Chinese brands managed to capture 48% market share globally in Q2 2017 thanks to their aggressive strategies outside China, according to data gathered by Counterpoint Research. Nowadays, the biggest strength of Chinese brands depends primarily on how they are performing in both domestic and international markets at the same time. For example, brands like Xiaomi, Vivo, and Huawei have managed to capture a significant market share not only in China but also other countries like India. Counterpoint Research also denotes China, India and Southeast Asia remains the key growth markets for Chinese brands.
“These (Chinese) brands will continue to expand their reach beyond China during the second half of this year. India, South Asia and Africa will be the key focus geographies to drive additional scale and market share. The geographic diversification will also help offset any turbulence in the domestic China market, which is increasingly saturated,” said Tarun Pathak, Associate Director at Counterpoint Research.
The report also suggests worldwide smartphone shipments increased 3% year-over-year (YoY) in the said period. The increasing numbers of smartphone shipments are believed to be a result of a craving for new forms of hardware trends these days, i.e., bezel-less display, dual-screen, alternative aspect ratio, etc. Although these trends are currently limited to flagship smartphones, the momentum is slowly shifting to a mid-range segment.
“The smartphone market continues to grow in single digits with the second half of 2017 expected to add further to the growth cycle thanks to the new iPhone cycle and additional new products from other OEMs,” said Jeff Fieldhack, Research Director at Counterpoint Research.
Chinese brands’ YoY shipment growth in global markets spiked exponentially in comparison with their domestic market in Q2 2017. Xiaomi, topping the list, witnessed 324% YoY growth globally. Brands like Vivo, Oppo, Huawei, Samsung, and Apple stood subsequently. See the image above.
Similarly, smartphone penetration reached over 80% of all the mobile phones shipped in Q2 2017. The research has found out brands like Xiaomi, Vivo, Oppo, and Huawei were the fastest growing brands outside their domestic market with their mix of overseas smartphones shipments contributing to an increased YoY.