Xiaomi Helps The Indian Smartphone Industry Power Through To Second Place, Ahead Of The US

Must Read

Indian Marketers To Invest More On Social Media In 2013: 52% Focus On Customer Acquisition [Report]

Majority of e-Marketers are focusing on Customer Acquisition via Social Media in 2013, according to a latest e-Marketing research...

Are You A Gaming Geek: ‘Five Commandments’ Before You Buy Video Games Online !

Does your day start with joysticks instead of coffee mugs? Or as a kid your best friends were the...

Apple Inc. (AAPL) 5.5 Inch Screen iPhone 6 Could Be A Game Changer: Rumors Claims 5.7-Inch iPhone 6C

Apple Inc. (NASDAQ:AAPL) looks set to release iPhone 6 with a 4.7 inch screen in September this year. Mass production for...

After a somewhat difficult two quarters, the Indian smartphone market has bounced back in a big way, led by none other than India’s most preferred smartphone brand, Xiaomi. A while back, we reported that smartphone shipments in India in Q2 2017 declined 4% YoY compared to Q2 2016. At the time, some thought the Indian smartphone boom was finally slowing down. However, we explained that this was merely an anomaly brought about by the new implementation of the GST (Goods and Services Tax) and the hangover from demonetization.

Smartphone Shipments In India Q3 2017: Xiaomi Emerged As the Dark Horse

This has now proven to be true, with a recent Canalys report claiming a 23% YoY growth in smartphone shipments in India in Q3 2017 to reach just over 40 million units. With the disruptive effects of GST having stabilized, its business as usual in the world’s second-largest smartphone industry, which has now overtaken even the US. However, this has been the trend for a while now, most of the market share belongs to the top 5 vendors – Samsung, Xiaomi, Vivo, Oppo and Lenovo. Together, they account for 75% of all shipments in the region.

smartphone shipments in india Q3 2017

Another notable feature in the data is the continued incredible growth of Xiaomi. Xiaomi shipped 9.2 million smartphones in India during the third quarter of 2017, neck and neck with top dog Samsung, who shipped 9.4 million smartphones. However, with Xiaomi registering a mind-blowing 290% YoY growth, it is only a matter of time before they overtake Samsung, who managed a much more modest 30% YoY growth in the third quarter of 2017. Canalys predicts Xiaomi to go top of the pack within 2 quarters.

Advertisements

So what is the secret behind Xiaomi’s ludicrous growth numbers? One major reason is their supremely effective online sales and marketing channels. Xiaomi started out selling their devices exclusively through online channels. This helped them eliminate physical infrastructure, middlemen costs and other overheads. Xiaomi is also the master of social media and word of mouth marketing. Their non-traditional but effective marketing has enabled them to save millions in marketing costs, which in turn allows them to undercut their rivals on prices. Their new age marketing techniques have also cultivated a loyal customer base, which has definitely helped them get a foothold in the market.

Xiaomi has also displayed a uniquely keen understanding of the Indian ethos and market. Many of their manufacturing operations are conducted locally, and their devices feature support for numerous regional Indian languages. They also have attractive sales during the Indian festive season. In fact, just recently during the Amazon and Flipkart festive sales, Xiaomi broke all records by selling over 1 million smartphones in just 2 days. As things stand, it would take a gargantuan effort from rivals to slow Xiaomi’s rapid ascendance to the top.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

The Squid Game In Real Life Is Equally Exciting As The Netflix Show Worth $900 Million

From Halloween to Netflix, from real life to reel life, the South Korean Netflix show Squid Games has taken...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This