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8/4/2017 India smartphone market: It's Samsung vs Xiaomi in India now as battle for market share hots up,

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It's Samsung vs Xiaomi in India now


as battle for market share hots up
'Samsung executives have informed retailers that they do not want to give an inch of
space to Xiaomi due to the increased Chinese aggression already from Oppo and
Vivo.'
Writankar Mukherjee | ET Bureau | July 20, 2017, 08:36 IST

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KOLKATA: Samsung and Xiaomi are stepping up their fight in This Month

the Indian market with both sides seeking to win over the
BSNL eyes 700 Mhz band
retail trade. The South Korean company has even stopped spectrum to launch 5G, to
supplying its handsets to 200 retailers that entered into an forge alliance with ZTE
'The telco
agreement with Xiaomi to become preferred sellers for the is entering
Chinese brands phones, said several people with knowledge into an
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8/4/2017 India smartphone market: It's Samsung vs Xiaomi in India now as battle for market share hots up, Telecom News, ET Telecom

of the matter. Xiaomi expects its smartphones to account for alliance


with
over half of the total handset sales at these retailers.

Xiaomi India managing director Manu Jain sent a message of


support to a WhatsApp group for members of the trade. I
JioPhone first impressions: A qui
really appreciate that all of you are standing strong, despite
the recent action taken by competition, he said in the RCom, Aircel merger deal on stic

communication that ET has seen. Please do not worry about Right of Way rules: The effects o
any brand taking away stock or other support. We will support
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8/4/2017 India smartphone market: It's Samsung vs Xiaomi in India now as battle for market share hots up, Telecom News, ET Telecom

Samsungs mid-level sales executives are said to have


rushed to retailers across India asking them not to sign up for
Xiaomis preferred retail partner programme and for the first
time are ready to pay for store branding in stores that are
next to such outlets, five senior industry executives said. Of
the 200 preferred retail partners, half are in the National
Capital Region with a total monthly revenue of around Rs 100
crore.

This is the first time any brand has stopped supplies to


retailers for giving preference to another brand, said the
owner of a large cellphone store in Delhi thats been cut off by
Samsung.

Samsung executives have informed retailers that they do not


want to give an inch of space to Xiaomi due to the increased
Chinese aggression already from Oppo and Vivo and they
dont want to repeat the mistake they did in China.

The stakes are high for Samsung considering it has been


elbowed out of China, the worlds largest market, by local
manufacturers. Online-focussed Xiaomi now wants to expand
into the offline market in both India and China to boost sales.
Its expecting 35% of its $2 billion India revenue target to be
generated by offline sales this fiscal year.

The conflict is likely to intensify with Xiaomi looking to sign up


more than 1,000 top retail partners across India as part of
which it has started direct distribution to large stores. Xiaomis
preferred retail partner programme involves getting dominant
signage outside the store and up to a third of it inside. It also
plans to offer consumer finance as mentioned above.

Samsung has enjoyed a commanding brand presence in


retail stores, even though Chinese rivals Oppo and Vivo have
been trying to breach that by buying space from retailers.

A business partner of Samsung said the company has only


cut off retailers who removed its first branding signage
outside the store. Several of the retailers were leading
partners of Samsung. Since Xiaomi has targeted them,
Samsung is now renegotiating with them to woo back, he
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8/4/2017 India smartphone market: It's Samsung vs Xiaomi in India now as battle for market share hots up, Telecom News, ET Telecom

said.

However, retailers said Samsung has blocked even those that


did not have its branding outside the store.

According to Hong Kong-based market tracker Counterpoint


Research, Samsung had a 26% share of the smartphone
segment in the January-March quarter with Xiaomi for the first
time jumping to the second spot with a 13% share.

The other Chinese companies followed Vivo (12%), Oppo


(10%) and Lenovo-Motorola (8%).

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