Vivo and Oppo, the Chinese smartphone brands, which combined incarcerated 22% of smartphone market in just almost a year in India, reported sales drop in July for the first time even as most of the online-only companies such as Xiaomi made an entry in the offline retail segment. Sales of Vivo and Oppo dropped down in July by 30% and they maintain to stay down this month, as per various neighborhood retailers including 4 leading cell phone retail chains who felt this might be a sign to a mix in the market.
Their drop came even as the smartphone market in India increased in July by almost 8% as per early estimates. Stricken with panic, the Chinese owners of Vivo and Oppo have sent Chinese experts into the market along with Indian supervisors to speak to distributors to take stock of the situation in each state, 3 senior industry supervisors claimed to the media in an interview. Emails sent to Vivo and Oppo did not draw out any answers till this day.
Trade supervisors attributed the unexpected reversal of destiny for Vivo and Oppo to offline incursion of online-focused companies led by Xiaomi. Oppo and Vivo aimed on brick-and-mortar operations along with antagonistic marketing investments. Xiaomi is the second largest smartphone brand of the country after Samsung.
“Xiaomi has turned out to be very aggressive in physical shops, began branding in stores, and has even began advertising in outdoor hoardings and media for the first time that has applied stress,” claimed Managing Director at retailer Sangeetha Mobiles, Subhash Chandra, to the media in an interview. “All these movements have taken a bite into the share of Vivo and Oppo.” Sangeetha Mobiles has 375 cell phone shops all over the country. Other online-focused companies such as Motorola, Lenovo, Asus, and Honor as well are making an entry in the brick-and-mortar segment with the accomplishment of Goods and Service Tax rule.
Well, for now, Oppo and Vivo are witnessing some difficult times in the Indian market and will continue to face the same for some time. Let us see how long will they survive.