Xiaomi is now the leading smartphone vendor in the top 50 Indian cities, according to Q3 2017 data released by IDC. These cities account for 50 percent of overall smartphone sales in the country. Xiaomi led Samsung, Lenovo (with Moto), Oppo and Vivo in terms of market share as the sector registered a growth of 29 percent during the quarter. While Tier 1 cities were the main growth driver, the fastest-growing markets were Jaipur and Bhopal, along with Gurgaon. Also Read - Ola to offer free oxygen concentrators to the needyAlso Read - Xiaomi Redmi K40 Gaming Lite could be in the works, specs leaked
Xiaomi recorded an unprecedented 120 percent growth in Q3 2017, with the Redmi Note 4 alone contributing to more than 40 percent of its volumes. It was also the highest-selling model in the top 50 cities. Earlier this month, the handset received a permanent price cut of Rs 1,000, and currently retails at Rs 9,999 for the 3GB variant. Xiaomi’s focused expansion of offline stores and beefing up of its Preferred Partner network also contributed to its dominance. Also Read - Redmi Note 10S listed on Amazon India: It’s a tweaked version of Redmi Note 10
Xiaomi India head Manu Jain took to Twitter to express his gratitude to the legions of Mi fans. “With an exponential growth of ~120% [sic] we are way ahead of the rest,” he wrote.
Manu Kumar Jain (@manukumarjain) November 28, 2017
Xiaomi now owns 26.5 percent of the domestic smartphone market, thereby going past Samsung whose share stood at 24.1 percent at the end of Q3. Compared to Xiaomi’s 120 percent quarterly growth, Samsung grew by 15 percent, but continued to be the dominant vendor is several cities owing to its “deep penetration and reach”. Samsung’s Galaxy J series seems to be doing particularly well, with the Galaxy J2, Galaxy J7 Max, and Galaxy J7 Nxt constituting nearly 50 percent of its sales. Lenovo (and Moto), Oppo and Vivo captured 10.3 percent, 5.2 percent and 5.1 percent market share respectively.
“Mega-online sales by prominent e-tailers acted as catalyst for the robust growth across city tiers with e-tailers now contributing around 40 percent of the market in top 50 cities of India,” IDC stated in the report. Offline though recorded average traction during the festive season which coincided with Q3.
However, that seems like the way forward. “Almost all vendors have now decided to go aggressive on offline channel expansion. It will be interesting to see how they are able to match the distribution strength and retail spends by offline dominant players like Samsung, Oppo, and Vivo,” Navkendar Singh, Associate Research Director, IDC India said.