Chinese handset makers start fighting overseas markets, gold rush in African markets

April 2 News, a growing number of Chinese mobile phone manufacturers began to battle overseas markets, including the large population of Africa is naturally also included in the "Hunting range."


 


"In the past the first batch of manufacturers to Africa to Shenzhen mobile phone manufacturers mostly, by the year 2013, with the advent of smartphones, more Chinese branded handset makers had entered the African market, and the market share of Chinese brands had risen from 15% in 2012 to 30% in 2014 years, according to our research data. "Jian Jianmeng, a senior analyst at IDC China in charge of mobile phone market research, told the first financial daily reporter that Huawei, voice-tuning and Alcatel are among the top five in the African smartphone market.


 


is now one of the world's fastest-growing mobile-phone users, according to IDC, where the potential for mobile-market development, improved mobile infrastructure conditions and the high demand for new mobile services in Africa has been boosted by an overall growth of 108% per cent last year.


 


African Market Gold Rush


 


for the mobile phone industry, Africa's most attractive than the huge market space: about 15% of the world's total population. The urban population accounts for about 26% of the population, and it is important that more than 200 million mobile subscribers, even in the 2009 growth rate of the economic crisis reached 14.8%, while the Chinese mobile phone market is gradually becoming saturated, the region and the country represented by Africa as the world's most powerful mobile phone drive market.


 


According to statistics, Nigeria, Africa's most populous country, currently has the largest number of mobile phone users in Africa, accounting for Africa's total mobile phone users 16%. The following were followed by Egypt and South Africa. The data report predicts that in the next 5 years, the most obvious increase in Africa's mobile phone users will be concentrated in the Central African region, of which Ethiopia, Congo, Eritrea, Madagascar are expected to achieve more than 100% mobile phone users in 2015 growth. According to the current development rate, African countries to 2015 mobile internet users will reach 265 million, accounting for more than One-third of the global number of mobile internet users.


 


"Africa's smartphone overall grew 108% per cent last year, with China's smartphone makers up 30%, and a group of branded manufacturers headed by Huawei into the top 10 of Africa's shipments, with Huawei ranked second after Samsung." Jian Jianmeng told reporters.


 


According to reporters understand that Huawei Terminal last year in the Middle East Africa market growth of more than 300%, ranked first in all regions, followed by the growth of 98% Latin America and Asia, then 68% of the European market, and finally the Chinese market.


 


Huawei Consumer BG insiders told reporters that the Middle East Africa market is high because of the low base, space, and brand awareness has begun to show.


 


Jian Jianmeng told reporters that the African market has become the second largest market in China and abroad for several reasons, on the one hand, the region itself is subject to economic factors, the mobile phone industry chain and the lack of matching, unlike other regions have a strong local mobile phone brand cluster; On the other hand, the people of the African region Chinese mobile phones are often guaranteed in terms of quality; Finally, the African market is mainly open market-led, according to IDC Research data, channel 70% for open channels, operators relatively weak, which also make their own channels, do brand of mobile phone manufacturers have a greater play space.


 


Cottage Machine Gradually ebb


 

In the past 10 years, mobile phone penetration in Africa has risen from 6% to 80%, according to a study by
Fund Inc. ROYCEFUND. The way to change these African residents is not Apple, but cheap handsets from Shenzhen's shanzhai companies. But one can not ignore the phenomenon is that China's mobile phones in Africa, while the popularity of the "behind" story is constantly staged every day.


 


"Big market space does not represent a good market, we are exported to Africa's mobile phone prices are now basically between 15 to 18 U.S. dollars, lower than the previous two years 5 to 6 dollars, and each cell phone profits less than 1 dollars." "A domestic mobile phone company specializing in overseas markets, Wang (a pseudonym) told reporters that with the rise of some African local brands, profits continue to fall, the market competition is extremely fierce.


 


in 2009, the largest advertisement in the African Air hub Nairobi Airport, except for the telecommunications operator is China's mobile phone. Black businessmen to China, most of them are shanzhai machines, many African countries, such as Ghana has quietly formed the Chinese mobile phone market, the size of the big already can be compared with Shenzhen Huaqiang North, according to local name, this is called "chinesecity."


 


"At that time selling mobile phones is like selling toys, who enter the market who can make money." But Wang says the situation has not been seen in recent years. He told reporters that because the Shanzhai machine sellers between the big price war, profit margins are constantly compressed, and with the increase in income and market development, the African residents of the brand awareness. In addition, intellectual property protection has gradually strengthened, and the African market's Shanzhai phones have finally retreated.


 


"Now is not only in Africa, the rest of the world is basically brand-name mobile phone-led, Shanzhai machine no chance." The head of the mobile phone business said everyone "disorderly stick kill Master," but the market will eventually go to branding, "the consumer's cognitive maturity, brand guidance in the strengthening of the market to brand-oriented is inevitable, including India, Pakistan, Bangladesh, these emerging markets, if only to do the cottage machine, By playing the price war, there is almost no chance. ”


 


China brand business Overseas Challenge


 


Jian Jianmeng told the newspaper reporter, Huawei, audio and Alcatel's smartphone rankings in Africa entered the top five last year, and Chinese brands are not cheap in the market, like Huawei, Lenovo, the average of more than 200 U.S. dollars, audio, Alcatel, ZTE is also more than 100 U.S. dollars.


 


But business competition is always brutal, after the price war and the brand after the war, Chinese manufacturers overseas "breakthrough" should be a protracted battle.


 


Wang told reporters that some African Governments, in order to prevent a large number of Chinese mobile phone imports, sometimes occasionally add several import terms and certification threshold.


 


For example, Libya used to be China's mobile phone in North Africa's largest import port, tariffs are very low, from the transport channels, China's shanzhai phones to leave Hong Kong is first to Libya, and then from Libya to North Africa and other countries in Africa. However, in September 2009, Libya suddenly began to blockade China's mobile phones in customs, less than one months officially announced the closure of Chinese mobile phones. A popular version of the industry is that Chinese manufacturers have eroded the market share of Nokia, the mobile phone boss, and commercial warfare is inevitable.


 


Another common experience in overseas markets is the patent issue. Whether Huawei, ZTE, or millet, a plus, inevitably in overseas have suffered a "patent stick."


 


"In addition to practice good internal strength, the best solution is afraid to use with local brand building has been relatively mature manufacturers OEM cooperation." Gionee President Lou Weibing told reporters that there are about more than 10 OEM partners in the world. In the African market, the current ratio of gold in central Africa, such as Nigeria, has reached its second place.


 


"We need to have a very open mind with the local partners and alliances, in addition to better promote the brand, we know that this year's international exchange rate fluctuations, this situation in fact, test you and partners of mutual trust, this thing requires time to precipitate." Lou Weibing told reporters.