"Our phones have a longer life cycle for Indian users": Pete Lau, founder and CEO of OnePlus

OnePlus founder Pete Lau speaks in Chinese, but understands exactly what, how and why Indians buy. "With regard to modernization, the Indians give their older phones to their family members. That's one of the reasons many family members use OnePlus, "he said. Forbes India. Lau was in India in August to open the first high-end smartphone manufacturer's R & D center based in Shenzhen, India, in Hyderabad. OnePlus plans to make Hyderabad's facility the largest R & D center in the world (there are five more in cities such as Taiwan, Shanghai and Shenzhen) with an investment of Rs 1,000 trillion. The highest shipping share of 43% in the second quarter of this year, according to a Counterpoint report. Much of his success can be attributed to his understanding of the Indian market. "The Indian market will get bigger. OnePlus has spurred the growth of the high-end segment in the Indian smartphone industry, "Lau said. No wonder, in terms of size, China and India are similar. "In terms of income, they are pretty close," he adds. To watch Aamir Khan-starrer Dangal (dubbed in Chinese), explaining why the smartphone maker is integrating into the television segment and that North America is becoming a crucial market for the Chinese player, Lau addresses a wide range of topics. Excerpts edited:

On choosing Hyderabad as R & D center
When I was here for the first time last year, I noticed that it was an energetic city. There are so many young people, so much passion … It reminded me of what happened in Shenzhen 10 years ago. That's why we opted for Hyderabad. You can also see many buildings and businesses arrive. I believe that Hyderabad is attractive to young professionals, given the opportunities it offers. While our marketing team is based in Bengaluru, Hyderabad is primarily dedicated to research and development. Some of our strategic partners such as Qualcomm also have their offices here.

Why he and co-founder Carl Pei decided to launch OnePlus in 2013
Six years ago, when we created OnePlus, we found that there were many brands in the smartphone industry. But few offered a good product. Based on my homework and ten years of experience, I think that what touches the user the most is the right product. So we decided to create a good product for the user.

What makes OnePlus unique
Take, the iPhone, for example. Apple has a good product, but a relatively closed ecosystem. However, we have an Android smartphone and we are working to provide the best Android experience. In terms of the philosophy of a product, we chose the term "no load". We want to give our users the kind of experience they need to improve their quality of life. we want our products to give them a feeling of comfort and give them the impression that their smartphone is no burden. This requires a lot of attention to details such as product and design.

Six years ago, we were the first to talk about the touch of the phone. At the time, many phones used materials such as plastic, which did not make the products appealing.

On invitation-only OnePlus strategy
We were then a new brand. We did not know how many users would contact us. Six years ago, $ 300 [about ₹20,000, the price of the phone] was a lot of money for our users. It was difficult for us to know how many users we are going to sell. The invitation system was a good way to better understand and try to minimize the risks as much as possible. For example, in the Indian market in December 2014, we had a stock of about 20,000 units. We worked with Amazon and received more than 200,000 requests. It's just an example to show the impact we've created.

On original marketing strategies such as Smash the Past and the recent Never Settle campaign with Robert Downey Jr.
It depends on where we are at. At first we did not have enough budgets, so our strategy was based on building a good reputation. Later, it was designed according to the needs of our users. For example, when we learned that many users wanted to experience the phone before making the decision to purchase, we opened experience stores in India. We are now considering having a more offline presence … like working with Croma.

The partnership with Robert Downey Jr was interesting. In addition to being a well-established celebrity in Hollywood, he has high demands on work and rarely advertises. But when we approached him with OnePlus 7 Pro and talked about our "Never Settle" mantra, he was impressed by the product and our philosophy. He even wrote the advertising scenario himself. In fact, he locked himself in his room and wrote the script overnight.

On the importance of the US market
The North American market is important to us. We have developed a partnership with T-Mobile and, given the evolution of 5G technology, we will certainly continue to establish a strategic partnership with other operators.

