Wiko resumes Thai operations targeting 2% market share with affordable phones
Aiming to carve out 2% of the Thai market by year-end and expand to 4% by next year, mobile manufacturer Wiko has resumed commercial operations. The company, with its French roots, intends to capture the lower to middle-tier smartphone segment.
This comes after a six-month hiatus in its marketing efforts for the Thai market, and now the brand will move forward with its new exclusive distributor VST ECS (Thailand).
Wang Wei, Wiko’s sales director, has recognised the strategic significance of the Thai market due to the nation’s high digital service penetration and active social media usage, particularly among teenagers.
Keen on tapping into the vibrant demand of teenagers in the market, Wiko is positioning its smartphones in the price range of 2,200 to 5,000 baht. The company is set to debut two 4G smartphone models this year, while the introduction of 5G smartphones is expected next year, according to Wang.
To date, the brand boasts more than 40 million users worldwide. It holds the second-largest market share in France and is the fourth-ranked manufacturer in Western Europe. Wiko’s footprint in Southeast Asia expands to countries including Thailand, Malaysia, and the Philippines.
In the last week, both Wiko and VST ECS (Thailand) collaborated with 25 IT product dealers to sign a distribution agreement for nationwide outreach.
Wiko is optimistic about its re-ignited marketing efforts and expects a strong support base from Thai consumers. It believes that the blend of high-quality, affordable smartphones, along with strategically positioned sales and after-sales services close to consumers will drive growth, said Wang.
Currently, Wiko smartphones are used by approximately 2.5 million users in Thailand, which accounts for less than 1% of the market share. The goal is to increase market share to 2% by the end of this year, and further to 4% by next year.
Additionally, Wang highlights the partnership with VST ECS (Thailand) and its dealer ecosystem as a strategy to nurture consumer trust. This is further supported by offering warranty coverages of up to a year, along with after-sales home pick-up and repair services for faulty devices.
In a bid to promote the brand, Wiko is looking to set aside 2 to 5% of its total sales revenue for its marketing budget in the Thai market, mentioned Wang.
Somsak Pejthaveeporndej, chief executive of VST ECS (Thailand), expressed his faith in the potential of Wiko’s offering comprehensively, from its global image to product quality.
Somsak further explained that through VST ECS’s dealer network in Thailand, approximately 6,000 retailers and stalls across the country would be selling Wiko smartphones, reported Bangkok Post.
Acknowledging the slowing national economy’s potential impact on consumer purchasing power, he suggests that quality smartphones at affordable prices would continue selling regardless.
VST ECS (Thailand) is also in the process of establishing an additional 15 sales offices for its IT products and mobile phone sales in the current year. Some of these offices may also house a warehouse to facilitate distribution and after-sales services.
