GFK Channel Report 2009Q3(English)
Transcript of GFK Channel Report 2009Q3(English)
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GfK ChinaGSM Mobile Phone – Distribution Channel Report2009 3rd Quarter
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GfK Group Mobille Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Manufacturer Channel Policies & Development3
1 Manufacturer Dynamics and Channel Overview
Performance of Main National Distributors4
Performance of Manufacturers at Retail Level5
Distribution Modes for Key New Products6
Content
Appendix7
Regional Characteristics of Retail & Channel2
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GfK Group Mobille Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Manufacturer Dynamics and Channel Overview
1
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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1. National Distribution (ND): The process in which distributors purchase products from the manufacturers and distribute them national wide lower grade distributors or retailers through their subsidiaries.
2. District Distribution (DD): The process in which regional/provincial/small area distributors purchase products from manufacturers and distribute them to lower-level distributors or retailers
3. (National) Fulfillment Distribution (FD): The process in which distributors serve only as financial and logistic platforms, while manufacturers’ branches promote sales at retail level.
4. Direct Retail Partner (DRP) : manufacturers deliver products to their direct retail partners directly, which are usually nation-wide or regional chain stores.
5. Operator Bundle (OB): The process in which operators purchase or customize products through operator platforms or professional companies from the manufacturers or distributors, and platforms or companies deliver the products to the operator sales halls and authorized social stores.
Definition of Distribution Channels
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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1. Telecom Chain Store (TCS): The store who sells handset and related service only, and there are more than 3 shop-front in total, such as D-Phone…
2. Home Electronic Chain Store (HECS): The mall who sells electronic products, including handset/household appliances/PC/digital products, etc. And there are more than 3 shop-front in total , such as Gome…
3. Telecom Independence Store (TIS): The store who sells handset and related service only, and there are less than 3 shop-front in total, such as D-Phone…
4. Operator Sales Hall (OSH) : Belonged to operators or cooperated with operators by social retailers, not only sells handset but also offer the mobile communication service. CMCC/CU/CT…
5. Others : Including IT malls (Major business is IT products, such as PC-Mall…)/ Department stores (comprehensive store with dress/electronic products, etc, such as Ito Yakado… )/ Super market (such as Wal-mart…) ,and so on
Definition of Retail Types
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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The operator bundling channel decreased most among all channels. One important reason for the sharp fall of bundle channel market share is that operators are moving
their subsidies to 3G market In addition, CMCC’S bundling sales for very low-tier phones in rural areas was replaced by the mid-
range phones of campus promotion campaign. As a result, the total amount of bundling sales decreased.
Bundling sales volume and share both decreased
Key Channel Issues Q3, 2009
Market share of telecom chain stores (TCS) grew, while that of operator sales halls (OSH) declined
With M&A of TCS retailers, they have better financial and logistical capacities to expand their coverage in small cities and counties. Their product lines were going to low-end.
Meanwhile, the operator sales halls dropped significantly with the sharp reduce of handset subsidies in counties and rural areas.
Market share of ND kept an increasing trend, while the DRP dropped ND market sees a steady growth. The main reason is that Motorola and SonyEricsson cut the
investment to DRP, instead, they collaborate more with ND distributors with focusing their target on mid range & high-end. This change help them reduce the sales force cost, avoid financial risk, and to be more profitable.
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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In the end of 2nd quarter, rumor had that Nokia was going to developing Internet channel and authorizing the sales rights to on-line stores. However, Nokia’s channel conflicts would only deteriorate if the on-line sales volume exceeds actual stores and cause more price and channel issues.
In the 3rd quarter, Nokia continued to deepen the cooperation between WKA (Wholesales Key Account) plan and IS (Inner Sales) telephone sales plan. The countryside market continued to develop, the sales volume increased over 13% compared with the last quarter.
Key Channel Issues Q3, 2009
Samsung’s five former corporations had changed to five branches , which lead to Samsung’s market share rise in GSM market.
Suning, a retail store, for the first time was authorized as an exclusive agency for a new phone coming to market— Samsung M2710C. This will prove to be effective in preventing channel conflicts.
This quarter, ND’s share rose 4 percentage points to 71%, and was a leading channel in GSM channel structure.
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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After cancelling FD channel, Motorola’s sales volume increased in GSM market, the declining market share was slowing down also. The advantage of ND is becoming clear.
The profit strategy of Motorola changed from large scale sales model to high marginal profit model. However, the troubles from similar looking cell phones and illegal imported phones on market made it harder for the latter profit model executable in China.
The share of ND kept increasing in Moto’s channel structure and reached to 54.9% this quarter from 44.3% of the last quarter.
After Sharp come back China market, it reinforced the collaboration with PTAC and Telling, two of the largest national distributors. This method utilizes the established ND channel, focuses on terminal spreading of shopping mall and telecom chain stores.
Furthermore, sharp’s MSRP (manufacturer suggest retail price) strategy is distributor-oriented. The margin for distributors could be as high as 27%-28%. Sharp also approve the price higher than MSRP. These, to a great extent, improve distributors’ enthusiasm to push Sharp.
