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Oppo finds success in China's retail as rivals fight for online presence

By Shawn Knight
Oct 31, 2016
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  1. Oppo has proven that you don’t always need to be a household name or have a massive online marketing campaign to find success in the mobile industry. Seemingly out of nowhere, the Chinese electronics maker captured the top spot in the smartphone market in its home country according to data from research firms Counterpoint and IDC.

    In the year-ago quarter, Oppo controlled just nine percent of the market according to IDC with 9.8 million shipments. In the most recent quarter, that figure shot up to 20.1 million shipments, representing 17.5 percent of the market.

    How has Oppo managed to outpace giants like Apple, LeEco, Samsung and Xiaomi without a massive online push? The old fashioned way – lots of hard work (and cutting out the middleman).

    Rather than relying on wireless carriers to do the heavy lifting, Oppo has built a huge retail presence across China and other parts of Asia. As Reuters highlights, sales representatives at these stores earn commission on each device sold meaning there’s incentive to excel at their job rather than stand around and collect a paycheck.

    Outside of its walls, Oppo has blitzed traditional advertising channels like billboards and airwaves with advertisements based on the endorsements from top Asian pop stars. A Shijiazhuang, Hebei-based executive with a mobile phone distributor that sells many rival brands tells the publication that no other brand can match Oppo’s sales bombardment tactic.

    The company also handles most of the design and manufacturing tasks associated with its devices rather than outsourcing such duties to contract manufacturers.

    Whether or not this tactic is sustainable over the long haul remains to be seen. The amount of money Oppo spends on marketing is higher than brands with an online focus and is increasing at a “rapid clip.” Analysts say this is fine while the company is expanding so quickly but may not be sustainable once growth slows.

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  2. Uncle Al

    Uncle Al TS Evangelist Posts: 1,663   +775

    What a shame they didn't tell us how much is costs ....
     
  3. p51d007

    p51d007 TS Evangelist Posts: 910   +386

    Oppo does not TEST their phones before release. They let consumers do it.
    Why do you think they have a company called OnePlus? They sell the OnePlus phones OUTSIDE
    of China, once the major bugs are fixed, they add back the removable battery, external SD card and
    a few other things, slap a more premium cover on it, with an Oppo logo and sell it as an Oppo phone.
    The Find5, 7 were both OnePlus phones before they were Oppo phones. The OnePlus2 was going to
    be the Find9, BUT, continuing problems with 810 overheating chip, they scrapped it before it was released.
    Oppo, like their younger child OnePlus, sells direct to the consumer, which also reduces cost.
     
    OutlawCecil likes this.
  4. Jibberish18

    Jibberish18 TS Guru Posts: 528   +36

    I chuckled only because this sounds like every tech company in the world now both soft and hardware wise.
     

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