Why ASUS is going all in on PC gaming in a mobile-first market

Why ASUS is going all in on PC gaming in a mobile-first market

India’s gaming sector, valued at $3.1 billion in 2024, is poised for exponential growth, with projections suggesting it will reach $8.92 billion within the next five years, according to a report by Grant Thornton Bharat and the E-Gaming Federation (EGF).

The country is home to approximately 442 million gamers, making it the world’s second-largest gaming market after China. Mobile gaming reigns supreme, accounting for a substantial 80-85% of the market share.

Paramjeet Singh Mehta, head of marketing at ASUS India, sees this trend as a significant opportunity for the PC gaming segment as well. Just as mobile gaming accessibility is tied to smartphone capabilities, a similar shift is emerging in PC gaming, where hardware requirements are constantly evolving, he notes.

Mehta points to a trend where gamers, after spending around 18 months in mobile gaming, increasingly seek advanced features and experiences offered by gaming PCs.

He believes that this presents a substantial growth avenue for brands like ASUS. To capitalise on this trend, the brand introduced ROG Ally, a cutting-edge console that seamlessly combines the high performance of a gaming PC with the portability of a handheld device.

The Taiwan-headquartered brand has strategically divided its operations into two primary segments, with gaming represented by Asus ROG (Republic of Gamers). Established in 2006, ROG focuses on high-performance gaming hardware and peripherals, offering an extensive range of products tailored to enhance gaming experiences.

Asus ROG has demonstrated substantial growth, with sales reaching approximately 900,000 units in 2023 and around 1.2 million units in 2024, capturing 25-30% market share in the gaming category, according to Mehta.

The brand’s gaming laptops are further categorised into two segments: casual gaming, priced between Rs 50,000 and Rs 80,000, and performance gaming, ranging from Rs 80,000 to Rs 2.5-3 lakh.

According to a report by IDC (International Data Corporation), ASUS ranked fifth among PC manufacturers in India with a market share of 9.7%. The company however, experienced a significant 22.3% Y-o-Y decline in its market share, mainly attributed to a leaner inventory strategy.

The brand’s entry-level products are priced in the range of Rs 30,000-50,000, catering to a diverse range of users.

Demographically, the brand holds a strong foothold in the 15-35 age group, accounting for 55% of the customer base in the non-gaming segment and 70% in the gaming segment.

Revenue and physical presence
Organised trade channels, such as Reliance and Croma, contribute 15% of ASUS’ total revenue, while online platforms such as Flipkart and Amazon account for 30-35%. Exclusive brand outlets (EBOs) generate around 20% of the revenue, with the remaining 15% split between multi-branded outlets and smaller shops in tier-II and tier-III cities.

The brand currently operates over 300 EBOs across India, including nine specialised gaming stores, where customers can book slots to experience gaming on high-performance desktops. In the next two years, the brand plans to open 300 more EBOs.

Marketing strategy
In July 2024, the brand collaborated with Great Khali for its TUF Bano TUF! campaign to promote gaming laptops.

Rather than focusing solely on traditional campaigns, the brand taps its audience through invites tailored for specific audiences, particularly gamers and tech enthusiasts.

ASUS ROG hosts events such as ROG Showdown and ROG Academy. ROG Showdown is a competitive gaming series featuring tournaments for popular games such as PUBG and Valorant.

Meanwhile, ROG Academy focuses on nurturing professional gaming talent by offering training, resources, and mentorship to aspiring esports players.

For technology enthusiasts, the brand organises ProArt Labs and ASUS Live Workshops. ProArt Labs cater to creators, particularly those in content creation, graphic design, and multimedia production, offering insights and tools to enhance their craft.

ASUS Live Workshops provide hands-on experiences with the latest ASUS products and technologies, catering to enthusiasts keen on exploring advanced tech solutions.

Going ahead, Mehta says, “We are working to deliver innovative solutions such as dual-screen laptops, handheld gaming PCs like ROG Ally, and advanced gaming software to enhance the user experience.”

Marketing spend
The brand spent around 10-15% of its total marketing budget on print media and 15-20% on e-commerce platforms for display and search campaigns, as well as sponsorship. Influencer constitutes 20% of the total budget.

The brand allocates its marketing budget, with 15-20% directed towards e-commerce platforms for display ads, search campaigns, and sponsorships. Influencer marketing accounts for 20% of the budget.

The largest portion, 30-40%, is invested in sustaining campaigns aimed at maintaining consistent brand visibility and consumer engagement.

The brand strategically utilises out-of-home (OOH) advertising by placing hoardings at entry and exit points of IT markets such as Nehru Place and Lamington Road to capture the attention of tech-savvy consumers.

Refurbished laptops
In March 2023, the brand, founded by T.H. Tung, Ted Hsu, Wayne Hsieh, and M.T., launched its ‘Select Store’ in Delhi for refurbished PCs. All products sold through this initiative come with a one-year company warranty. Till now, the company has a total of six stores.

Mehta explains that the inspiration behind this strategy came from luxury automobile brands that offer programs for purchasing refurbished or pre-owned cars. “We thought, why not provide our young customers the chance to buy our devices at an affordable price?” he says.

“Currently, we have six stores, but we can’t expand further due to limited refurbished stock.”

“We are aiming for a growth of 15% to 20% this year, driven by the tremendous potential in the rapidly advancing technology sector, particularly with AI in PCs,” he says.

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Author: prakash kaunder