China’s mobile devices maker Gionee, which in the recent past has been facing stiff competition in the India market, has redrawn its strategy with the objective of doubling its revenues and grabbing a spot among the top three smartphone makers by September 2018.
Slower growth
Gionee, which was one of the first Chinese firms to enter India, has been clocking slower growth due to tough competition from brands such as Xiaomi and Oppo, Vivo and OnePlus.
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The firm has a new management team in place with global sales director David Chang taking over as the head of India operations after Arvind Vohra stepped down as CEO and MD. It plans to unveil almost eight new products by February and start a new manufacturing plant. It has already increased its marketing budget. According to data from GfK, Gionee is currently ranked sixth in the Indian smartphone market
“India is now the second largest mobile phone market in the world. It is a very important market for us just like China. Our investment here will only grow,” Mr. Chang told
The management changes were made as the company wanted to focus more on the India market. “We were the first Chinese firm to enter the Indian market. Now there is lot of competition. So, increased focus is needed so [that] we are able to compete.”
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Mr. Chang said the short term goal was to be among the top five players by March 2018, and gradually be among the top three by the end of September 2018.
Gionee has also ramped up its India marketing budget to almost ₹750 crore in 2017-18 from about ₹500 crore last year.
“By September 2018, we should be selling about a million units in a month from half-a-million at present,” he said adding that they expect monthly revenues to double to ₹1,000 crore from almost ₹500 crore now.
The company manufactures 95% of the products sold in the country through a tie up with Foxconn and Dixon Technologies. Gionee is also looking at setting up its own manufacturing plant in Haryana “and is working with the government for the same,” for which it plans invest about ₹500 crore.
Asked about strategy to deal with competition, Mr. Chang said, “[the] first most important thing is the product. We will have a differentiation strategy. Our differentiator will be that all our products will come with FullView display.”
Gionee will be unveiling a new portfolio, introducing eight products in the price range of ₹6,000-₹25,000 till February.
The company will also invest in reaching out to customers. “We have around 42,000 retail points at present, we will ramp it up to 75,000 by September 2018.”