ADVERTISEMENT

Oppo Aims for Japanese Smartphone Market After Splash in China

Oppo Aims for Japanese Smartphone Market After Splash in China

(Bloomberg) -- One of China’s top smartphone makers is targeting Japan for its next conquest.

Oppo, which vanquished Apple Inc. and Xiaomi Corp. in just a few years to become No. 2 in its home market, will introduce its flagship R11s model next month, Deng Yuchen, chief of Japan operations, said in an interview. Oppo is aiming to reach a market position that matches its global sales standing within five years, he said.

Oppo Aims for Japanese Smartphone Market After Splash in China

To achieve that ambitious goal, Oppo will have to pry open a mature market with three large wireless carriers and more than two dozen discount mobile network operators, and where Apple, Samsung Electronics Co. and Huawei Technologies Co. are well-entrenched brands. Guangdong OPPO Electronics Co. ranked fourth in global smartphone shipments in the July-September quarter, according to researcher IDC.

“Operating in such a demanding market can enhance our own strength and serve as valuable experience for us to tackle untapped European and U.S. markets in the future,” Deng said. “Success in the Japanese market will be an endorsement for our brand.”

Oppo is in discussions with NTT Docomo Inc., KDDI Corp. and SoftBank Group Corp. and is making progress with two of them, according to Deng. The top three carriers have been reducing handset subsidies, spurring sales of unlocked devices. The Chinese smartphone maker is also in talks with MVNOs such as Y!mobile and Rakuten Mobile, which have been increasing subscribers by as much as 50 percent in the past couple of years, Deng said.

The company plans to hire 700 to 800 employees in Japan in the next two years for engineering, marketing and sales positions. Oppo may also open a retail flagship store in Tokyo in the future, Deng said.

Oppo, founded in 2004 by reclusive Chinese billionaire Duan Yongping, became China’s biggest handset seller in 2016. Outside its home turf, the company sells its smartphones in about 30 markets, including Singapore, Australia and New Zealand, as well as emerging markets such as India and Indonesia.

“We feel if we don’t come to Japan now we’ll miss out the opportunities,” Deng said. “Japan’s an important market for establishing a global brand, and also a big market that is now opening up.”

To contact the reporters on this story: Ma Jie in Tokyo at jma124@bloomberg.net, Yuki Furukawa in Tokyo at yfurukawa13@bloomberg.net.

To contact the editors responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net, Yuji Okada at yokada6@bloomberg.net, Reed Stevenson, Peter Elstrom

©2018 Bloomberg L.P.