On the afternoon of October 19th, Beijing time, Huawei, the world‘s second largest mobile phone manufacturer, will start producing mobile phones in India next year and plans to open 1,000 brand stores to ensure that the company can establish itself in the Indian market.
Jim Xu, global vice president of Huawei’s consumer business unit, said that although this is a “very difficult to overcome and competitive market”, India is still profitable for global smartphone and electronics manufacturers. One of the considerable markets.
“We want to look at the Indian market with a strategic eye. The company plans to introduce equipment in the mid-end and high-end markets to occupy a place.” Xu Yuquan said.
China is the world’s largest smartphone market, and Huawei is China’s largest equipment manufacturer. In 2017, Huawei’s global shipments were 153 million units. “In addition to China, Huawei’s share in many markets is increasing, including Europe. We currently account for nearly 20% of total smartphone shipments in Europe.”
Huawei is currently entering the Indian market through its brand glory in online channels. Xu Weiquan said that Huawei plans to “increase chips” and produce mobile phones in India, especially considering the taxation of nearly 20% of imported equipment. At the moment, the company’s strategy is to import a limited number of mobile phones.
“Yes, yes, we plan to produce equipment locally. We plan to work with the manufacturer partner Flex, which has a factory in Chennai.”
Huawei compatriots such as Xiaomi, Vivo, Oppo and OnePlus have started selling mobile phones in India and are producing locally for price advantage. Xiaomi has now surpassed Samsung to become the largest smartphone manufacturer in the Indian market. Xiaomi is buying equipment from Taiwanese manufacturer Foxconn‘s production base in India.
Xu Weiquan said that in addition to establishing a foothold in the Indian market, Huawei also plans to take a blitzkrieg, marketing and retailing in India. “We plan to invest about $100 million in the initial phase. In addition, we plan to sell in brand stores and partner stores, and plan to open about 1,000 such stores in the next two to three years.”
Offline stores are critical to the company’s market expansion strategy. Xu Weiquan said that Huawei will also consider whether to launch other types of products, such as personal computers and smart watches. “We originally planned to import these products, but once the scale of the business has developed, we will definitely consider producing locally.”
This will be the second time for Huawei to enter the Indian market. The company has tried to penetrate the Indian market, but the results have been minimal.