Chinese mobile firms use start-up to enter India

Wednesday, April 10, 2013


India is one of the rapidly growing markets in mobile industry and China is aware of the fact and so now they are planning to enter the markets. A group of Chinese mobile makers are planning to make an entry into India with the help of a start-up organisation, which would set up around 200 sales and service centres for different manufacturers.

Start-up company, AndroidGuruz, is planning to set up the sales and service centres to give the Chinese companies a foothold in Indian markets. Vivek Despande, Asia Support Manager of AndroidGuruz, stated that the Indian Government had already given FDI clearance to many of the Chinese brands and in process of giving clearances to many more of them. There are about 40 to 45 brands who have applied for the FDI permission.

The consortium based out of Shenzen wants a franchisee network in the country, which will comprise various brands such as Zopo, UMI, JiaYu and Mogu. The company has plans to open first store in the capital if India, New Delhi in the coming next three months. Further more stores will be opened in the IT hub, Bengaluru and financial capital, Mumbai by the end of this year. Initially, they may decide to sell just android based phones but later it may expand to selling tablets and such other devices.

The smartphone industry has been growing tremendously in India and Chinese brands such as Huawei and Lenovo have been making slow and stable entries. Infact, Huawei has plans to set up around 250 experience zones in 2013. Another Chinese firm Konka recently announced its plans to enter India with an investment of $30 million.

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