Kazi Najib Ashraf: the battle of mobile brands

So, you are a mobile phone or an associated accessory brand and want to enter the high ASP market of the Middle East.

Your natural tendency is to get yourself on to the regional show window of the region: the United Arab Emirates (specifically Dubai). A natural selection of premium markets, many a brand have entered this gleaming arena only to be subdued and later diminished by the power brands. There is a certain phenomenon that must be respected and kept in mind while reaching out in the region, and unless one is ready to play by these rules, it’s better to stay away, lest your money become a memory.

The middle markets, specifically the GCC (Gulf Cooperation Council) countries, offer a very high ASP for mobile devices, at present in the range of USD 150-175. Established brands on the retail and Key Domestic Retailer levels always spend millions in terms of branding and advertising, keeping the top of mind share active. Here Apple, Samsung, Huawei and Honor take the top spots as mobile business gets associated with these names. The second challenge is a rapidly shifting expatriate population in these markets as a majority of the labour workforce across these levels is formed by foreigners. These individuals are always looking for brands that are known for their durability and have service facilities internationally. Almost 85% of the market is captured and shared between the above-mentioned brands, leaving little room to be shared by others. The same goes for used devices.

The last factor is an ample availability of grey product through trading channels. Most of these devices also consist of the same brands as mentioned above, leaving little room for new entrants to maneuver.