Making a mobile statement in Asia
For Asia’s hip and swanky, carrying a mobile phone with a cracked screen and a tatty plastic cover is tantamount to a crime against fashion.
Instead, a Prada ensemble with Gucci loafers or Manolo
Blahnik stilettos demands nothing less than a diamond-encrusted
handset from China’s TCL Mobile Communication Co Ltd or an
18-carat white gold mobile with a sapphire crystal face by
Nokia unit Vertu.
Indonesian haute couture designer Harry Darsono, 54,
carries a $26,550, 215-gramme platinum Vertu cell phone to match
his Lanvin shirts and Hugo Boss shoes when he entertains
customers.
“I am very fussy. My hand phone, handbag and attire must be
part of the overall art of presentation to the clients – you
need to use their language so you can be close to them,” said
Darsono, who was educated in France and collects vintage pianos
and luxury cars.
While mobile makers are tight-lipped on revenues from their
luxury segments, analysts say high-end sales could provide a
lift as penetration rates level off and the take-up of
high-speed data services remains lacklustre.
“Luxury and glamour models offer a different level of
interest and engagement for consumers, which would spur them on
to buy more new and beautiful phones,” said Ian Woodward, a
consumer behaviour researcher at Australia’s Griffith
University
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Indonesian haute couture designer Harry Darsono, 54, carries a $26,550, 215-gramme platinum Vertu cellphone to match his Lanvin shirts and Hugo Boss shoes when he entertains Advertisement customers Advertisement |
London-based Vertu and Finnish parent Nokia, the world’s
top handset maker, began developing the luxury models as early a
s 1997, Vertu President Nigel Litchfield said.
“As the industry became increasingly saturated in the last
few years, manufacturers were compelled to discover new markets
and identify upcoming trends in mobile phone consumption.”
At the end of 2003, Asia accounted for a third of Vertu’s
total business, Litchfield said, adding that Hong Kong was its
largest single market.
Fashion phones
Shiv Putcha, senior analyst with The Yankee Group, believes
fashion phones could invigorate sales for handset makers, as
slow data download speeds, poor content and handset glitches
leave users disappointed with 2.5G and third-generation (3G)
networks.
“Most of the models in the market do not address the
consumer’s need for increased personalisation, and I believe
this to be a significant driver of growth,” he said.
Given Asia’s high cell phone replacement rate – every nine
to 18 months compared with about two years for Europe and the
United States – the region is the logical market to launch
iconic handsets, Putcha said.
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Motorola Inc, the world’s second-largest cellphone maker,
said its line of fashion phones enjoyed triple-digit growth
rates in the first quarter of 2004 over the final three months
of 2003 in Southeast Asia, Australia, New Zealand, India,
Bangladesh and Pakistan.
“In Asia, phones are much more of an aspirational statement
about who you are and who you want to be,” said Scott Durchslag, a
Motorola corporate vice president.
Motorola recently launched a clamshell V600 model that
offers interchangeable covers studded with clear Swarovski
crystals, and Nokia’s new 7200 model offers fabric covers that
have analysts calling it the Louis Vuitton phone.
Gem-encrusted handsets also became the rage in China, the
world’s largest wireless market, after TCL Mobile made waves in
2000 with the launch of its diamond-studded mobile phones.
Its limited edition range with genuine gemstones costs up
to $2400.
Lucky charms
TCL Mobile, which is seeking a separate listing in Hong
Kong and is 40.8%-owned by TCL International Ltd,
controls about one-tenth of China’s cellphone market.
“Attaching jewellery on the phone adds a cultural and
spiritual dimension to the product,” said TCL Mobile’s managing
director, Wan Ming Jian.
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“To many Chinese, precious stones symbolise esteem, good fortune, peace and love. So, jewelled mobile phones are not just communication tools, they also act as lucky charms” Wan Ming Jian, |
“To many Chinese, precious stones symbolise esteem, good
fortune, peace and love. So, jewelled mobile phones are not just
communication tools, they also act as lucky charms,” he said.
TCL Mobile sold more than 12 million jewelled phones –
most of which had fake gems – between 2001 and the first six
months of 2003.
Analysts said handset makers in China – numbering between
30 and 50 – needed to differentiate their products to survive
in one of the world’s most fragmented and competitive markets.
“Growth in China’s mobile phone sales has been slowing –
from 50% in 2002 to 30% last year, and a forecast
10 to 15% in 2004,” said an analyst with BOCI Securities
Ltd in Hong Kong.
“You need to stimulate your customers to buy new phones by
adding new features. You have to distinguish yourself from the
competition to protect your market share,” he said.