Who made your telephone? Manufacturers and sub-brands imply the reply is difficult

By Manas Tiwari: A fast scan of the “Smartphones” class of any e-commerce web site provides you with the impression that the Indian smartphone market is awash with choices. At the very least that’s what is usually believed. You’ve gotten a number of choices at every worth degree. That is not how the scene was like about 5 years in the past. The market was largely dominated by Apple and Samsung. Now there’s a new smartphone launch each two weeks. So many manufacturers too. Or are there any?

It could appear that the smartphone universe is increasing, however in actuality, it has shrunk with just some corporations controlling the complete market. Confused? You should be pondering there’s a lot competitors available in the market proper now. You aren’t solely mistaken.

Over 52 million models had been shipped in India in Q3 2021. Nonetheless, the present situation makes it tough for a standard person to determine the producer of their smartphone. It’s due to this brand-sub-brand recreation that has turn into standard over the previous few years and might be the most important weapon for smartphone makers to develop their market share.

The one notable manufacturers not taking part in this recreation are most likely Apple, Samsung, and Asus. If you happen to nonetheless consider Asus as a smartphone firm. It solely launched one telephone this 12 months. Nonetheless, every model is a component of a bigger ecosystem. Let’s look.

Xiaomi, Redmi and Poco

Xiaomi is India’s largest smartphone maker. It ships essentially the most models to the nation. It has the biggest market share. Xiaomi’s success might be attributed to Redmi-branded telephones. They had been the primary to supply high quality tools at an aggressive worth. They had been additionally the primary to essentially exploit on-line gross sales.

However, Xiaomi had the ambition to be greater than only a model for the plenty. He additionally needed to make high-end telephones. The notion of the model was already established. So what did Xiaomi do? It created Redmi as a sub-brand – a brand new model underneath the identical firm with a unique market positioning and pricing technique.

Then it additionally created Mi (now Xiaomi) as one other sub-brand with a extra premium positioning available in the market. Thus, Xiaomi would promote reasonably priced merchandise underneath the Redmi sub-brand and goal premium classes with the Mi or Xiaomi model. This allowed Xiaomi to focus on totally different units of consumers. Evidently, the technique has labored thus far.

If solely issues had been that straightforward. A couple of years in the past, Xiaomi noticed the potential for introducing one other smartphone that targets the younger viewers that prefers efficiency over different issues. Poco was created as a sub-brand and got here into the Poco F1 – a telephone that wants no introduction. As ambitions grew, Poco was spun off from Xiaomi and established as a brand new model.

At the moment, you’ve got Xiaomi, Redmi, and Poco telephones. All sub-brands proceed to share assets. They’ve the identical software program groups. They run the identical MIUI. They typically rebrand one another’s merchandise and launch them underneath a unique title in numerous markets.

So whereas clients assume they’ve extra choices to select from, they decide for the same expertise.

BBK Group – Oppo, OnePlus, Realme, Vivo, iQOO

Most of you won’t have heard of BBK Group, however they’ve mastered this recreation of branding and sub-branding and are at the moment the biggest smartphone firm in India. It owns 5 main smartphone manufacturers – Oppo, OnePlus, Realme, Vivo and iQOO – every with a unique ethos. At the very least till now.

BBK Electronics is a giant deal in terms of smartphones. Oppo and Vivo are the double pivot of this electronics large. These two manufacturers have turn into main gamers in China in addition to in different markets, together with India. Whereas Xiaomi centered extra on the web market, Oppo and Vivo penetrated deep into Tier 2 and Tier 3 cities with their highly effective offline channels.

Subsequent is OnePlus, most likely the one model that managed to problem the supremacy of Apple and Samsung within the premium market. It has turn into standard as a consequence of its prime quality merchandise and distinctive software program expertise. Oppo and OnePlus have been merged now. Time will inform if this can be a good determination or not, however the uniqueness will fade for positive.

BBK was conscious that it needed to problem Xiaomi to actually set up itself as a market chief. Thus, Realme has turn into a direct rival of Redmi. Truthfully, Realme has outdone itself and is now among the many prime 5 smartphone manufacturers in India. It has grown and now additionally sells high-end telephones. Even Realme has launched a sub-brand – Dizo – which primarily offers with way of life merchandise.

