India has always been a battleground for Chinese mobile phone brands. Recently, the latest data released by Counterpoint Research shows that India’s smartphone shipments in 2023 will be 152 million units, the same as in 2022. Among them, vivo has become the fastest-growing leading player, with its market share rising from 15.8% to 17%, which is the same as in 2022. Samsung, which ranks first, has only a 1% gap. This means that vivo is launching an attack on the position of "India's No. 1 Brother". Ten years after entering India, how is life in vivo? Challenge Samsung, what are vivo’s chances of winning? What challenges will vivo face on its way to become "India's No. 1 Brother"? India, the “first stop” for vivo’s overseas expansion. According to People’s Daily Online, as early as 2014, vivo founder, president and CEO Shen Wei personally led a team to inspect India. In addition to vivo executives, the inspection team also There are domestic agents that cooperate with vivo. Everywhere the agents go, they compare it with the domestic area they are responsible for acting as agents. Those with more similarities are designated as areas to expand business in India. The reason for this is closely related to India's pivotal market position. In April 2023, India's population reached 1.426 billion, making it the world's most populous country. With a high base, India has become the world's second-largest smartphone market. More importantly, India's potential is immeasurable. As an important emerging market, India's economic growth is strong. Its Ministry of Finance predicts that it is expected to surpass Japan and Germany to become the world's third largest economy by 2027, when its GDP will reach 5 trillion US dollars, thus unleashing greater consumption potential.

Chinese mobile phone brands enter the Indian market

Source: China Economic Data

Samsung’s market share shrinks

While Samsung has dominated the Indian smartphone market for years, its market share has been declining. In 2015, its market share was still 30%, but by 2023, it had dropped to 18%.

The rise of Chinese mobile phone brands

At the same time, Chinese mobile phone brands are on the rise. Among them, although vivo started slowly, it has made steady progress and is gradually approaching Samsung and is expected to replace it.

vivo India’s performance is impressive

vivo India’s sales revenue in fiscal year 2023 was 298.749 billion rupees, a year-on-year increase of 9%. Net profit was 2.11 billion rupees, turning a loss into a profit.

vivo performed well in the Southeast Asian market

Not only in India, vivo has also established a foothold in Southeast Asia, becoming a frequent visitor to the top three smartphone markets in Malaysia, Indonesia and other countries.

Localization Strategy

vivo’s success is closely related to its localization strategy.

• Build your own factory and hire local talents
• Focus on offline channels, with approximately 70,000 stores
• Accurately cater to local consumers and seize the economical high-end market

Differentiated competitiveness

Competitors focus more on online, while vivo focuses more on offline and has first-line tentacles that penetrate deeply into the Indian market.

Changes in consumer purchasing patterns

Varun Mishra, senior analyst at Counterpoint Research, said: "Consumers are willing to spend more on high-quality equipment to extend its service life."

High-end mobile phones are growing against the trend

1. The rise of the Indian middle class and the prosperity of the mid-to-high-end consumer market

To put it simply, the Indian middle class continues to grow, and the mid-to-high-end consumer market is also becoming more and more prosperous, becoming a battleground for smartphone brands.

2. China and India have different national conditions, and the average price of smartphones is quite different

Take the third quarter of 2023 as an example. The average price of smartphones in the Chinese mobile phone market is 3,480 yuan, while in the Indian market it is US$195, about 1,400 yuan. Even so, it has set a record high in the average price of smartphones in India.

3. Vivo seizes the contradiction and takes into account both high-end and economy

An industry insider told Zinc Scale: “High-end and economy are often opposites, but more and more Indian consumers are both eager for excellent performance and price-sensitive. Vivo has seized on this contradiction, and then Gain the favor of more users. ”

4. Vivo launches T series and V29 models, both becoming sales growth points

For example, in terms of expanding its high-end customer base, vivo did not blindly bet on the latest flagship phones. Instead, it seized on the actual needs of the Indian middle class and focused on design, imaging, system and performance, focusing on launching T series, The V29 model was launched offline, both becoming a key growth point for sales.

5. User orientation is the fundamental starting point for enterprise development

Hu Baishan, president of vivo’s Central Research Institute, once said: “The essential requirement of business is to track changes in user needs, so user orientation is the fundamental starting point for everything in an enterprise, and innovation must come from user orientation. Only in this way can an enterprise have vitality? ."

6. High-end has become the consensus of the smartphone industry, but the connotation is different

It is not difficult to see that high-endization has become the consensus of the smartphone industry, but the connotation of high-endization is different in different countries and regions, and "prescriptions" cannot be applied blindly.

7. Vivo has the confidence to challenge Samsung

From this perspective, vivo is confident to challenge Samsung in 2024.

Competition is subtle again

1. Xiaomi regains momentum

In addition to Samsung, vivo has other challenges on its way to becoming the “No. 1 brother in India”.

On the one hand, Xiaomi is regaining momentum.

2. Xiaomi’s rapid development in India

India is also the "first stop" for Xiaomi to go overseas. Coincidentally, it was also started in 2014. It can be said that the heroes have the same vision, but Xiaomi is going faster. As early as 2016, its operating income exceeded 1 billion. US dollar, becoming the fastest company in India to set this record.

3. Xiaomi revives smartphone sales, the competitive landscape is subtle

After strategic adjustment, Xiaomi showed signs of the return of the king.

In the fourth quarter of 2023, in the Indian smartphone market, the market shares of Xiaomi, vivo, and Samsung were 18.3%, 17.3%, and 16.8% respectively, and the competitive landscape has become subtle again.

Glory’s overseas expansion

1. With theGlory regained its vitality, expansion became its key word, and it entered more overseas markets:

-Glory European Region in the first half of 2023 Shipments increased by more than 130%
- Shipments in the Middle East and Africa region increased by more than 130%
- Shipments in Latin America increased by over 230%

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2. Among them, overseas sales in the first five months of 2023 have exceeded overseas sales in the whole of 2022, and overseas sales are expected to increase by more than 130% in 2023.

Honor enters the Indian market

3. India is naturally also under consideration for glory.

4. Foreign media reported that it plans to produce mobile phones in India from the first to the third quarter of 2024 and occupy 5% of the Indian smartphone market.

Competition in India’s smartphone market intensifies

5. With the entry of new players, the Indian smartphone market has become more volatile, and there is also pressure to diversify.

Indian Smartphone Market Outlook

6. All in all, the Indian market is full of opportunities as well as many challenges. There may not be much suspense about vivo overtaking Samsung in 2024, but competitors such as Xiaomi should not be underestimated. It is still unclear who will win in the future. .

7. But what is certain is that the only thing that makes the iron strong is itself.

The above are the details of vivo's "top" in India, one step away? For more information, please pay attention to other related articles on the PHP Chinese website!

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                            <p style="display: inline-flex;float: right; color:#333333;">Source:ifeng.com</p>
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