Sharp is expanding cooperation with China Mobile, the largest telecom operator in China. Sharp probably will enter bundle market in Q4.
Key Channel Issues Q3, 2009
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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After cancelling DRP channel, Sony Ericsson strengthened it’s ND channel, and had a sales increase in this quarter.
Sony Ericsson’s sales volume increased in open market and reached 910k in GSM total market this quarter, it sold 90k more than the last quarter, the increase rate is 11%.
Sony Ericsson’s bundling market sales continued to fall 6.2% since the last quarter, its bundling share had dropped 1 percent point.
As the third largest cell phone manufacturer, LG planed to increase its sales sites to 13,000. LG’s channel structure constructing will perform well after the new general manager of China mobile telecom department took the place, given his former excellent performance in channel sales.
LG deepened its ND channel after its former staff adjustment; the share of ND channel grew over 10 percent points to 83.7% this quarter since the last one. The sales volume of ND rose to 762k this quarter, increased 42.9% since the 2nd quarter.
Key Channel Issues Q3, 2009
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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29%
23%
7%3%
18% 20%
29%23%
8%3%
17%21%
31%
22%
8%3%
17% 18%
Q4,2008 Q1,2009 Q2,2009 Q3,2009
NDNational
Distribution
DDDistrict
Distribution
FDFulfillmentDistribution
NFDNational
FD
DRPDirect toRetailer
OBOperator’s
Bundle
Mkt. Share 31.18% 22.28% 8.14% 3.32% 16.84% 18.24%
Sell-out Volume
(M)11.07 7.91 2.89 1.18 5.98 6.48
Growth Rate
(QoQ)13.1% 2.8% 11.8% 20.8% 0.3% -9.5%
Development of GSM Channel Structure
In the third quarter, the channel share and sales volume of OB have fell, and the sales volume of ND FD and NFD have gone up with a slight share increase;
Market Share Development by Distribution Channels in GSM Market
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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TIS remains holding the largest market share, which has increased by 0.1 percentage points since the last quarter;
Operator Sales Hall have decreased by 2.0 percentage points respectively.
Retail Type Structure in GSM Market
Market Share of Retail Type Structure
34.9%
33.3% 9.8%
17.2%
4.8%
Telecom Chain Store Home Electric Chain Store
Operator Sales Hall
OthersTelecom Independent Store
+0.6
-2.0
+0.1
+1.3
Q3, 2009
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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Development trend of Retail Type in GSM Market
TIS share is 34.9% this quarter, which is 0.1 percentage points higher than the last quarter; HECS share increased by 0.6 percentage point than the last quarter ; OSH share dropped by 2 percentage points from 19.2% the last quarter to 17.2% this
quarter.
33.3% 35.3% 36.5% 38.1% 36.9% 36.9%34.6% 34.8% 34.9%
31.3% 32.5% 32.3% 31.2% 31.1% 30.5% 29.6%32.0% 33.3%
9.9% 10.9% 9.9% 9.7% 10.1%10.0% 9.9% 9.2% 9.8%
20.0% 15.6% 15.7% 16.1% 16.8%17.7%
21.0% 19.2% 17.2%
5.5% 5.7% 5.6% 5.0% 5.2%4.9% 4.9% 4.8% 4.8%
Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
TISTCSHECSOSHOTH
Retail Type Developing Trend in GSM Market
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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Channel Structure by Price Tier in GSM Market
ND FD NFD DRP OB
Below 1000 RMB 1000-2000 RMB 2000~3000 RMB
3000~4000 RMB 4000~5000 RMB Above 5000 RMB
DD
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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Retail Type Structure by Price Tier in GSM Market
TIS TCS HECS OSH Others
Below 1000 RMB 1000-2000 RMB 2000~3000 RMB
3000~4000 RMB 4000~5000 RMB Above 5000 RMB
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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LG performed well in home electric chain store channel in Q3.
Tianyu’s market share had dropped in TIS channel which it performed best in all four channels.
Main Brand Market Share by Retail Type
Telecom Independent Store Telecom Chain Store
Home Electric Chain Store Operator Sales Hall
Nokia SamsungMOTO S.E. LG Lenovo
35.2%
17.1%
6.1% 5.8% 4.5%3.8%
34.1%
19.2%
6.1% 4.7% 5.5%3.5%
Q2'2009Q3'2009
Nokia SamsungMOTO Tianyu Gionee Lenovo
44.8%
18.0%
5.3% 3.8% 2.7% 2.4%
44.9%
16.5%
4.6% 3.4% 2.9% 2.8%
Q2'2009Q3'2009
Nokia Samsung MOTO Gionee Lenovo S.E.
