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Chinese smartphone makers tweak strategy to project products as Indian brands

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Published : Jun 18, 2020, 10:13 PM IST

Chinese smartphone makers are projecting themselves as Indian brands and selling made-in-India products. The strategy is likely to be replicated by many handset makers of all major Chinese brands who have their own manufacturing lines in India or outsource from third party vendor in India. The localization level is already at least 60-70 per cent for several handset makers, market observers said.

Smartphone
Smartphone

Kolkata: Chinese handset makers who command around 70 per cent of the market share in India are projecting themselves as Indian brands and selling made-in-India products to ward off any possible backlash on their sales after the Galwan violence.

Korean brand Samsung, which is a major competitor, stands to gain if consumers switch their choice on nationalistic grounds.

There have been protests by the people in various parts of the country after the face off at Galwan valley in eastern Ladakh in which 20 Indian Army personnel were killed by the PLA of China on June 15.

The strategy is likely to be replicated by many handset makers of all major Chinese brands who have their own manufacturing lines in India or outsource from third party vendor in India. The localization level is already at least 60-70 per cent for several handset makers, market observers said.

We have decided to highlight Made-in-India in our packaging more prominently now onwards, a Tecno Mobile official told PTI on Thursday.

Realmes India CEO Madhav Seth, CEO in a YouTube series said I can proudly say that Realme is an Indian startup, which is now a global multinational company".

Realme is one of the brand controlled by BBK Electronics of China. It has other brands like Techno, Transsion, Oppo, Vivo and OnePlus.

There has been no visible change among the consumers for Chinese products - either for mobile or any other white goods.

"Till now there is no visibility about any disruption. We had seen some short term impact during the Dokalam standoff in the past," a mobile company official said.

Demands have shot up and dealers are asking for products. There has been supply constraints due to limited manufacturing due to COVID-19, he said.

Another prominent Chinese smartphone maker Xiaomi in its MI store page writes,"We at Xiaomi India, have always put our nations interest and its people at the centre of everything we do."

"We have invested significantly to build a robust network across manufacturing, after sales, logistics and supply chain. We have generated employment for over 50,000 individuals in India. Xiaomi has invested in 10+ Indian startups operating across mobile and internet sectors, in an attempt to boost the start-up ecosystem in India," it added.

New models of Vivo, Realme are lined up for their launch on June 23 and June 25 on Flipkart.

A Realme official said the company's plant is running in a limited capacity due to social distancing and production is limited.

Chinese companies are meanwhile exercising caution about its expatriates and advisories have been issued about not moving out unless necessary.

However, no Chinese company spoke about it officially.

'Boycott China' trending online but little impact on consumer products sales

Calls for boycott of Chinese products amid Sino-India border tension may be trending on social media but these are yet to impact sales of smartphone and consumer durables products from the stables of companies like Xiaomi, Realme and Haier, according to industry executives.

While companies declined to comment on the issue, senior executives at many of these Chinese firms said there has been no impact on sales yet.

One of the senior leaders at a smartphone company, who did not wish to be named, said there is pent up demand for phones because people are working and studying from home amid the COVID-19 pandemic, and many firms have had to resort to expensive imports to meet the spurt in demand.

Another executive said Chinese firms are keeping a close watch on the developments, and monitoring the situation on the ground as well as on social media.

On Twitter, topics like 'Boycott China', 'Go China' and 'Go Chinese Go' were trending as killing of 20 Indian soldiers in a violent clash with the Chinese army in Ladakh's Galwan Valley stirred anti-China sentiment among people.

(With PTI Inputs)

Kolkata: Chinese handset makers who command around 70 per cent of the market share in India are projecting themselves as Indian brands and selling made-in-India products to ward off any possible backlash on their sales after the Galwan violence.

Korean brand Samsung, which is a major competitor, stands to gain if consumers switch their choice on nationalistic grounds.

There have been protests by the people in various parts of the country after the face off at Galwan valley in eastern Ladakh in which 20 Indian Army personnel were killed by the PLA of China on June 15.

The strategy is likely to be replicated by many handset makers of all major Chinese brands who have their own manufacturing lines in India or outsource from third party vendor in India. The localization level is already at least 60-70 per cent for several handset makers, market observers said.

We have decided to highlight Made-in-India in our packaging more prominently now onwards, a Tecno Mobile official told PTI on Thursday.

Realmes India CEO Madhav Seth, CEO in a YouTube series said I can proudly say that Realme is an Indian startup, which is now a global multinational company".

Realme is one of the brand controlled by BBK Electronics of China. It has other brands like Techno, Transsion, Oppo, Vivo and OnePlus.

There has been no visible change among the consumers for Chinese products - either for mobile or any other white goods.

"Till now there is no visibility about any disruption. We had seen some short term impact during the Dokalam standoff in the past," a mobile company official said.

Demands have shot up and dealers are asking for products. There has been supply constraints due to limited manufacturing due to COVID-19, he said.

Another prominent Chinese smartphone maker Xiaomi in its MI store page writes,"We at Xiaomi India, have always put our nations interest and its people at the centre of everything we do."

"We have invested significantly to build a robust network across manufacturing, after sales, logistics and supply chain. We have generated employment for over 50,000 individuals in India. Xiaomi has invested in 10+ Indian startups operating across mobile and internet sectors, in an attempt to boost the start-up ecosystem in India," it added.

New models of Vivo, Realme are lined up for their launch on June 23 and June 25 on Flipkart.

A Realme official said the company's plant is running in a limited capacity due to social distancing and production is limited.

Chinese companies are meanwhile exercising caution about its expatriates and advisories have been issued about not moving out unless necessary.

However, no Chinese company spoke about it officially.

'Boycott China' trending online but little impact on consumer products sales

Calls for boycott of Chinese products amid Sino-India border tension may be trending on social media but these are yet to impact sales of smartphone and consumer durables products from the stables of companies like Xiaomi, Realme and Haier, according to industry executives.

While companies declined to comment on the issue, senior executives at many of these Chinese firms said there has been no impact on sales yet.

One of the senior leaders at a smartphone company, who did not wish to be named, said there is pent up demand for phones because people are working and studying from home amid the COVID-19 pandemic, and many firms have had to resort to expensive imports to meet the spurt in demand.

Another executive said Chinese firms are keeping a close watch on the developments, and monitoring the situation on the ground as well as on social media.

On Twitter, topics like 'Boycott China', 'Go China' and 'Go Chinese Go' were trending as killing of 20 Indian soldiers in a violent clash with the Chinese army in Ladakh's Galwan Valley stirred anti-China sentiment among people.

(With PTI Inputs)

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