Chinese handset vendors go abroad
By Linda Sui (China Daily)Updated: 2006-12-04 09:20
Chinese handset makers, coping with intensifying competition at home, have
been ramping up their efforts to tap into the overseas markets in the past
years.
BDA expects total export volume of domestic vendors to reach over
32 million units this year, up from about 20 million units last year, with
Huawei, ZTE, TCL and Bird accounting for the bulk of sales.
Chinese
companies use a range of strategies when entering overseas markets. Generally,
there are four approaches to overseas market entry: ODM, agency/distributor,
operator channel and establishing a proprietary sales channel.
ODMs
manufacture handsets for overseas branded vendors or operators, who then use
their own brand logos on the handsets. For branded exports, domestic vendors
usually go through local agencies/distributors or work closely with operators,
as well as build up their own sales channels.
Bird and TCL: Leading the
pack
Ningbo Bird's exports totalled more than 6.1 million units in 2005,
up from 3.3 million units in 2004. It mainly targets emerging markets with its
mid- and low-end GSM/GPRS products.
BDA believes the company will fail
to reach its 2006 export target of 8 million units, given its lacklustre
performance over the first three quarters of this year.
In the past,
Bird has entered emerging markets through local agency/distributors.
Bird has set up its own sales channels for robustly emerging markets
such as India.
Additionally, it works closely with vendors and operators
in developed markets through the ODM model. Reportedly, ODM and branded exports
contribute evenly to Bird's total exports to date.
In terms of ODM, Bird
provides handsets to Sagem and European operators, such as Vodafone and Orange.
For branded exports, Bird uses its own sales channel in India and works through
agencies/distributors in Russia, the Middle East and Southeast Asia.
| 1 | 2 | 3 | 4 |  |
(For more biz stories, please visit Industry Updates)