41.3%
18.7%
5.7% 3.3% 3.3% 3.2%
40.4%
19.4%
4.7% 3.0% 3.8% 2.9%
Q2'2009Q3'2009
Nokia SamsungMOTO Haier Lenovo LG
54.4%
27.3%
5.1% 3.3%2.7% 1.7%
53.8% 30.2%
4.0% 2.0%2.7%
1.5%
Q2'2009Q3'2009
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GfK Group Mobille Phone – Distribution Channel Report Nov 2009
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Regional Characteristics of Retail & Channel2
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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Market Share by Distribution Channel /Total Q3, 2009
ND Channel DD Channel FD Channel
NFD Channel DRP Channel OB Channel
Samsung39%
Nokia39%
Dopod0%
SHARP1%
LG7%
Motorola10%
SonyEricsson4%
Lenovo13%
Others61%
Tianyu12%
LG0%
Dopod0%
Motorola0%
SonyEricsson2%
Gionee11%
Nokia,99.50%
Others,0.50%
Nokia,100.00%
Nokia42%
Motorola13%
Others30%
Dopod1%
Tianyu4%
Lenovo6%
SHARP4%
Nokia51%
Others14%
Samsung24%
LG1%
Motorola3%
Lenovo6%
Dopod1%
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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Market Share by Retail Type /Total Q3, 2009
Telecom Independent Store
Telecom Chain Store Home Electric Chain Store
Operator Sales Hall Others
NOKIA46%
OPPO2%
BBK2%
BIRD2%
Others14%
SAMSUNG
20%
SONYERICSSO
N2%
GIONEE2%
LENOVO2%
MOTOROLA6%
TIANYU2%
NOKIA38%
TIANYU2%
LG2%
SONYERICSSO
N3%
Others16%
SAMSUNG
19%
OPPO3%
GIONEE3%
LENOVO4%
MOTOROLA7%
BBK3%
NOKIA31%KONKA
3%
OPPO3%
AUX3%
Others17%
SAMSUNG
18%
SONYERICSSO
N4%GIONEE
4%BBK5%
MOTOROLA7%LG
5%
NOKIA57%
GIONEE1%LG
1%
HUAWEI1%
Others3%
SAMSUNG
24%
HAIER2%
TIANYU2%
LENOVO3% ZTE
3%
MOTOROLA3% NOKIA
44%
KONKA2%
LG2%
GIONEE2%
Others12%
SAMSUNG
19%
BIRD2%
SONYERICSSO
N2%
TIANYU4% MOTORO
LA8%
LENOVO3%
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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Market Share by Distribution Channel /Central Region Q3, 2009
ND Channel DD Channel FD Channel
NFD Channel DRP Channel OB Channel
Samsung39%
Nokia39%
Dopod0%
SHARP1%
LG7%
Motorola10%
SonyEricsson4%
Lenovo13%
Others61%
Tianyu12%
LG0%
Dopod0%
Motorola0%
SonyEricsson2%
Gionee11%
Nokia,99.50%
Others,0.50%
Nokia,100.00%
Nokia42%
Motorola13%
Others30%
Dopod1%
Tianyu4%
Lenovo6%
SHARP4%
Nokia51%
Others14%
Samsung24%
LG1%
Motorola3%
Lenovo6%
Dopod1%
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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Market Share by Retail Type /Central Region Q3, 2009
Telecom Independent Store
Telecom Chain Store Home Electric Chain Store
Operator Sales Hall Others
NOKIA46%
OPPO2%
BBK2%
BIRD2%
Others14%
SAMSUNG
20%
SONYERICSSO
N2%
GIONEE2%
LENOVO2%
MOTOROLA6%
TIANYU2%
NOKIA38%
TIANYU2%
LG2%
SONYERICSSO
N3%
Others16%
SAMSUNG
19%
OPPO3%
GIONEE3%
LENOVO4%
MOTOROLA7%
BBK3%
NOKIA31%KONKA
3%
OPPO3%
AUX3%
Others17%
SAMSUNG
18%
SONYERICSSO
N4%GIONEE
4%BBK5%
MOTOROLA7%LG
5%
NOKIA57%
GIONEE1%LG
1%
HUAWEI1%
Others3%
SAMSUNG
24%
HAIER2%
TIANYU2%
LENOVO3% ZTE
3%
MOTOROLA3% NOKIA
44%
KONKA2%
LG2%
GIONEE2%
Others12%
SAMSUNG
19%
BIRD2%
SONYERICSSO
N2%
TIANYU4% MOTORO
LA8%
LENOVO3%
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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Market Share by Distribution Channel /East Region Q3, 2009
ND Channel DD Channel FD Channel
NFD Channel DRP Channel OB Channel
Samsung44%
Nokia33%
SHARP1%
Dopod0%
LG7%
Motorola9%
SonyEricsson6%
Others70%
Lenovo10% Gionee
9%
Motorola0%LG
0%
Amoi1%
SonyEricsson2%
Tianyu7%
Nokia,99.60%
Others,0.40%
Nokia,100.00%
Nokia49%
Lenovo9%
Others25%
Dopod1%
Motorola7%
Tianyu7%
SHARP2%
Nokia40%
Others10%
Samsung33%
Dopod1%
Motorola6%
Lenovo7%
LG3%
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Market Share by Retail Type /East Region Q3, 2009
Telecom Independent Store
Telecom Chain Store Home Electric Chain Store
Operator Sales Hall Others
NOKIA45%
LG1%
BBK2%
SONYERICSSO
N2%
Others15%
SAMSUNG
