Oppo takes top spot in China as Xiaomi shrink rapidly
Thanks to massive 337% of increase in shipments, Oppo managed to gain 23% of market share for the month of June 2016. Huawei and Vivo managed to grab second and third spots with 17.4% and 12% share. Xiaomi was sitting comfortably in second place but their onlin only and flash sale business model started to backfire as they are not moved down to 5th spot with massive loss in share (down from 15.1% to 6.8%)
Oppo R9 was the best selling smartphone last month, followed by Apple’s iphone 6s and Let Le 2. Such is grip of Chinese smartphone makers that more than 80% of phones sold in China are made by Chinese brands. Apple and Samsung are the only two non-Chinese brands with success in the land of dragons.
Commenting on the results, Research Director, James Yan, highlighted, “The competitive environment in the world’s leading smartphone market has taken an interesting turn as domestic brands have significantly ramped-up their positions in the smartphone market. Oppo became the number one brand in China for the first time ever in June surpassing Huawei, Apple and Xiaomi with a record 23% market share with sales volumes up a massive 337% annually for the month.”
Commenting on Oppo’s skyrocket growth, Research Director Neil Shah, noted, “Oppo has adopted a simple but effective strategy, going after the offline market which still contributes more than 70% of total sales in China. Aggressive marketing, promotions and sponsorships, greater offline retail penetration beyond tier-2 and tier-3 cities, better retail margins, dealer support and above all head-turning, innovative smartphone designs has helped Oppo drive its sales in the last eighteen months.“Oppo’s immense focus on industrial design and key features such as camera, battery technology and materials has helped Oppo maintain an edge over its rivals and win consumer mindshare – especially in the under 25 years age group. Oppo R9 and R9 Plus have been the best-selling models for Oppo in June ending quarters with Oppo R9 alone the best-selling model in June.”
Highlighting on the competitive landscape, Research Director, Peter Richardson noted, “Oppo and Vivo growth story has been impressive and it is important to note that the brands which have entered the top three spots in Chinese smartphone market have tendency to hold on to the spots for atleast for some period of time. So expect Oppo and Vivo to provide tough competition to Huawei, Apple and Xiaomi in a close fight for the top three spots and consumer mindshare. The importance of brand pull, deeper sales channels penetration and time-to-market with head-turning design and innovative features will decide who owns the first three spots.
Given strong push by Oppo Vivo and Huawei in India, we may see a similar market share develop in India, the only change being that Samsung remains at the top. India is still a Samsung country and it won’t be easy to dethrone Samsung from the top.
