The Smartphone Dominating Africa

Apple and Samsung may seem like the big players in the smartphone market, but Chinese company Transsion dominates one of the largest markets in the world: Africa.  Transsion’s primary smartphone brand, Tecno, has become a staple throughout the continent, with its blue logo lining the streets of major cities like Nairobi.  Transsion brands Itel and Infinix have also found major success in the African market.

Transsion’s rise to domination in just a decade is a result of its “glocalization” strategy.  Though the company is based out of China, Transsion largely ignored the Chinese market.  Instead, it focused on the developing African market, creating affordable cell phones that were designed specifically for African consumers.  The phones have a long battery life, which is important since Africa has the lowest electrification rate in the world, and can also receive FM radio signals.  Transsion’s phones also have multiple SIM card slots, which lets consumers switch between providers to save money or continue to receive service in areas with insufficient coverage.  Founder Zhu Zhaojiang says he does not target the wealthy consumers who are more likely to turn to brands like Apple.  Instead, Transsion caters a broader market and sells some smartphones for as little as $10.

Now, Transsion is aiming to repeat its dominance in Africa by focusing on India and otherparts of south Asia.  India is one of the fastest growing cellphone markets in the world.  Securing a strong foothold in the Indian smartphone market will be important for Transsion to continue its growth and become a major player like Huawei and Samsung.

The company plans on emulating its success in Africa and building a manufacturing plant in India to focus on the needs of Indian consumers and ensuring a low price point for consumers.  While focusing on creating specialized products for the local market clearly worked for Transsion in Africa, the Indian smartphone market is further developed and thus more competitive.  Yet if there is one strategy that would successfully disrupt the Indian smartphone market, it is likely Transsion’s glocalization strategy.

The Smartphone Dominating Africa