Vivo "reaches the top" of India, is it just one step away?

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

Although Samsung has dominated the Indian smartphone market for many years, its market share has continued to decline. 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 rising. 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 outstanding

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 has 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 countries such as Malaysia and Indonesia.

Localization strategy

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

• Build factories independently and hire local talents
• Focus on offline channels, with about 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 deep into the Indian market.

Shifting consumer purchasing patterns

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

High-end Mobile phones are growing against the trend

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

In layman’s terms, as the Indian middle class continues to grow, the mid-to-high-end consumer market is also becoming more and more prosperous, becoming the focus of smartphone brands A battleground.

2. China and India have different national conditions, and the average price of smartphones varies greatly

Taking 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 195 US dollars, about 1,400 Yuan up and down, 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 desire both With excellent performance and price sensitivity, vivo has grasped this contradiction and won the favor of more users. "

4. Vivo launched the T series and V29 models, both of which have become sales growth points

For example, in In terms of expanding its high-end customer base, vivo did not blindly bet on the latest flagship phone. Instead, it grasped the actual needs of the Indian middle class and focused on design, imaging, system and performance, focusing on launching the T series online and the V29 model offline. , both have become key growth points for sales.

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

Hu Baishan, president of vivo 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 It must also be user-oriented, only in this way can the 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 has the confidence to challenge Samsung in 2024 of.

Competition is subtle again

1. Xiaomi is making a comeback

#🎜🎜 #Besides Samsung, vivo’s road to becoming “India’s No. 1 Brother” also faces other challenges.

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 2014 It can be said that the heroes have the same idea, but Xiaomi is moving faster. As early as 2016, its operating revenue exceeded US$1 billion, becoming the fastest company in India to set this record.

3. Xiaomi has revived smartphone sales, and the competitive landscape is subtle

After strategic adjustments, Xiaomi has shown 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. The competitive landscape has become subtle again.

Glory Overseas Expansion

1. With the recovery of Glory’s vitality, expansion has become its Keywords, then entering more overseas markets:

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- 中东非地区部出货量增长超130%
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2. Among them, the overseas sales in the first five months of 2023 have exceeded the overseas sales in the whole year of 2022. Overseas sales are expected to grow by more than 130% in 2023.

Glory enters the Indian market

3. India is naturally also under Honor’s consideration.

4. Some 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 sales. share.

Competition in the Indian smartphone market is intensifying

5. With the entry of new players, Indian smartphones The market has become more volatile, and there is pressure to divert traffic.

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 for the whole year in 2024, but competitors such as Xiaomi cannot be underestimated, and it is still unclear who will win in the future.

7. But what is certain is that the only way to make iron is to be strong yourself.

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