China's Transsion phones outsell Samsung in Africa
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A Nigerian man takes a selfie with a Tecno smartphone made by Transsion Holdings Ltd, a Shenzhen-based phone maker. [Photo provided to China Daily] |
Jessie Ding, a Shanghai-based smartphone analyst at consultancy Canalys, said what really helped Transsion secure dominance was its efforts to stay local in Africa and the management team's abundant experience in overseas markets.
Zhu Zhaojiang, founder and CEO of Transsion, has been in the smartphone industry for nearly two decades. Before setting up Transsion, he headed up the overseas business for a domestic firm and had traveled to more than 90 countries to explore opportunities.
Ding said: "Such experience gives Transsion an advantage in dealing with Africa's highly fragmented retailer landscape. The team knows what local businessmen want and how to build trust."
Instead of relying on telecoms carriers to sell handsets, Transsion set up its own retailing network in more than 30 African countries. Abdirahman Mohammed, a phone dealer based in Nairobi, Kenya, is one of them.
Mohammed said: "Transsion phones come in many varieties, with three brands covering the low, middle and high-end markets. Tecno is one of the best sellers in my store." He sells 70 to 100 Tecno phones every month and earn roughly $5 per phone.
To build up its reputation, Transsion has carried out an aggressive advertising campaign rarely seen in the Africa market. The strategy also increased local retailers' reliance on Transsion, because in this way, they don't need to spend much on advertising.
In 2011, Transsion set up a smartphone plant in Ethiopia, the first one in the African continent, to help speed up product delivery and lower costs. Now it is working on a new plant in Nigeria.
Michael Wandey, the administrator of a publishing company in Kenya, said his Tecno smartphone has the same features as other brands but is much cheaper.
"Its battery strength is very impressive. I also like its clear camera. Tecno will also be the top choice for my next handset," Michael said.