Phone brands

Chinese phone brands: Government lays off business as usual for Chinese phone brands in India

Eight years after their foray into India, China’s big smartphone brands are too deeply entrenched in the world’s second-largest market to see any significant impact on their business despite government scrutiny, market trackers have said.

While the lack of alternatives – four Chinese brands are in the top five with an 80% market share – is likely to largely protect their market position, any financial restrictions reducing their operating expenses could create problems for them. short term. These Chinese brands realize, however, that India is too important for them to leave, especially after investing the biggest dollars in manufacturing, distribution and retail networks, and in research, the experts added. .

“The dependence on Chinese brands, both from a consumer and business point of view, is also too high, and you cannot see the government creating a vacuum right now, in terms of jobs, commerce and other things,” said Navkendar Singh, research director. at IDC India.

He added that there is unlikely to be any impact on their market share unless “there are certain restrictions in terms of finances imposed by the government”.

The heat is however on the Chinese entities in India amid the ongoing border struggle with China. Various Indian law enforcement agencies have scrutinized their operations and finances. Huawei and ZTE were nearly forced out of the telecom network equipment supply market, while hundreds of Chinese apps, including popular social media apps like Tik-Tok and games like PUBG Mobile, were banned in the past two years.

The focus is now on Chinese handset makers with market leader Xiaomi, Vivo in second place and Oppo in fifth place facing various charges – from money laundering to duty evasion – and their senior executives were interviewed. Some of these cases are before various courts. According to reports, these actions have forced several Chinese expatriates working in these companies to leave India.