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

Why diversification is your best friend in today’s market

Published

2 days ago

September 16, 2024

Integrator Web-Editor

By Akshay Sardana, VP – Strategy & International Development, The Continental Group

In the world of investing, diversification is the only free lunch.

It’s becoming increasingly clear that diversification is not just a buzzword but a necessity from a de-risking standpoint. Whether you’re an individual investor trying to safeguard your savings or a financial institution managing large portfolios, spreading your investments across different asset classes, sectors, and geographies is crucial. We are navigating a phase marked by rising inflation, geopolitical tensions, and market volatility. Diversification is a crucial part of your financial safety net. It is just as important to think of how many different ways you can be invested, as it is to think of how long you will be invested.

Portfolios are often built primarily around time in the market; on face value, this is not a bad practice on its own. It is true that the likelihood of risk-adjusted gains goes up the longer you stay invested. But there are plenty of examples over the last five years which show that it should not be your only priority.

Remember the market uncertainty caused by the COVID-19 pandemic? While some sectors took significant hits, others, like technology, pharma, and commodities, saw substantial gains. Such disparities highlight the importance of a diversified portfolio. A large economic downturn doesn’t mean the potential for portfolio growth must fall.

Portfolio diversification is about spreading your investments to reduce exposure to any single risk. For financial institutions, diversification helps manage client portfolios more effectively. For individual investors, it safeguards savings against unexpected market downturns.

Strategies for effective diversification

Here is some data that points out why there is financial prudence in considering a diversified approach.

Tenure/Asset Class	Developed Market Equities(100%)	Developed Market(50%) + Indian Market Equities(50%)	Developed(40%) + India Equities(40%) with Gold (20%)
1 Year	16.66%	23.21%	22.60%
3 Year	6.73%	9.57%	9.53%
5 Year	11.60%	12.71%	12.28%
10 Year	9.80%	10.62%	9.62%

The table above illustrates how diversification enables investors to reduce concentration risk by spreading their investments across various sectors, asset types, and regions to achieve better results over time.

Asset class diversification: Allocating investments across different asset classes – such as equities, bonds, real estate, commodities, is the most rudimentary form of diversification. Equities might offer growth, while bonds provide stability and income. Real estate can offer inflation protection, and commodities like gold can serve as a hedge against market volatility. This approach ensures that an investor’s portfolio is not overly dependent on the performance of a single asset class. In its most ideal form, this kind of diversification allows for convenient rebalancing – changing the ratio of your investments in different classes – based on market trends.

Individual asset diversification: This strategy involves investing in a variety of assets within the same class. For example, rather than putting all your money into one tech stock or one sector, you might invest in a mix of various sectors. This approach reduces the risk associated with any single company or sector’s performance. This is critical as companies within a sector tend to have correlated performance, whereas different sectors tend to perform differently. By spreading investments across sectors, investors can leverage the strengths of multiple opportunities while cushioning against unidirectional risk.

Geographical diversification: By spreading investments across different regions, investors can hedge against local economic downturns. Investing in both emerging and developed markets can balance risks and rewards. For instance, while emerging markets may offer higher growth potential, developed markets typically provide stability. Recent geopolitical conflicts have shown that even local events can have global repercussions – having your portfolio spread across multiple regions is the only way to guard against such events.

Alternative investments: Beyond conventional asset classes, alternative investments like hedge funds, private equity, private credit, and real estate offer unique advantages. These investments often come with flexible terms and the potential for high returns, though they usually require a longer commitment. For instance, hedge funds, managed by professional fund managers, aim to maximize returns by strategically deploying investments. Private equity and private credit investing can also provide substantial returns but typically involve higher risks in terms of both capital deployed as well as timeframe.

Implementing diversification into your portfolio

Managing volatility in investments is much easier than managing emotions while investing.

To get started, there are two critical ingredients to get right:

Getting the right financial advisor
Setting up the right asset mix

If it’s a personal portfolio, you can start by automating your investments under the guidance of your advisor to ensure consistent allocation into diverse assets. Automating investments helps mitigate the risk of emotional decision-making, ensuring that a portion of your income is regularly allocated towards diverse assets. Regularly review your portfolio – at least once a quarter – and rebalance as needed to align with your financial goals and risk tolerance.

For example, if you’re nearing retirement and looking for more stability, you might reduce your equity exposure and increase investments in dividend-paying stocks and real estate investment trusts (REITs), or even fixed-income assets. Dividend-paying stocks can provide a steady income stream, while REITs offer exposure to the real estate market with relatively lower volatility compared to direct real estate investments.

