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‘Chinese Wave’ in India Stalled as Many Mobile Makers Struggle

Chinese smartphone brands in India are struggling. Oppo’s India head has resigned due to the company’s poor sales.

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I never thought I’d see this day but it’s happening. Chinese smartphone makers are struggling in India.

Just a couple of days ago the news of HTC shutting its smartphone division came as a shock to many. Not too many days before that, LeEco too shut shop in India and declared bankruptcy.

Now, Oppo, which was once a hot favourite among selfie lovers in India is struggling and this has been corroborated after news came out that the company’s managing director for India, Yi Wang, had resigned.

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The Indian smartphone market is a highly competitive territory, which devours any brand not able to offer products that are unique, innovative and please the customers’ pockets.

Though not innovative, Xiaomi has been consistently playing the ‘price’ card and has launched a bevy of smartphones in India in the last few years which has gained it the top spot in the country in terms of marketshare.

According to an IDC (International Data Corporation) report, Xiaomi recorded its highest ever shipment in the second quarter of 2018. Even more than Samsung.

Oppo on the other hand slipped to fourth position in Q2 due to lesser marketing initiatives and absence of attractive offline channel schemes. Despite having a 15 percent growth in device shipments year-on-year, the brand has struggled in India, which has lead to its India head stepping down.

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Another smartphone-maker Comio came and exited India before one could even say “Comio”.

In a conversation with The Economic Times, then Comio’s India CEO, Sanjay Kumar Kalirona, said the Chinese promoters did not see any profitability in mobile business in India. He further added that the segment where Comio used to sell is highly competitive and the brand could not sustain against the competition. Comio used to operate in the Rs 6,000-12,000 price segment, which is currently dominated by Xiaomi, Realme and Honor.

After the gradual exit of Comio the existing customers were left with very less information on where they had to get their devices repaired or serviced.

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Gionee too is barely making ends meet as the company is reportedly on the verge of bankruptcy according to a Securities Times report. The company has failed to pay its suppliers and has met with them to set up a deal of some kind to reimburse them.

Gionee saw a steep decline in worldwide shipments in Q2 of 2018 along with brands like Lenovo, Micromax and even Sony.

To make things worse, the company’s chairman Liu Lirong lost over 10 billion yuan ($1.4-billion) while gambling in Saipan. Later, Lirong told the Securities Times that he had lost over one billion yuan ($144-million). Although, he claimed that the money he lost was from his own personal assets.

The Indian smartphone market might have the biggest potential, but to reap the rewards smartphone makers have to offer something out-of-the-box. Else, they have no other option, but accept the same fate that has befallen brands like Comio.

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

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Topics:  Gionee   Oppo   Oppo India 

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