Young marketers elite 2 Smartphone Market Analysis - Mai Bang Hong Ngoc Vo Thi

1. SMARTPHONE
MARKET ANALYSIS
Mai Bang – Vo Thi – Hong Ngoc

2. COMPETITOR
CONSUMER
COLLABORATION/ CHANNEL
FUTURE TRENDS
CATEGORY
AGENDA

3. TRENDS There are 4 trends about mobile market in the world
1. BIGGER SCREENS
Globally, sales of smartphones with larger screens (5”+) grew +180% in 2014, and
have continued to drive growth in the first quarter of 2015. Share
of such devices grew from 32% – or one third – of the global smartphone market in
the first quarter of 2014, to 47% – almost half – in the
first quarter of 2015. So it is no surprise that supersize screens are expected to be
the largest sales segment worldwide in 2015, surpassing the
4 to 4.5” segment for the first time.
2. THE RISE OF 4G
Smartphone growth in the world’s largest market,
China, slowed slightly in 2014. This was due to
a significant slowdown in 3G demand, which was
not offset by 4G growth.
3. CHEAPER HANDSETS
In the first quarter of 2015, low-end smartphones
– those priced below $250 – saw their share
increase to 56%, up from 52% in Q4 2014, at the
expense of high-end models ($500+), while the
market share of mid-range devices ($250-$500)
remained stable.
4. THE FAST GROWTH OF EMERGING MARKETS
The rapid growth of the smartphone market
has been shown to slow at country level when
saturation point is approaching. For this reason,
Spain and France are expected to see a slowdown
in smartphone unit growth in 2015 compared to 2014.

4. KEY MARKET TRENDS KEY INDUSTRY CHALLENGES KEY SOLUTION REQUIREMENTS
1. Growth in Smartphones Increasing Smartphone Incidents Mobile Handset Protection
2. Enhanced Device Capabilities Managing Device Complexity Mobile Device Support
3. Growth in Mobile Data Loss of Mobile Data Mobile Data Protection
4. Explosion in Mobile Apps Supporting Mobile Applications Mobile Application Support
Source: Frost & Sullivan
THERE ARE 4 KEY TRENDS AND CHALLENGES IN VIETNAM MOBILE MARKET

5. CATEGORY
As we can see, smartphones also represented 41% of
all mobile phones shipped to Vietnam last year and
are expected to eclipse feature phones in 2015.
Rapidly declining smartphone prices has led to the
rise of smartphone penetration rates in Vietnam
throughout 2014.
The low-cost segment has been the main driver, with
six out of ten smartphones as budget models priced
below US$150 are shipped to Vietnam ( according to
report)
Smartphones in Viet Nam are
growing rapidly

6. CATEGORY
IDC’s survey also showed that Samsung was still the
largest seller in Vietnam, even though its market share
significantly shrank from 54 percent in 2012 to 26
percent 2014.
Microsoft Mobile, formerly known as Nokia, continued
to grow with its share increasing to 24 percent from 16
percent in 2013.
Most of Microsoft Mobile’s products targeted the
middle segment, while Apple and Samsung dominated
the luxury (high-end) segment.
Smartphones market share in Viet Nam
are dominant by Samsung and Microsoft

7. COMPETITOR
Look into Vietnam Smartphone market,
there are three type of consumers:
fashion-forward youngsters, mass
consumers and power users.
Based on that, we can also divide
market by some key main product
atributes like: style/design, features,
durability and performance
Vietnam Smartphones market
Segmentation

8. COMPETITOR
Vietnamese consumers have increasingly preferred smartphones to feature phones, with a wide range of brands to choose from,
including Samsung, Oppo, Mobiistar, Q-Mobile, Asus, Sony, Apple and Microsoft. Oppo reported the strongest growth thanks to
numerous promotional campaigns.
More smartphone users in Vietnam have switched to devices with screens bigger than four inches than the same period last year.
Handsets whose price averaged VND 4.5 million were the bestsellers in the Jan-Mar period. Microsoft, Samsung, and Oppo have
many products in this price segment.

9. CONSUMER
Nam
72%
Nữ
28%
WHO ARE MOBILE INTERNET USERS IN VIETNAM
People are
WHO?

10. CONSUMER
Vietnamese people mostly
use smartphone for VIDEO,
MUSIC, SOCIAL MEDIA,
EMAIL AND APPS
Source: Nielsen –Technology and Consumer in VN
People do
WHAT?

11. CONSUMER HOW people use
smartphones?
in US in VN

12. CONSUMER
Smartphones are used
everywhere. However, they
are used mostly at home or
work
 Should focus on activities
at home or at work
Source: Google Mobile Planet Vietnam Research 2013
People use
WHERE?

13. CONSUMER
People use
WHEN?

14. CONSUMER People think
WHAT?

15. CONSUMER
95%of smartphone users
notice mobile ads
 Potential to make
mobile campaigns

16. PURCHASE DECISION BASED ON…
CONSUMER

17. CHANNEL
80%
20%
Channel Contribution
MT
GT
Smartphone are mostly sell in MT channel
Key accounts (TGDD, Viễn Thông A, FPT, Viettel), contribute from
70 to 80% amount of sell
Source: QM&E research

18. Petro
10
Master
Dealers
Small
Shops
GT Channel Distribution network
20% contribution
MT Channel Distribution network
80% contribution
1.5% margin Price off
CHANNEL
Main company doesn’t directy distribute but through PSD(petro), this party will stock their goods in warehouses and
receive 1.5% margin from the stock keeping, this is also a way to reduce pressure about inventory and aging (goods in
more than 4 weeks is beginning to be Considered as aging)

19. End Consumer
Bundle Accessories
Price off
Phone insurance
CHANNEL
Some kind of promotion to End consumer