Sub-brands are a new arms in China’s smartphone war

One of China’s tip smartphone brands Vivo appears to have assimilated a fellows Oppo, Huawei and Xiaomi in environment adult a new sub-brand as a softening marketplace and heightened foe during home expostulate players to try on their strange reach.

A new smartphone code called iQoo made a entrance on Weibo, China’s answer to Twitter, on Tuesday by nod in English: “Hello, this is iQoo.” It also playfully speedy people to theory how a name is pronounced, as a spelling doesn’t ring with possibly Chinese or English speakers. Vivo immediately reposted iQoo’s message, job iQoo a “new friend.”

Vivo has not serve suggested a ties with iQoo, nonetheless a latter’s Weibo comment is accurate underneath Vivo’s corporate name. TechCrunch has contacted Vivo and will refurbish a story when we have some-more information.

vivo iqoo

Screenshot of iQoo’s initial Weibo post

Sub-brands have turn a renouned tactic for Chinese smartphone makers to captivate new demographics but undermining and muddling their existent code reputation. As a third-ranked actor by shipments in 2018 according to investigate organisation Counterpoint, Vivo is a usually one in China’s tip 5 smartphone companies but a auxiliary brand.

“Sub-brands can assistance fill a opening in primogenitor companies,” Counterpoint’s investigate executive James Yan told TechCrunch. “I consider iQoo is a brand innate for a gaming market, a online sales channel, or immature consumers, identical to what Honor did to Huawei.”

Huawei cemented a tip mark with plain expansion in shipments final year by personification a two-pronged strategy. Its sub-brand Honor has a eyes on a mid-range and Huawei stays during a tip end. Vivo’s kin Oppo, that falls underneath a same wiring production outfit BBK, came adult with an exclusively online code Realme in 2018 to go after Xiaomi’s Redmi in India’s burgeoning smartphone market. Xiaomi pulpy on by rising Poco for India’s high-tier market. To serve indurate a multi-faceted approach, Redmi strew a Xiaomi branding in Jan to start operating as an eccentric brand focusing on cost efficiency.

These moves arrived as years of breakneck expansion in China’s smartphone space comes to an end. Overall smartphone sales engaged 11 percent in 2018 according to Counterpoint, as users turn some-more useful and reduction expected to ascent their handsets. Local players reacted quickly by going tellurian and introducing headline-grabbing facilities like Xiaomi’s folding screen and Honor’s pole-punch display, putting a fist on tellurian players Apple and Samsung. In 2018, Huawei shored adult a 25 percent marketplace share to take a crown. Trailing behind was Oppo, Vivo, Xiaomi and Apple . Samsung plunged 67 percnet to take seventh place.