Product Type: Market Research Report
Published by: Vital Wave Consulting
Published: November 2007
Product Code: R3484-2Description There are 1.5 billion people in emerging markets who do not currently own a mobile handset but are willing and, through appropriate business models, would be able to purchase one within the next 12 to 24 months. This market segment, defined as the near-term consumer market, is found in the economic strata between those who already have a mobile phone and the 1.1 billion people living on the equivalent of less than $1 per day. These near-term purchasers are extremely price-sensitive and geographically dispersed, presenting unique challenges for handset manufacturers. This report provides foundational tools and data to inform innovative business models that will stimulate first-time mobile handset purchases through financing and provides mobile communications business managers with strategies and tools for increasing revenues in emerging markets in a 12-24 month time frame. Data, insights and recommendations can be applied to realize revenue growth, maintain profit margins, execute within a limited budget, and set realistic internal expectations.
Part 1 sizes, locates and characterizes the near-term handset market. An overview of the main inhibitors to purchasing a new handset is also provided.
Part 2 describes the financial services landscape of the ten largest near-term markets, which include China, India, Indonesia, Bangladesh, Iran, Egypt, Vietnam, Brazil, Pakistan and Mexico. Through in-depth interviews with prospective near-term market candidates and local financial services experts, Vital Wave Consulting offers a set of strategies to tap into formal and informal financing mechanisms to accelerate first-time mobile handset sales.
Part 3 consists of two Resource Guides. The first includes data for 119 countries, including the size of the near-term market, overall population, mobile penetration rates as of mid-2007, and the annual income levels (ceiling and floor) for the near-term target market. The second Resource Guide provides information on more than 50 financial services organizations that are potential partners for programs to extend financial services to near-term handset market candidates. Data include the organization’s name, type and reach (clients served).
Table of Contents - 1. The Near-term Handset Market
- 1. Size of the Near-term Market
- 2. Location of the Near-term Market
- 3. Top Ten Near-term Markets
- 4. Characteristics of the Near-term Market
- 1. Income levels
- 2. Education
- 3. Distribution
- 4. Consumption trends
- 5. Purchasing Inhibitors of the Near-term Market
- 2. Financing Options for Near-term Handset Buyers
- 1. Financial Services Landscape
- 2. Formal Financing Services in the Top Ten Near-term Markets
- 3. Informal Financing Services in the Top Ten Near-term Markets
- 4. Interaction between Financing Institutions
- 5. Sources of Credit within the Top Ten Near-term Markets
- 6. Portfolio of Financing Mechanisms
- 3. Resource Guides
- 1. Worldwide Near-Term First-time Mobile Handset Purchaser Market Size
- 2. Key Partnership Organizations in Top Ten Near-term Markets
- 3. Characteristics of Key US-based Global Microfinance Networks
- Table and Figures
- Table 1 - Countries with Mobile Penetration Rates Exceeding 100% in mid-2007
- Table 2 - Large Emerging Markets with Mobile Penetration Rates Under 60% in mid-2007
- Table 3 - Calculation of Near-term Market for First-time Handset Buyers (mid-2007)
- Table 4 - Near-term Market Candidates in Emerging Markets by Region
- Table 5 - Emerging Markets with Zero Near-term Market Candidates
- Table 6 - Illiteracy and Languages Spoken in the Top Ten Near-term Markets
- Table 7 - Financial Services Targeted to Low-income Populations in Near-term Markets
- Table 8 - Usage of Financial Services per 100 People
- Table 9 - Target Partners for the Portfolio of Financing Instruments
- Resource Table A - Worldwide Near-Term First-time Mobile Handset Purchaser Market Size
- Resource Table B - Key Partnership Organizations in Top Ten Near-term Markets
- Resource Table C - Characteristics of Key US-based Global Microfinance Networks
- Figure A - Income Stratification of the Global Population
- Figure B - Top Ten Near-term Markets for First-time Handset Sales
- Figure C - Average Income Band and Market Size for Emerging Markets
- Figure D - ARPU Trend across Near-term Handset Markets
- Figure E - Handset Average Sales Price Trend
- Figure F - Pre-paid Subscribers as a Percent of Total Mobile Subscribers
- Figure G - Net Enrollment Rates in Primary & Secondary School in Near-term Handset Markets
- Figure H - Rural and Urban Near-term Market Size
- Figure I - Ownership and Usage of “Old” vs. “New” Technologies, Interview Respondents
- Figure J - Uses of a US$ 20 or US$ 100 Gift, Interview Respondents
- Figure K - Estimated and Actual Cost of Entry-level Handset
- Figure L - Significant Barriers to First-time Mobile Handset Purchases
- Figure M - Average Price of a Low-End Handset as a Percentage of Average Monthly Income of Near-Term Market Individuals
- Figure N - Financial Services Reach Continuum
- Figure O - Formal and Semi-Formal Financial Services Penetration in the Top Ten Near-term Markets
- Figure P - Prominent Financing Mechanisms across Near-term Markets
- Figure Q - Household Access to Formal Financial Services
- Figure R - Geographic Reach of Banks and ATMs (2005)
- Figure S - Annual Workers’ Remittances to Top 10 Near-term Markets (2005)
- Figure T - Formal and Informal Linkages in Credit Delivery to Lower-income Populations
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