Chinese handset maker, Oppo is planning to launch a sub-brand in the Indian subcontinent to take on Xiaomi, the Economic Times reported today. Oppo has also started assembling printed circuit boards at its second plant in India, the report added.
The sub-brand will take Xiaomi head on, with the devices priced between Rs 10,000 and Rs 15,000, said the report. This new brand will be limited to the online market where Xiaomi dominates with a 47 per cent market share.
Oppo’s decision to bring phones in that price range is understandable as huge 38 per cent of mobile phones sold in India last year were in the range of Rs 10,000 to Rs 20,000, as per a report of CyberMedia Research.
As per an IDC report, Oppo had a 4.9 per cent market share in the fourth quarter of last year. It managed to retain its position despite cutting its shipments by half. Oppo, which was initially spending a lot on advertisements to gain eyeballs and ofcourse market share, has recently cut its spendings to control costs. Xiaomi on the other hand has been expanding and is now eyeing the offline market as well.
Oppo however will not be the first to bring a sub-brand. Indian companies including Micromax, Lava and Xolo brought their sub-brands but later merged them with the main brand. Huawei also has a online-only brand called Honor.