Chinese Electronics Soar in India: Xiaomi, Vivo, Realme, and Oppo Shine Despite Regulatory Scrutiny

In India, Chinese electronics brands like Xiaomi, Vivo, Realme, and Oppo are very popular among consumers. They are valued for their affordability and quality, which has helped them gain a strong market share despite facing regulatory challenges and heightened scrutiny due to border tensions.

Counterpoint Research

According to market researchers Counterpoint Research and IDC, Xiaomi, Vivo, Realme, and Oppo are among the top five smartphone brands in India, with Samsung being the only non-Chinese brand in this top tier. Together, these brands are expected to generate nearly ₹90,000-95,000 crore in sales.

Xiaomi faced investigations by Indian authorities for foreign exchange violations in 2022, which led to a change in its leadership. This caused the company to lose its top spot temporarily to Samsung but recover its position by mid-2023 with a strong push into offline retail. Vivo also faced scrutiny over tax issues and money laundering.

Chinese brands

Chinese brands have not only dominated the smartphone market but also made significant inroads into home appliances and TVs. For example, Haier, a Chinese brand, ranks fourth in both refrigerators and TVs in India, competing against LG, Samsung, and Whirlpool in these categories.

Nilesh Gupta from Vijay Sales explained that Indian consumers no longer see these brands as merely Chinese; instead, they view them as international brands with strong brand equity. Chinese companies have enhanced their image through sponsorships of global events like the Euro football championship.

Combined Share

In the smartphone market, the combined share of Xiaomi, Vivo, Realme, and Oppo increased to 61.6% in the April-June period, up from 55% a year earlier. Despite the competition from Samsung and Apple, Chinese brands offer competitive prices that attract consumers. In home appliances, Haier has made a mark with innovative products and has become a leading player in premium refrigerators and washing machines.

Tarun Pathak from Counterpoint noted that Chinese brands are known for providing good value for money, a shift from their earlier image of being cheap and inferior. However, the share of Chinese brands in smart TVs has decreased recently due to the exit of some brands like Realme and OnePlus.

Chinese brands spend heavily on marketing and have a well-organized distribution network that helps them reach even smaller towns. They also quickly introduce new features and take advantage of their efficient supply chains in China to keep prices lower. In laptops, Lenovo remains among the top brands, especially in the business market, thanks to its strong government contract performance.