Chinese brands dominated Indian smartphone market in Q4 2016

According to a report by Singapore-based research firm Canalys, Chinese smartphone makers are giving home-grown vendors in India a tough time. The report suggests that Indian companies like Micromax, Intex and Lava failed to make it to the list of top five smartphone makers in the country in Q4 2016. 

It's worth mentioning that during the same quarter last year (Q4 2015) Micromax, Intex and Lava held second, third and fifth place respectively in India's smartphone market accounting for almost 30 percent of the market share. Unfortunately a year later they account for only 11 percent, and have dropped out of the top five.

One of the reason for disappointing sales from Indian companies is the government's decision to demonetize old currency banknotes in November 2016.  

“Local brand’s target customers typically buy in cash and from independent retailers. With the short-term liquidity crunch caused by demonetization, these retailers are suffering a slowdown in consumer spending. Local vendors are losing out as retailers look to shift their stock to fast-moving, current devices,” said Canalys Analyst Rushabh Doshi.

During Q4 2016, Samsung was the largest smartphone maker in India with 22 percent market share, despite a 11 percent drop in growth compared to the previous year. The shipments declined to 6.2 million from 7 million in the same quarter last year.

Popular Chinese smartphone maker Xiaomi was in second place with a market share of 11 percent and managed to ship three million units, growing by more than 230 percent, thanks to the sale of Redmi Note 3, Redmi 3 and Redmi 3. 

Oppo clinched third position, and is also said to be the fastest growing vendor, shipping 2.6 million devices, up from 150,000 units a year ago. The fourth sport was held by Lenovo (+Moto) with 9 percent market share and 2.6 million units shipped, followed by vivo in fifth with 2 million shipped units. 

“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”, he explained further. 

Via | Source

Kaiser Bey

Kaiser is a tech enthusiast who likes to write, read and talk about tech. He dreams of going to Mars and never come back. We hope that you find his posts on AndroGuider helpful and informative