One of China's best smartphone brands Vivo Seems to have joined his fellow Oppo, Huawei and Xiaomi peoples to create a new submarket as a softening market and increased competition with home-driven players to venture to their original reach.
A new smartphone brand called iQoo debuted Weibo, China's response to Twitter, on Tuesday with the greeting in English: "Hi, that's iQoo." It also encouraged playful people to guess how the name was pronounced as the spelling does not. t Reason with either Chinese or English speaking. Vivo immediately reposted iQoo's message, calling iQoo a "new friend."
Vivo has not further revealed its ties to iQoo, although the latter's Weibo account is verified under Vivo's business name. TechCrunch has contacted Vivo and will update the story when we have more information.
Sub-brands have become a popular tactic for Chinese smartphone makers to entice new demographics without undermining and confusing their existing brand reputation. As the third ranked player by shipments in 2018, according to the research company Counterpoint, Vivo is the only one in China's top five smartphone companies without a subsidiary.
"Sub-brands can help fill the gap in parent companies," says Counterpoint's research director James Yan to TechCrunch. "I think iQoo is a brand born for the gambling market, the online sales channel, or young consumers, just as honorable did to Huawei. "
Huawei cemented its top spot with solid growth in shipments last year by playing a two-pronged strategy. Its sub-brand Honor has its eyes on the midfield, and Huawei remains in the top end. Vivo siblings Oppo, falling under the same electronics production clothing BBK, came in 2018 with an exclusive online brand Realme to go after Xiaomys Redmi in India's budding smartphone market. Xiaomi pushed by launching Poco for India's high-level market. To further tighten its multi-faceted approach, Redmi Xiaomi saved branding in January to start operating as an independent brand focused on cost-effectiveness.
These movements arrived as years of breakneck growth in China's smartphone room cease. Overall, smartphone sales contracted 11 percent in 2018, according to Counterpoint, as users become more pragmatic and less likely to upgrade their handsets. Local players responded quickly by going global and introduced headline-gripping features such as Xiaomy's folding screen and Honor pole screen, pushing global players Apple and Samsung. In 2018, Huawei shopped a 25 percent market share to take the crown. The background was Oppo, Vivo, Xiaomi and Apple . Samsung dropped 67 percent to take seventh place.