Yahoo – AFP,
Julien GIRAULT, June 21, 2017
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| An army of salespeople and 200,000 stores across the country have helped Oppo overtake giants Apple and Samsung in the Chinese smartphone market (AFP Photo/Nicolas ASFOURI) |
With its
army of salespeople and vast network of outlets, a relatively new smartphone
maker has exploded in popularity to overtake global giants Apple and Samsung in
China’s market -- and now it has its eye on the West.
Oppo began
life selling DVD players in the in the southern manufacturing hub of Dongguan a
little more than a decade ago and only broke into the handset market in 2011.
But with an
aggressive marketing strategy and concentration on bricks-and-mortar stores in
small and medium-sized cities -- rather than relying on online customers --
sales have soared.
Last year
it had a market share of 16.8 percent making it the China market leader and
while a slip in the first three months of 2017 put it just behind local rival
Huawei, according to market analyst IDC, it remains well ahead of Apple and
Samsung.
Globally it
ranks fourth behind Samsung, Apple and Huawei.
While its
rivals focus on the premium end of the smartphone market in major cities and
online, Oppo makes relatively cheap devices -- its latest model is less than
half the price of an iPhone 7.
Oppo also
sells them in actual shops. It has 200,000 outlets across China -- less than 10
percent of its purchases are made online -- while retailers are offered
generous commissions in exchange for promoting the brand.
"In
small cities, consumers unfamiliar with smartphones need to see and touch the
devices and to have salespeople there to help them," said Yi Jun, Oppo's
international sales director.
At the company's
factory in Guangdong province, Oppo handsets are submitted to a series of
durability tests including one-metre drops and temperature changes ranging from
-40 degrees Celsius to 85 degrees Celsius.
"Technology
is essential for meeting consumers' expectations," Yi said, pointing to
Oppo's fast-charging ability, high-definition camera lens and sleek design.
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Smartphone
market share graphic (AFP Photo/Gal ROMA)
|
'Brand
ambassadors'
Now Oppo's
rivals are starting to follow suit.
Chinese
brand Xiaomi, which lost significant market share in 2016, has been relying on
the web for sales of its top-of-the-range smartphones.
But in
February it announced plans to go back to old-fashioned selling techniques with
plans to open 1,000 stores by 2020 in the hope of reversing its fortunes.
As
competitors play catch up, analysts warn Oppo must maintain its momentum to
stay on or near the top.
It needs to
continue expanding its sales network and offering competitive products, said Mo
Jia, an analyst at technology research firm Canalys.
Oppo has
also been boosting its sales abroad, including emerging markets in Southeast
Asia where its share more than doubled to 13.2 percent last year -- by far the
biggest increase among its rivals, IDC data shows.
In India,
it was the fourth-biggest player in the fourth quarter, with 8.6 percent market
share, behind Samsung, Xiaomi and Lenovo.
"Its
success in these countries comes from frantic marketing," said IDC analyst
Tay Xiaohan, noting the use of local celebrities as "brand
ambassadors" as it targets millennials.
It is also
starting to back high-profile sports teams to increase brand awareness. Earlier
this year it forked out more than $160 million to become an official sponsor of
the Indian cricket side.
And Oppo is
adapting its products to satisfy the "selfie" trend.
"We
noticed the craze in Southeast Asia for group selfies and tailored our devices
accordingly," Yi said, referring to special camera features that enable
users to take better self-portraits.
Next stop
is the West.
"We
are very interested in entering the US and European markets, we are working on
it... but without a precise timeline," Yi said.
It will be
challenging.
While
Huawei has managed to make a name for itself in US and European smartphone
markets, it was already very present in those places as a telecom equipment
manufacturer, said Annette Zimmermann, an analyst with technology research
company Gartner.
And Oppo's
direct sales strategy might not be as successful in markets dominated by mobile
network operators that provide handsets with their contracts.
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