What Will Happen With Wholesale Mobile Phone Sector In European Economic Downturn?
The world is definitely struggling financially.
After 2010 it was discovered that Greece’s public debt was 120% larger than its GDP, causing incredibly hard financial measures. After 2011 Italy announced much the same 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 might be faster than anybody would love.
All this means more tougher times to the retail industry ahead, but think about the electronics sector, in particular people who sell cheap phones?
The outlook is surprisingly good.
Sales of cheap phones have been dropping in developed markets for years. Most people had already bought their cheap phone and were either satisfied with it or were seeking to upgrade to an Android smartphone.
Developing markets were the real powerhouses behind the cheap phone market with sales in Russia, Brazil, India and many countries in Eastern Europe surging before UK, the US and countries in Western Europe.
The only exceptions to this were Italy and Greece where sales of sub 100 USD phones were especially strong.
Essentially it might mean that there is an upturn within the sales of cheap phones within the developed world in the near future as young people need to replace their old phone but do not want the data plan and outright tariff of a smartphone.
That doesn’t mean there won’t be added challenges though.
Reports coming out of India (a major market for China cell phones) declare that the market there is consolidating with smaller phone sellers (who simply re-badge OEM phones) being pushed out by larger brands who add value to their phones before selling them to customers.
This is indicative of the types of changes the world will be experiencing soon and so anybody selling OEM phones might attempt to add value to it, either by offering the phone with a larger Sdcard, includingn music downloads or some other incentive too keep customers loyal and coming back.
Is the cheap phone market having problems? Early indications would appear to become no. But it would nevertheless be wise to start looking at solutions to add value to your items to you could make your customers feel like you are providing them with something a little bit more than the least.
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