Features

SETTING THE PACE

Published

9 years ago

June 11, 2015

admin

Updated : February 25, 2015 00:10 am,
By Editor

LG, Huawei and Sony are some of the biggest names in global technology, with the kind of market strength many rivals can only dream of. Now this expertise is helping them as they grow their smartphone markets

How to capture the hearts and minds of the region’s lucrative smartphone consumer base is at the heart of many an R&D strategies and investments. The resources and legacy of some of the biggest names in ICT keeps them in good stead as competition heats up.

Whether with design or technology, differentiation is key to standing out from the rest of the crowded pack. Brands are wont to trumpet their USP whatever it is with an eye on a discerning consumer base.

D.Y. Kim, President of LG Electronics Gulf FZE attributes this to a more selective customer today. “End-users today are research driven when it comes to purchasing a smartphone,” says Kim, adding, “This means the only way to stand out is through product differentiation, which we excel at due to our innovative designs. You will find that with the majority of our designs, we create a device that is instinctive and feels like a natural extension of the body.”

Kim also contends that making a loyal customer out of a buyer is a much more engaging affair. “We believe the consumer buying decision making is not necessarily at one point in time. From a marketing perspective, we see that as a journey with different touch points. So at the point a consumer gets exposed to our technology, we should be able to start delighting him through what we convey to him.”

“Later on at the point where he is looking to change his phone, we should be able to communicate differently. It is not the just the moment of purchase when the product needs to be heavily promoted at the point of sale. Our communication needs to be equally distributed across the customer’s journey so that the consumer is properly informed to make a conscious decision,” Kim adds.

With smartphones available to cater for every imaginable demographic, brand affinity, features or price are the top consideration for different categories of consumers.

LG’s Kim notes that the company’s typical end-user has evolved over the last few years. “We have noted a trend in the U.A.E. among the 20 years and above consumer, that shows that end-users are less price sensitive in purchasing a smartphone when all the specifications they require are met and the smartphone has the latest possible features. So for us, specifications are definitely more important,” Kim explains. The UAE especially has a particularly tech-savvy smartphone user community, who know what they want and are willing to spend for it.

“Additionally our tie ups with local operators have allowed U.A.E. end-users to get the best of both worlds with easy monthly payment plans for LG phones,” Kim explains.

On its part, Huawei’s strategy in the region is to offer a variety of smart devices at varying price points making it affordable for anyone to have a feature-packed smartphone, says Ashraf Fawakherji, VP of Huawei Device Middle East. This has helped Huawei increase its brand recognition in the region, which rose from 52% in 2013 to 65% in 2014, Ashraf adds.

Although crowded with newcomers, the smartphone market has shown to be particularly partial to established and household names in the technology industry. Sony is a case in point.

Spyros Gousetis, Director Marketing, Customer Unit, MEA Sony acknowledges that the Brand competes in the high end tier and the mid-end tier markets. The reason behind this strategy being the technological legacy the brand can call upon to drive its mobile agenda.

“We have pioneering technologies when it comes to displays from our Bravia line of televisions, digital imaging, audio technologies including noise cancellation, waterproof feature and gaming etc which are the differentiators in our phones. The high end is where we would like to compete and we are good at this. Entry level segment phones do not necessarily need to include these features,” Spyros says.

Huawei’s core expertise has been developed by over 25 years working with the leading Telecoms operators around the world providing next-generation networking technology. “Through our work as a telecom network provider we have developed a strong understanding of both operator and consumer requirements. This has always put us in a strong position compete in the consumer sector supplying various components for consumer electronics,” Ashraf said.

In 2011, Ashraf explains, Huawei decided to brand all its consumer products and approach the consumer directly launching the first Huawei devices. “Our regional consumer strategy is to focus on the customer experience, providing advanced and innovative technologies at affordable prices. This has been working well for us so far and we look forward to continued successes as we move through 2015,” Ashraf adds.

Everyone acknowledges that the modern smartphone customer is much more tech-savvy and more likely to explore options that offer better specs, all other factors being equal.

Sony’s Spyros concurs. “We have seen consumer awareness and preferences rising steadily and significantly. Camera, battery life & technology, waterproof design are all features the consumers today look for. A lot of consumers are also aware of specs including processor speeds. Our market research of what consumers want corroborates with our sales results. Across all markets, we are also seeing clear preferences for the craftsmanship of our phones,” says Spyros.

