Huawei to wage global battle with samsung, apple from india

1. Huawei to Wage Global Battle
with Samsung, Apple from India
Chinese co restructuring mobile business in India for greater focus;
to increase offline presence and apply for a single-brand retail
licence

2. Contd…
Huawei is in the process of restructuring its mobile business in India aimed at greater focus
and speedier decision making as China's largest smartphone player hopes to use growth in
the country for its larger objective of toppling Samsung and Apple to become No 1 globally.
The Shenzen-headquartered company wants to multiply its offline presence and is
considering applying for single-brand retail licence, the process for which has been
incentivised after the government on Monday relaxed mandatory local sourcing norms for
three years, people familiar with the matter told ET. “Operationally, headquarters will
directly oversee India's consumer business...the restructuring is being undertaken,“ a
senior executive aware of the developments at the company said. The devices business is
currently under the consumer division, reporting into the India CEO and then the global
consumer business group.
The idea is to remove interim layers to speed up the decision process to compete better in
an intensely competitive market where a handset has a maximum lead time of two to
three months before getting upstaged by a competitor.
“India will be a priority market for Huawei globally, so there will be hiring on ground across
the country,“ the person said.

3. Contd…
The change in structure has been triggered by the company's aim to become the
largest globally within the next four to five years. Huawei is the world's third largest
smartphone maker after Samsung and Apple. In its home market of China, Huawei
leads in the smartphone space followed by Xiaomi, Apple, Vivo, Oppo and
Samsung. However, smartphone shipments were down 2% annually and 13%
sequentially, indicating a slow down, which is also seen globally and in some
developed markets.
India, on the other hand, is reporting double-digit growth figures over last year, and
still stands as the fastest growing smartphone market in the world.It is this growth
that Huawei wants to tap into in order to achieve its five-year global goal.
Sources aware of developments in India said Huawei will give a big push to its
flagship Honor series of phones here. The company will expand at state-level across
India and is tying up with local distributors to increase the availability of its devices
in the offline space. Huawei will also hire sales, marketing, services and delivery
workforce across all states to ensure that its offline sales run smoothly.

4. Contd…
Huawei declined to comment on the restructuring moves.
Offline or traditional retail, that includes brick-n-mortar stores, is still
the dominant mode of purchase by Indian consumers. The company is
also mulling setting up its own branded stores, which will add to its
offline foray.
“We're mulling on it internally, but we have not taken a call yet.“
Huawei India director sales (devices business) P Sanjeev said. Much like
its other Chinese counterparts, the company is also thinking of starting
local production of smartphones, aimed at deepening its footprint in
India.

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