Building Local Factory is in Vivo’s Blueprint
Michael Erlangga - 16 June 2015
China-based smartphone vendor Vivo is reportedly ready to build an assembling factory in Indonesia. The government’s legislation of requiring vendors to meet 30 percent of Local Component Level within their smartphone that will get enforced on January 1, 2017 forced Vivo to do so.
It was reported that while abiding the law, Vivo will possibly partner with local player, like Asus has done in Batam.
“We’ve planned to build a factory in Indonesia. It’s still being discussed, as the plan is to have it standing in this coming 2017,” said Vivo Global’s VP CMO Alex Feng, as reported by Liputan6.com (11/6).
Regardless its young age, Vivo’s business enjoys warm welcome in Indonesia. The team have yet possessed any massive distributors, as they channel their products through 16 stores, which is planned to be expanded to a number of 40.
According to Detik, Vivo’s investment upon penetrating the Indonesian market is quite gigantic. It’s not surprising to later see the expansion includes the designing of new products which are more familar to Indonesians. The scheme may also be implemented to cut the operational cost.
“We’ve introduced five smartphones for Indonesian consumers. We’ve spent US$ 20 million for our operation here,” Feng concluded.