Chinese brand Vivo sets sights on exports as China’s home-market smartphone sales growth slows

Vivo, the Chinese smartphone company that's come from nowhere to become the world's fifth-largest mobile phone brand, said it's setting its sights for fresh markets outside mainland China, where its low-price models can unseat pricier devices by Apple and Samsung.

The phone maker, based in Dongguan city in Guangdong province, is aiming to make a push into Hong Kong after launching its X20 Android-based model on Friday. Singapore, Taiwan, Russia and Africa are the other markets on its plan, Vivo said.

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"Since our first entry into the international markets in 2014, we have dedicated [ourselves] to understanding the needs of consumers through in-depth research to bring innovative and stylish products that meet their lifestyle and needs," Vivo's senior vice-president Alex Feng said.

Vivo and its sibling smartphone brand Oppo, both produced by BBK Electronics, are increasingly branching out abroad as smartphone sales grew at a modest 3 per cent in the second quarter in the world's largest phone market, according to research firm Counterpoint. The two brands are known for their strong offline strategy, where sales is conducted primarily via thousands of retailers, who also manage the relationship with customers and promote the brands to engender loyalty.

That strategy has worked, helping Vivo and Oppo edge out Xiaomi, once the favourite smartphone maker in China, from the top five brands on the mainland. Its offline reach also allowed Vivo and Oppo to reach consumers in lower-tier cities and rural areas, who may not yet be as accustomed to placing online orders for electronic devices.

Vivo already sells smartphones in Indonesia, Thailand, the Philippines and Vietnam, as well as India, Nepal and Pakistan. The brand is the third-most popular brand in India, with a 13 per cent share of the market.

On top of offering premium smartphone specifications at a price tag lower than flagship devices by Apple and Samsung, Vivo devices are also known for their fast-charging capabilities and long battery life.

Source: Chinese brand Vivo sets sights on exports as China's home-market smartphone sales growth slows