INDIA: Chinese smartphone brand Honor is gearing up for a triumphant return to the Indian market after a temporary exit. The company has laid out an elaborate revival strategy that involves partnering with a newly established Indian firm and resuming domestic manufacturing by 2024.
Honor’s initial departure from the Indian market was driven by challenges such as limited marketing resources and portfolio management issues. However, the brand is poised to make a strong comeback, armed with a comprehensive game plan.
Honor’s re-entry into India is facilitated by a licensing agreement with the recently founded Indian company, Honor Tech. This collaboration involves the transfer of technology and hardware, although specific financial terms remain confidential.
The entire ownership of Honor Tech is vested in local stakeholders, reflecting a strategic move to align with Indian interests and preferences.
Under the purview of this collaboration, Honor Tech will take on the responsibility of manufacturing, selling, and servicing Honor-branded smartphones in the Indian market. This approach signifies a departure from Honor’s previous business model and demonstrates a commitment to fostering local partnerships.
The upcoming launch of three new phone models in India is a key highlight of this revival. The eagerly anticipated mid-range Number series is slated to make its debut as early as September, sparking curiosity and excitement among tech enthusiasts and consumers alike.
It is worth noting that India was not a primary market for Honor until 2020, when the brand was spun off from its parent company, Huawei Technologies. This move necessitated a reevaluation of Honor’s strategic direction, ultimately leading to its renewed focus on the Indian market.
One of the significant challenges Honor faced during its previous stint in India was the issue of accountability, given its Chinese ownership. This relaunch occurs at a time when Chinese companies operating in India are under heightened scrutiny, characterized by app bans and increased oversight of investments.
Honor Tech’s CEO, Madhav Sheth, who played a pivotal role in the expansion of rival brand Realme in India, has indicated a firm commitment to local manufacturing.
Sheth expressed that the ultimate goal is to manufacture all Honor phones domestically in India, aligning with the Indian government’s ‘Make in India’ initiative.
As Honor prepares to re-enter the Indian smartphone market, it finds itself in a competitive landscape alongside established players like Samsung, Vivo, Xiaomi, and Realme.
Honor Tech has set an ambitious target for itself, aiming to capture 5% of India’s smartphone market share based on sales volume by 2024. Additionally, the company is setting its sights on achieving a minimum revenue of Rs 10,000 crore.
Also Read: Honor Set to Make a Grand Return to the Indian Smartphone Market with the Honor 90 Series
