Asus to Double Production in India, Increase Marketing Spend
New Delhi: Taiwan’s Asus, the world’s fifth-largest personal computer maker, plans to make India its home market for smartphones, and is stitching together aggressive growth plans, which involve doubling local production and spending on marketing in an effort to be a top five player.
Still struggling to establish a presence in an intensely competitive market, Asus plans to double local production to 600,000 smartphones this year, made by contract manufacturer Foxconn in Andhra, while more smartphone launches in the sub-.`6,000 and above .₹ 20,000 price brackets will follow.
“Internally, we are thinking we should make India as our home base, especially in smartphones,” Peter Chang, regional head for South Asia and India country manager told ET, underlining the criticality of the South Asian nation — the world’s fastest growing smartphone market — to global operations. The company that sells smartphones, tablets, laptops and personal computers, launched its gaming laptops and desktops on Wednesday. “Vivo and Oppo have a big home base, they can take from home and invest in India. For us, it’s difficult to compete the same way… we have no way back,” Chang added, comparing the company to Chinese players that have a massive home market to fall back on in case they don’t succeed in India or if they need money to invest for creating their brand locally.
New Chinese players including Vivo, Oppo and Le Eco have spent .₹ 80 crore, .₹ 100 crore and .₹ 70 crore, respectively on advertisements from January to March this year alone, and the year has just begun. The first two have associated themselves with strong porting properties to strengthen their branding. Asus, on the other hand, had said that it would invest .₹ 34 crore in marketing its ‘Make in India’ foray, last October. But Asus expects to correct its marketing piece this year. “We would be doubling our marketing budget this year, from 2-3% of revenue, because we want to have 5% market share.”
Taiwan co plans to launch more smartphones in sub-.`6,000 and above 20,000 price brackets