Chinese brands like Xiaomi, Oppo, Vivo and Realme hold 80 per cent share in the Indian smartphone market. The slowdown in the smartphone industry and raids by Indian investigative agencies have affected Chinese brands. These companies are quite apprehensive about their future in India.
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Fear of economic recession, declining demand and government investigation chinese smartphone Causing a headache for brands. The result is that these Chinese companies are not only already employees Are laying off, but can also cut their expenses for the next year. If this happens, then definitely its big impact will be seen in India. Chinese brands like Xiaomi, Oppo, Vivo and Realme hold 80 per cent stake in the country’s smartphone market. Today we will tell you why these companies are surrounded by so many problems.
Smartphone brands start their plans and estimates for the next year from October-November. However, the Indian smartphone industry is currently facing economic slowdown. The result of this is that Chinese brands want to take any investment decision very carefully next year. That’s why Indian users may have to face the shortage of great and affordable smartphones.
That’s why Chinese phone brands are worried
- financial crisis: There is sluggishness in the Indian smartphone market. According to the Economic Times, Navkendar Singh, Associate Vice President of IDC India, told that there are many uncertainties in Chinese companies. No one is committed to what kind of investment in marketing and distribution will happen in the next year.
- Government Inquiry: Many Chinese smartphone brands in India are under scrutiny. Government agencies are probing smartphone companies like Xiaomi, Oppo and Vivo. The strictness of the government is also affecting their work. For example, IDC India has projected an 8-9 per cent decline in smartphone shipments in the fourth quarter of this financial year.
- Sorting: In the last few quarters, Chinese smartphone companies doing business in India have made layoffs here. These companies are adopting the path of retrenchment to reduce expenses. Sanjay Shetty of Randstad India says that these companies have laid off 600-800 employees.
- Promotion of Indian Brands: Chinese smartphone companies are not liking the government’s encouragement to Indian companies. The Government of India is providing financial assistance to Indian smartphone companies for phone manufacturing under the Production-Linked Incentive (PLI) scheme. Brands like LAVA will benefit from this.
- Retailers: Chinese smartphone companies matter a lot for Indian smartphone retailers. Most Chinese phones are sold in India, so most retail stores are also of brands like Xiaomi, Oppo. Companies give incentives to retailers and if incentives are not given, then 20-30 percent retail stores may decrease in the next few years.