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Whose Era? -- China's Mobile Phone Sales Channels

2007-04-02 19:44 858



BEIJING, April 2 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, the first Chinese consulting firm listed in Hong Kong (stock code: HK08235), recently commented on China's mobile phone sales channels, indicating that they are expected to enter a new era of "national general agents".

Li Jun, CEO of CCID Consulting, says China P&T and Telling, the two largest national general agents in China respectively, released sales figures which startled the industry in early 2007; both achieved growth much faster than average market growth during the same period. In 2006, China P&T Appliances sold a total of almost 43.20 million communication terminals. These included 33.82 million sets of mobile phones, accounting for a market share of close to 30%, up by 120% year-on-year. Telling sold 12.47 million sets of mobile phones, up by 116% year-on-year, with a market share of over 10%.

Do the huge sales volumes and market shares of almost 50% by these 2 national general agents imply a return of the national general agent model (Level 1 model) in the traditional sense? Has the mobile phone sales channel model changed by the self-built channel model and small regional agent model, and the FD model of Nokia and Motorola, returned to the past era? Whose era, then, will mobile phone sales channel models in China head for?

CCID Consulting's research reveals that in the next 5 years, distribution, direct supply and operator models will be the three main channel models in China. The distribution model, represented by such national general agents as China P&T Appliances and Telling, will gain a dominant position. Meanwhile, the traditional level-by-level national agent model will be thoroughly changed. Traditional national agents will be replaced by integrated marketing services providers.

Firstly, amidst the pains of channel change, traditional national agents have fully implemented flattening reforms and developed direct retail customers and direct supply terminals to gradually replace former Level 2 & 3 distributors. Taking Telling and Fortune Telecom as examples, the two companies have not only expanded the sales coverage of their branches since 2004, but more importantly, greatly increased direct supply retail shops. In 2006, both Telling and Fortune Telecom had over 10,000 retail customers and covered more than 30,000 terminal shops.

Secondly, there has been deep involvement in retail and mobile phone repair businesses. In 2006, China P&T Appliances set up CentreYou to engage specially in mobile phone sales and repairs. It transferred all the businesses in 10 major sales regions and PTAC's over 200 mobile phone marketplaces to CentreYou to operate, renaming them as CentreYou. Telling set up Itell and Tellingtech to specifically engage in retail and after-sales repair services, making breakthrough progress in 2006.

Thirdly, capital operations laid solid fund foundations for terminal makers and operators to provide network-wide marketing solutions. Currently, 2 of China's 6 largest national agents have been receptively listed in Shanghai and Hong Kong. Meanwhile, JiangXi Gannan Fruit, which controls Telling, is positioned to launch a 700 million Yuan capital and share expansion plan. The No. 1 general agent China P&T Appliances is also actively integrating its internal resources and planning the listing of its mobile phone distribution businesses.

Mobile phone sales channels in China are therefore expected to enter a new era of "national general agents". By then, the center of channels in the whole mobile phone market will shift to a few channel distributors with total network coverage, strong ability of professional management, fast response, high efficiency and sound logistics and information platforms.

About CCID Consulting

CCID Consulting Co., Ltd (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas of the powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.

CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://www.ccidconsulting.com/default_e.asp .

For more information, please contact:

Grace Gao

CCID Consulting Co., Ltd.

Tel: +86-10-8855-9020

Email: gaojie@ccidconsulting.com

Source: CCID Consulting Co., Ltd.
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