Business

Xiaomi Leads the List of Highest Brand Retention in China

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Smartphones have become a necessity in society over the past decade. It has reached far and wide connecting billions of people to each other instantly. With the advent of instant and fast internet, the device that fits in the palm of our hands (not all though) have allowed the human civilization to measure great lengths in terms of connectivity, business, creativity and so on. For some, it is a necessity for earning a living, while for others it is a necessity for mere entertainment purposes.

Smartphone companies have understood the business model that is most profitable for them – creating a need for a constant upgrade over a period of 6 months to 1 year. In general cases, a smartphone company releases 3 to 4 phones in just one category with similar prices, design language and even features to appeal to a larger audience without much investment in the production of these devices. The philosophy behind this is that the more options to choose from, the more sales for a company. This strategy has played well for most of the companies and more so for the brands such as Samsung, Huawei, Samsung, Xiaomi and BBK Electronics (Vivo, Oppo and OnePlus).

However, brand retention is also crucial for a company apart from its sales figure. While on one hand, the sales figure can show the growth trajectory of a company, the retention rate shows the reputation of the company among the minds of the consumers and also the company’s future. A higher retention rate is an indicator of the fact that the consumers love their models and are willing to stick to the gradual upgrades that the company brings to their series of devices.

In an attempt to understand the Chinese smartphone users’ brand loyalty and preference, a report was published in GizmoChina citing Ocean Insights study. The report claims that the topmost retained smartphone series in the Chinese market is the Huawei’s Mate series with a whopping 55.01% followed by the Xiaomi Max series with 47.49%. Although Huawei grabs the top spot, Xiaomi leads the top 10 list with 5 of its series as compared to Huawei that only has 3 in the list. Vivo comes at a far third with a mere 2 series of its vast product lineup.

Xiaomi has a lesser fan following in China as compared to Huawei because of the fact that the consumers connect well with the Huawei as a national brand. Having said that, Xiaomi has gradually penetrated the Chinese market very well and have grabbed the attention of the price-sensitive Chinese consumers just like it did in India. This number is still less, it is showing a positive growth curve.

In the current scenario, the future of the Huawei smartphones is dangling on a major bet that the company has made through its home-made OS after the ban from Google. The trade war between the US and China has much adverse impact on the global trade but more so on the Chinese tech giants. One of the majorly impacted companies is Huawei as Google has banned it from using Android for its devices. In an attempt to survive, the brand has launched its own OS called the Harmony OS that the company claims to be better than Android in every sense. Moreover, it also supports all Android Apps. The smoothness of the OS is a thing that needs to be seen in the future but as of now, the consumers will certainly be worried.

This is the reason that Xiaomi is going ahead rapidly as it can still use the Android platform for its devices and its fan following is also growing in the country.

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