Chinese brand enters competitive Kenyan smartphone market

OPPO takes on global tech giants Apple and Samsung

Chinese electronic manufacturer OPPO is preparing to stake its claim in the competitive Kenyan market by unveiling its smartphone series before the end of April. The Chinese brand says its entry into the East African country will be a launching pad into the greater East and South African markets.

In an interview with China Daily, the marketing director, Wayne Zheng, says the region is suitable for its strategy because of its youthful population. "Our product is designed for those who consider themselves young and trendy," he says. "These are people who are tired of the conventional designs found in the market and want something that will make them stand out."

The company will unveil the N3 series, which has a rotating camera, and the R5, one of the slimmest smartphones in the world.

The company has set aside a budget of $12.2 million to market its products. Part of the budget will be spent on branding while the rest will be to drive sales through promotions.

The electronic manufacturer has earmarked 20 outlets to sell and market its brand. OPPO N3 will go for about 60,000 Kenyan shillings($642) while the OPPO R5 will retail at 48,000 shillings. The OPPO smartphones are set to compete with other mid to high-end phones that are already making inroads in Kenya.

The Samsung S5 Mini with dual SIM card retails at 34,000 shillings and the S3 Neo sells for 20,000 shillings. Samsung's S5 16GB is retailing at 46,300 shillings. The brand is set to unveil its Galaxy S6 and Galaxy S6 Edge devices sometime in April.

Apple is also available in selected Kenyan stores. Its iPhone6 retails online at 67,999 shillings while the iPhone 6plus is sold at 78,950 shillings.

The Chinese brand ZTE is selling its ZTE Blade S6 plus at 37,000 shillings, the ZTE Nubia Z9Max at 47,250 shillings and the ZTE Grand S3 at 52,500 shillings.

Zheng says OPPO's pricing is reasonable and the products' price tags reflect their research and innovation.

"We believe in doing things right. We also believe in partnerships and taking responsibility. These are our core values," says Zheng.

Founded in 2004 with its headquarters in Dongguan, Guangdong province, the electronic manufacturer has about a 7.1 percent market share in China and is already selling its products in over 21 markets including Egypt and Morocco. It expects to enter the West African market later this year.

"OPPO is young but a thriving company. It is moving fast by capturing a reasonable market share within one and a half years of operation. Our strategy is to be strong in retail marketing, meaning interacting with the end user and getting to understand and meet their needs," he says.

He explains that by targeting open markets, the brand has avoided the big budgets associated with closed markets that are driven by mobile operators. "We believe once we prove ourselves with the customers, the mobile operators will come calling." In Kenya, Safaricom Ltd is the biggest mobile phone operator, commanding about 68 percent of the market share.

The company that started manufacturing MP3 and MP4 players launched its Smartphone bid in 2014. "Our objective to follow market trends has been successful and we are committed toward delivering a delightful experience through meticulous designs using high-end technology."

In December the brand had 2,000 inclusive shops with 80,000 points of sale in the Chinese market. Its main competitors in the local market include Chinese manufacturers Huawei and ZTE.

lucymorangi@chinadaily.com.cn

(China Daily Africa Weekly 04/17/2015 page19)