Comparing the Chinese, American and Indian markets
This is a difficult question. The Indian market is the largest [for OnePlus] so far compared to other regions, and we are the best-selling premium segment. We will continue to focus on this market. As for North America, its potential is certain. We will also continue to invest a lot of resources in this market. We will have different strategies based on the needs of different regions. In terms of size, China and India are quite similar. In terms of income, they are quite close.

On the slowdown of the Chinese market
In terms of size, China remains the largest market in the world. According to this year's data, sales have declined. Many users do not seem to want to change phones. But after the launch of the OnePlus 7 Pro, we have attracted a lot of attention in the Chinese market. Given the growth of 5G technology, I am confident that there will be some growth in this [Chinese] market next year.

Being still affordable premium in India
When we entered the Indian market, we did not think too much about the price. We focused on the product. We use the global standard no matter where we are. At the time, many brands were competing on price. They focused on quantity and set the price of their product at the lowest. We have not focused too much on the number of units we are going to sell. We focused on quality.

Entering the super premium segment
The reason behind this is the rising cost [of making a premium product]. So, if we want to make a high-end Android smartphone, the price will be higher. We put the product first.

This year, alongside the OnePlus 7 Pro, we have OnePlus 7, aimed at users who are more focused on performance. But in terms of superior quality, the flagship product remains the OnePlus 7 Pro. We will not make lower level products [for masses]. We focus on the premium. We try not to be distracted by what is going on among competitors.

On the evolution of the Indian market
Users will have more requirements. We have also seen a similar movement in China. Once you have economic growth, there is a trigger for a purchase upgrade. The Indian market will therefore grow. OnePlus has pushed the growth of the high-end segment in the Indian smartphone industry.

On the profile of a OnePlus user
They are young, technology savvy, independent and competent. Eighty percent of our users are under 35 years old. In Chinese, it is said that it is the young people who determine the future. To our surprise, many users are under 18 years old.

On how Indian users are different from global counterparts
For Indian users, the lifecycle of OnePlus phones is longer. I still see many of them using OnePlus 3 and even OnePlus One. Each piece has two faces. A long life cycle tells you how good the product is. But that does not mean that people are not going to improve their phones.

In the future, I believe it [life cycle] will shorten. But I still believe that the life cycle of Indian users will be relatively longer than that of other regions. What I noticed about Indian users is that when it comes to upgrading, they give their older phones to family members.
It's a benefit to us when it comes to our [smart] TV. If all family members use OnePlus phones, it means that they will have a good interconnection.

Entering the television segment
It's part of a long-term plan. The television industry has been a traditional industry for some time. There has been no significant change in over a decade. Given the speed with which the Internet has grown, the demands of users in terms of experience are increasing. And as for the type of companies that will do it, I think it must be smartphone companies. Because they have users and a better understanding of what they want. We want to offer our users this type of seamless and interconnected experience. I believe that in the future, smartphone companies will enter the television segment. As for the other segments, we will stay close to the mobile industry, but we will now focus on the TV product.

On the philosophy of BBK Group, the parent company of Oppo, Vivo, Realme and OnePlus
Only two things are common. The first is that we share some investors and, secondly, some senior executives who previously worked for BBK. All brands operate independently.

S & he has plans for IPO
No. As far as the IPO is concerned, I do not see any significance for the moment. We have users, we have quality, we have the product. That's what we need right now. We are healthy and do not need investors.

On the question of whether the geopolitical dynamics between India and China is a potential risk
We do not talk about politics. We are lucky to have many users in India. We do not really consider what's going on outside the product. In addition, we were a global company from day one. The success of this well-established success in India in this high-end segment is explained by the fact that users appreciate our global perspective and culture.

On his teachings from India
The greatest learning is that this market has helped us strengthen our faith. It helped us understand that we really need to stay and believe in our product. When we arrived here, there were so many brands playing a game of quantity and price. It's tempting for users. But we focused on the product and the premium experience. And, of course, our operation is healthy.