If you happen to thought that was it, maintain my iQOO. The newest to hitch the BBK group is iQOO – a sub-brand of Vivo in China and an unbiased model (at the very least on paper) in India. iQOO follows an analogous philosophy to Poco for Xiaomi. It focuses on performance-oriented telephones and tries to focus on a youthful viewers. The corporate remains to be younger and looking for its ft.

Once more, Oppo and OnePlus now share the identical software program. Identical to Vivo and iQOO. The telephones are famend for various markets and finally you’re served by the identical mother or father firm.

HMD International and Nokia

Right here is an instance displaying that not all sub-brands obtain the identical sort of success. Nokia in its heyday was the telephone firm to admire. It dominated the telephone market like no different. It was a fan favourite. Even in the course of the tough part. Some cried when the corporate was bought to Microsoft in 2013. And once more when Microsoft determined to close it down in 2016. Just for HMD world to purchase it.

HMD is a start-up owned by ex-Nokia staff who wish to money in on the nostalgia of Nokia telephones, however have not but discovered an acceptable technique for it. Outcomes? The corporate sells substandard telephones, most of which appear overpriced. Nokia has additionally restricted itself to funds and mid-range telephones for the reason that takeover of HMD. So no extra flagships. Any further.

Motorola and Lenovo

Motorola provides nostalgia to the checklist. Who can neglect the great outdated days of Moto Razr and Flip! It was one of many few American corporations to shine within the Android ecosystem. It additionally needed to pay the worth of competitors from Chinese language corporations. Solely to be purchased by a Chinese language firm later.

Motorola is now owned by Lenovo and, to be truthful, has seen one thing of a turnaround within the final 18 or so months. It has launched good smartphones that compete with choices from Xiaomi and Realme within the mid-range phase. However, there’s nonetheless loads of work to do.

Apart from, Lenovo additionally continues to fabricate telephones. Few and much nevertheless. The 2 corporations share their assets, identical to the opposite smartphone corporations on the checklist.

Transsion Holdings – Infinix, iTel and Tecno

Right here is one other firm that you could be not have heard of, however which continues to do nicely in India, particularly in Tier 2 and three cities. Transsion Holdings has three manufacturers underneath it – Infinix, iTel and Tecno .

Whereas Infinix and Tecno have good smartphones of their portfolio, Tecno focuses extra on characteristic telephones. Actually, Infinix has began to transcend telephones. It has launched laptops, sensible TVs and even private audio gadgets within the nation.

On this case, there’s extra separation throughout the marks.

What’s the downside?

We frequently hear – the extra the merrier. So many manufacturers and sub-brands means the smartphone maker is rising, turning into extra aggressive, and customers have extra choices to select from. So what’s the downside? Precisely that. Shoppers assume they’ve many choices to select from, however that is not the case. These choices are simply being created to make them appear to be there are options on the similar worth or with comparable options. It is only a technique to focus on totally different units of consumers.

Truthfully, it could be unfair accountable smartphone producers. It is a traditional enterprise technique, adopted in virtually each business. Take Volkswagen for instance. It sells passenger automobiles in numerous components of the world underneath the Audi, Bentley, Volkswagen, Buggati, Porsche, Lamborghini, SEAT and Skoda manufacturers. It even sells bikes underneath the Ducati model.

It’s also a standard observe within the resort business. You’ve gotten the identical resort chain that owns totally different properties underneath totally different names to focus on clients with totally different priorities and supply them with totally different experiences.

Within the case of smartphones, it is a bit of extra regarding as a result of there’s additionally loads of overlap. You’ve gotten a Redmi and a Poco actually promoting the identical telephone with a unique title for precisely the identical worth. Then you’ve got an iQOO and a Realme that do virtually the identical factor. It simply confuses clients who do not know the main points.

And that is the place customers lose out. We’ll have to attend and see if this recreation continues or if sooner or later manufacturers begin to focus extra on creating distinctive experiences.