Foldable smartphones, AI and 5G to revolutionise the industry in the coming year, says realme CEO Sky Li
Sky Li, Founder and CEO of realme, talks to Business Today about the company’s plan for the upcoming festive season
- Oct 13, 2023,
- Updated Oct 13, 2023 5:57 PM IST
Chinese smartphone player realme has emerged as the third largest player in the Indian smartphone market with a 12.6% market share, IDC data for the second quarter of 2023 shows. As the company focusses on enhancing inventory and demand, by launching proactive sales promotions, and the introduction of 5G devices at accessible price points, Sky Li, Founder and CEO of realme, talks to Business Today’s Nidhi Singal about the company’s plan for the upcoming festive season, and the trends that will define the smartphone market in the future. Edited Excerpts:
BT: How do you think the industry has grown in the last couple of years?
The tech industry, particularly the smartphone sector, has seen significant growth over the past couple of years, especially in the post-COVID-19 era. Three noteworthy shifts that have happened since the pandemic—that have redefined the industry—are the increased emphasis on 'Make in India', the growing consumer sentiment in favor of mid-range premium devices, and finally, the growing attention to sustainability that has played a pivotal role in shaping the industry's trajectory.
Make in India has been a pivotal development for the industry—that is borne out by a greater emphasis on enhancing India’s manufacturing prowess. Smartphone manufacturers, including realme, have embraced this very favorably, and invested significantly in ramping up local production capabilities and facilities, and further improving supply chain resilience.
Post-Covid-19, there has been notable acceleration in the adoption of digital technologies and connectivity, given the focus on remote or hybrid working. With more people working and studying remotely, the demand for better, more powerful and feature-rich smartphones at non-premium price-points surged. This prolonged shift in consumer demand created strong opportunities for the industry and drove manufacturers such as realme to totally redefine the mid-premium range with features and specs that were, till then, only seen in the high-priced premium segment.
The third aspect that is now beginning to be seen across the sector is the growing focus on sustainability. Whether this is in the use of recycled materials or circular packaging or a more sustainable supply chain, manufacturers and brands are now increasingly looking at embracing this.
BT: What have been the major trends that you have witnessed in these years, and which amongst them do you foresee will follow for the next two to three years?
In recent years, smartphones have largely superseded the role of almost every other device in our daily lives, offering unmatched purpose and importance, whether for work or entertainment. Consumer preferences have evolved, with increasing focus on technology features such as the quality of processors, camera and imaging quality, battery life and rapid charging, increased storage, and finally, superfluous design when purchasing or comparing smartphones. The advent of 5G has only accelerated this demand and aligned it to the promise of faster speeds and enhanced connectivity that this network brings. The four pivots that we believe will be crucial to driving customer sentiment and purchase intent will therefore be design; imaging quality; storage and rapid charging.
In the coming year, foldable smartphones, AI and 5G will revolutionise the industry. AI will enhance language translation, online shopping and financial management, while 5G will offer faster speeds and lower latency for speedy downloads, video streaming, and gaming.
Our "Leap-forward Climbing Plan" aims to become the first choice for young users around the world in the next five years, driven by innovation, youth appeal and cutting-edge products, including 5G. We are focussed on pushing tech boundaries, youth-centric products and industry-wide innovation, as consumer preferences have increasingly gravitated towards mid-budget smartphones. With a keen understanding of the market, realme has managed to strike the perfect balance between affordability and premium features.
BT: Amidst the fear of recession in certain countries, including Germany, what is the prevailing market sentiment in India as we approach the upcoming festive season?
realme has been strongly committed to the Indian market since its inception, and we are pleased to share that our sentiment continues to remain extremely bullish as we approach the upcoming festive season. While there may be concerns about a recession in certain countries, India’s market dynamics are distinct and continue to show resilience.
Looking at the Indian market closely, we are seeing positive and upbeat sentiment among consumers. We expect this to translate into a positive affinity towards realme products, thanks to our innovative and feature rich offerings that embrace both quality and affordability. Considering the broader economic landscape, consumer demand and competitive market conditions this year, we are optimistic and foresee a modest sales increase. We have planned exciting offers, discounts and promotions to enhance the festive spirit, and make our products even more accessible. This festive season, we are providing our consumers with offers worth Rs 800 crores on smartphones and AIoT products during the realme Festive Days sale. We look forward to contributing positively to the market and bringing smiles to the faces of our Indian consumers.
BT: What are your sales expectations for consumer categories during the upcoming festive season?
