new Delhi Chinese smartphone makers Xiaomi, Oppo, Realme and Vivo continue to dominate the Indian market in 2022 despite increased scrutiny by regulatory and tax authorities. However, a cautious approach by some of these brands may give way to competitors, mainly global brands Samsung, Apple, Nokia and Nothing, to grab a bigger slice of the market in 2023, said sector watchers.
According to data from two research firms shared with PeppermintChinese brands continued to command a majority share in the smartphone segment last year, with a slight decline in sales compared to 2021.
TechArc said the share of Chinese companies in India stood at 68.5% as of December, compared with 71% in December 2021, while Counterpoint Research said their share was only one percentage point lower in January-October 2022, from 76% year on year. was 75%. First.
Faisal Kawoosa, Founder, TechArc said, “Weakening of R brands – Redmi and Realme will impact Chinese brand share in 2023 and we expect Samsung to make a strong comeback in the online space on the back of M series which has performed well Is.” He added that the target market for Chinese brands has moved beyond basic smartphones with entry into the premium and luxury segments, which could lead to market share shifting to global brands.
“Their share could decline in 2023 as these brands remain cautious in their approach and competition gets aggressive and grabs share,” said Prachir Singh, senior research analyst at Counterpoint Research.
This is because the government has been increasing scrutiny of Chinese technology and has banned several Chinese apps following geopolitical tensions between the two countries.
Enforcement Directorate has seized 456 crore from 119 bank accounts of Vivo India under the Prevention of Money Laundering Rules, while the Directorate of Revenue Intelligence has issued a show cause notice to Vivo India for customs duty evasion. 2,217 crores, and demanded 4,389 crore from Oppo India on charges of customs duty evasion.
Xiaomi is also facing ED probe for violation of foreign exchange regulation and valuation of its assets 5,551 crore was seized in May. Separately, the Income Tax authorities issued a seizure order on the value of its deposit accounts. 3,700 crore in August. Xiaomi has moved the court challenging the order.
However, despite the headwinds, Chinese brands will hold the fort due to the absence of strong competing brands apart from Samsung, which retained its No. 2 position with a market share of 16-20% through January 2021.
According to TechArc data, Indian brands such as Lava and Inn had a smaller share, falling from 2% in December 2021 to 1.5% by December. Samsung is the only non-Chinese global player in the mix that has a significant share of the market, as Indian players are absent from this space, Singh said. “In addition, the focus of some brands has shifted from the volume driven entry tier segment to higher value tiers.”
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