Vivo plans capacity expansion

To aim it's market share of 7% by the end of this year

Vivo, the Chinese smartphone maker, might expand the capacity of its factory in India.

The aim is market share of seven per cent by the end of this year and this might necessitate more than the present capacity of a million handsets a month, said Kent Cheng, chief executive officer, Vivo Mobile India.

In the year’s first half, its market share by volume was 2.6 per cent, up from one per cent at the end of 2015 (it was three per cent by value), when it inaugurated the manufacturing unit at Noida. Sales jumped 230 per cent in the April-June quarter.

Cheng said Rs 200 crore had been allocated for advertisement and promotions this year (it became title sponsor the Indian Premier League cricket tourney), and this had been spent entirely. Focus would continue to focus on promotion and branding. “We want to become a brand which remains at the top of the mind of Indian consumers,” he said.

The company is in talks with a number of content and service providers in the photography and utility services segment.

A majority of Chinese smartphone companies here had focused heavily on online channels for market entry. Vivo is yet to get into the e-commerce channel. Cheng said they'd keep expanding the reach through traditional outlets.

“We are present in more than 400 towns and growing further. At this moment, we want to stay away from any partnership in the e-commerce space,” he said.