We are anticipating a surge in momentum during the festive season, driven by enhanced inventory levels and an increased demand for affordable 5G smartphones. This coincides with a decline in inflation, resulting in higher consumer spending. realme has unveiled exciting new products in the run-up to the festive season including the C51, the narzo 60x, and the 11 series 5G among others. In addition to these launches, we are also bringing in some enticing offers to captivate consumers during the upcoming festival season. In fact, this year, realme will be launching offers in the range of Rs 800 crores. This should reflect how optimistic and upbeat we are with regards to the festive season and the overall Indian market. This festive season, we are targeting a sale of 5 million smartphones and also expecting the share of our 5G devices to increase during this period.
BT: In this festive season, where do you anticipate most of your sales will originate—offline or online?
We are actively and strongly present across both online and offline channels and are focused on ramping our investments across both segments. Our marketing campaigns are helping increase brand awareness and enhancing our engagement with potential customers. Specific to our online presence, we are now strongly entrenched across both Flipkart and Amazon, and our association with both has been very fruitful. These partnerships have proved very beneficial to us in expanding our reach and catering to a broader audience, showcasing our innovative offerings to a diverse user base.
realme is incredibly excited about the prospect of localising products to reach a more diverse customer base. Our success is rooted in an innovative approach, offering quality products to our customers. We're also continuously amplifying our presence across India through an efficient distribution network. Collaborating with distributors is pivotal for us, bridging the gap between the physical and digital realms. This synergy expands our reach and market understanding, offering diverse consumers a hands-on experience. Presently, we're in over 30,000 stores; our ambition is to elevate this to 50,000 stores by 2023, ensuring that even more people engage with realme products first-hand.
BT: In the face of stiff competition, what strategies are you considering to set your brand apart from the competition?
realme has always been at the forefront of innovation and has provided its users with leap-forward technology. We recognise the ever-changing landscape of the smartphone market and consistently adapt our strategies to meet the evolving needs and preferences of consumers. We have focused on delivering products that offer value, innovation and accessibility, to cater to a wide range of budget considerations. Through continuous efforts in product development, marketing and customer engagement, we have worked tirelessly to provide solutions that resonate with our target audience. Additionally, we have implemented various measures to prioritise the safety of our employees, partners, and customers during these unprecedented times.
With our “Spire Strategy”, we aim to elevate each product series by incorporating one leap-forward technology that will serve as the pinnacle of our formidable realme product line. This approach revolves around three key components: leap-forward technology, leap-forward design, and leap-forward experience. Our brand strategy places the customer at its core, and we aspire to surpass their expectations by establishing a new industry standard. Last year, we introduced the "Simply Better" strategy, which has sharpened our product focus and emboldened us to be more daring than ever in our product releases.
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Chinese smartphone player realme has emerged as the third largest player in the Indian smartphone market with a 12.6% market share, IDC data for the second quarter of 2023 shows. As the company focusses on enhancing inventory and demand, by launching proactive sales promotions, and the introduction of 5G devices at accessible price points, Sky Li, Founder and CEO of realme, talks to Business Today’s Nidhi Singal about the company’s plan for the upcoming festive season, and the trends that will define the smartphone market in the future. Edited Excerpts:
BT: How do you think the industry has grown in the last couple of years?
The tech industry, particularly the smartphone sector, has seen significant growth over the past couple of years, especially in the post-COVID-19 era. Three noteworthy shifts that have happened since the pandemic—that have redefined the industry—are the increased emphasis on 'Make in India', the growing consumer sentiment in favor of mid-range premium devices, and finally, the growing attention to sustainability that has played a pivotal role in shaping the industry's trajectory.
Make in India has been a pivotal development for the industry—that is borne out by a greater emphasis on enhancing India’s manufacturing prowess. Smartphone manufacturers, including realme, have embraced this very favorably, and invested significantly in ramping up local production capabilities and facilities, and further improving supply chain resilience.
Post-Covid-19, there has been notable acceleration in the adoption of digital technologies and connectivity, given the focus on remote or hybrid working. With more people working and studying remotely, the demand for better, more powerful and feature-rich smartphones at non-premium price-points surged. This prolonged shift in consumer demand created strong opportunities for the industry and drove manufacturers such as realme to totally redefine the mid-premium range with features and specs that were, till then, only seen in the high-priced premium segment.
The third aspect that is now beginning to be seen across the sector is the growing focus on sustainability. Whether this is in the use of recycled materials or circular packaging or a more sustainable supply chain, manufacturers and brands are now increasingly looking at embracing this.
BT: What have been the major trends that you have witnessed in these years, and which amongst them do you foresee will follow for the next two to three years?
