new LeEco SuperTVs. Apart from the televisions, LeEco is offering an additional Rs. 1,500 when exchanging an old phone for the Le 2 on Flipkart. Similarly, another popular smartphone brand Oppo, has launched a special, Diwali edition, of their latest flagship, the Oppo F1s. Xiaomi has also offers lucrative discounts Redmi phones, Mi phones, and accessories for a discount on its website.

Another not so popular brand, OnePlus is not offering any direct discount on its new phone. However, it is running a replacement scheme for old phones. Customers can get a price reduction of up to Rs.16, 000, depending on the condition and the model of the phone that they intend to replace with OnePlus smartphones. The company is also running Diwali Dash sale in which buyers can get a chance to win the gold variant of the OnePlus 3 for free. The offer has commenced today on the OnePlus’ official online store.

Lenovo is offering an attractive discount on its budget smartphone Zuk Z1, making it more affordable Cyanogen phone the market. Earlier priced at Rs.13, 499, right now you can get it for Rs.10, 999. Lenovo is offering exchange offers on its various models which can help customers save up to Rs. 13,600. The amount of discount buyers, gets will depend on the handset they are putting up for exchange. These schemes and offers are aimed at pulling maximum crowd towards the brand and the surge in the smartphone race in India.


The Rise Of Chinese Smartphone Brands

With the smartphone industry is moving towards the downward direction in developing countries, India has emerged as the most promising growth destination for global smartphone vendors. India has surpassed the USA to become the second largest smartphone market worldwide. Similarly, with the growing adoption of 4G LTE and exponential growth in smartphone sales, Chinese smartphone makers are focusing on expanding their presence both online and offline.

Research agency Counterpoint’s recent report reveals the promising growth story of Chinese vendors in the country. According to the report, brands like Xiaomi, Oppo and Vivo collectively had 32 percent of market share in the quarter, up from 27 percent in the last quarter. Moreover, Vivo, Oppo and Xiaomi made it to the top 10 list.

Read Also: How Lesser-Known Oppo Pushes Xiaomi, Lenovo Out Of Top 5

The rise of Chinese smartphone vendors has also shaken up the positions of market leaders such as Samsung and domestic player Micromax. “The Indian brands have seen losing their share to Chinese brands as well, collectively Micromax, Lava and Intex are losing almost 6 percent market share sequentially,” the report said. Samsung maintained its top position in the market with 21.60 percent share, Micromax stood at the second spot with 9.8 percent. The third spot was taken by Lenovo-Motorola group with 8.9 percent share. Reliance Digital’s LYF brand has surged to fourth spot with 6.70 percent.

Aggressive Expansion Plans 

All the major Chinese brands have announced their very aggressive expansion plans in India. Government’s ‘Make in India’ initiative is the another booster for the Chinese handset manufacturers, who have already announced their aggressive plans in domestic manufacturing. Brands like Lenovo, Xiaomi, and Gionee have partnered Foxconn to assemble their devices in India. According to some reports, Oppo and Vivo intend to invest Rs. 2,000 each for setting up their new manufacturing plants.

Huawei has already opened its manufacturing unit in partnership with Flex Telecom in Chennai. The company has started producing the Honor smartphones from this month. The pace with which Chinese smartphones are heading in the industry, it is clear that the competition is set to intensify further. However, considering the huge untapped smartphone market in India, it would be interesting to see that how the Chinese brands will surpass the established smartphone vendors in the emerging growth regions.