Offline expansion a major focus area for OnePlus: Vikas Agarwal
NEW DELHI: Chinese handset maker OnePlus is aggressively expanding its brick and mortar store network to take on online-heavy rivals such as market leader Xiaomi and fast-growing Realme as the battle for the offline channel intensifies.
Boasting over six floors and spread across 16,000 square feet, the company is building what will be its largest experience store in Hyderabad.
“Offline expansion with exclusive brand outlets is a major focus area. For OnePlus, Hyderabad represents the bridge between the old and new, and the same has gone into designing the store,” Vikas Agarwal, general manager at OnePlus India told Express.
Agarwal explains that the brand’s resonance through offline presence is critical, not only to tap a sales channel which still accounts for 65 per cent of all smartphone sales, but also to expand its user community to include the older demographic.
While younger consumers are comfortable buying electronics online, those in older age groups still prefer the ‘touch and feel’ experience, he pointed out, adding that the age profile of OnePlus buyers has expanded after it went aggressive with its offline strategy.
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The company also plans to set up 100 exclusive stores across the country by 2020. Roughly 75 per cent of these outlets will be company-owned and company-operated, while the remaining will be franchisee outlets, Agarwal said.
OnePlus will increase the number of exclusive brand stores to 35 outlets by the end of December. For OnePlus, India is a pilot market for all offline expansion being the only market where the brand is available offline.
OnePlus has partnered with large format retail chains including Croma, Reliance Digital, Vijay Sales and Poorvika, Sangeetha Mobiles, to strengthen its presence and is already present in over 2,000 offline stores. The company will also be investing heavily to set up its concept store in Bengaluru, Mumbai and Delhi over the next few years.
As for opportunities in 5G, Agarwal said there isn’t much clarity yet. “We are waiting for clarity on when the roll-out is expected. The government has notified that auctions will take place by March 31, 2020, but we believe it could get delayed. There could be a soft launch in the second half of 2020, but we expect a full-fledged roll-out only in 2021,” he said.
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