18%
GIONEE3%
OPPO3%
TIANYU3%
MOTOROLA5%
LENOVO3%
NOKIA40%
BBK2%
GIONEE2%
LG3%
Others15%
SAMSUNG
19%
TIANYU3%
SONYERICSSO
N3%
LENOVO4%
MOTOROLA6%
OPPO3%
NOKIA33%
GIONEE3%
TIANYU3%
OPPO4%
Others15%
SAMSUNG
18%
LENOVO4%
BBK4%
SONYERICSSO
N5%
MOTOROLA6%
LG5%
NOKIA47%
DOPOD0%HUAWEI
1%
ZTE1%
Others2%
SAMSUNG
34%
LG1%
TIANYU2%
LENOVO4%MOTORO
LA5%
HAIER3%
NOKIA45%
LG2%
BBK2%
GIONEE2%
Others15%
SAMSUNG
16%
OPPO2%
SONYERICSSO
N3%
LENOVO4%
MOTOROLA6%
TIANYU3%
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Market Share by Distribution Channel /North Region Q3, 2009
ND Channel DD Channel FD Channel
NFD Channel DRP Channel OB Channel
Nokia50%
SonyEricsson2%Tianyu
4%
Motorola8%
Lenovo6%
SHARP4%
LG3%
SHARP0%
Samsung23%
Lenovo13%
Others61%
Tianyu12%
LG0%
Dopod0%
Motorola0%
SonyEricsson2%
Gionee11%
Nokia,99.70%
Others,0.30%
Nokia,100.00%
Nokia53%
Dopod0%
Others7%
Samsung25%
Amoi1%
LG3%
Motorola8%
Lenovo2%
Nokia41%
Motorola13%
Others31%
Dopod1%
Tianyu4%
Lenovo6%
SHARP4%
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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Market Share by Retail Type /North Region Q3, 2009
Telecom Independent Store
Telecom Chain Store Home Electric Chain Store
Operator Sales Hall Others
NOKIA48%
PHILIPS1%
AUX1%
OPPO2%
Others16%
SAMSUNG
17%
GIONEE2%
CHANGHONG2%
MOTOROLA4%
TIANYU5%
LENOVO2%
NOKIA45%
PHILIPS1%
SHARP1%
OPPO2%
Others12%
SAMSUNG
23%
LG3%
SONYERICSSO
N3%
LENOVO3%
MOTOROLA4%
TIANYU3%
NOKIA34%
BBK2%
HAIER2%
GIONEE3%
Others16%
SAMSUNG
18%
SONYERICSSO
N3%
LENOVO4%
TIANYU6%
MOTOROLA7%
LG5%
NOKIA59%
PHILIPS1%AMOI
1%
LENOVO1%
Others1%
SAMSUNG
25%
TIANYU1%
HAIER1%
ZTE2%
MOTOROLA6%
LG2%
NOKIA38%
GIONEE1%
OPPO1%
KONGPROFIT
2%
Others15%
SAMSUNG
20%
LG2%
SONYERICSSO
N2%
TIANYU7%
MOTOROLA7%
LENOVO5%
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
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Market Share by Distribution Channel /Northeast Region Q3, 2009
ND Channel DD Channel FD Channel
NFD Channel DRP Channel OB Channel
Nokia39%
SonyEriccon4%
Motorola11%
LG7%
SHARP2%
Dopod0%
Samsung37%
Lenovo13%
Others66%
Gionee11%
Motorola0%LG
0%
Amoi1%
SonyEricsson1%
Tianyu7%
Nokia,100.00%
Nokia46%
Others7%
Samsung32%
SonyEricsson0%
Lenovo6%
Motorola8%
LG1%
Nokia51%
Motorola11%
Others25%
Dopod0%
Lenovo2%
Tianyu9%
SHARP2%
Nokia,99.50%
Others,0.50%
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Market Share by Retail Type /Northeast Region Q3, 2009
Telecom Independent Store
Telecom Chain Store Home Electric Chain Store
Operator Sales Hall Others
NOKIA43%
LG1%
SONYERICSSO
N1%
TIANYU3%
Others13%
SAMSUNG
18%
LENOVO3%
CHANGHONG3%
PHILIPS5%
MOTOROLA6%
GIONEE4%
NOKIA41%
CHANGHONG2%
LG2%
TIANYU2%
Others17%
SAMSUNG
19%
SONYERICSSO
N2%
LENOVO3%
GIONEE3%
MOTOROLA6%
PHILIPS3%
NOKIA34%
LENOVO3%
GIONEE3%
SONYERICSSO
N3%
Others15%
SAMSUNG
19%
PHILIPS3%
TIANYU4%
LG6%
MOTOROLA6%
BBK4%
NOKIA51%
BIRD0%ZTE
1%
LG1%
Others1%
SAMSUNG
33%
TIANYU1%
GIONEE1%
HAIER3%
MOTOROLA6%
LENOVO2%
NOKIA35%
CHANGHONG3%
PHILIPS3%
BIRD3%
Others17%
SAMSUNG
17%
GIONEE3%
LENOVO4% TIANYU
4%
MOTOROLA7%
SONYERICSSO
N4%
![Page 27: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/27.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Market Share by Distribution Channel /Northwest Region Q3, 2009
ND Channel DD Channel FD Channel
NFD Channel DRP Channel OB Channel
Samsung41%
SonyEricsson6%
Motorola12%
LG10%
Dopod0%
SHARP1%
Nokia30%
Gionee14%
Others63%
Lenovo12%
LG0%Motorola
0%
Amoi0%
SonyEricsson1%
Tianyu9%
Nokia,100.00%
Nokia45%
Others12%
Samsung33%
Dopod1%
Lenovo3%
Motorola4%
LG2%
Nokia57%
Motorola8%
Others23%
Dopod1%
Lenovo3%
Tianyu6%
SHARP2%
Nokia,99.70%
Others,0.30%
![Page 28: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/28.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Market Share by Retail Type /Northwest Region Q3, 2009
Telecom Independent Store
