Highlights:
- Chinese smartphone Brands like Vivo and Oppo are realigning strategies in India.
- Localisation efforts involve appointing Indian distributors and embracing local manufacturing.
- Government mandates include Indianisation of management and local manufacturing partnerships.
- Transition underway with Vivo replacing Chinese agents with Indian distributors in select states.
- Oppo follows suit with trial initiatives, aiming for nationwide rollout.
- Embracing ‘Make in India’ initiative with partnerships for local smartphone production.
Chinese smartphone Brands operating in India are adapting their strategies in response to mounting scrutiny and regulatory pressures. Vivo and Oppo, in particular, are realigning their operations to address concerns raised by the Indian government.
Localisation Efforts in Full Swing
In a bid to assuage government concerns, Vivo and Oppo are shifting towards appointing Indian distributors in each state, a significant departure from their previous reliance on Chinese-owned distribution companies.
Key Government Mandates
The Indian government has outlined three key requirements for Chinese smartphone brands:
- Indianisation of Management: Indian nationals to lead senior management positions.
- Appointment of Indian Distributors: State-wise distributors to handle product distribution.
- Local Manufacturing: Utilisation of local contract manufacturers to boost domestic production.
Transition in Progress
Vivo has already begun replacing its Chinese agents with Indian distributors in several states, including Delhi, Punjab, and Haryana. Oppo is following suit with a trial initiative in Delhi, with plans for a nationwide rollout.
Embracing ‘Make in India’
To align with the government’s ‘Make in India’ initiative, Chinese smartphone companies are forging partnerships with local contract manufacturers like Dixon Technologies and the Karbonn Group for smartphone production.
Strengthening Market Presence
These measures signal a strategic shift for Chinese smartphone brands, aiming to enhance transparency, comply with regulatory requirements, and deepen their integration within the Indian market.
The move towards localisation underscores the commitment of Chinese smartphone companies to foster greater accountability and transparency while navigating the complex regulatory landscape in India. As they embrace local management, distribution networks, and manufacturing partnerships, these companies are poised to strengthen their foothold in one of the world’s largest smartphone markets.
