Virtual shops: Looking for smarter ways to cut costs

Phone-makers tapping into growing e-commerce market.

KARACHI: The ever rising demand for smartphones in Pakistan is not only attracting several new players but also taking competition to a higher level as smartphone makers are coming up with new ways to tap this growing market.

With growing number of entrants and an increasing demand, innovative ways to out ‘smart’ each other are being thought of.

Take for example Infinix Mobility, the latest entrant to the Pakistani market that operates on a direct factory-to-consumer business model. The company sells its phones in partnership with e-commerce websites, bypassing conventional retailers and distributors.

“Our main strategy is to sell directly to the consumer, which helps cut operational costs by up to 50%,” Andy Yan, Group Vice President Transsion - parent company of Infinix Mobility - told The Express Tribune on Tuesday.

“Based on market studies, we believe the ecommerce will take over conventional retail in future,” Yan said, explaining why they are betting on the ecommerce channel.

Giving an example, Yan said more than 30% of smartphones sales in China are through the online channel. “Though Pakistan is far from that level, we are very optimistic about this market,” he said.

The demand for smartphones as well as basic internet phones has been on the rise in Pakistan since the last-year auction of mobile broadband technology: third-generation (3G) network and the advanced long-term evolution (LTE) or 4G network.

Published in The Express Tribune, July 29^th, 2015.

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