Telecom Chain Store Home Electric Chain Store
Operator Sales Hall Others
NOKIA40%
BIRD2%
DAXIAN2%
JPG2%
Others17%
SAMSUNG
15%
LENOVO3%
CHANGHONG4%
TIANYU5%
MOTOROLA6%
GIONEE4%
NOKIA39%
LG2%
OPPO2%
BBK2%
Others17%
SAMSUNG
18%
BIRD2%
GIONEE4%
MOTOROLA5%
LENOVO5%
TIANYU4%
NOKIA37%
LENOVO2%
TIANYU2%
OPPO3%
Others9%
SAMSUNG
19%
BBK3%SONY
ERICSSON
3%
GIONEE7%
LG8%
MOTOROLA7%
NOKIA55%
DOPOD0%
TIANYU1%
ZTE1%
Others1%
SAMSUNG
31%
LG2%
HAIER2%
MOTOROLA2%
BIRD3%
LENOVO2%
NOKIA36%
BIRD2%
SONYERICSSO
N2%
KONKA2%
Others20%
SAMSUNG
16%
BBK3%
TIANYU4%
LENOVO5%
MOTOROLA6%
GIONEE4%
![Page 29: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/29.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Market Share by Distribution Channel /South Region Q3, 2009
ND Channel DD Channel FD Channel
NFD Channel DRP Channel OB Channel
Samsung40%
LG6%
SonyEricsson9%
Motorola7%
Dopod0%
SHARP1%
Nokia37%
Lenovo12%
Others66%
Gionee11%
Motorola0%
LG0%
Dopod0%
SonyEricsson3%
Tianyu8%
Nokia,100.00%
Nokia73%
Others3%
Samsung18%
LG1%
Lenovo1%
Motorola2%
SonyEricsson1%
Nokia29%
Lenovo12%
Others34%
Dopod0%
Motorola9%
Tianyu11%
SHARP5%
Nokia,99.9%
Others,0.1%
![Page 30: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/30.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Market Share by Retail Type /South Region Q3, 2009
Telecom Independent Store
Telecom Chain Store Home Electric Chain Store
Operator Sales Hall Others
NOKIA46%MOTORO
LA2%
OPPO2%
LENOVO2%
Others22%
SAMSUNG
12%
TIANYU2%
BBK3%
GIONEE3%
SONYERICSSO
N3%
JPG3%
NOKIA42%
KONKA2%
KONGPROFIT
2%
MOTOROLA2%
Others18%
SAMSUNG
19%
TIANYU2%
OPPO3%
LENOVO3% GIONEE
4%
SONYERICSSO
N3%
NOKIA39%
OPPO2%
SHARP2%
PHILIPS3%
Others9%
SAMSUNG
21%
GIONEE3%
LENOVO3%
LG6%
SONYERICSSO
N7%
MOTOROLA5%
NOKIA63%
ZTE0%
BIRD0%
LENOVO0%
Others0%
SAMSUNG
32%
DOPOD0%
LG1%
SONYERICSSO
N1%
MOTOROLA2%
TIANYU1%
NOKIA46%
GETEK2%
LENOVO2%
MOTOROLA2%
Others17%
SAMSUNG
17%
OPPO2%
GIONEE2% TIANYU
2%
SONYERICSSO
N6%
BBK2%
![Page 31: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/31.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Market Share by Distribution Channel /Southwest Region Q3, 2009
ND Channel DD Channel FD Channel
NFD Channel DRP Channel OB Channel
Samsung47%
Motorola6%
SonyEricsson8%
LG8%
Dopod0%
SHARP0%
Nokia31%
Lenovo20%
Gionee13%
Others59%
SonyEricsson2%
Tianyu5%
Nokia,100.00%
Nokia38%
Others15%
Samsung26%
SonyEricsson3%
Motorola5%
Lenovo9%
LG3%
Nokia48%
Motorola9%
Others32%
Dopod0%
Lenovo3%
Tianyu7%
SHARP1%
Nokia,99.1%
Others,0.9%
![Page 32: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/32.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Market Share by Retail Type /Southwest Region Q3, 2009
Telecom Independent Store
Telecom Chain Store Home Electric Chain Store
Operator Sales Hall Others
NOKIA43%
KONKA2%
OPPO2%
CHANGHONG2%
Others21%
SAMSUNG
11%
BBK2%
LENOVO4%
TIANYU4%
MOTOROLA5%
GIONEE4%
NOKIA35%BBK
2%
LG2%
TIANYU2%
Others18%
SAMSUNG
20%OPPO
3%
SONYERICSSO
N4% GIONEE
5%
MOTOROLA5%
LENOVO4%
NOKIA36%
KONKA2%
BBK2%
TIANYU2%
Others12%
SAMSUNG
19%
GIONEE3%
LENOVO3%
SONYERICSSO
N7%
LG8%
MOTOROLA6%
NOKIA54%
DOPOD1%
BIRD1%
KONKA2%
Others2%
SAMSUNG
27%
LG2%TIANYU
2%
HAIER3%
LENOVO4%
MOTOROLA2%
NOKIA37%
LG2%
GIONEE2%
MALATA2%
Others13%
SAMSUNG
21%
LENOVO3%
TIANYU3%
KONKA4%
MOTOROLA9%
SONYERICSSO
N4%
![Page 33: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/33.jpg)
GfK Group Mobille Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Manufacturer Channel Policies & Development3
![Page 34: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/34.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Main Channel Structure in GSM Market Q3, 2009
Brand ND DD FD/NFD DRP OB
28.5% 20.8% / 8.5% 19.8% 22.4%
71.3% 28.7%
54.9% 26.5% 18.2%
76.6% 17.9% 5.5%
83.7% 1.2% 15.1%
57.5% 42.5%
54.6% 25.5% 19.9%
88.0% 12.0%
64.2% 35.8%
16.7% 39.0% 18.2% 26.1%
