Xiaomi challenges Samsung’s dominance in Indian Market.

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The company that many people considered isn’t a premium brand has risen to power and gave Samsung a tough competition this year. According to a Research firm Canalys, its report states that India’s Smartphone Market grew 12% this year (2017) with a shipment of 27 Billion units.
Samsung still leads the table with 22% while no Indian company is in the top five list though. Xiaomi secured the second spot with 14% closing share. While Vivo grabbed the third spot with 11% and Oppo and Lenovo share the fourth spot with 9% share in the first quarter.Samsung maintained its lead with over 6 million units shipments, though the shipments of the budget smartphones Galaxy J-series smartphones to offline distribution partners also played a key role.
Xiaomi, on the other hand, continued the momentum from the previous quarters and shipped around 4 million units. It accounted for 14 percent of shipments, which is 3 percent higher than what it had one year ago. “Xiaomi’s success in India is underscored by its online go-to-market strategy. Demonetization seems to have had no impact on it, as its target customer is young, Internet-enabled and primarily buys online,” said Canalys Research Analyst Ishan Dutt.

The research agency was positive that the implementation of GST regime will help the Indian smartphone market in the future quarters. However, it cautioned that this will also lead to the change in channel strategies, with an emphasis on making distribution models more cost-effective. The new tax regime could adversely impact the pure online players. “…those that react quickly to the new regulations will benefit,” it noted.

One of the key takeaways from the latest Canalys report is the continued absence of the Indian smartphone brands from the list of top vendors. Xiaomi and Lenovo together have dominated the online smartphone segment, whereas the likes of Vivo and OPPO have extensively focused on the offline models. Going forward both Xiaomi and Lenovo are looking to expand into the offline segment, which will further heat the competition with the domestic players.

Interesting Fact: – Vivo and Oppo are owned by same parent company BBK Holdings.

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