India market: China smartphone vendor setting up retail shops in tier-2, -3 cities
Taka Liu, Taipei; Steve Shen, DIGITIMES [Friday 9 September 2016]
China-based smartphone vendors have stepped up efforts to promote sales in tier-2 and -3 cities in India in order to maintain their shipment momentum in the local market, according to media reports in China.
Buoyed by efforts initiated by China-based and local vendors, shipments of smartphones totaled over 27 million units in the second quarter of 2016, compared to 23.5 million a quarter earlier and 26.5 million of a year earlier.
Among China-based players, Xiaomi Technology will team up with Foxconn Electronics to build two new handset plants in India, aiming to ramp up its penetration in the local market.
Huawei has also obtained approval to set up a plant in India with an attempt to produce all smartphones sold in India locally and to capture a 10% market share by 2017, said the report, which added that Huawei also plans to cooperate with local R&D centers to develop smartphones exclusively for the India market.
The penetration rate of smartphones in India currently stands at 45%, with local, China- and Korea-based vendors dominating the market. Samsung Electronics is the largest smartphone vendor in India with a 25.1% share in the second quarter of 2016, followed by local brand Micromax 12.9% and Lenovo 7.7%, according to IDC.
Most vendors have begun setting up retail shops in tier-2 and -3 cities as sales growth rates in these cities are higher than the 10% on average recorded by the top-30 cities in India, the report indicated.
Some hot-selling models online, such as Xiaomi Note 3, LeEco Le 1s, Moto G Turbo, are now also available at retail shops.
With China-based vendors, notably Oppo and Vivo, keenly establishing retail shops, China's vendors as a whole account for roughly a 25% share in the tier-2 and -3 cities in India, said the report, adding that China vendors also hold a 25% share in the major cities in India.
Source: India market: China smartphone vendor setting up retail shops in tier-2, -3 cities
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