Nokia’s ND, FD and NFD share increased in the 3rd quarter; its DRP and OB share declined;
Samsung’s ND share increased significantly; Motorola’s ND share increased while the shares of other channels fell.
Q3, 2009
![Page 35: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/35.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
28.6% 31.7% 26.3% 26.0% 28.5%
21.4% 18.4% 17.9% 19.1% 20.8%6.2% 7.2% 7.3% 7.2% 8.5%23.2% 23.9% 21.6% 21.7% 19.8%
20.6% 18.9% 27.0% 26.0% 22.4%
Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
61.8% 59.7% 61.0% 67.0% 71.3%
38.2% 40.3% 39.0% 33.0% 28.7%
Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
41.2% 37.8% 33.5% 44.3% 54.9%1.3% 0.9% 1.1%
0.4%0.4%5.6% 7.7% 8.5%
28.6% 29.8% 34.6% 32.9% 26.5%
23.3% 23.8% 22.4% 22.3% 18.2%
Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
42.0% 41.5% 40.4%78.4% 76.6%
16.4% 17.6% 14.3%
15.1% 17.9%33.9% 32.1% 36.6%7.7% 8.8% 8.6% 6.5% 5.5%
Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
68.6% 68.0% 72.7% 78.3% 83.7%
5.5% 4.1% 2.7% 1.8% 1.2%25.9% 27.8% 24.6% 19.9% 15.1%
Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
Change of Channel Structure by Brand
The ND share of SHARP increased significantly during this quarter, because of the collaboration with PTAC and Telling.
ND DD FD NFD DRP OB
0.0% 10.0%34.1% 44.8%
64.2%
100.0%
90.0%65.9% 55.2%
35.8%
Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
![Page 36: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/36.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Profit Margin Distribution of Nokia Q3, 2009
Provincial Distributors & ND’s Branch
用户
OSH(21.2%)
Others(4.6%)
HECS(7.6%)
TCS(30.8%)
TIS(35.8%)
National Distributors
FD/NFDWKA *
DRP
Operation Platform
* WKA: Wholesales Key Account
44.6% 19.8% 35.6%
16.1%
6.3%
4.5%12.8%
12%1%
![Page 37: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/37.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China用户
Channel Structure of Samsung Q3, 2009
Provincial Distributor & ND's Branch
National Distributor
Small Area Distributor
100%
71.3% 28.7%
OSH(25.8%)
Others(4.2%)
HECS(9.3%)
TCS(32.1%)
TIS(28.5%)
Operator Platform
![Page 38: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/38.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Structure of Motorola Q3, 2009
Provincial Distributor & ND's Branch
用户
National Distributor
Key Wholesales
DRP26.9%73.1%
54.9%
18.2%
OSH(14.4%)
Others(6.2%)
HECS(12.6%)
TCS(33.3%)
TIS(33.6%)
Operator Platform
2.3%
![Page 39: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/39.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Structure of Sony Ericsson Q3, 2009
National Distributor
Provincial Distributor & ND's Branch
District Distributors
用户
Provincial Distributors
5.5%
23.4%76.6%
76.6% 17.9%
OSH(2.9%)
Others(6.3%)
HECS(20.0%)
TCS(41.7%)
TIS(29.1%)
Operator Platform
![Page 40: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/40.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Structure of LG Q3, 2009
用户
Provincial Distributor & ND's Branch
National Distributor
15.1%84.9%
100%
OSH(12.0%)
Others(4.5%)
HECS(27.4%)
TCS(35.7%)
TIS(20.3%)
Operator Platform
![Page 41: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/41.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Structure of Sharp Q3, 2009
用户
Provincial Distributors & ND’s Branch
National Distributors
DRP
TIS(24.5%)
TCS(45.5%)
HECS(24.9%)
Others(5.1)
OSH(0.0%)
Operator Platform
64.2% 35.8%
![Page 42: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/42.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Structure of K-Touch Q3, 2009
用户
Small Area Distributors
Provincial Distributors
Small Area Distributors
DRP 42.5%27.5%
TIS(43.0%)
TCS(30.1%)
HECS(10.7%)
Others(6.7%)
OSH(9.5%)
Operator Platform
30.0%