Of course, none of this is set in stone – it’s essential to stay informed about market trends and adjust your strategy accordingly, as the performance of different asset classes can vary significantly over time. Make sure your plans are dynamic and avoid generic thumb rules, because personal finance is not a one-size-fits-all sphere.

Institutional diversification has some principles that can come in handy. Institutions focus on strategic asset allocation tailored to client needs, leveraging their expertise to adjust portfolios based on market trends. One effective strategy is investing in thematic funds that target specific growth areas, such as technology, healthcare, or renewable energy. Typically these are sectors that show resilience and growth potential, making them attractive even during market volatility. By maintaining well-rounded and flexible portfolios, institutions better navigate economic shocks and sector-specific downturns.

Common pitfalls

Diversification is not without its challenges. Common pitfalls include over-diversification, where the portfolio becomes too complex to manage effectively, and under-diversification, which fails to provide adequate risk mitigation. Over-diversification can lead to diminished returns, as the positive performance of some investments may be offset by the poor performance of others. On the other hand, under-diversification exposes the portfolio to higher risks, as it relies too heavily on the performance of a few assets.

Remember, the key to successful diversification lies in regular reviews, strategic rebalancing, and staying focused on long-term objectives. It’s crucial to remember that financial markets are inherently volatile, and short-term fluctuations should not drive investment decisions. Think of diversification as not just a financial strategy but also a stress management tool for yourself – a sufficiently balanced portfolio will keep you from making hasty decisions. Professional guidance to set up such a balanced system can be especially beneficial during periods of economic uncertainty.

Features

Navigating Merchant Payments under CBUAE’s New Payment Token Services Regulation

Published

1 week ago

September 11, 2024

Integrator Web-Editor

By: Akshata Namjoshi, Associate Partner, KARM Legal
Kabir Hastir Kumar, Associate, KARM Legal

Blockchain and digital assets are transforming the financial landscape, with increasing applications in payments, lending, and asset management.

Stablecoins are particularly being explored for payments due to their price stability. According to the CoinGate Q1 2024 report, USDT transactions accounted for 41.4% of all crypto payments, highlighting a growing trend towards stablecoin use in commerce. Additionally, Deloitte’s report underscores that over 60% of merchants express significant interest in accepting cryptocurrency payments, aiming to enhance customer experience and expand their market reach.

Merchants are increasingly interested in enabling their customers to pay with cryptocurrency. They partner with various acquiring platforms that facilitate these transactions through third-party crypto liquidity providers. Enabling such payment options benefits merchants by expanding their customer base, offering payment flexibility, and enhancing overall customer experience.

In the UAE, the Central Bank of the UAE (CBUAE) has recently introduced the Payment Token Services Regulation (PTSR), which imposes specific requirements on payments in virtual assets. This article discusses the impact of this regulation on merchant payments and its potential to shape the virtual asset industry in the region.

Risks with unregulated Crypto Merchant Payments

Many solutions globally have operated in a legally grey area, where fiat-to-virtual asset conversions were facilitated by both regulated and unregulated liquidity providers, posing risks particularly related to AML practices. Accepting crypto payments without stringent AML/KYC checks, including wallet screenings, could facilitate money laundering by integrating illicit funds into the traditional financial system. This highlights the importance of comprehensive AML measures to prevent illegal activities and ensure the integrity of the financial system. This can only be accomplished through regulation of all players invovled.

Position under PTSR

The new PTSR clarifies the legal framework for crypto payments in the UAE. Contrary to some beliefs, PTSR does not ban crypto payments but regulates them.

The PTSR stipulates that merchants can only accept payments for goods and services in dirham-backed stablecoins.

While many have interpreted this to mean an outright ban on crypto payments, there is no express prohibition on licensed Virtual Asset Service Provider (VASP) first converting virtual assets to fiat or dirham backed stablecoins.

The conversion of virtual assets into fiat or dirham-backed tokens through VARA or SCA -regulated VASPs is still permissible provided the appropriate no-objection registrations and licenses are procured from the CBUAE.

Implications on Existing Merchant Acquirers and Payment Aggregators

Merchant acquirers and payment aggregators in the UAE, regulated under the Retail Payment Services and Card Schemes Regulation (RPSCS Regulation), enable merchants to accept payments through various methods including debit cards, credit cards, and bank transfers. The PTSR though supersedes references to virtual assets in the RPSCS Regulation. Merchant acquirers and aggregators regulated under RPSCS Regulation can seek a custody and transfer license under PTSR for settlements in dirham-backed stablecoins, or a conversion license for facilitating fiat-to-stablecoin exchanges. If they wish to only handle the fiat leg of the transaction, they may continue under their existing license.

