Transsion Holdings
Compared to the stability of the Chinese smartphone market, the Indian smartphone market has become the most competitive field for Chinese phone manufacturers. India is almost always the first overseas market Chinese companies chose, then followed by Southeast Asia and Europe.
Would other Chinese smartphone manufacturers follow Xiaomi's entry in Africa? Would the manufacturers be proactive to this brand-new market, just like what they did to Indian and Southeast Asian markets?
Yongjie Sun pointed out that, after Xiaomi's entry in Africa, Huawei might put more efforts there, even it has a certain amount of market share already. Other Chinese manufacturers might hold a little if they have not entered in yet.
African market has greater uncertainties compared to Indian and Southeast Asian markets. There are some limitations. The African market is more dispersed. Different countries or places have different market status and user demands. Product requirements would be harder to meet and more difficult to fulfil, overall operations and sales would be more complex, and cost would be a lot higher.
According to Yongjie Sun, the demand for new markets is not simply about increasing sales, but enhancing the value of brands globally. "At present, Huawei, Xiaomi, OPPO and Vivo are the only four smartphone manufacturers capable of entering the African market. Xiaomi and Huawei are already there, while OPPO and Vivo are currently making good profits." Sun adds that OPPO and Vivo should prefer to enter the relatively mature and high-end European market rather than that of Africa which is in its early stages of development.
Of course, OPPO and Vivo still have great potential to succeed in India and Southeast Asia. As the number of mobile phone manufacturers present in the Indian market continues to increase, competition there is likely to heat up in 2019. Both companies will need to ensure their stability in China, expand their presence in India and Southeast Asia, while at the same time establish their brands in the high-end European market. Africa is not the priority.
In conclusion, Xiaomi and Transsion Holdings will be the two major players in the African market in 2019. How both businesses play out on the African continent will emerge as a striking case study with which to interpret this emerging market.
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This article was edited by Dido Pang.
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