Donghai Liu, founder of D.Phone, outlines trends in China's mobile consumer market. There are three market segments based on development: 1st class markets in major cities see competition from electronics stores while D.Phone maintains share; 2nd class capital cities have growing competition from stores; and D.Phone leads the 3rd class rural markets. Mainstream consumers are getting younger, aged 18-35, as rural areas urbanize and demand in smaller towns expands. Consumer needs are shifting from voice to mobile internet as services like music and video grow. D.Phone is expanding its marketing across print, social media, and public events.

1. Donghai liu
Founder of d.phone

2. The new trends of mobile consumer market in China
D.Phone--The Leading Mobile Retailer in China

3. Subject
●Three mobile consumer market segments in China from D.phone perspective
and their features
● Mainstream mobile consumers are getting younger
● Following the urbanization of the countryside market, mobile phones are
entering into emerging towns in rural China
●Consumer needs in 3G era are changing from voice communication alone
to mobile internet
●Marketing channels in mobile phone sector have changed from print
media to multimedia platforms
D.Phone--The Leading Mobile Retailer in China

4. China Market Market area & Market features & competitive
Segmentation description environment
Beijing, Shanghai Highly developed; Competition mainly comes
1st Class Market Shenzhen, Tianjin etc. from 3C chain store; both 3C chain store and
Main developed cities mobile chain store leading the market. D.Phone
in China maintains a stable market share in the 1st Class
Market.
Changsha, Chengdu, The level of competition is in between 1st and 3rd
2nd Class Market etc. The capital city in Class markets. Mobile chain stores leading the
each province mobile consumer market , 3C chain stores are
upcoming
Other areas such as Competition comes from local chain stores.
3rd Class Market counties, countryside, D.Phone leading the mobile consumer market in
etc the 3rd Class Market
D.Phone--The Leading Mobile Retailer in China

5. 1st Trend
Mainstream mobile consumers are getting younger: those with
ages from 18 to 35 are the main buyers, especially those who
were born in the 80s and 90s. Our strategy has to be in line with
their life styles and consumption needs.
Mainstream mobile consumers
D.Phone--The Leading Mobile Retailer in China

6. 2nd trend
Urbanization – emerging town market in China. If D.Phone opens two new
stores in a typical town in China, it will grab 60% share of the local market.
Cell phones demand in T3 -T6
significantly expand the market demand
400 100%
10 % %
Prices fell greatly with the cost 320
80%
300 Rapid growth in rural 299
272
reduction areas as a new niche 245
260
232 226 60%
200 market 193 198
172
152 159
127
148
3G & 3.5G HSDPA phones will enter 40%
119
94 93
109 towns and counties
100 79 84 85
56 65 20%
51 45 51
37 37
11 20
0 0%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008e 2009e 2010e 2011e 2012e
D.Phone--The Leading Mobile Retailer in China

7. 3rd Trend
Consumer needs in 3G era are changing from voice communication
alone to mobile internet
Mobile Internet includes the following services: Music, Photos, Short Video, Mobile
Search (MS), and Mobile TV.
The following chart shows MS is rapidly gaining popularity among mobile value-
added service users.
D.Phone--The Leading Mobile Retailer in China

8. 4th Trend
Promotion and marketing publicity, from the traditional media into a
full-face product promotion
Multimedia advertising including SNS social networking, kaixin, BBS,
ebay, Youku, Taobao, and large-scale public relations activities on top of
the traditional print media advertising
D.Phone--The Leading Mobile Retailer in China

9. Thank You !
D.Phone--The Leading Mobile Retailer in China

11. li shanyou
founder and ceo, ku6.com