Idea Behind Creating The Subsidiary Like Redmi, Oppo, and Vivo Brands

With smartphones emerging as the top-most commodity that people must own, many players are entering markets all over the world to offer their products to growing customer bases. India, especially, is showing up in the expansion plans of these manufacturers owing to the huge and constantly increasing base of users.

In order to cater to this burgeoning demand, many manufacturers have flocked to the Indian market. Chinese manufacturers of smartphones, especially, are also creating sub-brands which cater to different groups of consumers. Mi mobiles and Vivo mobiles are catered to these budget and mid-range segments, with Mi mobile releasing Redmi and Vivo mobiles releasing the Oppo smartphones. Even bigger companies such as Huawei have participated in this trend, with its Honor sub-brand which also was able to generate significant buzz in the market. 

Read on to learn about why smartphone manufacturers are launching subsidiary brands which could also act as competition to the original model.

  • Different Consumer Segments:
    Marketing is one of the most important tasks that companies conduct, since marketing may often be the game changer in terms of how the product is perceived by consumers and its ultimate bottomline. It also goes a long way towards cementing the brand perception, and all marketing efforts undertaken by a company are keyed towards certain user profiles. Different consumers have different requirements from smartphones, based on a range of factors including their age, requirements, and price they are willing to pay for the product. By creating subsidiaries, smartphone companies are able to cater to different user segments that their most prominent brand might not be appealing for.


  • Different Smartphone Objectives:
    Smartphones today can be used for a range of purposes, ranging from entertainment to productivity and convenience. Different users require smartphones for different reasons. While older people require smartphones to conduct work processes while on the go, younger users would want smartphones that are equipped with a powerful camera that will assist their social media presence or a smartphone with powerful graphics on which the latest games can be played. In order to ensure that their products can cater to both these kinds of consumers and a range of others, smartphone makers are releasing subsidiaries which are differentiated among themselves. The same brand can now cater to different purposes, through its own products released by subsidiaries.


  • Reduce Competition from Other Brands:
    Most smartphone markets are extremely competitive and the Indian market is especially competitive, owing to the multiple brands that operate in it, as well as the large consumer base that keeps growing. For brands to create a presence in this market, their sales volume needs to be extremely high and negate the presence of other brands that offer close competition. However, by creating subsidiaries that cater to different segments of the population, brands can easily reduce the competition they face from other companies.

Mi mobiles and Vivo mobile are offered to specific segments, which enable the brands to reach out to different customer segments that the parent brand might not be targeting.

However, with ancillary markets developing in line with the smartphone developments, purchasing a high-end smartphone today is also significantly more affordable than it was a couple of years ago. The Bajaj Finserv EMI Network Card is a payment method that allows you to buy premium products at no-cost EMIs that can be repaid over a flexible tenor ranging from 3 to 24 months. You can find smartphones from all the top brands on the Bajaj Finserv EMI Store. So choose the model you like, and bring home your new smartphone today.


Leave a Comment