Vivo celebrates 10 years in India, shifts focus to localisation and exports

Chinese smartphone maker Vivo has released its 2023 India Impact Report, marking its tenth year of operations in the country. The report highlights Vivo's contributions to India's mobile ecosystem, including its commitment to local manufacturing, job creation, and empowering retail partners. However, as the company enters its next decade in India, it's shifting its focus towards deeper localisation and boosting exports.

A Decade of Growth

Since entering the Indian market in 2014, Vivo has grown significantly, capturing a substantial share of the world's second-largest smartphone market. The company's Greater Noida manufacturing facility has produced over 150 million smartphones, contributing to the government's "Make in India" initiative.

"I am immensely proud that we have created meaningful value in the Indian mobile ecosystem. Our guiding principle has always been to create long-term benefits for our users, partners, shareholders, and employees. The impacts highlighted across various sections of the report reflect that our actions are grounded in a greater purpose," said Jerome Chen, CEO of Vivo India, in the report.

Shifting Focus

While acknowledging past achievements, Vivo admits the need to adapt to the changing dynamics of the Indian market. The company plans to prioritise local value addition, strengthen its domestic supply chain, and increase exports of "Made in India" smartphones.

"The next decade holds great promise for India as it emerges as a powerhouse of global economic growth," Chen noted. "In alignment with the Prime Minister’s vision of establishing India as a primary export hub, we have witnessed the progress and growth of the nation and have contributed by exporting smartphones worth around Rs 400 crore."

Key Initiatives

New Manufacturing Facility: Vivo will inaugurate a new manufacturing unit in India in 2024, potentially doubling its annual production capacity to 120 million smartphones.

Increased Local Sourcing: Vivo aims to expand its local supplier base and increase the procurement of higher-value components, such as camera modules and displays, from India.

Export Expansion: Having commenced exports in 2022, Vivo plans to aggressively target new markets, leveraging its success in Southeast Asia.

India-Centric Products: Vivo's "Design for India" initiative will continue to focus on developing features tailored to the unique needs of Indian consumers, such as the "Wedding Style Portrait" and "Aura Light" camera features.

"We are committed to driving India's growth by making a significant impact on the mobile ecosystem and shaping the future of the Indian smartphone market," Chen affirmed.

Impact Highlights

Local Manufacturing: Over 99% of Vivo smartphones sold in India are locally manufactured.

Job Creation: Vivo's operations in India have generated approximately 200,000 jobs, directly and indirectly.

Retail Network: Vivo has established a network of over 70,000 retail touchpoints, enabling partners to earn over ₹15,000 crore cumulatively.

Exports: Vivo has exported smartphones worth over Rs 400 crore since 2022.