In Q4 2016, Indian smartphone makers were pulled out of the top five as Chinese smartphone makers continued to grab market share with extremely price-competitive devices according to the report by cansyls.
Local vendors like Micromax, Intex, Karbonn and Lava have been hit hard by the Indian government’s decision to demonetize the INR500 and INR1,000 banknotes because most Indian brands target customers by buy in cash method in offline market. Whereas, most of the Chinese brands are online only sell mode. Due to this these brands are not affected by the cash crunch. With the cash crunch caused by demonetization, Indian brands suffered a slowdown in consumer spending.
In Q4 2015, Micromax, Intex and Lava had second, third and fifth place respectively, accounting for 30% of the market. One year on and all the three vendors have dropped out of the top five, with their collective market share falling to 11%.
Samsung continues to be the market leader with shipments of around 6.2 million units and a 22% market share, in line with the previous quarter. Second-place has been for Xiaomi. Xiaomi's focus on Indian expansion continued to pay off as it reached the 3.0-million-unit mark, growing by whopping 230% year on year. Oppo was the best-performing vendor in the top five and it is the first time for Opp to be in top 5. Oppo shipped 2.6 million units, up from 150,000 a year ago, and a 150% increase from the previous quarter. Lenovo has been in fourth with just under 2.6 million units shipped, followed by Vivo, which shipped just over 2 million smartphones.
“Oppo’s intensive brand-building has paid off. In the past year, it has sponsored popular TV shows, T20 cricket and signed up local celebrities Hrithik Roshan and Sonam Kapoor to build popularity,” said Research Analyst Lucio Chen.
“Beyond sponsorships, Oppo has also driven strong channel expansion activities, investing in channel marketing initiatives and securing vital shelf space with local mobile retailers. While this is a capital-intensive approach, the significance of building a brand in India cannot be underestimated.”
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