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Home / SmartTech / Sub-brands are the new weapon in China's smartphone war – TechCrunch

Sub-brands are the new weapon in China's smartphone war – TechCrunch



One of China's leading smartphone brands, Vivo seems to have teamed up with its colleagues Oppo, Huawei and Xiaomi to establish a new sub-brand as a weakening market and boost competition at home Players reach their original range.

A new smartphone brand called iQoo made its debut on Weibo, China's response to Twitter on Tuesday, saying hello in English, "Hello, this is iQoo." She also encouraged players to guess how their name is pronounced as a spelling. Spelling does not support Chinese or English. Vivo immediately resumed the message from iQoo and described IQoo as a "new friend".

Vivo has not further disclosed its links to iQoo, although the latter's Weibo account is verified under the name of Vivo. TechCrunch has contacted Vivo and will update the story with more information.

  vivo iqoo

Screenshot of iQoo's first Weibo post

Sub-brands have become a popular tactic for Chinese smartphone makers to attract new demographics without undermining them and messing up the brand's existing reputation bring. Vivo is the third largest provider of broadcasts in 2018, according to research firm Counterpoint. Vivo is the only company in China that does not own five smartphone brand companies.

"Sub-brands can help close the gap in parent companies," says Counterpoint research director James Yan told TechCrunch. "I think iQoo is a brand that was born for the gaming market, the online distribution channel, or the young consumer, much like Honor did with Huawei."

Huawei consolidated its top spot with a solid sales growth last year to play a two-pronged strategy. His sub-mark Honor has the middle in view and Huawei remains at the top. Vivo's sibling Oppo, which is under the same BBK electronics manufacturing company, had an exclusive online brand, Realme, in 2018 for Xiaomis Redmi in India's emerging smartphone market. Xiaomi introduced Poco to the Indian high-tier market. To further solidify its multi-faceted approach, Redmi abandoned the Xiaomi branding in January to become an independent brand focused on cost-effectiveness.

These steps came when the rapid growth of China's smartphone space came to an end. Overall, according to Counterpoint, smartphone sales fell 11 percent in 2018 as users become more pragmatic and less likely to upgrade their cell phones. Local players responded quickly by introducing global, pioneering features such as Xiaomi's flip screen and Honor Pole's punch display. This pushed the global players Apple and Samsung. In 2018, Huawei gained 25 percent market share to win the crown. Behind them followed Oppo, Vivo, Xiaomi and Apple . Samsung crashed with 67 percent in seventh place.


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