Features

SETTING THE PACE

Published

10 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

Building businesses that last: Lessons from Dubai’s Startup Ecosystem

Published

2 weeks ago

January 9, 2025

Integrator Web-Editor

Dubai-based entrepreneurs and podcast hosts Konstantin Koloskov and Anastasia Davydova share lessons from 2024’s dynamic business landscape, exploring the power of collaboration, sustainable growth, and staying true to your vision amidst rapid change. Dubai in 2024 was a hub of energy and innovation, with startup founders raising capital, scaling rapidly, and embracing the city’s ever-changing landscape

As co-hosts of Culture Mapping, a podcast exploring the intersections of culture, entrepreneurship, and life in the UAE, we’ve had the privilege of looking at Dubai through a unique lens. Our conversations with inspiring guests—from startup founders to artists—have offered us fresh perspectives on the opportunities and challenges 2024 has brought.

At the same time, our collaboration on the podcast has been a powerful reminder of the strength found in partnerships. Beyond being co-hosts, we’re both entrepreneurs leading our own companies — Konstantin, the co-founder of Storm, a content studio, and Anastasia, the co-founder of Movingo, a relocation platform for businesses and talents moving to the UAE.

2024 was a challenging year for both of us, but it reinforced a key insight: the power of collaboration within teams and across industries and ventures. Supporting each other in our businesses while building the podcast together has opened new opportunities, sparked creative ideas, and brought energy to everything we do. We also saw This spirit of collaboration reflected in our podcast guests. Dubai in 2024 has been a hub of energy and innovation, with startup founders like those we interviewed raising capital, scaling rapidly, and embracing the city’s ever-changing landscape. Their stories reminded us how crucial it is to stay connected to a network of thinkers and doers who inspire and challenge you.

Key Lessons from 2024

Stay Open to New Opportunities, But Don’t Lose Sight of Your Core Vision: One of our most memorable guests this year was Phillipo Minelli, a visionary artist who embodies this principle. While he sees the growing potential of the UAE and its flourishing art scene, he stays grounded in the values of his work. Phillipo reminded us that growth and opportunity mean little if they compromise your core mission or beliefs.
Prioritize Sustainable Growth Over Short-Term Gains: Felix Erdman, a businessman featured on our podcast, is a shining example of this lesson. His approach to building wealth with a long-term perspective—eschewing fleeting trends and buzz-worthy ventures—was inspiring. His story reinforced what we’ve learned firsthand in our businesses: thoughtful, strategic growth is the foundation for lasting success.
Collaboration Drives Innovation: Dubai’s vibrant, multicultural energy fosters collaboration in a way few places can. Whether it’s the three startup founders we interviewed—who shared how working with the right partners helped them scale—or the creative synergies we’ve experienced in our work, it’s clear that great things happen when ideas are shared and connections are made.

Looking Ahead to 2025

As we prepare for the New Year, we’re embracing the lessons of 2024 with a renewed focus on intentional growth. The global economic shifts have made us even more mindful of how we approach risk and investment. Innovation matters, but so does sustainability. To our fellow entrepreneurs, here’s the advice we’ll be taking with us into 2025:

Keep an eye on new horizons, but stay true to your vision.
Prioritize sustainable growth over chasing quick wins.
Value collaboration—it’s a game-changer.

Dubai continues to be a city where ambition meets possibility, and we’re excited to see how it will evolve in the year ahead. For us, the focus is clear: building businesses that last, telling stories that matter, and embracing the power of collaboration to make it all possible.

Features

The GCC Fintech Revolution: A Deep Dive into AI and Financial Literacy

Published

2 weeks ago

January 9, 2025

Integrator Web-Editor

By Mo Ibrahim, Founder & CEO, Maly

The sheer volume of growth that the fintech industry in the region is experiencing is astounding. Driven by a solid regulatory framework that enables both small and big players to contribute to the region’s digital transformation, the UAE and KSA in particular are both making a strong mark as powerhouses of innovation in the larger fintech ecosystem. As a homegrown brand that is striving to make a mark in the tech sector, this is a very exciting time for us at Maly.

There are many key areas that have dominated the fintech scene this year and will continue to play a definitive role next year as well. AI and machine learning will continue to shape the future of finance, along with digital banking, payment landscapes, and public and private partnerships.

AI and machine learning have opened new opportunities for the sector, pushing boundaries of how it can augment customer service and collect data to help redefine financial services for consumers. At Maly, our aim is to seamlessly integrate artificial intelligence into our product offerings, enhancing both customer experience and operational efficiency. Born out of the vision to reduce the financial literacy gap in the region and empower people to improve their knowledge about concepts such as credit scores, interest rates and budget management, Maly is committed to helping customers set short- and long-term financial goals and achieving them by committing to better financial management.

There has been a lot of debate this year on how AI will replace humans eventually, but with fintech, AI has only enhanced and streamlined processes by helping reduce fraud and improving accuracy. At Maly, we are a step ahead of our competitors with our revolutionary tech stack, which is built and managed inhouse. By combining cutting-edge AI algorithms with a scalable, cloud-native architecture, Maly has created a platform that is not only robust but also highly adaptable to the diverse needs of the evolving fintech landscape.

