Local players are getting hammered
IDC has officially announced the big winners for the second quarter of 2017, and it looks like the marketing game of both Vivo and OPPO is paying off. According to the research firm, the two Chinese companies have managed to rise up the sales charts, bumping off international brands like Huawei and ASUS to gain top spots.
Smartphone shipments are down 10% YOY according to IDC, namely because of sluggish performance of local brands. Cherry Mobile still holds the top spot, while Cloudfone has climbed up to #4 position ahead of Vivo, which comes in at #5. Samsung is still #2, while OPPO has managed to climb up to #3.
Top 5 for Q2017
- Cherry Mobile
- Samsung
- OPPO
- Cloudfone
- Vivo
IDC notes that Vivo and OPPO’s rise are due to their willingness to spend top dollar when it comes to marketing and sales, as well as their expansive sales and distribution approach. Brands who decided to scale back on their efforts suffered as the two Chinese companies grew immensely.
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“As the battle for mindshare intensifies, top global and local mobile phone vendors were left with no recourse but to double down on marketing spending to maintain the brand presence. Aside from the tried-and-tested formula of appointing A-list celebrity endorsers and conducting roadshows, new marketing strategies such as co-branding and strategic product placements are being explored by local and global vendors as means to remain competitive against Chinese vendors,” Jerome Dominguez, Market Analyst for Client Devices, IDC Asia/Pacific.
IDC also notes that the rise of aggressive brands from China is spelling the end of local brands in many markets. While the Philippines still has a lot of local players, that’s no longer true for countries like Indoensia, Thailand, Vietnam and Malaysia.
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