OnePlus irons out India business strategy, ropes in Robert Downey Jr

A new campaign with Hollywood actor Robert Downey Jr, an association with the much-awaited second season of the popular Netflix serial Sacred Games and two launches in in the super premium category (Rs 50,000-plus), OnePlus is polishing its premium credentials in one of the largest mobile phone markets in the world. The Chinese handset brand that debuted as a digital-only label five years ago is also setting up offline stores, all in a bid to spin down the experiential trail for a premium clientele.

The company says that its brand has a loyal premium clientele but it wanted to expand the scope of the brand. Vikas Agarwal, general manager, OnePlus India says with OnePlus Pro they are targeting both existing and new customers. The company expects nearly 30-50 per cent of the customers for the new model to be existing ones trading up for a better experience and upgraded features.

The newly minted models are all targeted at the ‘ultra-premium’ segment, currently the domain of Apple and Samsung globally. OnePlus wants to challenge that and its promotional strategy is geared towards building a brand of desire said Harish Bijoor, founder-CEO of Bijoor Consults. To that end it is associating with global icons and aligning itself with edgy entertainment shows while offering customers a chance to explore the brand more closely with offline stores. A 15,000 square feet store is set to open in Hyderabad soon, the company said, adding to its tally of three in Bengaluru, Chennai and New Delhi.

A premium identity

OnePlus figures show that around 60 per cent of the premium market is within the Rs 30,000-45,000 price range, where the brand has focused thus far. But there is an opportunity in the Rs 50,000-plus market that the company believed was being ignored. The OnePlus Pro will cater to the remaining 40 per cent said Agrawal. 

The company has also increased the frequency of the launch of new models and unlike in the past, is not phasing out its old handsets when launching upgraded versions. This allows customers to experience the brand at multiple price points and more importantly, encourages them to trade up to higher priced models with every new purchase. 

The company has also partnered with Netflix and Agarwal says the association is based on the common philosophy of a community and member-first approach. Netflix has released two posters for Sacred Games Season 2 and a behind-the-scenes video, all shot on the OnePlus 7 Pro.

Being local

India is a critical market for OnePlus as it contributes around a third of global revenues, Agarwal said. The brand has 34 per cent market share in terms of volume in the premium segment (Rs 30,000 plus), the highest among the 40 countries that OnePlus is present in. The company says it will have a customised software for the Indian market for the new models.

The premium market in India is currently around 3.8 per cent, less than five million units a year, but in the next three years this market is expected to be more than 15 million. “It is a huge opportunity that we see, which is why we now have our global R&D centre in India, expected to be the biggest centre for us in the next three years,” Agarwal informed.

Bijoor said that OnePlus has established itself as the third alternative in a space bookended by Xiaomi on the one end and players such as Samsung on the other. “People are gravitating towards OnePlus as a brand of desire. After playing a volume game, it is good to play the value game as well,” he added. 

The company is setting up its after-sales services outlets in the country where it promises to resolve all consumer issues within a few hours. This say many consumer groups could help build customer loyalty, especially in the handset market where product reviews have become far more strident and critical of the after-sales service norms across brands.

It also helps drive a more pleasurable experience and that helps add a premium layer to the brand. The premium experience is differentiated by the experience the user has with the product and service plays a big part in the matrix, It could well be the big differentiator that makes the customer choose between two phones going head to head on features and design; and OnePlus wants to keep no holes in the loop it is closing around the Indian customer.­­­