China mobile phone gold rush in Africa: the encounter between Shanzhai Legion and brand manufacturers

category:Internet
 China mobile phone gold rush in Africa: the encounter between Shanzhai Legion and brand manufacturers


There are historical reasons for the formation of the transmission pattern. The first is the leading body. In 2005, a better founding team entered the African market. Second, sound in Africa in the past few years, Chinas major mobile phone brands have not yet formed, or have not paid attention to the market, gave a good opportunity for sound growth. It should be said that the sound transmission is the most outstanding brand in the past. It is no exaggeration to say that Africa is the last blue ocean in the global mobile phone market. HaimingLi, the director of Demart (Dimat), told the first financial reporter that Demart is the only official authorized agent for millet in East Africa. In addition to the online and local largest e-commerce brand Jumia, more than 10 stores have been opened online, and this is almost completed in the past half a year. In fact, including HUAWEI, OPPO and Xiaomi, more and more domestic mobile phone manufacturers are eyeing the African market. Compared with the increasingly saturated Chinese market, Africa has great potential for growth. In the recent CounterpointResearch first quarter smartphone growth rate form, the Middle East and Africas growth rate reached 36%, leading the world, compared with 15% in the same period last year. In the GfK report, retail sales of smart phones in the Middle East and Africa grew by 7% to $11 billion 400 million in the first quarter, and retail sales grew by 2% to 44 million 100 thousand over the same period last year. South Africas growth is 13%. The growth of the African market, in addition to the pull of market demand, also includes the trend that consumers are experiencing upgrading from functional machines to smart phones. According to GfK, the retail sales of smart phones in the Middle East and Africa will grow by 4% in 2018. HUAWEIs overall market share in Africa is more than 15%. An insider of HUAWEI consumer BG told reporters that in the future HUAWEI will increase its global market layout, including Africa. CounterpointResearch research director Yan Ji Meng told the first financial reporter that the African market has become one of the fastest growing areas of mobile phone users in the world. The Chinese Legions African attack For domestic mobile phone manufacturers, Africa is most attractive than the huge market space: about 15% of the worlds total population. Urban population accounts for about 26% of the population of all continents, and mobile phone users are more than 2 hundred million. Even in 2009, the growth rate of the economic crisis has reached 14.8%. While the mobile phone market in China is becoming saturated, the regions and countries represented by Africa have become the strongest driving market for mobile phones in the world. Due to the large number of African countries, regional data research is not conducted in Africa. However, from the overall study of TrendForce, we believe that the high development area has already entered the plateau period of smart phone holding, and the development of intelligent mobile phones has become mature, and the demand for growth is generally derived from the periodic change demand, not the impulsive purchase. Huang Yuxuan, a research manager of the state advisory action memory research, told the first financial reporter on 2 days that under such a market environment, the brand factory must extend the tentacles to the emerging areas to have the opportunity to hold the market or to obtain more space. In fact, the sense of smell from the front-line manufacturers has already touched the market. From the era of Shanzhai mobile phones, the domestic mobile phone in the African market has not ended. In recent years, brand manufacturers have increased their investment in the African market. We Chinese people generally speak of Africa in sub Saharan Africa, and North Africa is closer to the Middle East. In this region, the overall share of Chinese mobile phones can reach about 85%, and the rest of the 15% is Samsung. Demart, sales director of Demart, told the first financial reporter that the biggest share in the African market is the sound, with its three brands adding about 50%. In addition, there are HUAWEI, OPPO, millet and more than 20 Chinese Shanzhai brands. Su Mou is a colleague of HaimingLi. He has been abroad for more than 10 years. He is currently resident in Kenya and is responsible for setting up a local team, and is committed to expanding the local marketing network. In his colleagues, he knows more about the African market than many local people. He said to reporters about the local market and management, he said to reporters that he was more than ten times more difficult than his own. But the overall training of local staff and the overall improvement of their team spirit are also a contribution of Dimat to Kenyas local talent cultivation. But the more difficult the market is, the more opportunities to represent, Mr. Su told reporters that Demart only officially did millet operation in East Africa last year, but the compound growth rate was over 30% per month. 60% of the mobile phone sales in the African market are from functional machines and 40% are smart phones, but the share of the latter is growing year by year, like millet, the local consumers are very satisfied, and when they cooperate with e-commerce brands, the other is also more recognised. Jumia is Africas largest electricity supplier platform, with Nigeria, Morocco, Egypt, Kenya and other sites, covering more than 10 countries. The first financial reporter saw on the Jumia official website that there are 19 products in the sale of millet, the price range from Ksh9699 to Ksh62999, the main model of the sale is red rice series, and the most commentary is a 64GB version of the red rice 5Plus4G product. A user called OwenNjoroge wrote in the review area, the battery life of this mobile phone. Life is amazing. When I play video games and video calls, this phone seems to be able to handle everything. In terms of consumer habits in the African market, batteries and photographing seem to be the two most attractive features, while millet is faster than millet to realize that this is a manufacturer from China called sound transmission. According to the official website of the transmission, in 2017, around 130 million cell phones were sold around the world. According to IDC data, the market share of each brand mobile phone in Africa in 2017 reached 45.9%, and the number of mobile phone sales in the African continent was the first, exceeding the Samsung and other brands. Therefore, some people also call it the king of African mobile phones. According to public information, Zhu Zhaojiang, the founder of the sound transmission, was the general manager of overseas sales of waveguide