There was a time when the Indian smartphone market was considered to be captured by Chinese companies. OnePlus, Realme, Xiaomi and other brands were continuously posting record sales, but now the picture seems to be changing. The pressure of declining sales and increasing expenses has forced many companies to cut staff. The question now arising is whether the craze for Chinese smartphones in India is gradually ending or the market is now going through a phase of major change.
Pressure on companies increased due to decline in sales
In the last one year, the smartphone market has seen a decline of 8 to 10 percent in the sales of entry level and low margin phones. Due to this pressure, companies are now focusing on reducing their expenses. According to Randstad India, many brands have cut corporate and commercial staff by about 12 to 15 percent in the last two quarters. Especially roles like offline marketing, field activation team and regional sales management have been affected. Experts say that now customers are leaning more towards premium smartphones and online shopping, due to which companies are reducing large local marketing networks.
Maximum impact in OnePlus and Realme
According to industry experts, OnePlus has completely disbanded its offline expansion team, which consisted of around 60 employees. It is being told that till a few months ago the same team was preparing for a major expansion, but now suddenly a situation of job loss has arisen. At the same time, Realme has handed over the operations to distributor agents in many states and more than 50 area business managers have been asked to join the payroll of the agents. Apart from this, field force employees of Xiaomi and Transion have also been affected. However, Transion has officially denied reducing the number of employees.
Now companies are getting more work done with less people
Smartphone companies have now started adopting a leaner structure than before. This means that fewer employees are expected to perform more responsibilities. According to Randstad India, now product marketing professionals have to handle the work of brand communication as well. Regional sales leads are being given the responsibility of many areas and both online and offline channels. Industry experts say that this is not a sign of the end of the entire electronics industry, but companies are changing themselves according to the new needs of the market. Companies are now working on a more focused and less expensive strategy.
New recruitment and big change in salary also
Now new recruitment and big changes in salary structure are also being seen in the job market. Whereas earlier companies used to give salary increase of 40 to 50 percent to bring good talent, now that figure has reduced to 15 to 20 percent. According to TeamLease, many brands have cut third party contract staff and promoter network by 5 to 15 percent. Companies now want to invest only in those retail counters where the performance is better. Experts say that due to the slowdown in the market, it is now becoming difficult for companies to retain low performing employees and networks for a long time.
Has the shine of Chinese smartphones faded?
The shine of Chinese smartphone brands in India now seems to be fading. Sales of companies like Xiaomi, Oppo, OnePlus and Realme have declined for the first time in the last financial year. According to the report, Indian customers are now increasingly moving towards premium smartphones priced above Rs 20,000, which has dealt a big blow to Chinese companies dependent on the entry and mid-range segment. According to Counterpoint Research, while the value share of Chinese brands was 54 percent in 2023, it will reduce to 48 percent by 2025.
Also read: Oppo Find X9 Ultra or Vivo X300 Ultra? Who is the camera king smartphone in India?
Leave a Reply