Oppo Mobiles' India managing director, Yi Wang, has stepped down from his post as losses widen for the Chinese smartphone maker and competition intensifies.
The company said in a statement, “During a meeting between the board of directors of OPPO Mobiles India Private Limited on the 28th November, 2018, it has been mutually decided that Mr. Yi Wang, managing director of the company, will step down from his position effective 30th November, 2018. Wang played a crucial role in Oppo’s journey in the country, since it entered the Indian market.”
The Chinese company's net loss widened to Rs 358 Cr in 2017-18 from Rs 42 crore a year ago, as per documents filed with the Registrar of Companies (RoC). It reported a net loss of Rs 778 Cr for the half year ended September 30, 2018.
As per sources, there was pressure from the Oppo management on the India team as it was not able to perform better while rival Xiaomi captured the pole position for almost a year in the country.
As per industry analysts, the losses are on account of the company's huge marketing spends. However, it seems those spends have failed to deliver the results as far as luring in consumers is concerned. While Oppo has made a lot of changes in the channel strategy and closed counters as well, but that also hasn’t really help the brand.
Wang was elevated to the role of MD three years ago, and has pushed the company into the league of top five smartphone players. He is also responsible for pushing the top-line beyond the Rs 100 billion mark in 2017-18 and increasing its market share from 2 percent in late 2015 to over 7 percent in 2018. It will be interesting to see if the change of guard at the top will bring in a fresh strategy to stem losses.
Image Credits: BGR.in