phone. Before and after 2000, the wave guide cell phone grew savagely in China. In developing international business for waveguides, Zhu Zhaojiang traveled to more than 90 countries and regions. Later, due to the adjustment of the waveguide business, he decided to leave the waveguide, set up its own company, and bring the rural encircling city strategy in the Chinese market to Africa, from the poor place, to build channels, to advertise, to seize the market from strong pioneers such as Samsung and NOKIA. TECNO (sound transmission) has factories in Shenzhen and Africa, and now the number of factories in Africa is increasing. Junjie Liu, director of sound holding market, said in an interview with reporters that a few years ago it aimed at the fast growing market in Africa. In West Africa and East Africa, Nigeria and Kenya were used as distributed sites, covering most of the countries in Africa. At present, the voice in Africa has TECNO, itel, Infinix three mobile phone brands, a mobile phone accessories brand Oraimo, home appliance brand Syinix and a after-sales service brand Carlcare. Among them, TECNO is located in the high-end, the products are all over the function machine and the smart machine; the itel faces the middle and low end market; the Infinix focuses on the difference, the sense of science and technology, and the online sales. Brand manufacturers hanged the mountain fortress In the African market ten years ago, the main force of Chinese mobile phone manufacturers was the Shanzhai Legion. The head of a Shanzhai mobile phone told reporters that the prices of mobile phones exported to Africa had been hit between 15 and 18 dollars, and the profit of each cell phone was less than $1. Until now, there are still more than 20 handset manufacturers operating in Africa, but the input of brand manufacturers has begun to bring pressure to the local market, and many of the airports billboards have been replaced by OPPO and other domestic brands. Sumou told reporters that Africa is now in a phase of upgrading from a functional machine to a smartphone, and about $100 is also being upgraded to more than $100. For domestic mobile phone brand manufacturers, these are opportunities. Tan Qiuqi, general manager of the Central African bridge supply chain, told the first financial reporter that the consumers cognition was mature, the brand guidance was strengthened and the brand oriented was inevitable, including the emerging markets in India, Pakistan and Bangladesh. If only the Shanzhai machine and the price war were done, almost already Theres no chance. More than 10 years ago, there were many Chinese in Africa doing business in the locals and going to a container to make a container of money, and the mobile phone was about 30% in the past in the whole of Africa. Tan Qiuqi told reporters that at the time of the match (a logistics company) directly helped cell phone manufacturers to ship batteries and boxes by ship, and fine components were assembled locally. Now, from the point of view of the cargo generation, the number of smart machines is increasing, and the number of smart machines is increasing, and the brand manufacturers are increasing the market. For example, HUAWEI. HUAWEI changed its market strategy in Kenya in September and launched several cheap smartphones at 100~200 dollars, when HUAWEI Kenya director Drake Du said that the three smartphones were sold for the 87~220 dollar range, and the future was to bring HUAWEI to the Kenya low end mobile market. The share was raised from 4% to 15%. We have not been paying attention to the market below US $200, but we have to change our strategy and take account of the two markets. Drake duo said that if this goal can be successfully achieved, HUAWEIs share in the Kenya market will be increased from 14% to 25%~30% in the next two years. And OPPO has taken action. Following Morocco, OPPO launched the OPPOF3 phone with the main function of photography in Kenya last year. At the time, OPPO Kenya Chief Executive Officer (CEO) AndrewPeng revealed that as part of the OPPO globalization strategy, OPPO entered the Kenya market from 2016 and launched the OPPOF1s smartphone in the middle of 2016, thereby expanding its business to 26 countries and regions abroad. In addition to the capital Nairobi, OPPO is extending its mobile phone distribution network to several major cities such as Kisumu, Mombasa, Nakuru and Nijel. OPPO has a lot of advertising, but we also intend to set up a billboard of millet at the edge of the Nairobi national archives. If it goes smoothly, it will be the first brand of millet in the East African market. The current rent is more than 10 thousand dollars a year. HaimingLi told reporters. He added to reporters that the cost of operation and promotion in Africa is not very low, such as billboards, advertising stickers, leaflets, net red propaganda, and shop rents. The cost of the counter production of a store is about $300 to $400. Before May, we have just made a batch at home, ready to launch the market after the late May, and now the whole cabinet is in transit. And Millets unique Internet gene is attracting more partners to start paying attention to millet. For example, when talking about cooperation with Jumia, the other side chose millet as the most close online brand on the MobileWeek, and sales volume entered the top five of the whole network. But it is probably not enough to just get started online. Su Mou told reporters that high-quality distributors resources and localization services made the success of the sound transmission very difficult to replicate. There are historical reasons for the formation of the transmission pattern. The first is the leading body. In 2005, a better founding team entered the African market. Second, sound in Africa in the past few years, Chinas major mobile phone brands have not yet formed, or have not paid attention to the market, gave a good opportunity for sound growth. It should be said that the sound transmission is the most outstanding brand in the past. Sumou added that the core of the sound transmission method is still localized, and one pays attention to the localization of the mobile phone, such as taking pictures, the imaging technology of the African market has its own unique place, and the other voice will also put the larger battery volume in the place where the power supply is not very sufficient. In addition, the localization of the team, the sound of nearly 1000 stores in Kenya, almost every one has promoters, in addition to the perfect local products, marketing and after-sales support, in Ethiopia and local factories. Millet is also looking for more stores under the search line and speeding up negotiations with the largest operator in Kenya, Safaricom, which is expected to digest more than 3000 sales per month for millet. We have another advantage, which is very light, and will expand the market with different methods if there is not enough resources. Sumou told reporters.