In recent years, smartphones have largely superseded the role of almost every other device in our daily lives, offering unmatched purpose and importance, whether for work or entertainment. Consumer preferences have evolved, with increasing focus on technology features such as the quality of processors, camera and imaging quality, battery life and rapid charging, increased storage, and finally, superfluous design when purchasing or comparing smartphones. The advent of 5G has only accelerated this demand and aligned it to the promise of faster speeds and enhanced connectivity that this network brings. The four pivots that we believe will be crucial to driving customer sentiment and purchase intent will therefore be design; imaging quality; storage and rapid charging.
In the coming year, foldable smartphones, AI and 5G will revolutionise the industry. AI will enhance language translation, online shopping and financial management, while 5G will offer faster speeds and lower latency for speedy downloads, video streaming, and gaming.
Our "Leap-forward Climbing Plan" aims to become the first choice for young users around the world in the next five years, driven by innovation, youth appeal and cutting-edge products, including 5G. We are focussed on pushing tech boundaries, youth-centric products and industry-wide innovation, as consumer preferences have increasingly gravitated towards mid-budget smartphones. With a keen understanding of the market, realme has managed to strike the perfect balance between affordability and premium features.
BT: Amidst the fear of recession in certain countries, including Germany, what is the prevailing market sentiment in India as we approach the upcoming festive season?
realme has been strongly committed to the Indian market since its inception, and we are pleased to share that our sentiment continues to remain extremely bullish as we approach the upcoming festive season. While there may be concerns about a recession in certain countries, India’s market dynamics are distinct and continue to show resilience.
Looking at the Indian market closely, we are seeing positive and upbeat sentiment among consumers. We expect this to translate into a positive affinity towards realme products, thanks to our innovative and feature rich offerings that embrace both quality and affordability. Considering the broader economic landscape, consumer demand and competitive market conditions this year, we are optimistic and foresee a modest sales increase. We have planned exciting offers, discounts and promotions to enhance the festive spirit, and make our products even more accessible. This festive season, we are providing our consumers with offers worth Rs 800 crores on smartphones and AIoT products during the realme Festive Days sale. We look forward to contributing positively to the market and bringing smiles to the faces of our Indian consumers.
BT: What are your sales expectations for consumer categories during the upcoming festive season?
We are anticipating a surge in momentum during the festive season, driven by enhanced inventory levels and an increased demand for affordable 5G smartphones. This coincides with a decline in inflation, resulting in higher consumer spending. realme has unveiled exciting new products in the run-up to the festive season including the C51, the narzo 60x, and the 11 series 5G among others. In addition to these launches, we are also bringing in some enticing offers to captivate consumers during the upcoming festival season. In fact, this year, realme will be launching offers in the range of Rs 800 crores. This should reflect how optimistic and upbeat we are with regards to the festive season and the overall Indian market. This festive season, we are targeting a sale of 5 million smartphones and also expecting the share of our 5G devices to increase during this period.
BT: In this festive season, where do you anticipate most of your sales will originate—offline or online?
We are actively and strongly present across both online and offline channels and are focused on ramping our investments across both segments. Our marketing campaigns are helping increase brand awareness and enhancing our engagement with potential customers. Specific to our online presence, we are now strongly entrenched across both Flipkart and Amazon, and our association with both has been very fruitful. These partnerships have proved very beneficial to us in expanding our reach and catering to a broader audience, showcasing our innovative offerings to a diverse user base.
realme is incredibly excited about the prospect of localising products to reach a more diverse customer base. Our success is rooted in an innovative approach, offering quality products to our customers. We're also continuously amplifying our presence across India through an efficient distribution network. Collaborating with distributors is pivotal for us, bridging the gap between the physical and digital realms. This synergy expands our reach and market understanding, offering diverse consumers a hands-on experience. Presently, we're in over 30,000 stores; our ambition is to elevate this to 50,000 stores by 2023, ensuring that even more people engage with realme products first-hand.
BT: In the face of stiff competition, what strategies are you considering to set your brand apart from the competition?
realme has always been at the forefront of innovation and has provided its users with leap-forward technology. We recognise the ever-changing landscape of the smartphone market and consistently adapt our strategies to meet the evolving needs and preferences of consumers. We have focused on delivering products that offer value, innovation and accessibility, to cater to a wide range of budget considerations. Through continuous efforts in product development, marketing and customer engagement, we have worked tirelessly to provide solutions that resonate with our target audience. Additionally, we have implemented various measures to prioritise the safety of our employees, partners, and customers during these unprecedented times.
With our “Spire Strategy”, we aim to elevate each product series by incorporating one leap-forward technology that will serve as the pinnacle of our formidable realme product line. This approach revolves around three key components: leap-forward technology, leap-forward design, and leap-forward experience. Our brand strategy places the customer at its core, and we aspire to surpass their expectations by establishing a new industry standard. Last year, we introduced the "Simply Better" strategy, which has sharpened our product focus and emboldened us to be more daring than ever in our product releases.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine