Chinese smartphone & networking equipment conglomerate Huawei is gearing up to invest heavily within the Indian market to create, establish & develop its Brand. Alongside the exercise, the company is planning to offload about a million smartphones before the year is out. The company’s roadmap was revealed by Victor Shan, Huawei’s President of India Device Business Development. He shared that the company is committing about 8 to 10% of its revenue from mobile devices within the Indian ecosystem. This figure comes to about US$ 30 Million.
Why is Huawei strengthening its sales & marketing efforts?
Though the smartphone segment is roughly 5% of India’s Billion devices strong mobile phone market, it is growing at a phenomenal rate. But what could be a defining pattern is the growth in sales observed by the affordable smartphone segment, which is presently ruled by regional manufacturers like Micromax, Idea, Spice, Karbobnn & others.
Huawei is one of the world’s foremost suppliers of networking technologies & equipment. In fact, many of its wireless products are simply rebranded & sold. The company evidently didn’t mind until it decided to jump within this segment with self-branded products like Ascend Mate Phablet. Now it will have to compete for itself rather than selling OEM equipment.
However, there is another reason why Huawei wishes to instill confidence within Indian consumers. The Government of India (GoI) had been trying to enforce a new procurement policy that forced telecom & other equipment buyers to source locally instead of Chinese manufacturers like Huawei & ZTE citing security reasons. Fortunately, GoI installed a testing facility to verify & subsequently certify the products from foreign origin.
Foreign manufacturers, especially from China have been making great inroads within the electronics & other white goods segment solely because of their affordability. But lately the conception of them being inferior quality, has started to erode the market. Huawei may be timing the exercise to diffuse the notion & reaffirm the credibility of the brand. What do you think?