In recent years, as you return to your hometown every year, you might notice that the OPPO mobile phone brand has expanded its presence into second-, third- and even fourth-tier cities. This widespread visibility is a result of their strong offline strategy. Currently, OPPO operates nearly 200,000 sales outlets across China. While online shopping continues to grow, face-to-face retail remains a dominant channel for many consumers when it comes to purchasing smartphones.
In 2015, OPPO achieved a significant milestone by selling 50 million units, marking a 67% increase compared to the previous year. This growth was far above the single-digit growth rate of the overall domestic mobile phone market. Industry insiders have pointed out that this success stems from OPPO's long-term focus on building a robust offline network and brand awareness.
Through extensive TV commercials and appearances on popular variety shows, OPPO has significantly boosted its visibility among young consumers. The brand also benefited from celebrity endorsements, such as those by Lu Yi and Li Yifeng, which helped bridge the gap between the brand and younger audiences.
Despite the global slowdown in the smartphone industry and the increasingly competitive domestic market, OPPO has maintained a strong position thanks to its well-established offline channels. However, other brands are now accelerating their own offline expansion, presenting new challenges.
Wu Qian, OPPO’s Vice President of Marketing and Channels, emphasized that the company’s focus in 2016 will be on improving the quality of existing stores rather than expanding the number of outlets. While some competitors are increasing their investment in offline distribution, Wu Qian said that OPPO is not worried about short-term pressure. He believes that a successful offline channel requires long-term effort and consistent development.
OPPO’s channel model is unique. It divides the country into over 30 first-level agent regions, where agents handle retailing at the local level. These agents often share a close relationship with OPPO, sometimes even holding shares in the company. This alignment ensures that dealers act in the best interest of the brand, helping maintain high standards of after-sales service and customer satisfaction.
The company’s channel strategy has deep roots. Starting from its early days with VCD players, OPPO built relationships with local representatives who later became key dealers. Many of these individuals transitioned into OPPO’s dealer network, reinforcing the close bond between the manufacturer and its partners.
This strong partnership has helped OPPO maintain a solid reputation. In 2015, the number of OPPO outlets grew from 140,000 to 200,000, contributing to a 67% sales increase. While some believe that opening new stores played a major role in this growth, Wu Qian clarified that OPPO follows its own strategic plan and is not simply reacting to competitors' moves.
OPPO’s founder, Chen Mingyong, once used a Go (weiqi) analogy to describe the company’s approach: “A true Go master focuses on surrounding their territory. We may not kill directly, but we see the bigger picture.†This philosophy reflects OPPO’s preference for self-reliance, from product design to marketing and manufacturing.
According to GFK, the traditional models of OPPO and VIVO have reached a peak and now need further transformation to sustain growth. One of OPPO’s main challenges is managing the rapid expansion of its sales network.
In 2015, the Chinese smartphone market saw minimal growth, with many analysts agreeing that the market is becoming saturated. As a result, competition has intensified, with companies vying for market share through various strategies.
While Xiaomi remained in second place in terms of market share, its growth slowed down. Meanwhile, brands like Coolpad and Lenovo, which relied heavily on carrier channels, faced declines due to changes in subsidy policies. In contrast, OPPO and VIVO, with their strong offline presence, saw significant growth and entered the top four domestic brands.
Before 2014, online sales made up only a small portion of total mobile phone sales, though they grew rapidly—around 50% annually. After 2014, e-commerce sales continued to rise steadily, reaching around 85 million units and expected to remain stable in 2016.
With the future moving toward an integrated online and offline experience, OPPO is embracing the "omnichannel" concept, aiming to provide a seamless customer journey across all platforms.
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