5G smartphones, offline expansion will drive Realme growth in India: Founder and CEO Sky Li

Realme's founder and Chief Executive Officer (CEO), Sky Li, said the brand experienced its fastest growth in the October-December quarter of 2023 and aims to continue this momentum

Chinese smartphone maker Realme said it is making a comprehensive tech investment in India to create a complete technology ecosystem for its products with the help of its dedicated technology institute in India, which was launched last year. Realme's founder and Chief Executive Officer (CEO), Sky Li, said the brand experienced its fastest growth in the October-December quarter of 2023 and aims to continue this momentum. In an interaction with Danish Khan of Moneycontrol, Li said that 5G smartphones and offline expansion will drive most of the sales for the brand in India in 2024. Edited excerpts:

What are Realme's plans for India this year?

We're making a comprehensive tech investment in India, creating jobs, and supporting Make in India. Establishing an R&D centre is our way of boosting innovation, creating gadgets, and creating a complete technological ecosystem.

Anticipating a rebound in the global smartphone market, we aim for a 10 percent sales increase in India in 2024. We aim to sell 10 million smartphones in 2024, with seven to eight million being 5G smartphones. The offline retail expansion will unlock this growth.

With the anticipation of a revived market driven by widespread 5G adoption and a heightened emphasis on value-centric offerings, we are gearing up to meet the evolving needs of consumers. Despite global economic shifts and inflation, we've noticed a robust interest in premiumisation among Indian consumers, indicating a strong demand for enhanced value in smartphone deals.

We have surpassed 100 million shipments in India since we began operations in 2018. We aim to expand globally into over 100 new markets in the next five years. We have the GT Series, C Series, Number Series, and Narzo Series to give consumers various choices. It is a year of brand refreshment.

With a substantial user base exceeding 70 million, Realme holds India's third-largest smartphone market share. The company plans to maintain this momentum by introducing new products and launching attractive offers on the market.

We focus on providing the latest technology and new features at accessible price points.

Has the recent R&D centre in India started playing a more significant role?

The recent establishment of our R&D centre in India has played a pivotal role in driving innovation and tailoring our products for Indian users. This strategic move underscores our commitment to the dynamic Indian market. The centre is a hub for collaboration with local talents, fostering a dynamic environment where ideas flourish.

The insights and expertise of our Indian R&D team have been instrumental in developing features and technologies. Looking ahead, the R&D centre in India will continue to play a central role in shaping our product offerings, ensuring they align seamlessly with the preferences and demands of Indian users.

There is a substantial 470 percent increase in overall R&D spending focusing on imaging, gaming, display, and charging breakthroughs. The expansion of our scientific research personnel will exceed 400 percent globally.

This year, we are collaborating with over 33 international technology partners in phone design and hardware innovation, among others.
We aim to significantly contribute to India's tech landscape in the coming years.

Are there manufacturing-related expansion plans?

We are dedicated to expanding our manufacturing initiatives in India and are committed to producing all smartphones and smart TVs within India. To support this commitment, approximately 60-70 percent of phone components are locally sourced, and we collaborate with Indian manufacturers to strengthen local production. The brand intends to extend this approach to include the manufacturing of wearable devices in India, aligning with the country's manufacturing initiatives.

In addition to manufacturing, we have generated 13,000 job opportunities, contributing to employment growth.

Is India's premium smartphone segment a focus area this year?

We identified the mid-to-premium smartphone segment as a critical development point for us in India. Last year, this strategic move proved transformative. We secured the third position among Indian smartphone brands in the Rs 20,000-Rs 30,000 price band by September 2023. We will reintroduce the GT series in India this year.

Is Realme launching the Note series in India?

Given the mature nature of the Indian market and our robust presence with the well-established C series as an entry-level product, we have decided not to introduce this generation of Note series products in India now.
It's important to note that we continually assess and align our product offerings with the dynamic needs of our Indian consumers. While the Note series won't be launching in India currently, we remain dedicated to providing a localised and diverse product line that caters to the preferences of our valued Indian customers.

Will there be an offline expansion?

We are prioritising enhancing management and quality in our existing 50,000 stores this year, focusing on strengthening their operations. Our strategy revolves around ensuring a robust foundation before considering any immediate expansion. Quality improvement remains at the forefront of our efforts to provide an exceptional offline retail experience for our valued customers.

What are the plans for a non-handset business?

In 2024, we will strategically expand beyond handsets, focusing on specific categories to meet consumer demands. Notably, our TWS (True Wireless Stereo) and smartwatch segments in India have seen exceptional success, aligning closely with consumer needs. Our plans include a continued commitment to success in the TWS and smartwatch domains.