Chinese brands like Oppo and Vivo might face increasing pressure in India, as the local government might push both companies to stop operating in the region with their Chinese partners for distribution.
For those unaware, the two smartphone brands from China are major OEMs in the region with Oppo holding a 10 percent market share in the region while Vivo having a 15 percent market share. While both companies have a strong offline presence, the vendors have created a layer of Chinese partners to distribute their products in the market. However, this might has caught the attention of the local government as well.
As of right now, there is no legal framework that bans such operations, but Indian officials are likely to unofficially show their stance on the matter to these brands. In other words, the government would be developing such legal frameworks that could force both Oppo and Vivo to end operations with their Chinese partners over distribution of their products within the Indian market. While both brands have yet to offer a comment on the matter, an industry executive has spoke to ET providing certain insights.
The source said that “The initial strategy would be to solve the issue without any regulation, but in case there is a need, an official notification may be released. The consensus is that there should be no Chinese distribution in India since they already have market access. Distribution of tech products is where India already has strength, a point which will be conveyed to Chinese companies soon.” Notably, the executive also revealed that the tensions in the Indo Chinese borders is the reason behind the increased scrutiny for the companies.
RELATED:
- Oppo developing its own high end smartphone chips that will launch by 2024
- OPPO K9s launched with Snapdragon 778G SoC, 120Hz display, 5,000mAh battery, and more
- Vivo T1 5G with a Snapdragon 778G SoC unveiled alongside the T1x 5G
