Canalys, a research firm, reports that India’s smartphone market had a 12% growth in Q1 2017 on a year-over-year basis. The growth resulted in 27 million smartphone shipments into India, with Samsung among the top companies in the market at a 22% share.

Xiaomi is quickly closing the gap against Samsung, gaining a 14% market share on the quarter. Despite the company’s quick market share growth, it is expected to remain in the second spot.

The research firm’s findings show that no India-based companies made it into the top five positions for market share. Vivo is in the third spot for market share with an 11% share, while Lenovo and OPPO both maintained a 9% share of the market in the first-quarter of the year.

Samsung shipped a total of six million units in the country.

Xiaomi increased their market share by 3% from a year prior, shipping a total of 4 million units. The company’s success is due to strategic initiatives to enter into India’s online go-to-market. The company notes that the transition to a cashless society has done little to impact the company’s sales.

canalys research

Canalys states that young consumers primarily buy online.

Vivo experienced a 36% growth in shipments, shipping just under 3 million units in the first quarter. The company heavily invested in marketing campaigns to increase their market share on the quarter. Vivo and OPPO both focused primarily on offline segments, helping the companies attain market share that Xiaomi misses with their internet-focused marketing strategy.

Demonetization in the country has hit local brands harder due to local brands targeting consumers who purchase with cash. Demonetization has resulted in a lull of cash buyers causing many independent retailers and local brands to suffer from slowdowns.

Consumers are also pushing a switch to current devices, as the smartphone market continues to expand rapidly.

Xiaomi’s growth in India has helped the company offset lost market share in China. The company’s emergence in the market helped it quickly become the number one smartphone brand in China, but the company has fallen to the fourth largest smartphone company in the region.

The top spots are held by Huawei, Vivo and Oppo.

Vivo and Oppo both catered to the non-tech-savvy consumers, and the middle and lower class consumers who wander into stores. The strategy has paid off for Vivo and Oppo, which have taken the same strategy in India to gain market share. Older consumers in particular go into stores and rely on salespersons to help with their purchase.

LEAVE A REPLY

Please enter your comment!
Please enter your name here