For LG, Kim says the company invests significantly in research to really understand the end-users. “Through our ‘learning from you’ ethos, we capture, review, understand and implement consumer feedback which ensures that we create products that truly meet consumers’ needs and lifestyle,” Kim explains.

For instance, unlike other smartphone brands that have invested in fingerprint technology, LG G3 features a Knock Code which allows users to gain instant and secure access to their homescreen by tapping a 2-8 point customized pattern anywhere on the display using just one hand. LG realized, Kim says, biometric technology is susceptible to environmental variables and does not offer the high levels of security that consumers demand.

With the growing demand for a phone-and-camera combination device LG also developed the OIS+ camera that is designed to quickly and easily capture images as they occur, not necessarily when users want them to occur, the company says. “The camera is powered by a Laser Auto Focus that measures the difference between the camera and the subject-even in low light- with a laser beam and cutting down on the time it takes to focus,” Kim explains.

Huawei’s Ashraf agrees that consumers are certainly becoming more tech savvy and buying trends show that features such as distinctive design, the type of glass used for the screen or the types of processors used for example, are beginning to play a bigger role in the decision making process.

“One of the most interested trends that we have seen develop amongst Middle Eastern consumers is that they want faster devices with bigger screens, allowing them to view HD content and conduct their daily tasks with ease,” Ashraf says.

Huawei, Ashraf adds, views itself as a company at the forefront of technology innovation. One of the ways to remain customer centric is developing in-depth research into what Huawei’s customers want so that the company can develop relevant devices that deliver what they need in line with market trends. “We recognized that people wanted bigger screens so we launched the Ascend Mate 2, with a 6.1 inch screen as well as Huawei’s latest quad-core MediaPad 10 FHD, which boasts a 10.1-inch high definition IPS display,” he adds.

Huawei recently unveiled a new range of flagship 4G LTE-enabled devices. These include the world’s slimmest 7-inch phablet titled the Huawei MediaPad X1, Huawei’s first wearable ‘talk and track’ companion titled the Huawei TalkBand B1, a fresh 8-inch entertainment tablet dubbed the Huawei MediaPad M1, a new addition to the brand’s booming 4G smartphone line-up—the Huawei Ascend G6—as well as the world’s first LTE Cat6 Mobile Wi-Fi device.

The Android scene has been particularly competitive over the last couple of years with major brands all experiencing marked growth as the once dominant Samsung continues to fray.

Spyros says: “We have been experiencing growth in the region over the past three-four years in the double digits. The Z series particularly has seen a lot of consumer traction. We have seen routinely the ‘Z’ series benchmarked favourably against the flagship series of our competitors,”

Spyros explains that Sony is now among the top two or three across the six focus markets in the region from across Turkey, GCC and South Africa. “Customer awareness is high as is the preference for our designs, which in turn reflects favourably on the sales,” Spyros adds.

Huawei continues to grow with worldwide sales revenue for its Consumer business group increasing 30% year-on-year to USD 12.2billion, crossing the ten billion mark for the first time. Shipments grew 7.8% to a total of 138 million devices in 2014, including 75 million smartphones, representing a year-on-year increase of 45%.

“Our focus on premium mid- to high-end products has resulted in significant achievements in a number of areas including product R&D, brand awareness, channel development and growth in market share which further consolidated Huawei’s number three position in the global smartphone market,” Ashraf said. The increase in shipment followed the regional launches of Huawei’s flagship products such as the P7 and Mate 7 smartphones.

The global influence of Huawei has continued to grow, and Huawei has become the first mainland Chinese company to successfully enter Interbrand’s Top 100 Global Brands of 2014 list. Huawei is also one of the fastest growing smartphone device brands in the Middle East.

The networks in the region, typically on top of the technology developments, drive a lot of smartphone trends in the region.

Ashraf observes that the extended availability of high speed mobile broadband connectivity teamed with the region’s growing demand for innovative handheld technological devices has created significant opportunities for smartphone vendors in the Middle East.

“Last year, experts estimated that smartphones now account for nearly two out of every five phones in the Middle East,” Ashraf says, adding “We anticipate that globally many mature markets will see less of an increase year-on-year, while in emerging markets like the Middle East will see volumes continue to increase at a rapid pace”.

