As per the TAM AdEx data, Chinese smartphone makers had an overall share of 42% during October-December’20 Chinese brands that took a break from sponsorships in 2020 owing to political reasons have an unfinished story of big investments in India. What will they do in 2020 is an often asked and least probed question. Will they continue to stay in deep freeze or work their way back to visibility? There is a big reason for these sponsors to get back to the market. Just to get an idea how invested these Chinese brands are in India, a cursory look at the TAM data shows some interesting insights. As per the TAM AdEx data, Chinese smartphone makers had an overall share of 42% during October-December’20, with October'20 witnessing the highest ad volumes' share i.e. 49% among the three months.

If we look at the media-wise share of ad insertions by Chinese smartphone makers during Oct-Dec’20, digital was the preferred medium in both the years. However, the share of ad insertion dropped to 65% in digital in Oct-Dec’2020, as compared to 88% share of ad insertions in Oct- Dec’19. Unlike digital, TV and radio witnessed a spike in the share of ad insertions in both mediums. TV share of ad insertions increased to 21% from 10% during Oct-Dec’19. Similarly, radio’s ad insertion share increased to 12% from 2% in Oct-Dec’19. “The major reason behind the drop is that the IPL sponsorship came down as Vivo decided to exit the tournament due to anti-China sentiments. The Chinese smartphone maker’s spends on advertising during IPL is huge and they suspending their partnership for 2020 would have impacted the overall spending by the category,” said a leading media planner. The big question is--with such huge billings in AdEx, what will Chinese sponsors do in 2021? According to Gauri Awasthi, Former Head of Digital Marketing, Fabindia and Co-Founder & Director, Digital Edify- the Digital Transformation Business Unit (DTBU), there is a huge dependence on Chinese goods and it seems tough that Chinese brands can stay away from the Indian market for long. In her view, the Chinese brands cannot stay in freeze for long unless the government provides some financial aid and incentives for imports from other countries instead of only relying on China. Himanshu Arya, CEO and Founder of Grapes Digital, says that brands having their origin in China have preferred to remain quiet to avoid any repercussions. He is however hopeful that 2021 could see the return of Chinese brands. “There are major Chinese brands in India that are the biggest ad spenders. In 2021, we could see Chinese brands making a comeback. The brand's communication will essentially revolve around the #MadeinIndia theme, as this will give them an opportunity to lower the growing anti-china sentiments. Brands will feature celebrities in their campaigns to further communicate effectively among the masses,” he predicts. Alok Patnia, Managing Partner, ProfitBoard Ventures, thinks that political disruptions and uncertainties have created a window for other global investors too. “US investments doubled in 2020 and Chinese investments fell to the 6th position (from being 3rd in 2019). The year 2021 is likely to see a similar trend. We think that more companies will be registered in SG and the US. Fund will be routed through them,” he opines. “I do believe China origin brands have kept their moneys in India in the deep freeze for now. The game is one of wait and watch. No one is too sure how the India-China relationship cookie will crumble. Till the time there is clarity, these brands will perform a holding operation in early 2021 at least,” underlines Harish Bijoor, Founder, Harish Bijoor Consults Inc. There is no doubt that during Covid times, everyone is struggling to keep the same business metrics and probably that could be another reason why Chinese brands aren't spending much. “Chinese brands should definitely be back in the game as soon as things get back to the normal. Global brands such as DJI or OnePlus have no reason to hold back considering the digital revolution happening in India right now and the products build by above mentioned companies are right-fit for the Indian market,” believes Suumit Shah, CEO Dukaan App.