Oppo and Vivo strengthen BBK's position in second place in terms of business turnover for fiscal year 18

KOLKATA: During the financial year ended March, the Chinese group BBK Electronics Corp. has perhaps strengthened its position as the second-largest smartphone manufacturer in the Indian market by taking advantage of the sales of its two largest brands, Oppo and Vivo, four years after their entry into the market.

According to the latest regulatory filings by Oppo and Vivo with the Registrar of Companies (RoC), the combined revenues of these two brands held by BBK in India were R $ 23,173 million during the year. On the other hand, the turnover of the largest mobile phone manufacturer in India, Samsung, was 34 261 billion rupees for the 2017 financial year.

STRATEGY CHANGE

Lenovo India's revenue for fiscal 2017 was Rs 11,950 crores, led by Motorola and Lenovo, Apple accounted for Rs 11,704 and Xiaomi Rs 8,379.33. Rs. The business figure of these companies for the fiscal year 18 is not yet available with RoC.

Sales of BBK branded phones amounted to Rs.14,343 crores in fiscal 2017, becoming the second largest manufacturer, followed closely by Apple and Lenovo. Since then, Apple and Lenovo-Motorola have both lost ground in terms of market share, according to market followers. According to badysts, BBK's position for fiscal year 18 is expected to improve further as the figures for One-Plus have not yet been added. Also owned by BBK, OnePlus has not yet reported sales in India.

OnePlus has become the biggest brand in the premium segment, overtaking Apple and Samsung during the quarter from April to June, as reported by the Counterpoint Research tracker. Oppo and Vivo achieved sales of Rs. 10,000 crores in the Indian market during the biennium, 18 in accordance with documents filed by the Republic of Cyprus. Oppo Mobiles India's gross sales increased by 49 percent to Rs. 11,994.3 billion, while Vivo Mobile India's turnover increased by 78 percent to Rs. 11,179.3 million.

However, Samsung, Xiaomi and Apple are profitable in India while the losses of Oppo and Vivo multiply. The net loss of Oppo's last financial year increased from 41.9 million rupees in FY 2017 to 357.8 crores of Rs, while that of Vivo reached 120.4 crores of Rs 113.9 crores. . An industry executive said that Oppo's and Vivo's losses had increased in the last fiscal year, with the two companies investing a lot of money in marketing and retail development to gain market share . Both of them have recently changed their strategy, in addition to reducing expenses, reducing margins and leaving several stores.

Nipun Marya, Vivo India brand strategy director, said the brand was investing in India in the long run. "While the total impact of these investments will take a few years, the fact is that our investment has already begun to yield results," he said. Oppo India, which has not responded to its questions, plans to borrow approximately $ 500 million in external commercial debt to support its business operations and expansion, according to its declarations of compliance.

India is the largest market for Oppo and Vivo outside of China, while it is the largest market for One-Plus, accounting for about 30% of the turnover. world. OnePlus recently said that the global business figure in 2017 was $ 1.4 billion. According to IDC, Vivo is the third-largest smartphone maker in India, with a 12.6 percent market share, followed by Oppo with a 7.6 percent market share for the quarters from April to June, with no market share. change from the previous year. Xiaomi and Samsung are fighting side-by-side as flagship brands.