One Question always hurts me, Why Chinese Phones Xiaomi, Vivo, Oppo sells so much in India? I think many of you have the same Question in your mind. Why our Indian companies (Micromax, Karbonn, Intex) are not growing rapidly as compared to these Chinese companies? Today we will try to understand the strategy which these Chinese companies opt to exploit the Indian Market and Indian Companies.
Why Chinese Phones Xiaomi, Vivo, Oppo sells so much in India?
Xiaomi entered in Indian Market In July 2014, by launching its first smartphone the Mi 3. The phone has the very competitive price with decent specs which is one of the best at that time. This phone boomed the Xiaomi and phone was hit. After which Xiaomi continuously launched its smartphones at very competitive prices and sold through Flipkart. All the Smartphone were huge hit, this made Xiaomi the fifth largest smartphone manufacturer. Currently, Xiaomi has 270%+ profit which is highest and in 2017 Xiaomi surpassed the tech giant Samsung. Xiaomi doesn’t do much advertisement instead they put the money into making their devices more valuable & sell their devices at economic prices.
The only Reason Vivo & Oppo are selling more units because they are selling their devices both online and offline. The biggest advantage Vivo and Oppo get due to their advertising policy, both the companies spend millions and millions in the advertisement. Their phone sells so much because they give value to their seller other companies gives a profit margin of 6% whereas Oppo & Vivo give a profit margin of 12% to their seller. For gaining more profit the seller always recommends Vivo & Oppo. This resulted in the huge growth of these two companies. Currently, Vivo & Oppo has 125%+ profit which is one of the highest in 2017.
Why our Indian companies (Micromax, Karbonn, Intex) are not growing rapidly as compared to these Chinese companies?
The main reason that Indian companies (Micromax, Karbonn, Intex) are not growing rapidly because They failed to adopt the market changes, instead of giving the high-quality product to their customer they tried to earn more profit. They don’t have the cheap availability of material such as the battery, chips, processor etc. Whereas Xiaomi, Vivo, Oppo has availability of these resources, as most of these things are manufactured in China.
These Indian companies (Micromax, Karbonn, Intex) are actually been murdered by these Chinese companies as these companies opt all the ways to finish the game of the Indian Companies. These companies have a large budget as compared to our Indian Companies as well as they have cheap availability of resources. This all resulted in exploitation of our Indian Smartphone.
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