• Ajay Sharma

Brand Sensex: Gainers And Losers

Firstly, I would like to thank my subscribers/followers for actively participating in my survey. The COVID-19 issue followed by the events at the border are bringing about a change in the consumer behaviour, and I thought it would be important to capture the swing in the brand preferences with respect to who all will be the gainers and losers. These should be taken as short-term changes that will get compounded by the entry of #RelianceJio which could increase the share of Indian brands substantially.

The results are interesting, let’s resume.

1. Most research agencies, partners/people from the industry have been talking about a shift in market shares. And, the survey seconds that.

2. A third of the respondents feel that the shift away from Chinese brands could be higher than 15% with another 28% putting it at between 10% - 15%. Only almost 14% of respondents feel that there will be no change. A drop in share of Chinese brands will happen is what we can expect based on the above. Based on the data this could be approx. 15%.

3. The Chinese brand that is expected to lose the maximum is #Xiaomi with close to 50% of the respondents saying so. #Oppo is the second brand to lose.

Some of the reasons why the survey participants feel so, are as under:

a. When there is a drop, the largest brand tends to lose maximum.

b. Quality issues.

c. Retail brand loyalty is weak.

Xiaomi needs to fence itself on these 3 points.

4. Samsung seems to be gaining the most. Contrary to what people/articles are saying in terms of a major shift towards Indian brands, they stand at No. 3 position. Global brands like #Nokia and #LG also seem to be gaining at the expense of the Chinese brands.

5. Seems the losses in market shares of Chinese brands will be more in the offline channel than the online channel.

The reasons given are as follows:

a. Offline will tend to support Indian brands due to low margins on Chinese brands.

b. The capability of offline to shift customers to Indian brands on a one-to-one interaction with the customers either directly or through ISDs.

c. With an expected increase in the share of the online business, Chinese brands diverting more stocks online rather than offline.

d. The feeling of guilt while buying a Chinese brand across the counter in offline. Online does not have this issue.

e. Online buyers focussing more on price/spec ratio rather than on emotions.

f. Online having a higher contribution than offline in H2.