As the next generation 4G networks become more accessible in the region, more consumers are migrating from feature phones to smartphones. This development has created the perfect environment for technology vendors, such as Huawei, looking to market high quality and feature packed affordable smartphones, Ashraf contends.

One of the most important global markets for smartphones, the Middle East is a key testing ground of the changes in market dynamics in the Android space. The Android market is now more open providing more players with space to innovate and compete. The region’s tech savvy population can only benefit.

Features

HOW FSI INCUMBENTS CAN STAY RELEVANT THROUGH THE GCC’S PAYMENTS EVOLUTION

Published

1 week ago

June 28, 2024

Integrator Web-Editor

By Luka Celic, Head of Payments Architecture – MENA, Endava

Banks and payment services providers (PSPs) have been the region’s engines of economic growth for as long as anyone can remember. It is therefore jarring to imagine that this dominance is now under threat. After all, venerable banks and credit card companies have elegantly embraced the Internet, mobile banking, and the cloud to deliver self service banking to millions of customers. But consumers, especially digital natives, have never been known for congratulating an industry for a job well done. Instead, with each convenience, their expectations only grow. The siege reality of the pandemic accelerated a shift in consumer behaviour, and Middle East banks and PSPs now face challenges on three fronts.

The first is FinTechs. from Saudi Arabia’s BNPL (buy now, pay later) pioneer Tamara and Qatar’s unbanked oriented platform cwallet, to online financial services, Klarna, tech startups have been able to tap into rapidly changing consumer markets. New companies find it easier to pivot. And like speed boats racing against aircraft carriers, they weaved effortlessly to fulfil a range of desires amid high smartphone connectivity rates and a range of other favourable market conditions. By one estimate from 2022, BNPL alone accounted for US$1.5 billion (or 4%) of the Middle East and Africa’s online retail market.

The second threat is open banking, which comes in many forms, but one example is the instant-payments platforms being introduced by central banks such as those in Saudi Arabia and the United Arab Emirates. To get a sense of how this could play out, we need only look to Europe, where players who once relied on payments through card schemes are now pivoting towards open banking enabled payments. Closer to home, Al Ansari Exchange recently announced its customers can now transfer money and settle bills via the recipient’s mobile number, enabled by the UAE’s Aani IPP.

And finally, comes big tech. To augment its e-wallet service, Apple has signed up to an open banking service in the UK. The open banking framework which banks enabled through their investments is being exploited by a Big Tech firm that has access to 34% of UK smartphone users. Unsurprisingly, this sparked a fierce antitrust complaint by UK’s banks. Other big names will surely follow as they continue to craft ways of offering the digital experiences that garnered them user loyalty in the first place.

THE BALANCE

Apple Wallet is aimed at blending payment methods, loyalty cards, and other services into a single experience. But such moves have raised regulators’ eyebrows regarding a lack of interoperability and the preservation of competitive markets. Hence, Apple’s open banking foray — a gesture to calm the nerves of a finance market that fears having to compete with a company armed with countless millions of user transactions from which to draw insights. The massive user bases of tech giants will give any FSI CEO goosebumps. How does a traditional bank lure an Apple user? Open banking initiatives open the door to greater competition and innovation, both of which are good for consumers. But the only way to ensure both is by building an ecosystem that balances innovation with regulatory oversight.

FROM INCUMBENT TO INNOVATOR

Yes, smaller businesses have freedom of movement that larger incumbents do not. But that does not mean that there are no paths for banks and PSPs. There are, in fact, several strategies that larger FSI companies can employ to capitalise on the open banking revolution.

The first of these is collaborating to create ecosystems that provide users with frictionless experiences. Established FSIs already have access to a wealth of information about their customers and must now consider how to integrate data sources to create highly streamlined and frictionless workflows. A customer applying for a loan could then see their details auto populated, and credit history already accounted — all without the hassle of lengthy phone calls, application forms, or submission requests. In an age when instant is everything, it’s easy to see why the former approach could foster loyalty, while the latter would only serve to drive customers towards more capable competitors.