To enable trading of virtual assets – fiat/dirham backed stablecoins pairs, partnerships with VARA based VASPs can be explored. Such partnerships would involve front-end integrations to allow paying customers to acquire fiat/ dirham backed stablecoins for payment to merchants. All players must ensure that they operate within their licensing scopes for such arrangements.

Similar models can be seen in other jurisdictions, where the conversion of cryptocurrencies to fiat is handled by licensed VASP, and the fiat leg of the transaction is managed by payment service providers (PSPs), often operating in distinct regulatory environments.

Depending on the structure of the solution offered, contractual relationships will exist between (i) VASPs-paying customers for trading of crypto to fiat/dirham backed stablecoin; (ii) PSPs and merchants for acceptance and settlement of payments; and (iii) between PSPs and VASPs for front-end integration.

These partnerships benefit all parties: customers enjoy flexible payment options, merchants expand their payment methods, and payment service providers and VASPs gain an additional revenue channel.

Implications for Merchants

Merchants should seek comprehensive solutions for seamless crypto payments. These solutions streamline payment processes and enhance customer satisfaction by providing more payment options. Additionally, adopting crypto payments can position merchants as forward-thinking and tech-savvy, attracting a broader audience and potentially increasing sales.

However, in the absence of such licensed solutions in the market currently, some platform structuring may have to be undertaken for quick go-to-market.

Conclusion

While the full impact of the PTSR on payments and the virtual asset market in the UAE is yet to unfold, this regulation marks a progressive step. It offers legal clarity, fosters trust among customers, and ensures regulatory compliance, mitigating AML risks. This novel approach is likely to positively influence the perception and adoption of virtual asset payments in the region, enhancing overall market confidence.

Features

Luxury Through Training: Maintaining High Service Standards

Published

1 week ago

September 9, 2024

Integrator Web-Editor

By Jerome Mortel, COO of Sumo Sushi & Bento

In the ever-evolving landscape of the hospitality industry, maintaining high service standards is paramount to ensuring customer satisfaction and business success. At Sumo Sushi & Bento, we have long recognized that our greatest asset is our team. The role of continuous staff training, and development cannot be overstated when it comes to delivering exceptional service and creating memorable dining experiences for our guests.

Staff training serves as the foundation of excellence in any hospitality business. It equips employees with the necessary skills, knowledge, and confidence to perform their roles effectively. From understanding the menu and mastering culinary techniques to perfecting the art of customer service, comprehensive training programs ensure that every team member is well-prepared to meet the high standards set by the organization.

At Sumo Sushi & Bento, our training programs are designed to be thorough and ongoing. New hires undergo a rigorous onboarding process that covers everything from food safety protocols to customer interaction techniques. However, training does not stop once the initial onboarding is complete. We believe in the importance of continuous learning and development to keep our team motivated, engaged, and up to date with industry trends.

Adapting to Industry Changes

The hospitality industry is dynamic, with trends and customer preferences constantly evolving. Continuous staff training enables our team to adapt to these changes swiftly and effectively. Whether it’s incorporating new culinary trends into our menu or adopting the latest technology on our website or app to enhance customer experience, our training programs ensure that our staff is always at the forefront of innovation.

For instance, the recent surge in demand for contactless dining and digital payment options has necessitated a shift in how we operate. Through targeted training sessions, our staff has become proficient in using these new tools, ensuring that we continue to provide seamless and efficient service to our guests.

Enhancing Customer Experience

Customer experience is at the heart of the hospitality industry. Well-trained staff are better equipped to anticipate and meet the needs of our guests, leading to higher levels of customer satisfaction. Training programs that focus on soft skills, such as communication, empathy, and problem-solving, empower our team to create positive and memorable interactions with our customers.

Building a Strong Team Culture

Continuous training and development also play a crucial role in building a strong team culture. When employees feel valued and supported in their professional growth, they are more likely to be engaged and committed to their roles. This sense of belonging and loyalty translates into better teamwork and collaboration, which are essential for maintaining high service standards.

We believe in recognizing and rewarding our team’s achievements. Regular feedback sessions, performance reviews, and opportunities for career advancement are integral parts of our training programs. By investing in our staff’s growth and development, we create a positive work environment where excellence is the norm.

Investing in our Manpower

The role of staff training in maintaining high service standards cannot be underestimated. We are committed to providing continuous learning and development opportunities for our team. This commitment not only ensures that we deliver exceptional service to our guests but also drives our success in the competitive hospitality industry while fostering a culture of excellence that sets us apart.