iQOO, the popular sub-brand of Chinese smartphone giant Vivo, is reportedly planning to integrate into the company’s core business operations, which could boost efficiency and reduce costs. In the past, Vivo and iQOO shared resources such as R&D, supply chain, and media procurement, but operated independently in areas such as planning, media strategy, and e-commerce, according to 36Kr.
As part of the new move, iQOO’s branding and online business teams will merge with Vivo’s existing teams, though it’s not clear if the iQOO business unit will remain separate. Vivo’s senior management has already discussed eliminating iQOO’s independent stores and counters, according to a source.
The top five mainstream smartphone brands in the Chinese market experienced negative growth in January, with declines ranging from 4.2% to 23.5% compared to last year. The decline in sales for Xiaomi was the only one in the Android camp smaller than the overall decline for smartphones. There were significant declines in sales for OPPO, Honor, and Vivo, with decreases of 13.5%, 19.2%, and 23.5%, respectively. In the Chinese smartphone market, Vivo ranks fifth (excluding iQOO).
Vivo could benefit from the integration of iQOO into its operations and increase its competitiveness. It remains to be seen how this will affect the two brands’ product and branding strategies. Neither Vivo nor iQOO have responded to the reports.
