Smartphone brand Realme expanding in Southeast Asia
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BBK Electronics’ budget smartphone brand Realme is eyeing expansion into Southeast Asia, Africa and Europe.
The company’s online distribution strategy has brought it success in the Indian market and makes broader expansion possible, according to Realme global CEO Sky Li Bingzhong.
“The company’s asset-light operations and focus on online sales allow it to keep costs low. That way, more young consumers can afford its products, which makes the brand more competitive in the market,” said Li.
Realme launched in India in May last year with handsets priced at INR8,990 (US$129) – becoming the second top-selling smartphone brand during the Diwali festival season from October to November. The brand has joined a number of Chinese phone manufacturers seeking to build strength in the Indian market as they challenge more established international competitors in more saturated markets.
BBK also owns the Oppo, Vivo and OnePlus brands, selling mid- to high-end models. Independent Realme runs its own R&D operations, but partners with Oppo in smartphone production. Its expansion moves are indicative of Chinese phone manufacturers’ larger strategy to deploy varying brands that each target specific markets globally.
Questions & Answers
Q.Which specific regions are Realme targeting for its expansion plans?
Which specific regions are Realme targeting for its expansion plans?
Realme is aiming to expand its presence into Southeast Asia, Africa, and Europe. This strategic move follows their successful online distribution model previously employed in the Indian market.
Q.How does Realme manage to keep its product prices low for consumers?
How does Realme manage to keep its product prices low for consumers?
The company maintains low costs through an asset-light operations model and a strong focus on online sales. This strategy enables them to offer more affordable products, attracting young consumers.
Q.What is Realme's relationship with Oppo regarding smartphone production and research?
What is Realme's relationship with Oppo regarding smartphone production and research?
Realme operates its own research and development independently. However, it collaborates with Oppo for its smartphone production, using shared resources within the broader BBK Electronics group.
Q.When did Realme first launch its products in the Indian market?
When did Realme first launch its products in the Indian market?
Realme launched in India in May of the previous year, starting with handsets priced at INR8,990 (US$129). They quickly became a top-selling brand during the Diwali festival season that year.
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