Card companies and issuer banks could also work with acquirers to smooth out the rough landscape that has arisen from the advent of digital payments. Acquirers traditionally acted on behalf of the merchants that accepted payment methods to recoup funds from the PSP through the issuing bank. This system has served the industry well, but with more payment methods emerging, acquirers have branched out into mobile wallets, QR codes, and gateway services. Gradually the relevance of established players has dwindled as their lack of representation at the critical checkpoint has diminished their significance. Incumbents must work to turn back the tide by recognising that acceptance and acceptance ownership are becoming increasingly important for maintaining market relevance.

Another strategy is diversification. Veteran FSIs may feel like they’ve lost ground to nimble start-ups and Neo Banks, but history shows value in patience — established FSI players now benefit from the investments of early innovators, and double down on payments innovations which have already shown the most promise. Moreover, if they diversify their portfolios through acquisitions, innovations, and partnerships, they can secure their future. Mastercard presents an excellent example with their US$200m investment into MTM payments. This single move has given the company access to MTM’s 290 million strong subscriber base, allowing these customers to become familiar with Mastercard products before getting entrenched with mobile wallet alternatives.

WHO’S ON TOP?

If we look at the rise of BNPL services, we see an origin story with — at least — major supporting roles for large card providers. But open banking has sidelined them in just a few years. BlackBerry was a stock market darling just five years before it sought a buyer. Traditional FSI players must innovate; they must collaborate with emerging disruptors; they must diversify. They can survive and thrive if they do these things — after all, they already have much of the infrastructure, and experience required for success. Middle East banks and PSPs have the existing user bases, so they have the scale to get out in front in the era of open banking. All they lack is the kind of compelling use cases that will entice the banking public. PSPs and their issuers could offer embedded payments, for example. The right services at the right time will be warmly received by consumers, no matter the scale of the offering institution, so there is every reason to believe that incumbents will come out on top against FinTech and Big Tech.

Features

SEC paves way to approve spot ethereum ETFs

Published

1 week ago

June 27, 2024

Integrator Web-Editor

By Simon Peters, Crypto Analyst at eToro

Ethereum spot ETFs took a significant step forward to being available to US investors last week with approval of the 19b-4 applications, allowing US exchanges (namely Cboe BZX, NYSE Arca and Nasdaq) to list and trade ethereum spot ETFs.

On the back of this, ethereum has been one of the best performing cryptoassets this week, gaining 19%.

According to a recent survey by eToro with retail investors in the UAE, over 74% respondents agreed that the prospect of an ethereum ETF will significantly influence their decision to increase, decrease or maintain their current ethereum allocation.
Focus now turns to the S-1 registration statements from the ETF issuers, as these still need to be approved by the SEC before the ethereum spot ETFs can actually launch and investors can buy them.

As to when the S-1s will be approved we have to wait and see. It could be weeks or months unfortunately.

Nevertheless, with the 19b-4s out of the way, it could be an opportunity now for savvy crypto investors to buy ethereum in anticipation of the S-1s being approved, frontrunning the ETFs going live and the billions of dollars potentially flowing into these.

We’ve seen what happened when the bitcoin spot ETFs went live, with the bitcoin price going to a new all-time high in the months after. Could the same happen with ethereum? The all-time high for ethereum is $4870, set back in 2021. We’re currently at $3650, about 35% away.

We’re also going into a macroeconomic climate with potentially looser financial conditions, i.e. interest rate cuts and a slowdown of quantitative tightening, conditions where risk assets such as crypto tend to perform well price-wise.

Features

Harnessing AI and big data to transform Middle East’s retail industry landscape

Published

2 weeks ago

June 25, 2024

Integrator Web-Editor

By Saeed Alajou, Senior Sales Director, Enterprise Business

With the increasing dominance of technological advancements in the current era, the global retail industry is witnessing a massive shift in its operations. As the industry embraces a varied range of cutting-edge technologies such as artificial intelligence (AI) and big data analytics, it is redefining customer expectations and the conventional concepts of business operations. According to recent studies, The global artificial intelligence (AI) in retail market size is projected to grow from $9.36 billion in 2024 to $85.07 billion by 2032, at a CAGR of 31.8% from 2024 to 2032. This transformative wave is compelling companies to harness the potential of these cutting-edge technologies to maintain their competitive edge.

