Oppo aims to be No 2 in Indonesia, its biggest market outside China!

By Masyitha Baziad April 25, 2016

With 8.8% market share, needs to topple Asus and nip at Samsung’s heels
New camera-focused strategy, ‘You’ve got to pick your fight,’ says exec

Oppo aims to be No 2 in Indonesia, its biggest market outside China!

THE long awaited Oppo F1 Plus has finally arrived in Indonesia, almost two weeks after it was launched in Malaysia – but in terms of intent, the Indonesian market figures more prominently to the Chinese smartphone maker.

PT Indonesia Oppo Electronics is hoping the Rp5.5-million (US$418.5) mid-range phone will be a hit with online-savvy customers in the country.

Speaking to Digital News Asia (DNA) on the sidelines of the recent Oppo F1 launch event in Jakarta, the company’s media engagement officer Aryo Meidianto said that Oppo is trying to capture 20% of the smartphone market in the country.

According to research firm IDC Indonesia, Samsung still leads the pack with a 21.9% market share as of the fourth quarter of 2015, followed by Asus with 19.7%. Local smartphone manufacturers Smartfren and Advan have 9.7% and 8.8%, respectively, while Lenovo has 9.2%.

It will be a steep climb for the Chinese company, especially after it stumbled last year. IDC Indonesia mobile phone senior market analyst Reza Haryo told DNA via email that Oppo saw its 7.6% market share in Q4 2014 slip to 5.2% in Q4 2015.

But Oppo Indonesia itself claims that for full year 2015, it had an 8.8% share of Indonesia’s smartphone market, and aims to be No 2, after Samsung, within this year.

“I think it’s very possible given the fact that two of our new camera phones have been getting a lot of market demand and attention – we are optimistic that we can be the No 2 this year,” said Aryo.

That optimism is also driven by the sales performance of the Oppo F1, he added.

“In only two weeks, we exceeded our target of selling more than 150,000 units of the Oppo F1 in Indonesia – even in China, we hit that target only after one month,” he claimed.

Made-in-Indonesia F1 Plus

Indonesia’s local content regulation (TKDN) requires all smartphones sold in the country to have at least 30% ‘local content.’

Oppo had already prepared for this by establishing its local smartphone factory last year. This facility is manufacturing the made-in-Indonesia F1 Plus for local consumption only – the same model sold in other South-East Asian countries is made in its Shenzhen factory, according to Aryo.

“Indonesia is the second largest market for Oppo outside of China, and that is why our principal granted us permission to build a local factory in Indonesia, the second largest after the Shenzhen production facility,” he said.

The 27,000 sq metre factory in Tangerang, Banten in West Java began operations last August. In an official statement then, Oppo said it had invested US$30 million to build the facility.

Liao Ze, head of the Indonesian factory, said it would create 2,000 new jobs in the future, and would be able to produce up to 500,000 smartphones a month.

“Currently, our factory can produce up to 150,000 smartphones per month. We will raise the capacity slowly,” Aryo said at the F1 Plus launch.

The ‘camera phone’ game

Intense competition in the smartphone market has also forced Oppo to take on a more focused strategy: For one, it does not want to be called just a smartphone manufacturer anymore, but wants to be known as a ‘camera phone manufacturer.’

This new strategy was followed by the launch of two new selfie-focused F1 models in February this year, as well as the F1 Plus recently.

“Oppo conducted a thorough survey of its customers in China, Indonesia, and some other markets last year, and the results showed that a majority of our customers love the camera feature,” said Aryo.

“This is why we are now focused on pushing the camera features in our phones,” he added. “You’ve got to pick your fight.”

The company wants to leverage on Indonesians’ social media obsession, supported by offline marketing, such as a ‘selfie fun run’ event that will be held in Jakarta.

Oppo Indonesia is also going to bring in six more products this year, compared with the 14 models launched in the country last year.

“Our target is more focused: Young and online-savvy consumers who love to take pictures,” said Aryo.

The company recently opened its 43th service centre in Indonesia – located in Bandung, West Java – and intends to open seven more this year.

These centres will allow more personalised and customised services, he added.

Related Stories:

More joy for narcissist with the Oppo F1 Plus