![Page 43: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/43.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Structure of Dopod Q3, 2009
Provincial Distributors
National Distributors
Small Area Distributors
用户
DRP
Operator Platform
65.1%16.7%
26.1%
18.2%
39.0%
OSH(34.0%)
Others(6.3%)
HECS(9.5%)
TCS(29.0%)
TIS(21.3%)
![Page 44: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/44.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Profit Margin Distribution of Nokia Q3, 2009
Provincial Distributors & ND’s Branch
用户
OSHOthers HECSTCSTIS
National Distributors
≈10 %≈3%
792
831
873
978 978
≈18%
978
FD/NFD
978
≈5%
≈12%
829
WKA *
828
≈4.5%865≈13%
≈4%889 906 ≈6%
≈8%
Total: ≈ 21.0%
DRP
≈8%855
≈3%855
Operation Platform
≈8%855
≈3%855
Average Shipment Price /RMB
Average Retail Price (Q3) /RMB
Retail Margin %
* WKA: Wholesales Key Account
![Page 45: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/45.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Profit Margin Distribution of Motorola Q3, 2009
Provincial Distributor & ND's Branch
用户
OSHOthers HECSTCSTIS
National Distributor
≈8 %≈4.5%
880
911
952
1057 1057
Average Shipment Price /RMB
≈18%
1057 1057Average Retail Price (Q3) /RMB
≈3.5%
≈11%
Key Wholesales
896
Retail Margin %≈6%979
979 ≈3%
≈8%
TOTAL:≈ 20.0%
DRP
≈5%924
≈1%924
Operator Platform
![Page 46: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/46.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China用户
OSHOthers HECSTCSTIS
1017 1017
≈12%
1017Average Retail Price (Q3) /RMB
≈8%Retail Margin % ≈10%
Channel Profit Margin Distribution of Samsung Q3, 2009
Provincial Distributor & ND's Branch Operator Platform
National Distributor
Small Area Distributor
806Average Shipment Price /RMB
TOTAL:≈ 24.0%
≈6.5%858
≈4.5%897
≈3.5%942
≈6%908 ≈6%925
≈8%872
![Page 47: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/47.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Profit Margin Distribution of Sony Ericsson Q3, 2009
National Distributor
Provincial Distributor & ND's Branch
District Distributors
用户
OSHOthers HECSTCSTIS
1335 1335
≈8%
1335Average Retail Price (Q3) /RMB
≈10%Retail Margin % ≈6%
1133Average Shipment Price /RMB
Provincial Distributors
TOTAL:≈ 18.0%
≈3%1167
≈4%1214 ≈5%1236
≈4%1177
1133
≈6%1260
≈5%1188
Operator Platform
![Page 48: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/48.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Profit Margin Distribution of LG Q3, 2009
用户
OSHOthers HECSTCSTIS
1036 1036Average Retail Price (Q3) /RMB
≈14%Retail Margin % ≈15%
Provincial Distributor & ND's Branch
National Distributor
820Average Shipment Price /RMB
TOTAL:≈ 26.0%
≈6%870
≈4.5%909 ≈6%901
≈4%850
Operator Platform
![Page 49: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/49.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Profit Margin Distribution of K-Touch Q3, 2009
用户
Small Area Distributors
Provincial Distributors
TOTAL:≈ 35.0%
Average Retail Price (Q3) /RMB
Retail Margin %
507Average Shipment Price /RMB
686
≈10%558
≈23%
686
≈9%555
≈3%57220%
508
Small Area Distributors
≈8%54925%
686
DRP
686
35%
508
TIS TCS HECSOthers
![Page 50: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/50.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Profit Margin Distribution of Lenovo Q3, 2009
Small Area Distributors
Provincial Distributors
用户
Small Area Distributors
TOTAL:≈ 30.0%
Average Retail Price (Q3) /RMB
Retail Margin %
Average Shipment Price /RMB
689
893 893
≈8%744
≈20%
≈4%716
≈4%744
893
≈20%
≈6.5%732
893
≈22%
687 714
≈25%
893
≈10%
≈10%812
738≈7%
TIS TCS HECSOthers OSH
Operator Platform
![Page 51: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/51.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Profit Margin Distribution of GiONEE Q3, 2009
用户
Small Area Distributors
Provincial Distributors
TOTAL:≈ 40.0%
Average Retail Price (Q3) /RMB
Retail Margin %
690Average Shipment Price /RMB