One of the most evident trends in this era is the convergence of eCommerce, AI and data analytics, which is driving the evolution of the retail landscape worldwide. In the current omnichannel retail landscape, consumers expect consistency and continuity across various touchpoints, pushing industry players to integrate conversational AI. This integration ensures a seamless experience; for example, customers can begin a conversation with a chatbot while browsing online and effortlessly continue it via a mobile app when they visit a physical store.

However, the potential of the omnichannel approach and conversational AI platforms is not limited to supporting customers. They also provide retailers with valuable insights into customer behaviour across different channels. Conversational AI platforms can generate a vast amount of data from customer interactions, offering retailers valuable insights into consumer preferences, trends, and pain points. By analysing this data, retailers can uncover patterns, identify emerging trends, and optimise their product offerings and marketing strategies accordingly.

Furthermore, AI-driven analytics enable retailers to gauge customer sentiment, allowing them to address issues and enhance satisfaction proactively. These data-driven insights empower retailers to make informed decisions and stay ahead of the curve. Reflecting the vast potential of AI, the retail sector in the Middle East is rapidly adopting this technology, becoming a leading industry in AI investment. Reports indicate that AI spending in the Middle East and Africa (MEA) reached USD 3 billion and is expected to grow to USD 6.4 billion by 2026, with a compound annual growth rate (CAGR) of 29.7 per cent.

The innovation of chatbots and virtual assistants has accelerated the integration of AI technologies in retail, revolutionising customer interactions by adding a human-like touch to digital engagements. These tools enhance the purchasing journey, making it more intuitive and responsive, providing customised and real-time recommendations based on consumer sentiment. However, retailers need to manage expectations of scalability and ensure AI complements rather than replaces human interactions.

Furthermore, integrating big data into retail operations helps understand customer behaviour and preferences. Retailers can leverage vast amounts of data to gain insights into customer needs and tailor their offerings accordingly. By analysing customer-generated data, businesses can conduct predictive analysis to anticipate trends and make informed decisions, keeping them ahead of the curve in offering products and services that resonate with their target audience.

When it comes to the impact of AI integration in the retail sector, one key segment where it is significantly visible is the supply chain. By integrating big data analytics, retailers are achieving more efficiency in their supply chain operations. Predictive analytics powered by AI aids in forecasting demand, optimising inventory levels, reducing waste, and ensuring products are available when and where customers need them. This enhances operational efficiency and customer satisfaction by minimising stockouts and delays.

AI integration supports a customer-centric approach in retail, and it positions technology as a key facilitator in meeting customer demand. Advanced technologies can identify and replicate demographic needs and pinpoint where investment is required to add value. The integration of various AI tools including price-matching technologies, pay-per-click advertising optimisation, and predictive analytics, aids the retailers in focusing on perfecting the customer journey, ensuring a seamless and enjoyable experience from the start to finish.

Although AI is widely embraced across the industry regardless of company size, delivering the best customer service requires empowering employees with the right tools and knowledge. When employees are equipped with AI-driven insights, they can provide more personalised and efficient service, enhancing the overall customer experience. This empowerment also promotes a culture of innovation and continuous improvement within the organization.

Additionally, data integration and integrity are crucial for the effectiveness of AI and big data. Retailers must implement systems that can integrate data from various sources, ensuring that all information is accurate, consistent, and up to date. This collaborative approach allows retailers to offer a unified brand experience across all channels while maintaining data boundaries and complying with privacy regulations.

This widespread adoption of AI technologies in the industry underscores the importance of establishing a robust and adaptable regulatory framework. Given the growing concerns about data privacy and ethical use, retailers must ensure responsible and secure handling of customer data. Stagnant regulations can lead to compliance issues and erode customer trust, and this necessitates current and customer-aligned regulations to maintain a trustworthy data environment.

Another challenge in AI integration is utilising AI and big data to experiment with new ideas and strategies. In retail, embracing calculated risks is crucial for innovation and growth, viewing risks as learning opportunities. Being responsive to evolving customer needs allows retailers to navigate uncertainties and capitalise on opportunities for success.

With AI projected to contribute up to USD 320 billion to the Middle East’s economy by 2030, the region is increasing its investment in technology. This emphasises the need for a holistic approach in retail, integrating AI, big data, and a customer-centric mindset to thrive in the market. The industry players can maintain their competitive edge by focusing on efficiency in supply chain operations, understanding consumer behaviour, and empowering employees.