According to the GSMA, more than 65% of the global population will adopt smartphones by 2020, with emerging markets forecasted to lead this growth. In its 2015 forecast, global research firm Gfk states that seven of the 10 leading smartphone markets are emerging nations. With this in mind, in order to capture the attention of consumers in developing nations, mobile device manufacturers and network operators will need to adapt their offerings over the next few years.
For example, for mobile manufacturer Samsung, which took a significant earnings hit in 2014 in key markets – including China, where Xiaomi has established itself as a market leader – 2015 will be crucial. As the demand for mobile connectivity in these markets grows, mobile devices must stand out among competing products, especially in regard to ease of accessibility and content relevance.
Manufacturers must localize their offerings effectively
Despite the promise of consumer attention in emerging markets, many device manufacturers currently fail to provide localized services. Brands must realize that the mobile communications and desired content of users in developing nations differ from consumers in the west such as the U.S. and U.K. Consumers in major developing nations including Brazil, China, India, Nigeria and Vietnam, would like to access health service content and corresponding apps in particular. Currently, only 33% of consumers have access to such content.
In addition, 44% of mobile device users in these countries said they would prefer access to educational apps. With this in mind, it’s imperative for mobile device makers to adapt what they typically offer in the west to appeal to consumers in the rapidly growing markets. Ultimately, if widely familiar global brands like Samsung and Apple want to remain as leading mobile manufacturers, they must adapt to the habits of global consumers, especially the 24% who have difficulty finding content they can actually access on their device.
Operators must overcome payment obstacles
Notably, network operators can increase their reach in emerging markets by removing current payment barriers – this is significant. Because consumers in emerging markets often do not have direct access to banking facilities, credit card payment services are nonexistent and are, in fact, a barrier to entry.
Currently, one in six mobile device users cannot access content from app stores, and one in four cannot locate the content they search for via their mobile device. More than 40% of consumers in emerging markets prefer to browse and buy mobile content on their devices. Mobile consumers cannot access content via the Apple App and Google Play stores because they do not have access to credit cards. Overcoming this payment barrier will be necessary in order to acquire users, and ultimately retain customers worldwide.
In conclusion
The past year proved that long-leading network operators and device manufacturers in these nations can be outpaced – the landscape is changing. While Xiaomi has surpassed Samsung in China, Huawei began to show promise – increasing sales of its Honor brand of smartphones from 1 million to 20 million in one year – in the smartphone market in 2014, as well. And, with connectivity in emerging markets on the rise, 2015 poses a significant opportunity for network operators and device makers to expand their presence in these areas. In order to do so, offerings and services will need to be adapted to the needs of consumers in emerging markets.
Competition is increasing, which means network operators and device manufacturers must meet consumer demands through the localization of services, with more effectiveness than ever. By localizing content and app accessibility, operators and manufacturers gain the ability to increase customer acquisition across the globe.
Editor’s Note: With 2015 now upon us, RCR Wireless News has gathered predictions from leading industry analysts and executives on what they expect to see in the new year.
