LeEco burst into the Indian market with their remarkable devices and the ecosystem that they brought with them. The Le 1s did very well in the budget segment and the Le Max was good too. The second generation devices were impressive and their line of Smart TVs disrupted the market and did very well. Then there was a lull and the company had to slow down a tad bit due to various reasons. We believe that they are going to get their A-Game to 2017 and here’s why
The Devices: They are very well thought out and relevant. The specifications are right and the performance parameters are good. They are still pretty popular in the segments that they are in. The are a clever combination of good hardware and customized software that make the experience top notch. The users are still happy with them. We have spoken to quite a few of them and they are not letting go of their devices any time soon. The customized UI is also one of the reasons the devices did well. There were some bold decisions like the high-res displays on the Le Max2 that have stood the brand in good stead with the users. In a nutshell, given the loyal base the devices have built, it’s easy for them to reconnect from where the last devices left
The Partnerships: Whichever geography they went to, LeEco have forged solid partnerships with content providers and other companies, these partnerships make a huge library of seemingly unending content available to their users on whatever device they have. The content interface is consistent across devices and is one of the key factors that set LeEco apart as a brand. While the devices scored high and were a hit, the stuff behind the devices in terms of streaming content was something that no other brand had to offer to it’s users in India. With the existence of these partnerships and the large library of content, it should not be that difficult for them to forge ahead with a new strategy and get back on the saddle in 2017.
The Eco-System: The second half of the LeEco name is the vast ecosystem they have at their disposal. They are very huge in the video game in China and their TVs have attained cult status. Even in India and US, they have set up content delivery networks and have gone in with all their strengths. They have a lot of sports and live action properties that will give them the edge in the quality of content that they deliver through the Ecosystem that they have built over the years. They also have production and delivery capabilities world-wide. They are not looking just to play the video and the mobile game, they are very serious about the smart car that they have in the works and their founder has assured the world that while they maybe rethinking their growth speed and strategy, their commitment to the car is the same. On top of all this, they are one of the few brands that have cracked own-brand e-commerce and done well there. Overall, they are very well poised to be at the forefront of the IoT wave with their ecosystem.
Given these three strong reasons and the fact that their management has demonstrated their ability to think on their feet and get whatever is necessary done, we believe that 2017 will be a year when LeEco will bring their A-Game to the fore and it will be sooner than later. We are watching them very closely to see what comes next from their stable.
