NEW DELHI: As tensions between India and China rise following the clash between the two countries in Ladakh, calls for a boycott of all Chinese products have risen. However, experts say it will be nearly impossible to oust Chinese brands from the Indian smartphone market.
“The sentiments are strong and some might even boycott it. Along with fall in demand due to Covid-19 pandemic, this might affect smartphone-makers. However, Chinese players, be it Mi, Vivo or Oppo, are very strong in the mass volume segment. Realistically, until there is a player who can quickly fill in the void, their dominance is likely to remain unimpacted,” said Faisal Kawoosa, Founder & Chief Analyst, techARC.
The Chinese phone-makers have also invested heavily in India and created lakhs of job opportunities.
In recent years, they have heavily tried to Indianise their operations, but in reality, local value addition remains at a peak of 20 per cent. Most manufacturing centres set up over the past few years are more like assembling units, note experts.
“Yes, we are getting reports from dealerships that anti-China sentiment is strong. However, there is hardly any brand in India or in global market that can give value for money product like us. I am sure the two countries will work out together and reach to a peaceful conclusion,” says a senior executive of Chinese tech company not wanting to be named.
To fend off current sentiment, some Chinese firms want to be seen as Indian brands. Realme India CEO Madhav Sheth said that Realme was an Indian startup which was now a global MNC. “India contributes to more than 50 per cent of Realme’s global sales, which is why the company launches most of its products in India first... The company is in line with all the government of India initiatives and it procures more than 60 per cent of components from local suppliers,” Seth said. Realme, one of the fastest growing smartphone companies in India, was spun off from Oppo and is headquartered at Shenzhen, China.
Trade body CAIT on Wednesday said it would “approach various celebrities like Deepika Padukone, Vicky Kaushal, Ranbir Kapoor, Katrina Kaif ( Oppo Smart Phone) Virat Kohli, Amir Khan ( Vivo) Ranvir Singh ( Xiaomi) to name a few and motivate them to give up these endorsements keeping in view the sentiments of Indian citizens.”
India’s smartphone shipments grew a modest 4 per cent y-o-y to reach over 31 million units in Q12020, according to Counterpoint data. China’s Xiaomi leads the India smartphone market with 30 per cent market share, followed by Vivo, Samsung, Realme and Oppo.