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Our opportunity in Indian mobile phone open market
1 India Mobile Phone Market Introduction
2
3
Open Channel Introduction (Deleted)
TCL’s Approach (Deleted)
Catalog
India Mobile Phone Market Introduction 1 India Mobile Phone Market Statics
Source : GFK 1510 & Local Team
184
222
257 275
290 310 325
0
50
100
150
200
250
300
350
2011年 2012年 2013年 2014年 2015年* 2016年* 2017年*
172.2
206.4 216
187.95
171.3
12 16
44
87.14
118.7
0
50
100
150
200
250
2011年 2012年 2013年 2014年 2015年*
功能机
智能机
Sumsung,
32.40%
Micromax,
16.80% Intex,
9.90%
Microsoft /
Nokia,
5.80%
Ginoee,
4.30%
HTC, 3.00%
SONY,
3.00%
LG, 1.86%
VIVO,
0.30%
MI, 0.20% Others,
22.50%
Sumsung,
25.80%
Microsoft /
Nokia,
15.20% Micromax,
13.10% Intex, 9%
Ginoee,
1.70%
HTC,
1.50%
SONY,
1.40%
Others,
32.30%
Market capacity(million units) Smart phone penetration(million sets)
Brand share(smartphones & feature phone) Brand share(smart phone)
Gionee Gionee
1
India Mobile Phone Market Introduction 1 Consumer Purchasing Preference
A:>100k
B: 50~100k
C: 6~50k
D: >6k
A:>100k
B: 50~100k
C: 6~50k
D: >6k
Type Description Preference
A Top 10% urban population • International brands
• Luxury products
B Have high level of either education or occupation
Middle Class, essential consumers for future growth
• High-end brands
• International brands
C Modest education, low-level workers
Core consumer of products of discount and popular segments
• Budget brands and
value orientation
D Not finished school, blue-collar worker etc.
unbranded product • Mass market in India
Income increasing
Rs Rs
Potential
consumer
Target
consumer
2
India Mobile Phone Market Introduction 1 4G Network Status
Data service supplier
• Licenses through pan India
• Deploy 4G network (211,000 base Stations)
Operator
• VoLTE: Voice call through Data channel with less
cost (With Qualcomm)
Source : APAC report & Local Team
Data Sharing
• 3G
• 4G (2016)
• The largest operator in India
• The only one with 4G connection (Metro cities)
3
2 Open Channel Structure
6.20% 4.90%
93.80%
95.10%
2014 2015
Non-TCR TCR
Source : GFK1510 & Local Team
National wide Distributor
MT
Large & small
chain outlets
Retailor
Outlets
Regional
Distributor
Open Channel Introduction
Wholesale
market
4
2 Open Channel Structure
A+ >> 500
handsets
A 200 – 499 handsets
B 50 - 199 handsets
C 10 to 49 handsets
D < 10 handsets
Smartphone Selling Outlets:118k
Source : Local sales team
REGION A+ A B C D TOTAL
West 707 1269 3085 4450 19806 29317
East 281 786 2742 7045 13684 24538
North 933 2040 5799 14996 18287 42055
South 229 1387 4796 7056 8970 22438
TOTAL 2150 5482 16422 33547 60747 118348
South
18.96%
North
35.54% West
24.77%
East
20.73%
• Bengaluru • Chennai
• Delhi
• Kolkata
• Mumbai
Open Channel Introduction
5
Open Channel Introduction (Deleted) 2 Margin Structure Of Open Channel
TITLE VALUE (USD) REMARKS
MRP Price (Deleted) (Deleted) -----
MOP Price (Deleted) (Deleted) (Deleted) • (Deleted)
Dealer Price (Deleted) (Deleted) (Deleted)
• (Deleted) RDS Price (Deleted) (Deleted) (Deleted)
ND Price (Deleted) (Deleted) (Deleted)
VAT (Ave) (Deleted) (Deleted) (Deleted) • (Deleted)
Customs Charge (Deleted) (Deleted) (Deleted) -----
Before Clearence (Deleted) (Deleted) (Deleted) • (Deleted)
Before Duty (Deleted) (Deleted) (Deleted) -----
CIF (ASP) (Deleted) (Deleted) (Deleted) • (Deleted)
CIF (COST) (Deleted) (Deleted) (Deleted) • (Deleted)
The essence of the competition is the COST CONTROL & GP > XX%
Source : APAC & Local sales team
6
2 Product Trends
Source : Import report 1510 &GFK 1510
① 4G
• Rising demand for
affordable 4G smartphones
• 1/3 Smartphones shipped in
India in Q3 2015 (28.3
million) are 4G enabled
② Size Matters
• Almost 1/2 of the sold
smartphones had 5-inch plus
display
• Most of the popular 4G
models with large screen are
less than 13,000 Rs (200
USD)
③ Multimedia experience
• The shift of consumer
preference from voice
calling to an advanced
multimedia experience
Open Channel Introduction
7
2 4G is Coming HOT
4G connection has been a standard feature for new smartphones in India
80512
1054121
