distribution channels

Nokia’s global developer program, Forum Nokia connects developers to the tools,
technical information, support, and distribution channels they can use to build and market
applications around the globe. Through its website and from offices in the US, Europe,
Japan, China, and Singapore, Forum Nokia provides technical and business development
support to developers and operators to assist them in achieving their goal of successfully
launching applications and services to consumers and enterprises..
Nokia uses Dangaard Telecom.
Dangaard Telecom, headquartered in Padborg, in southern Jutland and Europe's
largest distributor of mobile phones, aims to become the world's largest distributor in the
next 12 months by cultivating new markets and developing new business areas. Dangaard
Telecom says that record revenues and profits in the latest fiscal year have fuelled its
growth plans.
Steen Folmer Pedersen, group director of Dangaard Telecom says: "In the last 12 months
we have earned more money than ever before. It has enormous importance to us and to
southern Jutland, and the fine earnings should naturally be invested in new strong growth
in all our areas".
i2 the biggest mobile distribution company in africa & middle east. Nokia , Motorola &
Sony Ericsson have made contract with i2.
Accessibility
Almost one in five of the world’s population lives with some kind of recognized
disability, including those related to ageing. Nokia is committed to providing
accessibility for everyone. We believe this is an important aspect of bridging the digital
divide. It also presents business opportunities – extending access to more people
increases our customer base.
Users' age is becoming an increasingly important consideration, especially with an ageing
population. Sooner or later everyone will develop at least some limitations in vision,
hearing, dexterity or learning. By 2015, most elderly people will have been using mobile
communications for years and will expect to continue doing so. Meeting their needs
presents a significant business opportunity.
We support a universal access policy, which is backed by support from mobile phone
manufacturers and providers in order to decrease recurring costs of ownership. This is an
ongoing target, as we firmly believe that accessibility in telecommunications is useless if
it is not affordable.
We have worked on accessibility for over 10 years and now offer a multitude of
accessibility features and applications for people with limitations in hearing, speech,
vision, mobility and cognition. Nokia was the first company (in 1997) to introduce the
loopset, an accessory that looks like a headset and lets people with T-coil hearing aids use
a wireless device without interference with their hearing aid.
Industry Distribution Channels
The structure of distribution channels in the United Kingdom is like that of Germany and
France. Retail independents had 37 percent of the handset distribution market in 1995
while multiples had 20 percent. But in 2000, multiples will sell 33 percent or 1.75 million
handsets and independents will account for 22 percent or 1.16 million. The transition will
occur in 1998.
In Italy, network operators' shops maintain the largest share of handset sales, selling 44
percent or 486,000 handsets in 1995 and 28 percent or 921,000 phones in 2000. While
this channel will continue as the most popular through 2000, it will lose market share to
network operator direct sales channel and retail multiples. The second most popular
channel, retail independents, will follow the same path as the leading channel, declining,
but maintaining second place through 2000.
In Sweden, retail multiples are close to dominating the distribution scene and will
continue to do so through 2000, accounting for 46 percent or 457,000 of the 994,000
handsets sold that year, the report said. Retail independents were the most popular
channel, but 1996 is the transition year.
China
Most of the handsets manufactured are sold in China. In 2001, 67% were sold at
home, 31% were exported and only 2% remained as stock. However due to
increasing overcapacity of production, exports have been increasing in the last year
and reached 45% in 2002.
An Overview of Handset Distribution Channels in China China
In terms of geographical distribution of sales, the share of Eastern China is 62.7%,
Central China 19.3%, and Western China 18% in 2002 (see Chart 2). However
recent trends show that the market share of Eastern China is decreasing, while those
of Central and Western China are rising. Some estimated that mobile phone subscribers
will reach about 360 million with an annual increasing rate of 26.2% by the end of 2005,
of which 24.5% will be in the eastern provinces, 26.7% in medium provinces and 31.6%
in western province.
Classification of Current Handset Distribution Channels
The distribution/retailing channels discussed in this section are mainly used by
JV brands such as Motorola and Nokia and Chinese indigenous brands. Imported
brands will be discussed later in the report.
There are mainly three categories of distribution channels.
2.1 Conventional Handset Distribution Channels
This category covers first tier distributors, including handset retailers, specialist
handset distributors, specialist handset agents, and operator outlets. They are
acting as main forces of handset distribution, amounting to total 82% of sales in
2002 (see Chart 3). Most agents or distributors often handle more than one
handset brand. For example, Shanghai CellStar International Trading Co., Ltd.
deals with many handset brands.
Number of Distributors/Retailer
There is no authoritative statistics as for the total number of handset products
distributors and retailers. There are only roughly 30 large handset distributors in
Mainland China, including chain distributors such as Shanghai CellStar, China
Everbright Telecom, Beijing Zoomflight Telecom, and China Motion Telecom, and
original computer and network products distributors such as China Digital. On the
other hand, some large handset agents hold a rather significant market share. One
example is that 3 national general agents, China Postel Mobile Communications,
Chinatelling Communication. and ChangYuan Telecom hold a combined market
share of over 50% among all handset agents.