From sub-brands to super strategies: How OEMs are fighting for the mid-premium segment

The mid-premium segment of the smartphone market in India is no longer a compromise between entry-level prices and flagship status. It has become a strategic battlefield where OEMs experiment with innovation, ecosystem integration, and consumer interaction on a scale. This shift is being fuelled by rising disposable incomes, growing digital literacy, and aspirational consumer behaviour. The current mid-premium consumer is educated, discerning, and ready to make investments in devices that provide significant benefits as opposed to a series of incremental upgrades. This shift is important to understand why OEMs are recalibrating their strategies and shifting to super strategies instead of sub-brands.

The Mid-Premium Moment

The market has the most dynamic space between Rs. 25,000 and Rs. 45,000. Consumers are no longer satisfied with minimum specifications; they are demanding devices that are both technologically advanced and lifestyle-oriented. They desire superior cameras, quicker processors, smooth software ecosystems, and designs that demonstrate high-end craftsmanship. This is especially true in the case of the tier-2 and tier-3 cities, where smartphone penetration has reached maturity, and consumers are beginning to upgrade to mid-premium phones as their first upgrade, instead of an entry-level upgrade. In response, OEMs are developing portfolios that are aspirational and value-based.

Consumers as Change Drivers

The middle-end customer is redefining the demand. Buyers are trading up instead of taking budget options, which is being facilitated by financing options, no-cost EMIs, and exchange offers. Purchases are becoming more informed and planned compared to the past years. Consumers are considering software updates, ecosystem compatibility, and after-sales support prior to making a decision. This is not just a metro change in the urban areas, but smaller cities are experiencing faster adoption, which means that the market is becoming more geographically balanced. Such changes in behaviour have significant implications for the way OEMs design, market, and price their products.

Sub-Brands as Strategic Levers

Previously utilised as a means to attract niche markets or experiment with pricing, sub-brands are now being re-packaged as an incubator of features, designs and innovations that can be later scaled to the core portfolio. This enables OEMs to pilot new ideas without compromising on their flagship products. For example, a camera software, AI improvements, or battery optimisation that is tested under sub-brands and then improved and added to a higher-end device, forming a cycle of innovation that strengthens the parent brand. The shift is testing without weakening the perception of the main brand.

Experience as the Differentiator

The mid-premium segment emphasises the significance of merging online and offline channels. Although online stores offer accessibility and convenience, physical experiences still affect the buying process. Consumers desire to touch, feel, and authenticate the device, particularly when they are making a more expensive phone purchase. OEMs that effectively combine digital discovery with offline validation, with consistent pricing, localised promotions, and immersive demonstrations, have a critical advantage. Campaigns are also becoming shorter, sharper and more localised with influencer partnerships and vernacular content aiding brands to connect with different audiences.

Innovation That Resonates

Conversions are no longer driven by technical specifications. Mid-premium customers react to the innovation that makes life easier. Photography powered by AI, intelligent battery management, a user-friendly user interface, and integration into the ecosystem are elements that contribute to the physical value. OEMs are discovering that significant differentiation is more important than minor specifications. It is aimed at ensuring that the technology is easy to use, practical, and long-lasting, qualities that will make investing in a more advanced device worthwhile.

Strategic Implications Beyond Festivals

Even though festive sales provide a narrow perspective of the market behaviour, the trends are far more than seasonal peaks. OEMs are using predictive analytics, localised campaigns, and flexible supply chains to be prepared to meet peak demand without sacrificing quality. Further post-sale service, software upgrades, and ecosystem development are becoming a core component of consumer retention in the mid-premium segment. Brands that focus on these issues are positioning themselves to be leaders in the market, rather than winning sales sporadically.

The Long Game for OEMs

The smartphone market in India is taking a new shape with the mid-premium segment becoming the new battleground. It is not a price or discount competition but a crafting of coherent strategies that integrate innovation, ecosystem, and consumer experience. Brands that recognise aspirational customers, invest in regular after-sales interaction and use sub-brands strategically are in a position to dominate. It is a market in which vision clarity, operational preparedness and meaningful differentiation will dictate who OEMs will become long-term winners.

The mid-premium segment of India is a story still being told. Consumers are not passive receivers of offerings anymore, but active participants whose expectations influence strategy. OEMs that are able to foresee these needs and coordinate product, marketing, and service plans will not only seize the mid-premium niche, they will also reinvent it. The age of super strategies is here, and the brands that understand this will define the next phase of the smartphone revolution in India.

Written By- CP Khandelwal, CEO, PSAV Global (HONOR's Official Brand Partner in India)

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