Oppo Mobiles, the Chinese smartphone maker known for its selfie-centric handsets saw its sales grow 750 percent in India this year. With strong demand for its mobile devices, Oppo India has surpassed the home-grown smartphone maker Micromax and Japanese tech giant Sony in terms of revenue.
The latest regulatory filings show Oppo Mobiles India saw its sales jump to Rs 7,974.29 crore for the fiscal year ending March 2017, a gain of 754 percent over the previous fiscal year. According to Economic Times, Oppo Mobiles India added more than a billion dollars to its revenue from the India market in just a year. This growth in sales comes despite analysts believing that sales have declined in the recent quarter and the company has started cutting down on its investment. The company has grown despite demonetisation in November last year, which slowed sales of smartphones in the offline space.
The strong growth in sales is mainly driven by massive advertising and aggressive push into the offline retail segment. Along with Vivo, Oppo has sponsored major cricket tournaments in the country and is also offering huge margins to its retailers. Another contributor to strong performance in fiscal year 2016-17 is Oppo’s strategy to buy retail shelves to place its handsets and promote its branding.
However, this fiscal year might be muted in terms of sales and revenue for the Chinese smartphone maker. “But this fiscal, Oppo’s growth rate has come down across neighbourhood stores and retail chains. Hence, Oppo which has largely been offline trade focused is now trying to be aggressive online and running promotions and discounts on Amazon and Flipkart,” an executive familiar with the developed told ET.
Oppo has dropped to fifth among leading smartphone brands in the country at the end of third quarter, IDC noted in its recent report. The company is also seeing strong resistance from rival Xiaomi, which has also entered the selfie-smartphone segment and is slowly expanding in the offline retail segment. Xiaomi recently took joint lead with Samsung in the smartphone segment and its sales have nearly doubled in the country.
During fiscal 2015-16, Oppo Mobiles India reported net loss of Rs 206.1 crore but the company has not shared corresponding numbers for the last fiscal. Home-grown smartphone brands like Micromax and Intex saw their revenues decline by 42 percent and 30 percent respectively due to growth in sales of Chinese smartphone makers and lack of innovation and competitive edge. Xiaomi and Vivo are yet to share their financial report for the last fiscal but the Chinese brands now control more than fifty percent of Indian smartphone market.