CyberMedia Research (CMR), a firm engaged in industry intelligence and marketing services on Tuesday said that nearly one in every two users in India are seeking an alternative to Chinese smartphone brands. The firm is said to have conducted a “nationwide” survey across Tier 1 and Tier II cities of India for its ‘CMR Insights On the Go Survey.’ CMR said that the magnitude of anti-China sentiment is comparatively higher in Tier II cities than Tier I cities. Crucially, it was said that one in four retailers have experienced anti-China emotion in the market.
The firm said that retailers’ preference of Chinese smartphone brands have also taken a dip due to anti-China sentiment.
“Indian smartphone users have predominantly been using Chinese smartphones,” Amit Sharma, analyst at CMR, said in a release. “In Q2 2020, the cumulative market share of Chinese brands fell to 73%, akin to the levels last seen in Q3 2019. In addition to COVID-19 and consequent supply side challenges, the anti-China sentiment also emerged as a key factor.”
CMR said that one in five retailers face “difficulties in convincing” users to buy devices sold by Chinese brands with the firm highlighting that the trend is “more pronounced” in Tier II cities. However, three in seven retailers are said to have felt that India’s dispute with China will not cause an impact on their ability to sell devices made by Chinese brands.
“The broad takeaway from the study is that there exists a chasm between those who feel angry and seek alternatives to their Chinese phones, and those who remain unaffected by current sentiments,” Satya Mohanty, head of industry consulting group at CMR, said in the release.
The company also shared “key highlights” from CMR Insights On the Go Survey that reveals that around 48% of the potential users who are seeking alternatives have favoured Lava. Further, one in three users in the country are said to be preferring Samsung over rival brands with the South Korean giant also said to have high loyalty among its existing and potential users.
“The Lava brand resonates strongly with consumers and retailers alike, with their overall value proposition,” Sharma said. “This brand association is especially stronger in Aspirational India. The current market sentiments indicate major gains for Lava as a potential alternative. It remains to be seen how Lava is able to convert these into strong market performance.”