xiaomi: Anti-China mood no hurdle for electronics brands

The three largest Chinese electronics companies in India – Xiaomi, Lenovo and Vivo Mobiles – have remained largely unharmed by widespread anti-Chinese rhetoric and government action against Chinese business following border clashes between the two countries in 2020.

Computer maker Lenovo has increased sales in India compared to the same period in 2020-21, and smartphone makers Xiaomi and Vivo have reported a slight drop in sales, according to the latest regulations they made in the Register of Companies (RoC). which can be accessed through the business intelligence platform. Toffler.

In fact, Lenovo has developed its business despite not receiving permission from the Department of Industry and Domestic Trade Promotion (DPIIT) to participate directly in government tenders, as it said in its RoC documents.

While Xiaomi and Vivo have not named the reason for the decline in sales in their RoC documents, industry leaders attribute this to the first tougher blockade of Covid-19 in 2020 and the lack of components that affect product deliveries.

Market researcher IDC India Navkendar Singh said that the clashes and sentiments of India and China in 2020 did not affect the sales of Chinese brands of smartphones and laptops.

“If some companies have lost sales, it’s because of supply problems and blockages,” he said.

Emails sent to Xiaomi, Vivo and Lenovo remained unanswered until Wednesday.

According to RoC documents, Xiaomi Technology India – the largest smartphone maker in the country – reported a 6% decline in operating income of Rs 35,504 crore for the year ended March 2021, while Vivo Mobile India recorded a decline in revenue by 1% to 24,724 crore rupees. Another leading Chinese smartphone player, Oppo Mobiles, has yet to file its financial statements for 21 fing.

In a statement, Xiaomi said: “In the coming years, every effort will be made to increase revenue and retained earnings.”

Vivo also noted in the documents that “maximize capacity utilization at the lowest cost to achieve greater revenue and increase profitability.”

Lenovo India’s total revenue rose 14% in fiscal year 21 to Rs 10,389 crore.

The company, however, said it could not participate directly in public procurement tenders because it had not yet received DPIIT approval.

India revised its procurement rules in July 2020, shortly after the deadly clash between Indian and Chinese forces in the Galvan Valley, leaving bidders from China and other countries sharing the land border with India requiring additional registration in the form of pre-registration. . to participate in government tenders.

Lenovo in its RoC documents stated that it had applied for registration in September 2020 and responded satisfactorily to all requests received during the application review process by the relevant government ministries. It says that “waiting for registration in due time.”

The company also said it has expanded its production capacity in India by 100% in fiscal year 21 with a new line producing the entire range of products in the country.

Vivo became profitable in 21 fing. with a net profit of Rs 552 compared to a net loss of Rs 348 of Rs 20. However, Xiaomi’s net profit fell 31% to 275 rupees at 21 fg, while Lenovo India’s net profit fell 17% to 59 rupees.

Relations between India and China have strained in 2020 due to border clashes and subsequent tougher rules for Chinese companies, including banning the Center on multiple mobile apps, even if social media has been flooded with anti-Chinese rhetoric.

According to market researcher IDC India, among the five largest smartphone brands in India are four Chinese players – Xiaomi, Vivo, Realme and Oppo – with the Korean company Samsung.

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