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Introduction

BBK Electronics has very quickly become one of the world's leading smartphone manufacturers by attacking the fringes of the Chinese, Asian, and Indian smartphone markets with a multibrand strategy led by its Oppo and Vivo brands.

Highlights

  • BBK targeted late adopters in China through its retail-driven strategy in tier 3 and tier 4 cities.
  • BBK has invested heavily in marketing, including sponsorship of the FIFA World Cup and spending $343m annually to be the headline sponsor of the Indian Premier League (cricket).
  • OnePlus gives BBK a route into the premium segment in developed markets. By focusing solely on premium handsets, the brand avoids being weighed down by preconceived notions of “cheap” Chinese brands in the way that other Chinese manufacturers have.

Features and Benefits

  • Analyzes BBK's multibrand strategy and why it has worked when other multibrand approaches have struggled.
  • Assesses the potential for further growth for BBK's brands and identifies the likely target market.
  • Evaluates the importance of BBK's key assets and its investments in its own technology.

Key questions answered

  • Will Oppo and Vivo's meteoric growth continue?
  • Does BBK have a sustainable business in smartphones?
  • What should operators and competitors do in response to Oppo and Vivo's rapid expansion?

Table of contents

Summary

  • In brief
  • Ovum view
  • Recommendations

BBK’s three-pronged approach

  • Oppo is the lynchpin brand driving business

Oppo technology

  • Oppo’s ColorOS is built for its user base
  • Camera technology shows hope for future innovation
  • Importance of own technology

OnePlus and Vivo: value at different price points

  • What is different to Oppo
  • Geographic segmentation gave BBK an edge

Preventing message dilution key to three-brand strategy

  • BBK builds separate identities into a strength
  • In-store focus gives some advantages over competitors
  • High-profile marketing above and beyond current market share

Sustainability of growth

  • Huge investment in mid-range demands huge scale
  • Which new markets will BBK target?

Appendix

  • Methodology
  • Further reading
  • Author

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