Behind the sale of red rice in India: Analysis of why Chinese mobile phone manufacturers want to enter India

Wen/Berming 007 China's mobile phone industry this year are more concerned about the Indian market, this is in the Chinese market has been very high penetration rate, the development potential is small, and the United States and Europe market difficult to make the choice. China's mobile phone users and mobile phone sales growth will slow. Data from the Ministry of Industry statistics by the end of January this year, China's mobile phone users have reached 1.235 billion, close to China's total population, mobile phone users have reached the ceiling. In 2013, according to IDC, China sold 320 million of smartphones, and according to Sadie estimates China will sell 400 million smartphones this year, up 25% per cent year-on-year. 400 million smartphone sales are equivalent to 1.235 billion mobile phone users each year 3 minutes to change the mobile phone, the Chinese mobile phone market continues to increase the potential of rapid growth has been limited. After several years of competition in the Chinese market, the competition pattern of mobile phone enterprises is basically shaped. 2014 two China market smartphone sales 112.12 million units, of which the domestic sales of millet 15.1 million market share of 13.5%, Lenovo domestic sales 13 million market share of 11.6%, Huawei domestic sales 11,860,010, data from the Isuppli China research director. The Chinese market is a competitive market, the brands have a market share is difficult to open the gap, in the fourth quarter of 2013, Samsung in the global market share of 29.5%, but in China market share, although the first but also only 19%. Chinese mobile phone companies to win more sales, change the domestic mobile phone competition pattern to overseas development is a must road. China is doing better in overseas markets Huawei, ZTE, TCL and so on, but in addition to Huawei and TCL in the European market, ZTE in the U.S. market to obtain a certain market share, most mobile phone companies are in Europe and the United States outside the Latin American market for better development. Interestingly, Tcl is ranked in the domestic handset market, but it is one of the highest-selling brands in the domestic brand, with nearly 80% of its handset sales abroad; Huawei's overseas sales accounted for 42.3% in the second quarter, Lenovo was 17.7%, and millet sales accounted for less than 2% per cent overseas. In recent years, the rapid development of millet, oppo and vivo in the Chinese market is to choose the markets of developing countries such as Southeast Asia and India as the main direction of development, and India is undoubtedly one of their major market, In the Indian market, when the company announced that it would invest 10 million of billions of dollars in consolidating the Indian market, it was apparent that the domestic handset brand valued the Indian market. India has a big potential for growth. The population of India, which reached 1.21 billion in 2013, is the world's second-largest population, as the population of China is, so global handset companies have taken India as the next big market for handsets comparable to China's. The IDC Research report, 2012 India's smartphone sales only 16.2 million, 2013 smartphone sales of 44 million, growth nearly three times times, is the world's fastest growing marketOne. 2013 India market Total handset Sales is 257 million, smartphone sales are still too small, and as the price gap between functional handsets and smartphones is narrowing, the transition to smartphones, similar to the case in China a few years ago, will lead to a reshuffle of handset brands, providing opportunities for new mobile-phone companies to enter. There are many similarities between the Indian market and the Chinese market, providing opportunities for the Chinese mobile phone industry. In the fourth quarter of 2013, Samsung accounted for 38% of India's smartphone market share, followed by two local Indian companies Micromax accounted for 16%, Karbonn accounted for 10%, and Sony accounts for 5% per cent. This market pattern is similar to the 2013 Chinese market, the same is the largest market share of Samsung, the Chinese mobile phone companies in the Chinese market for more than a year to quickly beat Samsung, Chinese mobile phone companies may be hoping in the Indian market to repeat the story of the defeat of Samsung. In fact, Millet seems to be repeating the story in China, this July millet into the Indian market now has a 1.5% share in the Indian market, progress is not unpleasant. Indian consumption level is not high, pay attention to cost-effective mobile phones. American media said that although the Chinese people are very sensitive to price, but compared with the Indians are still lesser, it can be seen that Indians to the pursuit of cost-effective than the Chinese people, Indians always want to buy a more satisfactory product at a reasonable price. The rise of the Indian market, the local mobile phone brand Micromax is relying on the introduction of Low-cost handsets to win the market, its launch of the A62 smartphone phone as long as 70 U.S. dollars, set up only two years to reach the annual shipments of 10 million, straight after India's smartphone market a brother Samsung, interesting is its use of chips from China's chip companies. It is the strength of China's mobile phone companies to play cost-effective. Millet sales in India, the faster growth of the mobile phone is red M 1S, priced about 100 U.S. dollars, although the price is higher than Micromax, but the performance configuration is much higher, The red M 1S in India has made 40,000 handsets sold out in 3.4 seconds of outstanding results; currently in the Chinese market to sell the smartphone has been low to 200 yuan, 4G smartphone is also low to 308 yuan, as more Chinese mobile phone brands enter the Indian market, believe that a cost-effective advantage of the Chinese mobile phone brand will be able to rapidly expand the Indian market. India's mobile phone registered more than 900 million users, but only 1.1 to 120 million people have smartphones, the broad market prospects to attract Chinese mobile phone companies to enter the domestic market is good at price war Chinese mobile phone brands may be in the Indian market to find new space for development.