The millet Huawei all ran India to fight?

Vineet Taneja must have felt the burden on his shoulders more recently. The Micromax, who helped Samsung take the top spot in India's smartphone market and then become the CEO of India's Home-grown brand, is now faced with formidable rivals for Indians who have taken the company's market share after Samsung: The newest tech company from Himalaya north of the ancient civilization. Millet, Huawei, Lenovo, ZTE, which has already squeezed Samsung into the top position in China's domestic market, has become one of the leading manufacturers of smartphone sales around the world, choosing India as its first stop when they decide to go abroad for a global market.

India is the second largest developing country in the world, second only to China. India's economic growth over the past 20 years has not been as dazzling as his neighbours in the north, but it is well above the world average, thanks to the late start of the economic reforms. Into the second decade of the 21st century, India's mobile internet market began to enter a high-speed development period. India's smartphone sales reached 36 million in the first half of 2014, up 125% per cent year-on-year. At present, India's smartphone penetration rate is only about 10%, the future development potential is enormous. As the world's major smartphone markets are saturated and maturing, India is a fertile expanse of land that is not fully exploited.

In this context, the pace of Chinese companies to layout India is taken for granted. In a recent technology summit, Millet President Lei admitted that the global road to Millet will start in India, plans to use three years to become the largest smartphone market in India, the media recently reported that Huawei plans to invest tens of millions of dollars in India to establish electricity business channels, is clearly a response to millet ambitions. In addition, ZTE is secretly prepared to follow the footsteps of the pioneers, coupled with the recent acquisition of Motorola, Motorola's market share in India, China's leading four mobile phone brands almost at the same time sounded the Horn of the subcontinent march.

The first steps were millet. This July, Millet began to sell India's multiple models of smartphones, sales channels and domestic similar is also the site regularly released goods. Although there are only 35 people in the Indian branch of Millet, half of which is a handyman, 17 members of the core team have 6 interns, but the slightest impact on the millet mobile phone in India a gun and red. First, the millet to India each week to air 50,000 mobile phones, a short period of two months this number into 200,000. Even so, the weekly Millet India Web site after the goods are only 10 seconds to snapped. The Indians ' enthusiasm may be beyond Millet's own expectations.

Of course, Indians snapping up millet is similar to the Chinese: the millet phone is really cheap compared with its rivals. A few days ago, India's largest handset maker Micromax just released a 5-inch 720p screen model, with 8 nuclear 1.7GHZ MTK chip, 2G memory and 16G storage space, as well as 2500mah batteries and 13 million megapixel camera. This configuration with the low end of millet main model Red Meter note enhanced version similar to the screen is also a small circle. Micromax, however, gave it a price of 13000 Indian rupee (about 1300 yuan), a full 4000 rupees (400 yuan) higher than its Chinese rivals. For the more value-for-money users, the same quality and performance under the cost of 40% is not a small number. Most of the price-sensitive consumers will of course be more inclined to the much lower prices of millet, it is no wonder that millet in only two months to win India's 1.5% market share (Micromax is now 18%).

Although Micromax's CEO had expressed disdain for the action of Millet in the media in September, he must have known that his company was hopeless in the battle. Millet can rely on the Chinese market has made huge shipments to drive down the cost of production, and aggressive pricing strategy to slaughter every one caught off guard. China is the assembly Center for almost all mobile phones around the world, and is now the largest market in terms of sales. The local manufacturers in other emerging countries are struggling to control the upstream supply chain and are bound to lose to Chinese manufacturers in the cost battle. Millet's strategy is more aggressive than other Chinese manufacturers, it does not seek to obtain high profits from hardware products, but to quickly expand market share with near-cost prices, and by virtue of MIUI system access to user's mobile internet access control. Micromax Such manufacturers are still traditional hardware companies, in the face of such a destructive tactic is in fact helpless. Vineet Taneja's old employer, Samsung, though still the boss of the Indian market, has lost its prospects in India to the Chinese market to millet and Huawei. According to IDC forecasts, the next few years India's market to ship the main force is 200 U.S. dollars below the model, which is Samsung's weak areas of competitiveness. Even with India's domestic manufacturers against Samsung has been powerless, the first quarter of this year, its 35% market share, the second quarter fell to 29%, the loss of shares were ceded to Micromax and other brands. Such Samsung, of course, cannot cause much trouble to Chinese manufacturers. It can be said that, although Chinese manufacturers in India is just a new role, but their rivalry with Samsung and India's domestic companies have not yet begun to end.

In the next few years, the fighting in the Indian market will mainly occur between several major Chinese brands. Huawei, which previously worked with Indian operators to sell a small number of products, has invested tens of millions of dollars in the construction of the Indian Electric Business division, which is clearly targeted at millet. Lenovo and ZTE are also unwilling to people, one after another flashed the means. The main reason why the Indian market is so important is that China's domestic market has peaked, and the blue ocean of the past is becoming red. The situation in India is similar to that of China, with a large population, low consumption level, rapid economic growth and huge market potential. IDC analyzed that India's smartphone sales will be close to 200 million by 2018, a forecast that is conservative. Now the domestic number of major brands in the annual shipments to billion-class target close, such a large volume of shipments, although it is a good thing, but once the market changes, product strategy miscalculation, may appear in the inventory Yahuo will be very considerable. Samsung was expected to sell hundreds of billions of dollars before the Galaxy S4 went public, and the results were folded in half, and Samsung suffered heavy losses. If there is an Indian market as a cushion, India can help digest large inventories even if a model is not selling well at home, so the risk will be greatly reduced. On the other hand, if companies can win the Indian market, combined with China's sales, the future annual shipments may be more than 200 million or even 300 million. By then, defeating Samsung to win the world's first dream come true. Finally, India is next to China, English is the lingua-language, and the cost of establishing sales channels and even substituting factories in India is much lower than that in Europe and the US. At present, domestic brand products are mainly concentrated in the low-end areas, rashly into Europe and the United States is difficult to compete with Apple, Samsung, the choice of India is a safe and highly competitive approach.

As Huawei, Lenovo and ZTE March into India, we will see them in the subcontinent with millet. China's IT industry for decades, this could be the first large-scale overseas battle for Chinese brands in the consumer electronics sector. The winner of this battle will have the hope to replace Samsung to win the smartphone market global sales champion status, then finally winner, we expect Millet, Huawei and other companies of the Taiwan drama Bar.