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The rise of vivo in China, commented by Counterpoint analysts

The rise of vivo in China, commented by Counterpoint analysts

Counterpoint Research confirmed the rise of I live ranked first in the Chinese smartphone market in April.

Today, a company analyst released a interesting article about how I live (and Oppo) have managed to grow so much.

It all starts with the descent of Huaweiobviously hit hard by the American ban. The now independent Honor is regaining some of the lost market share, but its new products (such as the Magic3 series) are expensive and Honor still lacks the brand appeal that Huawei had and that had allowed the P and Mate series to achieve great success even at high prices.

The price is a important factor, explains the analyst. vivo has organized its offerings in an orderly manner: the Y series covers the entry level market at 2,000 Yuan (about $ 300), while the S series operates in the range of 2,000-3,500 Yuan ($ 300-550) and the X family is focuses on the market over 3,500 Yuan.

Smartphones like the vivo X60 have successfully raised the company’s profile, but cheaper models have also enjoyed excellent performance: the Y series represents half of the market under 2,000 Yuan in China. vivo even has a 5G model starting at 1,300 Yuan. A real feat in a time of chip shortage, which has led all major chip manufacturers to raise prices.

However, the parent company BBK has built a strong supply chain, which allows its subsidiaries to keep costs down. vivo also focused on offline distribution, which is quite popular in some regions of China.

Oppo and vivo together control 70% of the offline market. The iQOO brand does the opposite: it sells online and has Generation Z as its main target.Honor of Kings King Pro League (KPL), which is a very popular esports competition in China. vivo was the official sponsor of EURO 2020 (and will also be the reference brand for the competition to be held in 2024).