The Chinese smartphone players in India have initiated the second wave of the sub brand that launches betting on the dual branding for accelerating growth by differentiating the price segments and the distribution channels and the industry executives said the analysts.
The new sub brands of Xiaomi, Oppo and iVoomi are Poco, RealMe and Innelo. The home bred handset makers had made a similar attempt few years ago which was failed wherein the latest wave of the sub brand launches is being led by the Chinese companies those have already cornered the bulk of the smart phones in the country.
The analysts also said that there must be a clear distinction between the sub brand and the parents that has more evolved the eCommerce market and the needed financial muscles for making the investments in to the R&D and the marketing at a time consumers those are needed to spend more on the devices which could make the strategy tick the time around.
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The CEO of iVOOMi India, Ashwin Bhandari told that the mobile market is becoming very much focused with every price category demanding various requirements for both channel and the product front. The IDC India associate research director Navkendar Singh also said tyhat more companies have been launching the sub brands in India for finding various positioning in the markets without letting it to have impact on the parent brand.
“Poco by Xiaomi is for ‘affordable flagship’ in the mid premium, RealMe in the budget segment by Oppo. This allows for a different marketing and go-tomarket strategy without any overlaps or confusions with the marketing strategy of the parent brand, both internally and externally (customers, channel etc),” Singh added.
Previously, the domestic players like Micromax and Lava also tried their best at the sub brands with the help of Xolo and Yu respectively but failed. The Lenovo company from China also could not keep up with the market pace with its dual brand strategy with the Motorola. Voomi’s Bhandari also said that these brands were much early in the markets with the under developed eCommerce space.
The Chinese brands Oppo and Huawei have also seen success with their sub brands RealMe and Honor respectively. having their onlinefirst focus. The growth of China’s Xiomi and the Hong Kong based iVoomi for launching their own respective sub brands Innelo and Poco in India ahead of any other market. .
“We will always look at various things in the market. We see what other brands are doing…,” he added. “It’s like starting things from scratch but at the same time leveraging experience from the parent brand and positioning the sub-brand as an entirely new brand,” Pathak said.
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