Flipkart signs strategic deal with Asus, eyes 40% share of India's mobile phone market

E-commerce major Flipkart has signed a long-term strategic partnership with Taiwanese smartphone maker Asus that will see Flipkart become an ASUS premier partner and seller for smartphones.

This is part of the company's 'Mobiles 40by20' strategy wherein it aims to touch a 40% market share in the country's mobile phone market by 2020.

"Approximately, one in 4 phones bought in India is through Flipkart. We have achieved 60% growth in the mobile phone category, compared to an industry growth of 14%. With 'Mobiles 40by20', Flipkart will contribute significantly towards adding the next 100 million smartphone users by 2020," said Flipkart VP (Mobiles and Large Appliances) Ajay Yadav.

As part of the deal, Flipkart will become the primary sales channel for ASUS ZenFones. Both the companies will also collaborate in the co-creation of new products for the Indian market based on consumer insights.

Read: How iVooMi collaborated with Flipkart to build smartphones for India market

Flipkart said both the companies will also be involved in the planning and execution of marketing activities for ASUS ZenFones. The deal period or the terms of the deal were undisclosed.

The first smartphone announced under this partnership - ZenFone Max Pro - is expected to launch on April 23, 2018.

"With Flipkart's partnership, we aim to gain more insights about Indian consumers' needs which can help us develop even more suitable products for the Indian market," said Asus CEO Jerry Shen."Flipkart’s distribution reach and marketing strengths will help ASUS build strong awareness for our high value products and reach consumers across India"