Mobile handsets are available in market at retailers end is just because of the distributors. Basically they take responsibility of distributing mobile brands through various channels. Distributor has market knowledge and effective field force that target retailers and pitch their handset on the shelves. Every retailer has its own shelf space to showcase the mobile brand but it varies from promotions and schemes provided to retailers in order to promote the brand.
Nowadays, every mobile or durable company has third party contract of distribution including their own company’s sales team. Distributors have better ideas to circulating product in the relevant targeted market than that of any others. Usually, the fall or rise of any product is in the hands of distributor by creating its presence in the market at retail end. Afterwards, it is a role brand/product itself to satisfy its target customers.
Let’s discuss about what would happen if such a strong distributor launch its own brand in Mobile Handset and Durable. Earlier Samsung PTV (Panel TV) was distributed by third party TWP but suddenly that distributor backed off and introduced new PTV brand in Pakistan market i.e. Ecostar which is doing good in the market and so far gained 2.75% market share. This brand of PTV is giving tough competition of all Chinese brands available in the market.
Similarly, United Mobile was the famous distributor of Nokia but now they recently launched its own mobile brand with the name of VOICE. Lunching own brand is beneficial for distribution companies because of their past experience in distribution of same product. They can easily and better gauge the dynamics of market of mobile handsets.
In future, Voice might give tough competition to all mobile brands especially to Chinese brands. Currently it’s trying to penetrate the market by same offering and operating systems but time would tell the future of Voice mobile handset in this saturating market of mobile handsets. By launching own mobile brand in the market might create difficulty for Nokia to make firm steps and sustain in the market where QMobile is already giving heart attacks to various mobile brands.