NEW DELHI: OnePlus<\/a> said that it expects 30% handset sales to come from offline channel by next year, having initiated an aggressive offline expansion<\/a> to further drive the growth. The Chinese handset brand has also cemented its premium leadership in the July-September quarter with 35% market share.
“We are ahead of our sales target this year compared to last year. Now, the focus is on a lot of extending offline and service centers,” Vikas Agarwal<\/a>, General Manager, OnePlus India, told ET. “We are now among the top five brands in terms of revenue share, and contribute 4% of the overall industry’s value.”
He, however, didn’t share the sales target for 2019.
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NEW DELHI: OnePlus<\/a> said that it expects 30% handset sales to come from offline channel by next year, having initiated an aggressive offline expansion<\/a> to further drive the growth. The Chinese handset brand has also cemented its premium leadership in the July-September quarter with 35% market share.
“We are ahead of our sales target this year compared to last year. Now, the focus is on a lot of extending offline and service centers,” Vikas Agarwal<\/a>, General Manager, OnePlus India, told ET. “We are now among the top five brands in terms of revenue share, and contribute 4% of the overall industry’s value.”
He, however, didn’t share the sales target for 2019.
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As per Counterpoint<\/a>, OnePlus was followed by Samsung<\/a> at 23% and Apple<\/a> at 22% market shares, respectively in the third quarter.
Agarwal said that the next phase of growth will be driven by the offline channel expansion, which started in the third quarter. OnePlus currently has 2000 offline touchpoints largely through large format retail stores through its partnership with 10 retail chains and own exclusive experience store.
“We are investing in offline expansion and are setting up own offline stores. We are looking to have company-owned 30 stores soon, up from 20 currently. We aim to open 100 exclusive stores…offline is a new opportunity for us,” Agarwal said, adding that the brand will have 5000 offline touchpoints before 2020 calendar year-end in 50 cities.
“We are aiming for a larger offline share. Online continues to be the dominant sales channel, but offline will be contributing around 30-40% in sales by next year.”
OnePlus also plans to open its largest experience center in Hyderabad soon, spanning across 16,000 square feet.
As per Counterpoint Research’s third-quarter data, OnePlus’s sales grew 95% on a yearly basis. Apple, on the other hand, saw 45% growth, while Samsung saw 35% yearly growth.
With OnePlus 7T and OnePlus 7T Pro, OnePlus witnessed its highest ever recorded shipment sales –0.74 million – in the third quarter, up from 0.66 million units in Q2 and 0.24 million unit sales in Q1.
This has been the highest recorded shipment by a premium smartphone brand in the last three years. Moreover, it was the only premium smartphone brand to surpass 0.5 million shipment mark this quarter and achieve record sales growth, Agarwal said.
The overall market's average selling price witnessed a healthy growth with 20% yearly growth this year, and is expected to hit $200 early next year from almost $140 three years ago, Counterpoint data revealed.
Agarwal said that the company’s growth was higher than the industry growth for the premium market. OnePlus grew even faster in the ultra-premium (Rs 45,000 and above) segment and cornered 43% market share, as per Counterpoint data.
“The main growth driver was the brand recall…we have emerged as an alternative in the premium segment. A lot of people are upgrading from other brands while existing OnePlus users are also upgrading,” Agarwal said, adding that the dual product strategy helped the brand in acquiring new users.
As compared to last year, OnePlus had two smartphones for the festive season –OnePlus 7 and 7 Pro. It had in September launched its latest smartphone, 7T, in September to further drive sales in the market.
Agarwal said that aggressive foray into the offline channel will help OnePlus maintain its growth in the fourth quarter, whereas bigger impact will be seen next year. “Q4 is a slower quarter but we will be able to sustain growth due to offline expansion... we have promotional event planned as well.”
OnePlus forayed into smart TV market recently, and is now exploring other Internet of Things (IoT) categories for the Indian market.
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Curious about future of IoT in India? Let the experts be your guide,<\/strong> Click Here<\/a>
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