France-based mobile phone manufacturer Wiko aims to gain a 2% share of the Thai market by the end of this year, before reaching 4% by 2024, with a focus on the middle- to low-end smartphone sectors.
The Wiko brand ceased its marketing activities in the Thai market over the past six months, but has now resumed them with its new sole distributor, VST ECS (Thailand).
According to Wang Wei, sales director at Wiko, Thailand is a strategic market for Wiko smartphones, because of Thai people’s widespread adoption of digital services and social media use, especially among teenagers.
Wiko is targeting customers in the middle- to low-end smartphone sectors with a focus on teenagers, a group that has strong dynamic demand. The strategic price range of Wiko smartphone models has been set at 2,200-5,000 baht.
The company aims to launch two 4G smartphone models in the country this year, while 5G smartphones will be launched next year, Mr Wei added.
There are currently over 40 million Wiko smartphone users worldwide. Wiko commands the second-largest market share in France and is ranked fourth in Western Europe. In Southeast Asia, it sells its products in Thailand, Malaysia and the Philippines.
Last week Wiko and VST ECS (Thailand), an IT product distributor, together with 25 IT product dealers, signed a partnership contract for the distribution of Wiko smartphones nationwide.
Wiko resumed its marketing activities again in the belief that there will be a large number of Thai fans and customers through its philosophy of creating high-quality, cost-effective smartphones at affordable prices, with sales and after-sales units near the homes of its consumers, Mr Wei said.
Mr Wei said there are 2.5 million Wiko smartphone users in the country, representing less than 1% market share. Wiko aims to have a 2% market share by end of this year, before reaching 4% by 2024.
Apart from features and affordable prices, Mr Wei said the partnership with VST ECS (Thailand) and its dealer ecosystem would help foster consumer confidence, especially through an offer of a warranty of up to one year and an after-sales service that offers to pick up and repair faulty products from the owner’s home.
“The Wiko brand expects to spend 2-5% of its total sales revenue on its marketing budget in the Thai market,” Mr Wei said.
Somsak Pejthaveeporndej, chief executive of VST ECS (Thailand), said the company – formerly known as The Value Systems Co – was established in Thailand in 1988. It is a member of VST ECS Group, Hong Kong’s leading information and communication technology product distributors in Asia-Pacific.
Mr Somsak said VST ECS sees the potential of Wiko products both in terms of the global brand image and product quality.
Through VST ECS’s dealer ecosystem in Thailand, Wiko smartphones would be distributed to around 6,000 retailers and kiosks nationwide, he said.
“The country’s slowing economy may create some effect on consumer purchasing power. However, it will not be a significant factor for smartphones which come with product quality and an affordable price,” he added.
VST ECS (Thailand) is set to establish an additional 15 sales offices serving its IT products and mobile phone sales this year. Some sales offices may also have a warehouse to facilitate distribution and after-sales services.