Robust market presence in premium and mid-premium smartphone segments
OnePlus, established in 2013, has rapidly evolved from a niche smartphone manufacturer to a significant player in the global market. India, with its vast and diverse consumer base, has been central to OnePlus’s growth strategy. As the company approaches 2025, understanding its trajectory in India offers insights into its broader ambitions and the dynamics of the Indian smartphone market.
Market Position and Performance
In the first quarter of 2024, OnePlus held a market share of 4.82% in India’s smartphone sector. This positioned the company behind leaders like Xiaomi (20.67%), Vivo (18.22%), Samsung (13.69%), Realme (13.45%), and OPPO (11.71%).
Despite being a relatively smaller player, OnePlus has carved out a niche, especially in the premium and mid-premium segments.
The Indian smartphone market itself has shown resilience and growth. In the first half of 2024, smartphone shipments reached 69 million units, marking a 7.2% year-over-year increase.
This growth underscores the expanding opportunities for brands like OnePlus to increase their footprint.
Strategic Retail Expansion
Recognizing the importance of offline presence in a market where many consumers prefer hands-on experiences, OnePlus has aggressively expanded its retail footprint. In 2024, the company planned to double its investments in mainline channels, aiming to open over 200 new OnePlus Experience stores across more than 150 cities, including tier 2 and tier 3 markets.
This strategy not only enhances brand visibility but also caters to consumers beyond metropolitan areas, tapping into the growing demand in smaller cities.
Additionally, OnePlus aimed to collaborate with approximately 50,000 retailers in 2024, significantly increasing its mainline network.
This extensive retail expansion reflects the company’s commitment to making its products more accessible to a broader audience.
Product Portfolio and Localization
OnePlus has consistently focused on delivering high-performance devices with a premium feel. The launch of the OnePlus 12 in early 2024, available in two color variants—Flowy Emerald and Silky Black—at competitive price points, exemplifies this approach.
By offering devices that cater to both premium and mid-premium segments, OnePlus addresses diverse consumer preferences.
Understanding the unique needs of Indian consumers, OnePlus has tailored its products and services accordingly. This includes integrating features specific to the Indian market and ensuring that after-sales services are robust and accessible. Such localization efforts enhance customer satisfaction and brand loyalty.
Community Engagement and Brand Building
OnePlus’s success in India is partly attributed to its strong community engagement. By actively involving its user base in product development and feedback processes, the company fosters a sense of ownership among consumers. This community-driven approach has been instrumental in building brand loyalty and driving word-of-mouth marketing.
The company has also invested in creating premium retail experiences. The inauguration of the world’s largest OnePlus Experience Store, Nizam Palace, in Hyderabad stands as a testament to this commitment. Such flagship stores not only showcase the brand’s product range but also serve as hubs for community events and customer interactions, reinforcing brand presence.
Manufacturing and Supply Chain
To cater to the Indian market effectively and comply with the government’s ‘Make in India’ initiative, OnePlus has explored partnerships with local manufacturers. This move not only reduces production costs but also ensures quicker time-to-market for new products. Local manufacturing enhances supply chain efficiency and aligns the brand with national economic goals.
Challenges and Competitive Landscape
The Indian smartphone market is intensely competitive, with established players like Xiaomi, Samsung, and Vivo dominating significant market shares. In Q1 2024, Xiaomi led with a 19% share, followed closely by Vivo and Samsung.
This competitive environment poses challenges for OnePlus in expanding its market presence.
Additionally, the entry of brands like POCO, which surpassed OnePlus in shipments in Q1 2024, indicates the dynamic nature of the market.
To maintain and grow its position, OnePlus must continuously innovate and differentiate its offerings.
Future Outlook and Strategies for 2025
Looking ahead to 2025, OnePlus plans to continue its aggressive retail expansion, aiming to enhance its presence in both urban and rural markets. The company is also expected to diversify its product portfolio, potentially venturing into new categories like smart TVs and IoT devices, to build a comprehensive ecosystem.
Investments in research and development will be crucial for OnePlus to stay ahead of technological trends and consumer expectations. By focusing on innovation and quality, the company can strengthen its brand equity and appeal to a broader consumer base.
OnePlus’s journey in India reflects a strategic blend of product excellence, retail expansion, and community engagement. While the competitive landscape presents challenges, the company’s commitment to innovation and localization positions it well for sustained growth. As India continues to be a pivotal market, OnePlus’s strategies here will significantly influence its global trajectory in the coming years.
