india market research

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


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


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


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


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

GA

LA

XY

CO

RE

2 G

355

G360H

GA

LA

XY

CO

RE

PR

IME

DU

OS

A6

000

GA

LA

XY

J1 S

M-J

100H

CA

NV

AS

JU

ICE

2 A

Q5001

LU

MIA

535

DU

AL S

IM

GA

LA

XY

GR

AN

D N

EO

PLU

S

LU

MIA

540

DU

AL S

IM

LU

MIA

535

DU

AL S

IM

GA

LA

XY

J2 S

M-J

200

CA

NV

AS

JU

ICE

2 A

Q5001

GA

LA

XY

GR

AN

D N

EO

I9060

GA

LA

XY

GR

AN

D P

RIM

E V

E G

531F

…

SM

-G530 G

ALA

XY

GR

AN

D P

RIM

E

DE

SIR

E 5

26G

+

A7

000

XP

ER

IA E

4 D

UA

L

MA

RA

TH

ON

M3

G7102 G

ALA

XY

GR

AN

D 2

SM

-E5

00H

ZW

D G

AL

AX

Y E

SO

O

SM

-A3

00 G

AL

AX

Y A

3 1

6G

B

IPH

ON

E 4

S 8

GB

XP

ER

IA M

2 D

UA

L

DE

SIR

E 6

20G

DU

AL S

IM

SM

-E700H

ZW

D G

ALA

XY

E700

SM

-E500H

ZW

D G

ALA

XY

E500

XP

ER

IA C

3 D

UA

L D

250

2

DE

SIR

E 6

26G

PLU

S

LU

MIA

640

XL D

UA

L S

IM N

FC

3G

GA

LA

XY

AS

16G

B A

sO

O L

TE

7-8K 8-10K 10-12K 12-15K 15-20K

Source: GFK 1510


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


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



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.



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


14

india market research

Documents