Realme's Rapid Growth: 50 Million Phones Sold in 2+ Years

Launching a new mobile phone brand in 2018 appeared to be a challenging endeavor given the highly competitive market, but Sky Li believed a significant segment of consumers aged 18 to 25 were not being adequately catered to—they desired devices that were both reasonably priced and stylish.

Just a few months following Li’s establishment of Realme in May of that year, the smartphone company held a product unveiling on a university campus in India, the world’s second-largest smartphone market. The company provided its own filming team, constructed a temporary stage, and featured local rap artists at the event.

“I was truly impressed. The audience remained standing throughout, and the atmosphere resembled a festival, a large-scale dance party,” explained Chase Xu, Realme’s 31-year-old chief marketing officer, during an interview at the company’s Shenzhen headquarters.

“No international corporation had previously held an event on a campus. It was considered unfeasible. Why would a university permit a product launch event to take place there?” Xu, wearing a sleek, understated black jacket from a local designer, shared with noticeable excitement and satisfaction.

“The event significantly boosted Realme’s visibility. People were intrigued by the brand’s engagement with students. It wasn’t simply a product release; it demonstrated a vibrant, energetic personality.”

In just nine quarters, Realme has distributed 50 million mobile phones globally, with India representing its largest market, surpassing even China in sales volume. The company’s objective for the current year is to achieve a sales volume double that of the previous year, reaching 50 million units, a target that is “almost fulfilled” as stated by Xu. Currently, Realme ranks as the seventh-largest smartphone brand worldwide, following established companies such as Samsung, Huawei, Xiaomi, Apple, Oppo, and Vivo, based on a Q3 report from the research company Canalys.

Realme’s success wasn’t built entirely from the ground up. It is another smartphone brand connected to BBK Group, the influential electronics conglomerate that owns and provides support to several of the world’s leading mobile phone manufacturers (Vivo, Oppo, OnePlus, and now Realme).

Oppo family

In 2018, Sky Li, a former Oppo vice president and leader of its international operations, declared his departure from Oppo to establish Realme as a distinct brand, mirroring the launch of OnePlus in 2013. Currently, Realme, OnePlus, and Oppo are all part of the same parent organization. This group, alongside Vivo, operates under the BBK umbrella, which began in 1998 by selling electronic dictionaries in southern China and has since expanded its product range.

Although Realme and OnePlus function as separate entities, they benefit from access to Oppo's supply network, a structure that allows them to maintain fewer fixed assets and, as a result, lower expenses.

Xu stated, “Realme benefits from sharing a supply chain with Oppo. This allows us to secure excellent resources from suppliers, maintain a competitive global position, and acquire the components we require.”

As an example, the relatively new phone manufacturer was among the first to receive Qualcomm’s latest Snapdragon 865 processors and integrate four cameras into a single device. However, priority access isn’t always assured, as Xu acknowledged, “There is certainly internal competition among us and our counterparts to be the first to obtain new components.” He also added, “It also depends on the progress of each team’s research and development efforts.”

This strategy of minimizing asset investment also enables Realme to provide advanced technologies at comparatively affordable prices. In India, a model with 8GB of RAM and 128GB of storage was available for under 1,000 yuan ($152), and a version featuring a notch screen cost less than 1,500 yuan ($228).

Xu indicated that Realme does not prioritize increasing profit margins during its “growth phase,” and the company “has been profitable since its inception.” Simultaneously, the company is introducing a variety of IoT devices, such as smart televisions and headphones, which typically offer higher profit margins.

The combination of smartphones and IoT products is a common strategy, as other companies within the BBK family, as well as Xiaomi and Huawei, share the same vision: to create a seamlessly connected ecosystem of smartphones and smart devices that drive sales and data collection for each other.

According to Xu, another method for reducing costs is to avoid extensive outdoor advertising. The company favors more subtle promotional tactics, such as collaborating with influencers, hosting campus music events, and cultivating an active online community of fans. This approach appears to resonate with younger consumers who enjoy interacting with brands and participating in their creative processes.

The company’s most dedicated users occasionally send Xu sketches illustrating their ideas for future Realme products. “They consistently offer very insightful and innovative concepts. It’s a remarkable generation,” the executive commented.

Chinese Brands Expand Globally

Madhav Sheth, Realme’s CEO in India, enjoys considerable popularity among the nation’s younger demographic. Having previously operated as a distribution partner for Realme, he significantly impressed the company’s founder, Li, who possesses a strong understanding of the Indian market even without complete fluency in English, as noted by Xu.

Xu described Sheth as a highly engaging and effective public speaker, capable of generating excitement. He highlighted Sheth’s active presence on Twitter, where he has accumulated over 280,000 followers since joining the platform in spring 2018.

The role of the Indian head of the company is becoming more challenging as India displays increasing caution regarding Chinese influence. The Indian government recently prohibited TikTok and numerous other Chinese applications in June, citing potential threats to national security, and has also increased its oversight of Chinese investments. Simultaneously, anti-China feelings have intensified due to recent escalations in border disputes.

Despite these challenges, Realme continues to experience substantial growth within India. According to research from Counterpoint, the company achieved a 4% increase in growth during the third quarter and currently holds the fourth-largest market share in India at 10%.

The research report indicated that initial anti-China sentiment impacted sales of brands originating from China. However, these feelings have lessened as consumers consider a wider range of factors when making purchasing decisions.

Xu affirmed that the India-China conflict is undesirable and represents a matter of international relations, stating that Realme remains politically neutral. He acknowledged the existence of extremist viewpoints but emphasized the company’s strategy of broadening its customer base, fulfilling their needs, and disregarding those with extreme opinions.

Looking ahead, Realme intends to accelerate its expansion into Europe, Russia, and its domestic market, China. These are all highly competitive markets sought after by leading mobile phone manufacturers.

Realme actively seeks to align its brand with the preferences of Generation Z globally by collaborating with well-known designers. Xu vividly recalled a moment with Naoto Fukasawa, the celebrated Japanese industrial designer, who conceived the onion-inspired color scheme and design of the Realme X model, demonstrating the concept by raising his hand as if holding a sphere.

“Sunlight streamed through the windows that afternoon. [Fukasawa] playfully presented me with an onion from under the table, explaining it was the source of his inspiration,” Xu recounted. “He slowly rotated the onion in the light. I was astonished. The veins, the pink and gold hues, the texture – it was remarkably beautiful. It didn’t resemble an onion; it looked like a handcrafted piece.”