Recently, Vivo announced that it is leaving the German market. This comes after similar moves by Oppo and OnePlus, two other Chinese smartphone brands.
The reasons behind these exits are not entirely clear, but it could be related to the fierce competition in the German smartphone market.
In this blog post, we will discuss the reasons behind the exits of Vivo, Oppo, and OnePlus from the German market.
One possible reason why Vivo, Oppo, and OnePlus are leaving Germany is the intense competition in the country's smartphone market.
Germany is a highly competitive market, with established brands such as Samsung, Apple, and Huawei dominating the scene.
These brands have a loyal customer base that is difficult to penetrate for newcomers. Even well-known brands such as Xiaomi have struggled to make a significant impact in Germany.
Therefore, it is not surprising that Vivo, Oppo, and OnePlus have found it hard to establish themselves in this market.
Lack of Brand Recognition
Another factor that may have contributed to the exit of Vivo, Oppo, and OnePlus from the German market is the lack of brand recognition.
These brands are relatively new in the European market, and many customers are not familiar with them. In contrast, established brands such as Samsung and Apple have been present in the market for a long time and have built up a strong reputation.
This makes it challenging for new brands to gain a foothold in the market and attract customers.
Focus on Other Markets
Finally, it is possible that Vivo, Oppo, and OnePlus have decided to focus their efforts on other markets. All three brands have a strong presence in Asia and other emerging markets.
Therefore, it may be that these brands have decided to focus their resources on these markets rather than trying to establish themselves in Europe.
This would make sense from a business perspective, as it is often easier to gain traction in markets where the brand is already established.
OnePlus has similarly stripped back its German site (again: compare to the UK site), which shows no results for phones or watches in its store. You can find your way to a product description with a little navigation, but clicking the “buy now” button sends you straight to a 404 error page.
In conclusion, the exits of Vivo, Oppo, and OnePlus from the German market are a reminder of the challenges that new brands face when entering highly competitive markets.
The lack of brand recognition and intense competition make it difficult for new brands to attract customers and establish themselves in the market.
However, these brands have a strong presence in other markets and may have decided to focus their efforts there instead. It remains to be seen whether other Chinese smartphone brands will attempt to enter the German market in the future.
Although Oppo and Oneplus are recognizable names to technology followers, the companies are small players in the European smartphone market.
According to data from Counterpoint Research, Oppo accounted just for five percent of the total European market in Q2 2022 (behind Samsung, Apple, and Xiaomi) and OnePlus even less than this.
Update, Tuesday August 9th, 10:05AM ET: Story updated to attribute Oppo’s press statement to the company’s spokesperson, Peter Manderfeld.
Update, Friday August 12th, 06:19AM ET: Nokia provided the following statement for this story: “Two German Courts have ruled that OPPO is using Nokia’s patented technologies in its smartphones and is selling them illegally without a license. Nokia has also been found to have acted fairly. The easiest way for OPPO to resolve this matter is to renew its license on fair terms.”