Table of Contents
Chinese mobiles get a dragon share in the Indian mobile business. What has the anti-China movement done to the Indian mobile industry? I would say, Literally nothing!
Do you know Xiaomi, a Chinese company that has become the second-largest mobile seller in India after Samsung? Sandhya keelery has given an excellent infographic regarding Chinese dominance in the Indian mobile industry.You will find more infographics at Statista
Xiaomi is the leading mobile produce in the country, beating Samsung in 2017. But the anti-China movement has made the leading Chinese mobile manufacturer a runner in the Indian mobile industry.
Gone are those days where the Chinese brands mostly represent a counterfeit device of a branded mobile. The present Chinese mobile industry runs with premium operating systems at affordable prices.
The OEM manufacturers in china have upgraded standards to an extent where they are successful in gaining their consumers’ confidence.
Xiaomi, Oppo, Vivo, and Realme are the most common Chinese brands which make affordable mobiles.
Even the premium mobile section is occupied with branded Chinese mobile manufacturers like One Plus and Motorola (owned by Lenovo).
The main difference between Chinese and Non-Chinese brands is the affordability. You get premium features at an affordable price on a Chinese mobile.
You get a high-resolution screen with a high refresh rate at an unbelievable price in the Chinese brands. The sensor package that comes with these phones is incredible. I mean, you get premium specifications at a reasonably fair price.
The data revolution
India in the 21st century has undergone a big data revolution. With the advent of 4G services, the data usage per person has increased to an astonishing number. Free data packages have driven household to swim in the data river. It made India the most significant ever data consumer in the world.
Katharina Buchholz considers Indians as the biggest traffic hogs consuming more than 12GB of data every month in 2019.
The Jio data revolution in 2016-2017 has bought free data to the homes of the common man. The freebie has a profound impact on the Indian mobile industry, where people started buying 4G smartphones only to use the free data. That too unlimited data for an unlimited period.You will find more infographics at Statista
The 2017 is a golden period for the Chinese mobile manufacturers. They found a potential customer base in India. But at the same time Indian companies like LAVA, INTEX, CARBON, IBALL, CELLKON and MICROMAX failed to compete. Moreover, most of the above said companies rebranded the Chinese products. The low-quality products and poor after sales services almost dumped every Indian company into ditches.
Marketing strategy by Chinese mobiles
Xiaomi is an excellent example of next-gen marketing strategies. In the beginning days Xiaomi has neither promoted its brands with celebrities nor with huge digital ads.
Their strategy was simple and awesome. “SELL for low and unbelievable price with an excellent quality”. The quality standards of the product were awesome. I still remember buying a mi phone for Rs 6000 rupees, which was unbelievable at that time.
Moreover, they promoted only “FLASH SALES” for every new product. Remember, this is an excellent psychological marketing strategy. Yes! You heard it right.
When a person fails to get a product easily, he will try to get it one or the other day. It is a human tendency to think more about getting things which are difficult to obtain.
If Xiaomi would have made their mobiles to be available at online and offline stores from the day one, they would not have been this successful.
The “FLASH SALES” strategy worked wonders for them, and they still use it till date.
Things to learn from Chinese mobile manufacturers
The journey of Chinese mobile industry in India has taught many lessons. Let us dig deep into it.
Most of the parts of these Chinese mobiles are manufactured in China and are imported to India. They have assembling units all over India where the parts are assembled into mobiles. But still, they are successful in providing mobiles at cheaper prices even after imposing heavy import taxes.
On the other hand, the non-Chines brands failed to provide such greater value to their mobiles. The mobile prices are premium compared to Chinese. How are they (The Chinese) doing that? Or should we think over it again?
If they can do that, why can’t the others?
Low margins and high sales is the market mantra of these Chinese mobiles. Let me explain with an example. If I sell 100 products with $2 margin, I will finally end up having a profit of $200.
If I sell 10 products with $20 margin, I will end up with same profit. But which one is better?
Obviously the first one, because, I am selling 100 products, hence my after sales service and the revenue potential from the aftersales service will be more compared to the second scenario.
In simple words, if I sell 100 mobile phones, 20 to 30 members will come to me with some or the other complaint after one year. I would charge them for my service and spare parts which is an added income.
This is exactly what the Chinese mobile manufacturers are doing. More mobile sales per day, more revenue from after sales service. Hence, they get good revenue from both the ends.
What must change
The government of India is trying to boost mobile manufacturing sectors in India. More and more entrepreneurs must come into this field which has boundless opportunities.
People should think beyond rebranding a Chinese mobile. India should start investing on self-made mobile parts like LED screens, Chipsets, and other hardware. Do not repeat the same mistakes that your predecessors have made.
Moreover, the manufactures must concentrate more on selling more mobiles, than on the margins. You can cut your costs by stopping unnecessary online and offline promotions.
Instead of spending money on brand ambassadors, transfer the same amount as concession or rebate on mobile phones. This is what Xiaomi has done all these days. Sell mobile phones at affordable prices which are at par with your Chinese counterpart.
Finally, I would say, this is the right time. Time once lost is lost. You may not get the opportunity when and where you want.
Mobile manufacturers should think of investing in India. More and more mobile manufacturing hubs should come with self-made hardware installed into the mobile phones.
The mobile industry in India is big enough to provide employment to the un-employed to a vast extent.
What are your views on this article and the present condition of mobile industry in India? Comment below to let us know your opinion.