How this smartphone brand rose to the top of the charts in India
vivo’s Rise to the Top: A Dominant Force in the Indian Smartphone Market
In a remarkable turn of events, vivo, the Chinese smartphone brand, has emerged as the leader in the Indian smartphone market, surpassing industry giants like Samsung and Xiaomi, with a staggering 16.6% market share in 2024, excluding the sales of its sub-brand iQOO, which accounts for an additional 3.3% in 2024.
How did vivo achieve this feat?
Offline Play: The Key to Success
vivo’s strategy of establishing a strong retail presence across the country, recognizing the importance of the offline market, played a crucial role in their success. According to Counterpoint Research, vivo emerged as the market leader for the first time, growing by 16% year-on-year, with a robust offline network.
Made for India in India
vivo was among the first smartphone companies to embrace the government’s "Make in India" initiative, setting up its manufacturing facility in Greater Noida in 2015. Over the last 10 years, it has produced over 150 million smartphones locally, extending to exports. Since 2022, the cumulative value of vivo smartphones exported from India has exceeded crores.
The Speed Bumps
Despite significant challenges, including regulatory scrutiny and allegations of money laundering, vivo’s commitment to innovation and localization has remained unwavering. The company has invested in customizations for the Indian market, relying on Indian suppliers to source components, and reducing assembly costs.
Sustaining the Momentum
To maintain its position, vivo has continued to invest in offline displays, above-the-line marketing channels, and strategic partnerships with marquee sports events and A-list celebrities. As the brand looks to 2025, controlling overall ASPs in a challenging economic scenario will be key to success.
The Impact of ED Investigation
While the ED investigation has caused concern among partners, Faisal Kawoosa, chief analyst and co-founder at TechArc, notes, "We have seen that such issues haven’t had a major impact on business performance in the past." As the brand continues to navigate this challenging landscape, it is clear that vivo’s focus on innovation, localization, and off-line presence has been a key factor in its success.
A Glimpse into the Future
As the Indian smartphone market continues to evolve, vivo’s commitment to innovation and customer understanding will remain crucial to its success. As Faisal Kawoosa highlights, "vivo, though being a Chinese brand, hasn’t just acquired products from there to India. It has emphasized a lot on adding locally relevant and meaningful features through extensive customer understanding, which has naturalized its products in India."
The Verdict: How this smartphone brand rose to the top of the charts in India
In conclusion, vivo’s impressive rise to the top of the charts in India can be attributed to its strategic focus on the offline market, localization, and commitment to innovation. As the brand continues to navigate the challenges and opportunities in the Indian smartphone market, its ability to adapt and innovate will be critical to sustaining its momentum and remaining a dominant force in the industry.
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