can not seem to escape the smartphone brands Oppo and Vivo these days.
“The ads are everywhere in the city, with the Oppo slogan” Charge, two hours talking your phone for five minutes, ‘ “said Mr. Li, a 25-year-old factory workers in this central Chinese city.
On billboards and bus stops as well as on television and social media, the two smartphone brands which a share holders are seen in the kind of advertising blitz employs rare in the Chinese mobile communications industry.
Made in Shenzhen
The brands’ owner, BBK Electronics Co., is a Guangdong manufacturers little outside China. The Oppo brand sells high-end smartphones with advanced cameras and luxe metal body in colors like gold and red gold. Vivo sold cheaper devices to young consumers.
Since the sale of more expensive iPhone of Apple Inc. falter here, boil advised both upstart brands in popularity based stores of old-school brick and mortar and relentless advertising. Oppo and Vivo are No. 2 and No. 3 or in the Chinese smartphone market, based on the second quarter shipments providers to market research firm Strategy Analytics. The brands Trail Huawei Technologies Co.
The success comes more challenges for Apple, which is expected to launch the next-generation iPhone in September. China used to be Apple’s fastest growing market, but their share in the last quarter slipped below 7%, according to Strategy Analytics.
“Apple is not to fight for the middle class in China, where the buyers become more sophisticated and looking toward value, not only the brand,” Canalys China research director Nicole Peng said. “It’s a challenging market for Apple.”
Oppo targeted directly to the consumer
Of the two brands has Oppo targeted directly to the consumer, who would buy an iPhone. The phones many of the same features provide for less: At 3,299 yuan ($ 496), Oppo most expensive model, a price match for Apple’s R9 Plus with 128 gigabytes of memory the least expensive, the 3288 yuan iPhone SE 16GB.
“Our strategy is like, how you play the Chinese game of Go. ‘
-LU Luma, Oppo Technology Planning Director
Lu Luma, Oppo technology planning director, said his company has focused on building its own retail channels in recent years, while most other brands tracked sales by operators Telekom and e-commerce platforms.
“Our strategy is like, how the Chinese board game Go play,” Mr. Lu said. “We have focused on designing our homes on our side of the plate without worrying what does the enemy elsewhere.”
These opponents are Huawei, who sell their base built through their phones via mobile service provider, and Xiaomi Corp., which paid to the consumer pioneered the Internet direct sales.
Oppo and Vivo held retail stores set up with exclusive distribution agreement.
“It’s like a franchise model,” said Ms. Peng, Canalys. “This makes the merchant, highly motivated to help them to sell phones.”
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The two started off in smaller towns, where many people were more accustomed to shopping in the old-fashioned way of it. The stores have since spread to every corner of these cities so that Oppo and Vivo phones the default choice for many consumers in the country.