Will European Financial Downturn Help Or Break China Cell Phone Industry?
The world is definitely struggling financially.
Following 2010 it was discovered that Greece’s public debt was 120% larger than its GDP, leading to incredibly hard financial measures. Following 2011 Italy announced much the same position saying that it was 1.9 trillion Euros in financial trouble.
The economy, and debt, of Italy was large that it wasn’t easy to eject Italy from the Eurozone without the collapse of the Euro.
With Europe now in turmoil there are now signs that China’s slowdown could possibly be faster than anybody would love.
All this means more tougher times for the retail industry ahead, but what about the electronics sector, particularly people who sell cheap cell phones?
The outlook is surprisingly good.
Sales of cheap cell phones happen to be dropping in developed markets for a long time. Most people had already bought their cheap phone and were either satisfied with it or were trying to upgrade to a smartphone.
Developing markets were the genuine powerhouses behind the cheap cell phone market with sales in Russia, Brazil, India and lots of countries in Eastern Europe surging in front of the 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 cheap cell phones inside developed world in the near future as individuals need to replace their old phone but cannot afford the data plan and outright price of a smartphone.
That doesn’t mean there won’t be added challenges though.
Reports coming from India (a major market for Shanzhai unlocked phones) suggest 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 onto customers.
This is indicative of the kinds of changes the world will be dealing with soon and so anybody selling OEM phones might attempt to add value to it, either by offering the phone with a larger Facts, includingn music downloads or some other incentive too keep customers loyal and ever coming back.
Is the cheap cell phone market struggling? Early indications would appear to be no. But it would still be wise to start looking at solutions to add value to your items to help make your customers feel like you are providing them with something a little bit more than the smallest amount.
Come to iSourceChina for the latest Qwerty phones online.
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