 "Enter the digital warriors")
In the past two years and more, Chinese brands have swamped the Indian smartphone market. Xiaomi, OnePlus, Vivo, Oppo, Gionee and LeEco are among those that have used a slew of low key and low cost methods to launch and build their brands in the country. Some have used invitation-only online launches while others have set up fan clubs and contests. Some have associated with big ticket events such as the IPL while using data-based targeted online promotions to create a buzz around their brands.
These efforts have borne striking results. In the second quarter of 2016, Chinese phone brands grew 80 per cent in terms of shipments to India, over the previous quarter. These brands already have 27 per cent of the total market share; just four (LeEco, Oppo, Xiaomi and Vivo) brands account for 10 per cent of the smartphone market today, according to Counterpoint Research.
India is among the world's fastest growing smartphone markets today, no wonder Chinese phone makers are keen on a breakthrough. But to do so without stepping over the budget limits while reaching out to the targeted customer is the challenge. Especially since marketing budgets for the sector are typically sky high, given the presence of global brands such as Samsung and Apple.
"We at Xiaomi do not believe in spending huge marketing dollars on advertising or paid marketing," the company said in an email. "Instead, we are focused on cultivating loyal fans." Xiaomi, which gained popularity in India early on, said it drives all its marketing initiatives through social platforms. It launched an online fan club called the Mi community in India in June this year, which Xiaomi says is its 'secret sauce'.
Launched in 2011 for Chinese users to enable them to share their views and feedback with the company as well as take part in contests, join offline events and organise fan club meet ups, the Mi community platform reached 19,000 registered users within the first four days of its launch in India. The only other country, outside China, with such a club is Singapore where it was launched last year.
Another brand using the digital route to gain ground in India is OnePlus; it became the fifth largest premium brand in the country in 2015 as per the data collated by Cyber Media Research. "Any strategy primarily revolves around fostering an emotional and personalised experience that makes consumers feel like they're actively interacting with the brand rather than merely browsing through it," said Vikas Aggarwal, general manager, OnePlus India. He believes that the digital medium is more likely to increase sales and brand loyalty in the long run.
OnePlus, which grew through word-of-mouth goodwill and was known for its invitation-only product launches, recently did away with this model for OnePlus3. The brand believes customers are now familiar with the product, its initial branding efforts having created sufficient buzz online. Its campaigns are now using short humorous films to connect with the young. The films will be released only online. The company recently tied up with a content firm, East India Comedy (EIC), to launch a five-part comic web series to convey the brand message.
"The aim was to engage with our TG (target group) through content that they consume to gain traction," said Aggarwal. "All (smartphone) brands are creating and curating relatable content to engage with the next generation users, because the young do not watch television these days," said K V Sridhar, chief creative officer, SapientNitro India.
For Chinese smartphone brands, the target audience is the young, budget conscious buyer - be it in metros or small towns. Sridhar believes that this is what explains their focus on social media as a branding platform.
Companies like Oppo, Vivo and LeEco have deployed omni-channel marketing and branding strategies, but the focus still remains on social media. Both Oppo and Vivo have associated with cricket, a sport that cuts across income groups and age barriers. But both brands are using digital campaigns to leverage their offline associations.
For instance, Oppo ran a campaign #WT20SelfieExpert, which gave the audience a chance to upload their selfies on Facebook and Twitter to win match tickets. "As a brand we have always focused on connecting with our young consumers and thus our marketing campaigns have targeted platforms that enjoy such audiences," said Sky Li, president of Oppo India.
LeEco, which started building consumer interest through social media platforms prior to its launch in India in January this year, said it has also intensified its campaigns on Facebook, Twitter and Instagram. The company uses hashtags for launch events and flash sales to drive user engagement on digital media in addition to live streaming its launch events. It has recently created a 'shop' section on its Facebook page, where users can easily view all available products and proceed to the e-commerce platform of their choice for purchase, said Atul Jain, COO, Smart Electronics Business, LeEco India.
Vivo, on its part, entered India in 2014. Its entry was through offline channels selling phones through retail stores only, but eventually it started experimenting with online campaigns. "We believe the youth will drive the future of the booming smartphone industry in India," said Vivek Zhang, chief marketing officer, Vivo India. "To reach out to thes untapped customers, It is imperative that we leverage every possible medium to market ourselves," he added. Now, time for the market to gear up for some Chinese fireworks.
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Chinese brands are leveraging the power of social media to reach out to young customers Xiaomi
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