How? Chinese mobile phones have destroyed Indian brands in six years!

Text | Hua Shang Tao Li Wu Rui

Recently, the Indian government seized the assets of Xiaomi's Indian subsidiary, valued at 4.806 billion yuan, for illegally sending money to foreign companies.

In 2016, India's three local mobile phone brands, Micromax, Intex and Lava, dominated the Indian market, and Micromax alone had a 22% market share.

Today, the status of these Indian brands has been replaced by Chinese brands such as Xiaomi, OPPO, and vivo, which occupy three-quarters of the Market share in the Indian market. The acquisition of this advantage is a tortuous and rapid game process.

Image source: Moonlight Technology

In fact, the earliest Chinese mobile phone to enter the Indian market is not a brand machine, but a copycat machine in Shenzhen Huaqiang North.

In 2008, Indians still had low incomes, but a quarter still owned a mobile phone. Such popularity benefits from the low price of China's cottage machines.

Chinese copycats are rampant, which makes the Indian government very unhappy. In order to combat Chinese copycats, In 2009 India announced that mobile phones without the International Mobile Equipment Identification Number (1MEI) could not be imported into India.

However, after pressing the gourd to float the scoop and the Chinese cottage machine lost its foothold, the Chinese brand machine began to enter India.

Around 2010, Xiaomi, OPPO, and vivo entered the Indian market. At this time, brands such as Micromax in India also began to rise.

Thus, a Sino-Indian mobile phone war began.

There is a saying in the Indian mobile phone industry: "As long as you are cheap, you can sell as many mobile phones as you want." "Therefore, the price war between China and India mobile phones inevitably starts."

The consumption level of Indians is not as high as that of China, and the low-end castrated version of the mobile phone has become a magic weapon for Chinese brands to leverage the Indian market.

Selling a mobile phone for 1500 yuan in China, it was castrated after arriving in India. The resolution is reduced by one, the memory is reduced by one, and the final appearance looks the same, but it only sells for 1,000 yuan.

The castrated version of the mobile phone is very popular in India, although The Indian local enterprises are also masters of cost control, but after all, it is not as good as the ability of Chinese companies to integrate the industrial chain. Soon, in this cost war, Indian mobile phones lost.

In 2017, Chinese mobile phones already occupied half of the country in India, and the market share of Indian mobile phones quickly shrank to 14%.

Image source: Mr. Nine Palaces

When the Indian government saw that the situation was not good, it quickly resorted to a tariff move. On July 1, 2017, the Indian government announced a 10% tariff on imported smartphones.

10% can determine life and death, in order to avoid tariffs, Xiaomi, Glory, OPPO, vivo and other Chinese companies have opened factories in India, such as Millet in India sales of 95% of mobile phones are produced in local factories.

Although this strategy can avoid tariffs, the differences in Chinese and Indian cultures have brought new troubles to Chinese enterprises.

In 2017, oppo's Indian factory saw the so-called "Chinese manager tear up the Indian flag and throw it in the trash," sparking protests and demonstrations by hundreds of local people.

However, the truth of the matter is that the Chinese manager saw that the Indian flag on the wall fell off half, so he simply threw the remaining half into the trash can. This inadvertent act caused an uproar.

Some analysts pointed out that this is the result of the accumulation of friction. In order to avoid similar problems, the management of Chinese companies in India, from the general manager to the team leader, has begun to use Indians. Xiaomi, for example, is an Indian manager from top to bottom.

It should be said that the Indian managers have performed well, and The general manager of Xiaomi, Manu Jaen, even has a strong appeal in the local "rice noodles".

In addition to localization of management, Chinese mobile phone companies have gradually found that product functions must also be localized. Oppo, for example, found that the demand for selfies in India is very different from Chinese.

Indian users do not like the beautification function is too whitening, they want to maintain the original skin color; in addition, Indian women hope that when beautifying, do not weaken the "auspicious mole" between the foreheads, after all, it is not an ordinary mole; in addition, Indian men hope that the beauty can keep the beard hair clear...

Note: Auspicious mole Source: Study history in detail

As a result, OPPO made functional adjustments and won the hearts and minds of Indian consumers.

In this way, Chinese mobile phones continued to grow in India, and by the first quarter of this year, only China's four head mobile phone brands Xiaomi, True Self, OPPO, and Vivo had a market share of 64%.

Chinese mobile phones continue to adapt, and finally won the recognition of Indian consumers, but also contributed to India's employment and economic growth, achieving a win-win result in the local area.

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