Could European Financial Downturn Improve Or Break Wholesale Mobile Phone Industry?
The world is definitely struggling financially.
At the conclusion of 2010 it was discovered that Greece’s public debt was 120% larger than its GDP, leading to incredibly hard financial measures. At the conclusion of 2011 Italy announced an identical position saying that it was 1.9 trillion Euros in financial trouble.
The economy, and debt, of Italy am large that it wasn’t possible to eject Italy from the Eurozone without the collapse of the Euro.
With Europe now in turmoil now there are signs that China’s slowdown could possibly be faster than anybody would really like.
All this means more tougher times for your retail industry ahead, but what about the electronics sector, particularly people who sell China cell phones?
The outlook is surprisingly good.
Sales of China cell phones are already dropping in developed markets for years. Most people had already bought their cheap phone and were either pleased with it or were aiming to upgrade to a smart phone.
Developing markets were the actual powerhouses behind the China cell phone market with sales in Russia, Brazil, India and lots of countries in Eastern Europe surging before UK, the US and countries in The european union.
The only exceptions to this were Italy and Greece where sales of sub 100 USD phones were especially strong.
Essentially it will mean that there is an upturn inside sales of China cell phones inside developed world in the near future as people need to replace their old phone but can not afford the data plan and outright expense of a smartphone.
That doesn’t mean that there won’t be added challenges though.
Reports appearing out of India (a major market for Unlocked unlocked phones) advise that the market there is consolidating with smaller phone sellers (who simply re-badge OEM phones) being pushed out by larger brands who increase the value of their phones before selling them to customers.
This is indicative of the kinds of changes the world will be experiencing soon and so anybody selling OEM phones might consider adding value to it, either by offering the phone with a larger SD card, includingn music downloads or some other incentive too keep customers loyal and coming back.
Is the China cell phone market in trouble? Early indications would appear to become no. But it would still be wise to start looking at methods to add value to your items to you could make your customers feel like you are going for something a little bit more than the smallest amount.
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