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Official: Domestic Cellphone-makers in China to Enhance Competitiveness
    2008-03-27 14:26:43     CRIENGLISH.com

China has the world's largest mobile phone market. But its domestic market has gradually being dominated by foreign brands like Nokia and Motorola.

In order to support the healthy development of a domestic mobile phone industry, the Chinese government is offering preferential policies to urge the domestic producers to improve the quality of their products to regain the home market.

CRI reporter Chen Xi has the details.


China produced about 150 million new domestic cell phones in 2007, accounting for only one-third of the market share. The rest of the market is dominated by international mobile product giants including Nokia, Motorola, and Samsung.

Some consumers explain why they like the foreign brand mobile phones better.

"I think cell phones in China are acceptable, but they are not as fancy as foreign brands, particularly for young consumers like me. We like mobile phones with both an attractive appearance and good functions."

"I basically prefer to use foreign brands. The domestic cell phones are good, but they are not really convenient for us in terms of post-sale service."

Xu Rongling is a retailer from central China's Henan Province. He says domestic mobile phones are actually more attractive to consumers because of their low prices, but the quality and post sale services cannot compete with foreign brands. The retailer adds that the domestic producers should do more to increase their sales by optimizing their business strategy.

"The production volume of domestic cell phones is indeed increasing, but the profit is showing a declining trend. As a retailer, I wish we could contact manufacturers directly, without any middleman. This, I believe, would add to our incomes."

As domestic mobile phone producers are facing a grimmer market for them, the government is urging them to regain the home market by improving the quality of their products and pay attention to their brand value building.

Xie Linzhen is with the Industry and Information Ministry. He voiced the urge at a gathering of domestic mobile phone heavyweights Wednesday in Beijing.

"We should comprehensively improve the integrated competition capabilities of mobile phone makers, which are generally based on quality and brand value, so as to enhance their performance in international markets."

Xie Linzhen said the government is planning to create a sound, standard marketing environment for homemade mobile phone producers, particularly in terms of market access and logistics, among other preferential policies.

Zeng Qiyou is deputy manager of China's domestic mobile phone giant Dopod. She expressed her confidence in regaining the market as he believes that domestic producers know their customers better.

"The advantage of domestic cell phone makers is that we understand the practical needs of consumers better, which will brings more convenient day-to-day use. However, we are still in the process of accumulation which I believe will help foster our success in the future."

Chen Xi, CRI News.




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