As a tech-focused business, we are deeply investing in understanding the customer behavior and preferences of our target audience in order to customize their experience. With Maly, you can grow, spend, send, and track your money in the same app and make use of group payments features to split costs, simplify payments between friends and set up a Grow Plan for effortless saving.

According to the 2024 Financial Literacy Survey by Visa, 37 per cent of respondents spend as much as their income and 65 per cent want to improve their knowledge of savings and investments. With a year-on-year increase in the cost of living in the country, influenced by rents, petrol prices and other factors, it is becoming critical for residents to take measures to put a long-term savings plan in place and maintain a good quality of life.

Some of the biggest spenders in both the UAE and KSA are the millennials, and being a tech savvy generation, these customers put substantial focus on personalisation and customer experience. Keeping this in mind, we launched our AI-powered financial guide, Luna. With this service, customers can receive tailored plans and advice based on their financial requirements.

The fintech sector in the UAE and KSA is poised for continued growth, driven by supportive policies, technological innovation, and an appetite for digital transformation. Stakeholders, policymakers, and consumers alike must continue to support and engage with fintech innovators to ensure a dynamic and inclusive financial landscape in the Middle East. By fostering collaboration and embracing technological advancements, we can ensure that the benefits of this digital revolution are realized across all sectors of society.

Features

The Technology and Processes Shaping the Hospitality Industry

Published

2 weeks ago

January 8, 2025

Integrator Web-Editor

By – Dr. Sean Lochrie, Associate Professor at Heriot-Watt University Dubai

The hospitality industry has undergone a transformative journey shaped by integrating technology and innovative processes. Particularly in the UAE, a region known for its forward-thinking approach and desire to lead in luxury and service, the impact of these advancements is evident. In a highly competitive market catering to an international clientele with high expectations, embracing technology is beneficial and essential for sustained growth and success.

One of the most significant shifts in hospitality has been the digitisation of the guest experience. Today, digital tools enable a seamless experience from booking to check-out, often with a high degree of personalisation. Many hotels in the UAE use artificial intelligence (AI)-powered chatbots. For instance, Address Hotels and Resorts in Dubai leverages artificial intelligence (AI) for virtual concierge, which can provide an in-depth tour of the Address Downtown Hotel, spotlighting everything from luxurious rooms to gourmet dining and serene spa sanctuaries. Another example is the Ritz-Carlton, a hotel renowned for its exceptional service, which has embraced AI to elevate the guest experience. They introduced an AI-powered chatbot to streamline guest interactions and deliver personalised recommendations.

Many hotels also offer personalised mobile apps that allow guests to check in remotely, access room controls, and request services without interacting with staff directly. These apps are a single interface for managing everything from lighting and temperature to ordering room service. Such conveniences, luxuries just a few years ago, have become essential as guests seek contactless and streamlined interactions. This level of convenience is particularly valuable in the UAE, where the diversity of visitors necessitates quick and personalised communication.

AI and data analytics have transformed how hotels understand their guests and predict their preferences. For instance, by analysing data from previous stays, hotels can tailor their offerings to individual guests, ensuring that each visit is unique and memorable. This predictive capability enables hotels to surprise and delight their guests while optimising resource allocation. AI also plays a significant role in revenue management, allowing hotels to adjust room rates dynamically based on demand and occupancy levels. For instance, many hotels use AI-driven pricing strategies that analyse market trends and competitor pricing, adjusting room rates to maximise occupancy and revenue. Such proactive approaches help hotels stay competitive in a fluctuating market like Dubai, where tourism demand varies throughout the year.

Furthermore, blockchain technology, the foundation of cryptocurrencies like Bitcoin, offers transformative potential for hotel loyalty programs, enhancing security, interoperability, and user experience. With its decentralised ledger, blockchain secures guest information and transaction histories, significantly improving data integrity and privacy. Blockchain enables secure and transparent transactions, reducing the risk of fraud and enhancing data security, an essential consideration in the UAE, where high-end transactions are common. This protection bolsters guest trust in the program. Blockchain also supports interoperability, allowing loyalty points to be earned and redeemed across different hotels or chains, increasing rewards’ flexibility and value. This technology enables real-time, transparent transactions, letting guests track and use points without complex conversion processes. Many blockchain loyalty programs also use tokenised points, which can be traded or transferred, expanding their usability beyond hotel services.

The UAE’s hospitality industry is a beacon of innovation, continually embracing the latest technologies to enhance guest experience, improve efficiency, and drive sustainability. By integrating digital tools, AI, robotics, VR, and blockchain, UAE hotels and resorts are meeting the evolving expectations of modern travellers. These technologies streamline operations and create a memorable and differentiated experience that sets UAE hospitality apart globally. As technology continues to grow and evolve, so will the processes that define hospitality in the UAE, ensuring that this sector remains at the forefront of service, luxury, and innovation. For professionals and stakeholders in the hospitality industry, staying abreast of these advancements is crucial, as they not only influence day-to-day operations but also shape the future of hospitality in a rapidly changing world.