Realme aims to be India’s top smartphone brand, enter 100 new markets in five years: CEO

Realme, the fourth-largest smartphone brand in India, has outlined ambitious plans to capture the top spot here and enter more than 100 new markets in the next five years.

Sky Li, the company’s founder and CEO, said in an exclusive interaction with Mint that the company was betting big on the mid-premium segment, a strategy driven by the increasing demand for feature-rich smartphones at affordable prices.

“We aim to significantly boost our market share by regularly introducing new products across a variety of price segments, thus offering a comprehensive product portfolio that meets the diverse needs of Indian consumers,” Li said. Realme had a 12.5% share of the Indian smartphone market as of the June quarter, trailing Xiaomi (18.9%), Samsung (18.8%) and Vivo (18.1%).

The company is focused on providing large memory options, upgrading product quality, and integrating advanced AI features across its portfolio, besides offering premium features at affordable prices.

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AI-powered innovations will include enhanced displays, optimised performance, and cutting-edge camera features. “We are introducing the AI+UI populariser plan, under which all of our upcoming smartphones will be equipped with advanced AI capabilities,” Li said.

Betting on India

The company expects a ‘significant resurgence’ in the Indian smartphone market on the back of rising disposable incomes, expanding internet penetration, and a young and growing population.

Realme, the world's fastest-growing smartphone brand for the fourth consecutive quarter according to Counterpoint Research, has made significant strides in the Indian market, securing the top spot in the ₹20,000-30,000 segment on Flipkart in the first quarter of 2024. It now aims to replicate this success in other price segments.

“The market has matured significantly, which is evident from the diverse range of budget-friendly yet feature-rich smartphones that cater to a broad consumer base. This maturity, coupled with technological advancements, suggest a strong revival and further growth of the market in the coming years. An exciting development is the increasing adoption of smartphones in tier II and III towns. These regions are largely untapped, and offer immense potential for growth,” Li said.

Horses for courses

The company also understands the importance of taking local consumer preferences into accounts and tailoring its offerings accordingly. The company will have to create a niche for itself to take market share from its competitors, which include fellow Chinese brand Vivo, and market leaders Xiaomi and Samsung, experts said.

The Economic Survey 2024 suggested that India encourage Chinese foreign direct investments. Asked whether Realme would increase its investments in India, Li said that the company’s commitment was to its end-consumers.

“While we acknowledge the complexities of the global tech landscape, our strategy is rooted in fostering innovation and skill development. By leveraging global expertise and investing in local talent development, we are dedicated to enhancing the user experience,” he said.

Realme, which has sold 200 million units worldwide to date, is looking to enter 100 new markets in the next five years. This aggressive growth strategy is underpinned by its success in Southeast Asia and its growing presence in Europe, but it may have to adopt different strategies for these markets.

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For instance, Realme's strategy in Southeast Asia is heavily influenced by the popularity of mobile gaming there. Developing high-performance smartphones for gaming, helped it bag the #2 spot in the Philippines.

“The market cultivation strategy, combined with deep consumer insights, allow Realme to adapt its approach according to regional consumer preferences and market conditions. This dynamic and adaptable strategy has been key to our success in various markets, including India, Southeast Asia, and Europe,” Li added.