For the past few days, Indians have probably been using Chinese mobile phones to raise awareness on boycott of made-in-China products.
Ever since the deadly clash between the Chinese and Indian soldiers took place, calls for boycotting China-made products have grown louder. For the first time ever even the government has started taking steps to reduce dependence on Chinese companies. The Indian Railways today cancelled a ₹ 470 crore contract given to Beijing National Railway Research & Design Institute of Signal & Communication citing poor performance.
But do the Indian consumers possess the same level of will power to abandon Chinese products?
A quick look at the market share of Chinese mobile companies tells a very different story.
In our country, most of the people compare their cell phones with others. For example,
If you will ask them to boycott their Chinese phone, then there will arise the question which phone to use. An Apple phone is also made in China. On the contrary you may find Made in India written on the phones of Chinese companies. This because most of the Chinese companies like Xiaomi, Oppo and others have opened their factories in India.
Apple and Nokia phones, on the other hand, are manufactured by Foxconn (a Chinese brand)”. This is the best excuse from you people. But you don’t understand that made in China is way different than made by China.
Why Chinese Mobile phones are so popular in India?
According to Li Bingzhong, innovation has shaped the image of Chinese handsets in the Indian market. The combination of quality, affordability, localization strategies, and strategic marketing allowed Chinese phones to rapidly dominate the Indian market.
The latest market research data show that among the top 10 best-selling smartphone brands in India in Q4 2017, all except Samsung are Chinese manufacturers, whose total market share exceeds 50 percent. There were Indian companies like Micromax, Lava, but they had to shut shop due to the superior quality of Chinese phones. A brief look into OPPO and Xiaomi stores in India, along with surveys with Indian consumers and business executives, shows why Chinese mobile phones are so popular in India.
Indian people’s love for Chinese cell phones
For the past few days, Indians have probably been using Chinese-made phones to seek a boycott of made-in-China products.
Beijing-based Xiaomi recorded its highest ever shipments in India during 2018. Realme, which started off as a sub-brand of Oppo in mid-2018 and was spun off into an independent company, surpassed Oppo in terms of shipments by year-end.
What 2020 report says about Chinese cell phones?
India is the world’s second-largest smartphone market that makes it attractive for brands looking for expansion.
Also, the Chinese market is saturated and has extreme competition. It is even more competitive than the Indian market.
Moreover, looking at some Chinese brands getting success in India; more Chinese players want to gamble on the Indian market.
Indians spent over Rs 50,000 crore on Chinese smartphones in a year-
Indian consumers doubled their spending on the top four Chinese brands – Xiaomi, Oppo, Vivo, and Honor – to over Rs 50,000 crore in FY18.
The Chinese dominance of the Rs 1.5 lakh crore Indian smartphone market, growing at about 10-11% as per research reports, has never been questioned. But it’s still surprising that Indian consumers doubled their spending (year-on-year) on the top four Chinese brands – Xiaomi, Oppo, Vivo, and Honor – to over Rs 50,000 crore in FY18. These four brands along with a few other Chinese brands like Lenovo-Motorola, One-Plus, and Infinix, make up more than 50% of the total Indian smartphone market by sales, The Economic Times reported, adding that data available thus far suggests their sales are growing rapidly this year too.
As per Registrar of Companies filings for FY18, Xiaomi Technology India’s revenue from operations stood at Rs 22,947.3 crore, up from Rs 8,334.4 crore in FY17 while that of Oppo Mobiles India jumped nearly 50% to Rs 11,994.3 crore in the same period. The most impressive growth was posted by Vivo Mobile India, up 77.6% year-on-year to Rs 11,179.3 crore. Meanwhile, Huawei Telecommunications India’s mobile business revenue went up 56% to Rs 5,601.3 crore. Honor, a leading smartphone e-brand under the Huawei Group, claimed to have registered an unprecedented growth of 281% in the first half of 2018 and rank among the top 2 brands in the online segment in the second quarter (Q2) of this fiscal.