In a strategic move by the Chinese smartphone maker Oppo, key component partners of the company have decided to establish their operations in India. Oppo convinced its component manufacturing vendors to set up their production facilities in the country to support Oppo’s larger factory in the forthcoming technology park in Greater Noida.
Tactical Advantage
Oppo has finalized its dialogues with its crucial component makers to set up their manufacturing plants in India. This step comes after the Chinese smartphone manufacturer is already in the process of setting up a tech park in the Greater Noida area. This will allow Oppo to further strengthen its presence in the second largest market of the world.
Oppo India President Charles Wong, in an exclusive interview with ET (Economic Times) said that, “We are having ongoing discussions with a number of key component makers. A few have been finalized for important accessories and key components.” According to Wong, Oppo needs its components suppliers and vendors here to assist the company in setting up a bigger operation in India.
Wong said that India is a crucial market for Oppo after China that offers enormous and huge potential.
The forthcoming tech park of Oppo in Greater Noida will be a big facility where the company’s key suppliers and components makers will be situated. As per Wong, Oppo is looking to start its new facilities operations in 2019. For that, the company has already purchased the land and has begun the work.
The Competition Factor
Xiaomi is Oppo’s main rival in the same smartphone space. Xiaomi is already propelling the component ecosystem in the Indian market by bringing in China’s Holitech Technology. Holitech is a leading component provider that supplies to top five of the world’s brands except for Apple. It is planning to set up its manufacturing plant in Andhra Pradesh from where it will initially produce fingerprint modules, flexible printed circuits, Thin Film Transistors (TFT), touchscreen panels, and camera modules, exclusively for Xiaomi.
In the quarter ended June, Oppo was positioned 4th among other smartphone brands with 10 percent market share only behind Samsung, Xiaomi, and Vivo. This was a steep rise when compared to the 5.6 percent share of the market in the earlier quarter then ended in March.
Ongoing Strategies
This year in May Wong came in as the President of the India operations of Oppo who said his directive is to not only understand the consumer’s needs but also to fortify the company’s attention towards the offline platform. He further revealed that offline channel is the most crucial and the principal element of their strategy for the Indian smartphone market. To increase their reach in the Indian market, the company will be working alongside their sales partner that includes their distributors and retailers.
Oppo has also tied up with e-commerce channels like Paytm, Amazon, and Flipkart to sell their high-tech handsets on the online space simultaneously with the offline commerce.
Experts Analyze
Anshika Jain, Research Associate, Counterpoint said that, Oppo is beginning to expand its online presence in time for the festival season. This would help the company tackle competition and drive sales. Jain suggested that Oppo should offer its F series customers incentives to upgrade for its new models, in tune with the market sensibility of upgrading.
Oppo just released two new handsets in its F-series; F9 and F9 Pro, thus, expanding its handset portfolio in the Rs.20,000 to Rs.30,000 range. According to Jain, Chinese players like Vivo and Oppo, are rethinking their offline strategies to centre on distributors who have the ability to sell high-end smart devices.
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According to data collected by Counterpoint, in Q2, the price range of Rs.20,000 to Rs.30,000 holds an overall seven percent share of the market in comparison to three percent in 2017. The top smartphone brands hold 90 percent of this price segment.
As per Wong, Oppo is decisive in only concentrating on important price segments instead of launching handsets cross segments.
The post Oppo’s Key Components’ Partners To Shift Operations to India appeared first on MySmartPrice.
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