January 9, 2007
Japanese Mobile Phone Makers Locked out of China
Interesting insight from Cellular News on why Japanese cell phone companies have not been successful in China.
"They've relied too much on R&D and phone quality, and invested too little in branding, advertising, and developing sales channels. They've also failed to introduce enough models at a broad range of price points that appeal to cost-sensitive Chinese consumers. Also, the design preferences of Chinese consumers generally work to the advantage of South Korean brands, and to the disadvantage of Japanese brands.
Japanese companies have mainly staffed their China offices with Japanese managers who operate according to Japanese management styles," explains THT's Myers. "In addition, there's the nationalist factor to take into account: when good quality and well-priced alternatives are available, Chinese consumers generally prefer, for all kinds of historical reasons, not to purchase from Japanese companies."
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