In recent years, as people return to their hometowns every year, they often notice that the OPPO brand has expanded significantly into second- and third-tier cities, even reaching some fourth-tier areas. This growth is a clear reflection of the company’s strong offline presence.
Currently, OPPO operates nearly 200,000 retail outlets across the country. Unlike online shopping, these physical stores remain the primary channel for most consumers when purchasing mobile phones. In 2015, OPPO achieved a sales volume of 50 million units, marking a 67% increase from the previous year. This growth rate far exceeded the single-digit growth seen in the overall domestic smartphone market.
Industry experts have noted that OPPO's success stems from its long-term investment in offline channels and brand building. The company's heavy advertising on TV and variety shows has boosted brand awareness among young consumers. Additionally, celebrity endorsements by stars like Lu Yi and Li Yifeng have helped bridge the gap between the brand and younger audiences.
Amidst a slowing global and domestic smartphone market, competition among Chinese brands has intensified. While OPPO's offline strategy has given it a solid advantage, other competitors are also accelerating their offline expansion efforts. In response, Wu Qian, OPPO's vice president of marketing and channels, emphasized that the focus in 2016 would be on improving the quality of existing outlets rather than expanding their number.
In 2015, several phone brands announced increased investments in offline distribution. Wu Qian acknowledged that OPPO would raise its offline costs in the short term but expressed confidence in its long-term strategy. "Offline channels require careful management and long-term effort," he said.
OPPO’s offline network is unique in that it maintains a unified cultural identity with its agents. The company divides the country into over 30 first-level regions, each managed by local agents who handle retailing. This close relationship between OPPO and its dealers has been a key factor in maintaining brand reputation and after-sales service quality.
The company's channel strategy dates back to its early days, when it expanded through VCD and other products. Many of today’s OPPO dealers were once BBK employees, and some still hold shares in the company. This deep connection ensures that dealers act responsibly, protecting OPPO's image and enhancing customer satisfaction.
According to reports, OPPO saw a 67% sales increase in 2015, with the number of retail outlets growing from 140,000 at the end of 2014 to 200,000 by the end of 2015. Wu Qian admitted that outlet expansion had a positive impact on sales, but he stressed that OPPO was following its own strategic plan rather than reacting to competitors.
OPPO founder and CEO Chen Mingyong once compared the company’s approach to the game of Go, saying, “A true Go master focuses on his own territory. We may not make big moves, but we keep our ground.†OPPO has always taken control of its operations, from product design to channel marketing, and continues to maintain its own manufacturing facilities.
According to GFK, the traditional models of OPPO and VIVO have reached a peak and need further transformation to sustain growth. One of OPPO’s current challenges is managing the rapid expansion of its sales network.
In 2015, China’s smartphone market growth slowed significantly, with most research institutions agreeing that the market is becoming saturated. As a result, competition is intensifying. While Xiaomi remained the second-largest brand, its growth rate slowed, and companies like Coolpad and Lenovo, which relied heavily on carrier channels, experienced declines.
Before 2014, online sales accounted for a small portion of total phone sales, but grew rapidly at around 50% annually. After 2014, e-commerce sales remained strong, reaching about 85 million units per year, with little change expected in 2016.
Carrier channels used to be a major sales route, but policy changes led to declining performance for companies like Coolpad and Lenovo. In 2015, Coolpad faced significant revenue drops and restructured its business.
Wu Qian believes that the e-commerce market will remain stable in 2016. He also mentioned that the future lies in integrating online and offline channels, a concept OPPO refers to as “omnichannel.â€
YIWU JUHE TRADING COMPANY , https://www.nx-vapes.com