With the introduction of a great number of new models and the channel advantages, the Chinese mobile phone manufacturers become more competitive in the market in 2003.
In 2004, after summarizing the experiences gained from the previous year, overseas mobile phone manufacturers carried out a series of channel restructuring actions. The mobile giants, such as Motorola and Nokia, after had withstood the offensives from the Chinese mobile phone manufacturers in the front-end channel by a strategy of late-development. Meanwhile, they succeeded in extruding Chinese mobile phone manufacturers’ survival space with the advanced back-end technologies.
Year 2004 Chinese mobile phone manufacturers encountered frustrations. Most of them established their own distribution channels, targeting at the second, third and fourth level markets. With a long and deep distribution channel plus a huge number of channel maintainers, the sales cost went high. Moreover, long distribution channels caused overstock and long period of capital return. Even though the Chinese mobile phone manufacturers had excellent design solutions and market plans, they were unable to introduce their products timely due to being short of money to buy component parts. In the first half of 2004, releasing of new products by Chinese manufacturers was obviously slower than that of overseas manufacturers.
Major trends of mobile phone distribution channels in 2005:
Manufacturers optimize distribution channels on their own.
Some manufacturers try to explore the channel potentials in the third and fourth level markets;
Fulfillment Distributor (FD) mode further enter into mobile phone industry.
This report also addresses the following issues:
Characteristics of mobile phone distribution channels in China
Marketing channels transformation of Motorola, Nokia, Samsung, Bird, etc.
Development trends of major mobile phone distributors (such as general agent, chain store, etc.)
General trends of mobile phone sales in 2005
General trends of mobile phone channels in 2005
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