Samsung and Lava have emerged as the most favoured brands amongst Indians because of the anti-china sentiment where most people are looking to replace smartphones made by chinese OEMs.
Amidst the anti-china sentiment in the nation, users are seeking for a replacement for their smartphones in the industry and looking for phones made by Indian brands.
A new nationwide CMR Insights On the Go Survey conducted in August and September 2020 across Tier-I and Tier-II cities, covering consumers and retailers, for the very first time has captured the extent of prevailing market sentiments around border skirmishes amongst consumers and retailers alike.
The survey shows that one in every two users is looking for a replacement for smartphones that are made by Chinese brands. On the other side, the survey also shows that an equal number of users are not affected and will continue to buy smartphones from chinese companies.
As per the survey, the extent of anti-China sentiment is relatively higher in Tier-II cities, compared to Tier-I. In Q2 2020, the cumulative market share of Chinese brands fell to 73%, akin to the levels last seen in Q3 2019.
Talking about retailers, one in every four has experienced anti-China sentiment in the market. Due to the shortage in demand for smartphones made by Chinese OEMs, retailers’ preference of Chinese brand has gone down.
This trend is more consistent in Tier-II cities. On the other hand, three in every seven retailers feel that the dispute with China won’t have any impact on their selling of Chinese phones. According to Satya Mohanty, Head- Industry Consulting Group, CMR, “The broad takeaway from the study is that there exists a chasm between those who feel angry and seek alternatives to their Chinese phones, and, those who remain unaffected by current sentiments. Amongst consumers and retailers who are passionate about the prevailing national themes, the clear alternatives under consideration include global brands such as Samsung and Nokia, and homegrown brands, such as Lava.”
The survey also conveyed some key points stating:
- More than one-third of the users stated that they would boycott those retailers who sell Chinese phones.
- Samsung (93%), OPPO (90%), Vivo (86%) and Lava (83%) consumers are most satisfied with their devices.
- Lava is favoured by around 48% of potential consumers seeking alternatives among Indian brands, primarily for its Made in India R&D and design competencies and the emotional bond that the brand brings.
- Samsung is the most preferred smartphone brand for one in every three mobile phone users, with a very high loyalty (47%) among its existing and potential users.
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