Here we point out some reasons of the failure of Le-Eco in India?

telefonos moviles letv leeco - Why did the Le-Eco failed in India ?

Leco launched their first smartphone in 2015 in India with the model Le 1s Le tv smartphones look almost like I phones. they introduced USB Type-C before the Apple Le tv smartphones came up with great specification with a great price just like the Xiaomi smartphones

Le Eco has their own Ecosystem which was a huge success in China and they decided to do this on India Le Tv was the first Streaming company in China, which was listed on the stock market that’s why it’s called the Netflix of China After the success of Le tv, Jia Yueting started ‘le shi holdings’ and under that company, they started producing smartphones TV’s and other different electronics

1). Spent too much on marketing.

Le Eco started selling the smartphones through online flash sales just like the Xiaomi did, but they spent millions of money on the unnecessary ads just like Vivo and Oppo, At that time they had no Idea how to be in the market. And also the Le Eco smartphones are not available in shops at that time. they only sell online but they give Ads through the Newspapers was one of the worst decisions they made

2.) Problems in the Business model of Le Eco.

On the Chinese market, The Leco have their Original contents. Basically, China is a closed market and the youtube was also banned there. so then the Le tv got popular and started selling their smartphones cheap and they also got their profit through their contents and software In India they also tried the same Idea,

They decide to tie up with Eros now and Yupp tv but Lack of Original contents and the youtube and Hotstar was already popular and favorites of most of in India. so they failed and The Le Eco smartphones not sold that much because China’s marketing strategy never worked in India.

3.) Le Eco launched so many products so fast

They launched 5 smartphones multiple Tv’s and also their E-commerce website Le- mall launched after this much product launched, the Le- Eco failed to get a stable profit

4.) Le- Eco invested almost in every firm in a short time span

Le Eco always in a hurry but they almost wasted their millions through this investments. Le-Eco started their first manufacturing plant in Noida, India worth 7 million dollars. and they also acquired Chinese company “COOLPAD” at that time the Coolpad smartphones got popular in India and the Coolpad note 3 sold very well on Indian market after acquiring the Coolpad the Le – Eco launched their first smartphone model Cool 1 dual but that’s an almost copied version of the Le 1s. if they want to launch the same models then why did they buy Coolpad?

5.) Lack of focus

Their only focus to spend money, not on the profit. after launched different products. the Le- Eco fails to give the customer support. so that’s why the Le- eco-services dropped down on the market and after they fired their 85 % employees. But the company claims that they never leave their business plans in India, they are now focusing for a long-term business plan with a low start.

So let’s wait and see what will be in the future.


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