Asus to Dou­ble Pro­duc­tion in In­dia, In­crease Mar­ket­ing Spend

The Economic Times - - Companies - Gul­veen.Au­lakh @times­

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

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