The Indian smartphone market has certain tendencies which make it unique. Given that it has 1.3 billion possible consumers, any company of any sort would be starry-eyed. Vivo India is nothing different. They have targeted an audience which covers the majority of the Indian market. According to Market Trends Research Foundation’s (MTRF) survey, the Indian market doesn’t care about brands and are more price sensitive compared to other markets. Also, the lack of brand loyalty among the people helps the newcomers.
Vivo is the perfect example of this research. Their range of phones is majorly in the lower end of the price tags. This has empowered them in a sense. To provide features present in a flagship Smartphone and match the specs sheet of the same within the given price range is remarkable. Vivo has been constantly doing that since it entered the Indian market.
However, Vivo’s annual numbers weren’t all that flattering, although their market strategy is based on long-term profit. Vivo registered huge losses in its first two years which accounted for about Rs 113.96 crores and Rs 120.45 crores respectively. However, their revenues have almost doubled. In the financial year of 16-17, their revenue stood at Rs 6292.96 crores and it rose to Rs 11,179 crores in the financial year of 17-18.
Considering the mini successes they have achieved, Vivo has taken its next huge step in the Indian market. The Chinese company has invested Rs 4000 crores in order to build a new factory beside the existing one in Noida. The initial investment of Rs 800 crores is about to kick in and 169 acres of land is already acquired in Greater Noida, Uttar Pradesh.
The first phase of the investment will double the existing unit capacity of 25 million. This plant is geared up to create 5000 new jobs. This new plant will hit the start within 18 months from now. Vivo’s talks with the Uttar Pradesh government has led to the planning of their first physical store totally owned by the company itself. This strategy of producing each and every component in India and opening up stores is going to reap profits sooner rather than later.
– Unmesh Phule