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
9月-14 10月-14 11月-14 12月-14 1月-15 2月-15 3月-15 4月-15 5月-15 6月-15 7月-15 8月-15 9月-15
9月-14 10月-14 11月-14 12月-14 1月-15 2月-15 3月-15 4月-15 5月-15 6月-15 7月-15 8月-15 9月-15
2G 1553408 1738568 1456090 1374241 1496502 1490343 1371023 1245734 1191603 1102200 987900 930883 795441
3G 3102080 3953456 3318881 3402641 3917484 3902727 4172939 4347735 4839639 4883080 4912800 4848628 4617438
4G 80512 261976 246029 294118 369792 405930 443038 573531 625758 694720 767625 917489 1054121
2G 3G 4G
Source: GFK 1510
Open Channel Introduction
8
2 Smartphone Price Segmentation
Product between Rs 7-20K owns better balance of volume & profit
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
<5K 5-7K 7-8K 8-10K 10-12K 12-15K 15-20K 20-25K 25-30K >=30K
Sales Units Sales Value
Segment <5K 5-7K 7-8K 8-10K 10-12K 12-15K 15-20K 20-25K 25-30K >=30K
Sales Units % 30.2% 27.0% 10.0% 12.2% 7.5% 4.8% 5.0% 2.2% 1.0% 3.2%
Sales Units
Volume (Monthly) 1,893,728 1,690,746 623,654 766,274 470,089 303,121 314,274 139,764 63,129 201,684
Sales Value % 14.5% 21.4% 9.8% 14.1% 10.7% 8.6% 11.0% 6.3% 3.5% 18.2%
Sales Value
USD(Monthly) 104,1662 153,634,875 70,575,199 101,395,209 76,493,140 61,467,341 79,299,900 45,305,971 25,315,811 130,889,519
Source: GFK 1510
Open Channel Introduction
9
2 Top Models Pricing from 7K -20K
7K-20k is dominated by Samsung
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
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B A
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7-8K 8-10K 10-12K 12-15K 15-20K
Source: GFK 1510
Open Channel Introduction
10
2 Product Trends:Benchmarks rega
7-8K Intex Cloud 4G
Star
Samsung Galaxy Core
Prime
Micromax Canvas Juice 3
Q392
Lenovo A6000 Plus
8-10K Micromax
Canvas Nitro 4G
Gionee F103 Lennovo A6000
Shot Honor 4C
10-12K Gionee
Marathon M4 Galaxy J5
Micromax Canvas Mega
4G Lenovo S860 Galaxy J 7
12-15K Galaxy J 7 VIVO V1 Canvas Play 4G Gionee Elife S7
15-20K Gionee Elife S7 Honor 6 Samsung Galaxy E7
Lenovo VIBE P1
Source: GFK 1510 , Local team & market research
Open Channel Introduction
11
2 Key Features for 4G Smartphones
Features 7-8K 8-10K 10-12K 12-15K 15-20K
SIM Type Dual Sims, LTE + GSM
Rear Camera 8 MP + 5 MP 13 MP + 5 MP 13 MP + 5 MP 13 MP + 5 MP 13 MP
Screen Size 5 inch/5.2inch
Resolution HD
1280 x 720 Pixels
HD
1280 x 720 Pixels
Full HD
1920 x 1080 Pixels
Full HD
1920 x 1080 Pixels
Full HD
1920 x 1080 Pixels
Memory 2G + 16G 2G + 16G 3G + 16G 3G + 16G 3G + 32G
OS Android 5.1 Android 5.1 Android 6.0 Android 6.0 Android 6.0
Processor 1.2 GHz Quad Core 1.2 GHz Octa Core 1.2 GHz Quad Core 1.2 GHz Octa Core 1.2 GHz Octa Core
Battery 2500 mAh 2500 mAh 3000 mAh 3000 mAh 3000 mAh
Source: GFK 1510 , Local team & market research
Open Channel Introduction
12
2 Marketing & Promotion: Marketing Trends
• Partnership with Zopper, Honor customers can avail a 5 % cash back on Honor phones
till December 24, along with a free 1 year accidental damage.
• With Zopper honor could reach out to 267 outlets in Delhi , Chennai, Vellore, Pondicherry
and Bengaluru.
• Mi3 was priced at Rs. 13,000 had similar specs to the Nexus 5 at the price around Rs. 28,000.
• Sell initially at a no profit & no loss margin.
• Make profits in the long run when the components used for the phone get cheaper over the period of
time.
• Online-only strategy coupled with great price and good quality of products.
• The Moto G was sold out within 40 minutes and it wasn’t even a flash sale.
• Traditionally used to sell their phones offline.
• Also now started maintaining a online-only portfolio thus jumping onto the bandwagon and trying to
attract more users.
Source: GFK 1510 , Local team & market research
Open Channel Introduction
13
2
POSM ISP Activity News paper, TV
commercial & radios
• Branding & ISD
Dashboard/Demo/Samp
le machine/Table
• Incentive scheme and
management
• In shop activity with
partners
• TV Commercial, Radio
All brands are using ordinary promotion ways with their unique style
Marketing & Promotion: Open Channel Marketing Activities
Open Channel Introduction
14
END