A recent Oppo announcement revealed a major reorganisation in the world of Gadgets. It is reported that two major tech giants, OnePlus and Realme, are set to merge to create a sub-brand with enhanced features.
Background of the brands
OnePlus is a Chinese smartphone brand founded in December 2013 by Pete Lau (former Oppo Vice President) and Carl Pei.
At the launch in India, OnePlus successfully disrupted the premium segment, at one point capturing 30%-50% market share.
Realme was founded on May 4, 2018, by Sky Li (Li Bingzhong), a former Vice President of Oppo, along with Madhav Sheth. The Realme brand is considered one of the most successful brands in India. It even secured a Top 5 position with its first launch in India.
Recently, both big brands have decided to merge to create a new sub-product centre within their parent group, Oppo (OPLUS) Umbrella. With the return of Realme and OnePlus, Oppo's resources will be better integrated, and the main and sub-brands will gain clear strategic synergy.
This integration announcement has already received a strong response from global markets and the public. It has already begun to show results, with a sudden increase in the market share of Realme and Oppo in China and overseas markets, achieving top-tier growth rates.
The merging is happening to reduce costs and share supply chains. Both brands will share common items under the new sub-category division, without erasing their original brand names; they will continue to release products under their own names.
Heads join together to make it work
All three major heads will come together to plan and develop the product to reach global tech markets. It is reported that Li Bingzhong, founder of realme and Senior Vice President of Oppo, will lead the unit. In contrast, Xu Qi, formerly President of Realme's global marketing and sales, will handle the global marketing systems for both brands.
Meanwhile, Li Jie, former President of OnePlus China, will take charge of the domestic and overseas product teams and report the details directly to Oppo Chief Product Officer Liu Zuohu.
The Realme R&D team will be integrated into the group, with imaging and hardware devices folded into Oppo's existing hardware division.
Overall, the companies are driving the market to avoid competing with one another. As a general rule, OnePlus will focus on premium, performance-driven flagship killers and high-end devices, and Realme Will target the budget-conscious and youth segments with value-driven devices.