Samsung Electronics, once the leader in India’s smartphone market, has seen its position slip from first to third in terms of volume, following a surge in competition from Chinese brands like Vivo and Xiaomi. According to Counterpoint Research, Samsung had reclaimed the top spot in the October-December quarter of 2022, surpassing Xiaomi with a commanding 20% market share. However, recent developments indicate a reversal of fortunes for the South Korean giant.
In 2022, Samsung not only led in market volume but also outpaced its competitors in market value with a 22% share. This success was attributed to its aggressive strategy of expanding its presence in offline retail, leveraging online deals, and a focus on premium products like those in the Rs 30,000 to Rs 45,000 segment. Additionally, the Samsung Finance+ scheme and the strong performance of the A series smartphones contributed to its market dominance.
However, the landscape has shifted. Chinese competitors have intensified their efforts with refreshed product line-ups and aggressive marketing strategies. According to a senior analyst at Canalys, Xiaomi’s introduction of the Redmi Note 13 Pro series, with its enhanced colour options and the new Xiaomi 14 Civi featuring advanced camera capabilities and a distinctive design, has significantly bolstered its market presence. Similarly, Vivo’s success has been driven by its V-series and Y200 Pro models, which offer refined designs and improved camera features, alongside a strong push through large-format retail (LFR) stores. Samsung’s recent struggles are compounded by a weakened focus on mainline retail channels and a shift towards online sales, which has led to margin erosion and pricing disparities. Mobile retailers have voiced dissatisfaction with the brand’s pricing strategy and margins. The founder and chairman of the All India Mobile Retailers Association (AIMRA) highlighted these issues in a recent communication, urging Samsung to address margin concerns and ensure price consistency to regain retailer support.
The growing appeal of Chinese brands, combined with Samsung’s operational challenges, underscores a significant shift in the Indian smartphone market. As competition intensifies, Samsung will need to recalibrate its strategies to maintain its market position and address the evolving preferences of Indian consumers.
