Drop in sales, Vivo and OPPO employees heading back to China?
Will Yang, Brand Director, OPPO India, spoke with exchange4media about company's plans to expand in India but industry sources suggest that the senior officials of leading Chinese companies OPPO and Vivo are heading back to China
Published - Aug 28, 2017 9:17 AM Updated: Aug 28, 2017 9:17 AM
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Two days after Will Yang, Brand Director, OPPO India, spoke with exchange4media about company's plans to expand in India, industry sources suggested that the senior officials of leading Chinese companies OPPO and VIVO are heading back to China.
As per the sources, the two companies registered sharp falls in smartphone sales during July and August—up to 30 per cent year-on-year—following which more than 400 Chinese expats working for Oppo and Vivo are heading back home, made only worse by the military standoff at Dokalam and the resulting anti-China sentiment.
Earlier this month, exchange4media reported the story of Vivek Zhang, Chief Marketing Officer at Vivo India, stepping down from his role and moving back to China. Media reports claim others affected from the drop include the Chinese-owned distribution companies at Oppo and Vivo. Some distribution set-ups in Maharashtra and West Bengal have seen exits.
The decline in sales has led to the reshuffling of the local management and making efforts to reduce buyer resistance. Another factor to consider is the shorter duration of visas granted to Chinese employees. Last week also saw the Chinese government issuing a safety advisory for its citizens in India in light of the Dokalam conflict.
Despite all this, both Oppo and Vivo are aiming to reverse the trend and bump up the numbers this festive season. Associating with popular Indian sports and bringing celebrities onboard as endorsers are some of the strategies adopted by these brands.
Meanwhile, in an interaction, Yang told us that the company, by the end of this year, has targeted to set up 35,000 point of sales and 180 after-sales service centres. “We are also focused on a long-term association with our partners such as Big Boss season 11, Baahubali 2 and Dance Plus season 2. Our associations are keenly mapped keeping in mind what’s popular among Indian consumers, i.e. entertainment, sports and lifestyle events like Fresh Face which engage with the youth,” Yang told us.
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