Chinese Invasion! Chinese Smartphone Makers Voto Mobile and Comio to enter India soon

Recently, in a report published by us, we pointed out the fact that Chinese smartphone makers are becoming bigger in India. Now, these brands have over 51% market share and have started manufacturing right here in India. This saves a lot of money on imports, which is driving down the prices, and helping them generate more revenue.

Looking at the success of Xiaomi, Oppo, Gionee & Coolpad, two new Chinese smartphone makers, Voto Mobile and Comio are all set to launch their own products in India. Both these manufacturers are planning to launch their phones in the sub Rs. 10,000/- segment.

“India is the first international foray for us. We also have plans to enter Bangladesh, Sri Lanka, and Nepal in the last quarter,” Sayantan Dey, Business Head- Overseas at Voto Mobiles, told ET. The company is aiming to do Rs. 700 crores in revenue by the end of this financial year.

The company faces stiff competition in this segment from the likes of Xiaomi, Gionee and Motorola. Not only are the phones similar in construction, but also offer nearly the same features. In the end, it all depends on how well the companies manage to advertise and market their phones here.

Since the phone prices are expected to be low, Voto Mobile is planning to setup its manufacturing unit in India, in partnership with Xunrui Communications. Backed by huge investments, the company is also looking to spend Rs. 35 crore purely on marketing and advertisements.

Comio, a brand of Topwise Communications, an OEM for other brands including Micromax, is also looking to sell smartphones priced between Rs. 6,000 to Rs. 12,000. The company is also planning to pursue offline sales because online sales tend to stagnate the portfolio after a few initial months of launch.

Looking at the aggression of these Chinese players on the internet and on the digital media, the offline channel adds to their reputation. Comio is investing Rs. 500 crore in India for the same.

Even Topwise Communications is planning to build a manufacturing unit soon in India, but will for now look for third-party distributors in India. “We plan to invest Rs. 500 crore by March 2019. While Rs. 250 crore is for marketing, Rs. 150 crore is for R&D and manufacturing, while Rs. 100 crore is for distribution and other activities,” Comio CEO Sanjay Kumar Kalirona said.

The companies have not yet showed off their products in India, but you can expect something similar to the likes of other Chinese brands. Moreover, these companies will have some amazing offers in the early months to rake in as many customers as possible, focussing more on tier-2 and tier-3 cities.

Looking at the growth of Chinese manufacturers in India, the market share of these brands can be expected to grow up to 60-65% by the end of this year. Samsung has not been able to keep up with the expectations of its consumers, while premium segment players do not dare to enter the entry-level smartphone segment.