972
≈10%759
≈28%
972
≈7%741
≈5%77825%
716
Small Area Distributors
≈6%75928%
972
DRP
972
35%
720
TIS TCS HECSOthers
![Page 52: GFK Channel Report 2009Q3(English)](https://reader033.fdocuments.in/reader033/viewer/2022051502/58f1c84c1a28ab20668b45d1/html5/thumbnails/52.jpg)
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GfK Group Mobile Phone – Distribution Channel Report Nov 2009
© Copyright of GfK China
Channel Profit Margin Distribution of Dopod Q3, 2009
Provincial Distributors
National Distributors
Provincial Distributo
rs
Small Area Distributors
用户
OSHOthers HECSTCSTIS
Average Retail Price (Q3) /RMB
Retail Margin %
DRP Average Shipment Price /RMB
TOTAL:≈ 30.0%
≈20% ≈15% ≈22% ≈25% ≈10%
2289 2315 2373
2966 2966 2966 29662966
≈8%2472
≈6%2431
≈3%2504
≈5%2431≈3%250
4
≈3%2579
≈8%2696
2496
≈8% Operator Platform
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Channel Profit Margin Distribution of Sharp Q3, 2009
用户
Average Shipment Price /RMB
TOTAL:≈ 28.0%
Provincial Distributors & ND’s Branch
National Distributors
2868 2868 2868
≈8%
DRP
≈8%2353
≈28%
2241 2241
2494 ≈6%
≈7%2529
≈5%2656
≈15%
Average Retail Price (Q3) /RMB
Retail Margin %
TIS TCS HECSOthers OSH
Operator Platform
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Sales Staff ≈290 ≈60 ≈250 ≈60 ≈100
Supervisor≈800
(not including distributors’)
≈240≈400
(not including distributors’)
≈200 ≈300
Promoter ≈4500 ≈3000 ≈4000 ≈1000 ≈1600
Channel Profit ND: 3%~5%FD: 2.5%~4%
ND: 5%~10%FD: 3%~4%
ND: 5%~10%PD: 3%~4% ND: 4%~8% ND: 10%~15%
Rebate to Distributor Flexible Flexible No Rebate Monthly: 2%Quarterly:1% ~2%
Price Protection ND: 3 weeksDRP: 4 weeks
ND: 4 weeksDRP: 4 weeks Buyout ND: TTL
Inventory Buyout
Retailer Gross Profit (non-DRP) 8%~11% 7%~10% ~18% ~4% 10%~15%
DRP Gross Profit 10%~13% 9%~12%
Channel Policies of Manufacturers Q3, 2009
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Formal Sales Staff ≈200 ≈600 ≈600 ≈800 ≈200
Promoter ≈1000 ≈3000 ≈5000 ( Distributor) ≈8000
(Distributor) ≈1000
PD/SAD Channel Profit 7%~8% 5%~6% 5%~8% 3%~7% 50yuan/unit
Rebate to Distributor Flexible Flexible Non Flexible Non
Price Protection 3 months Total Inventory Buyout Buyout Buyout
Retailer Gross Profit (non-DRP) 22%~23% 14%~20% 25%~30% 20%~25% 22%~27%
DRP Gross Profit 27%~28% 28% 32% ~30% ~30%
Channel Policies of Manufacturers Q3, 2009
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Retail Profit Margin Analysis by Brand Q3, 2009
Retailer profit margin
SHARP, Dopod, and Samsung had the highest retail profit margin.
11.0%
16.4%
12.1% 12.0%
15.1%
7.6%
13.7%
10.2% 9.9%
13.0%
6.2%
13.0%
8.0% 8.9%10.6%
3.2%
10.5%
5.8% 6.0%8.9%
Nokia Samsung Motorola S.E. LG
>3000 2000-3000 1000-2000 <1000
15.4%
19.1%17.1% 17.0% 18.9%
14.9%17.1%
14.6%16.7% 15.7%
12.9%
16.2%
12.3%13.7% 14.8%
8.9%10.9% 12.0% 11.7%
Lenovo SHARP Gionee Tianyu Dopod
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GfK Group Mobille Phone – Distribution Channel Report Nov 2009
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Performance of Main National Distributors4
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46.1% 46.2% 44.4% 41.6% 47.7% 48.8% 47.0% 45.3% 46.5% 46.3% 49.0% 47.9% 45.7%
Sell-out Volume of Main National Distributors
Market Share through ND ChannelSales Volume(mil.)
Sales Volume of National Distributor (Q3, 2009)
The share of National Distributor fell in the third quarter.
Q3’06 Q4’06 Q1’07 Q2’07 Q3’07 Q4’07 Q1’08 Q2’08 Q3’08 Q4’08 Q1’09 Q2’09 Q3'09
12.7 14.5 14.7 13.016.8 18.3 17.8 16.7 17.4 16.0 17.2 16.4 16.2
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National DistributorQuarter Sales
Volume( 1,000)
Quarter Ring Growth
Quarter Market Share
Market Share Change(%)
6696 6.9% 18.8% -0.7
6148 0.9% 17.2% -1.6
2217 15.1% 6.2% 0.2
1095 5.7% 3.0% -0.1
109 25.9% 0.3% 0.0
16263 5.7% 45.7% -2.2
1936 14.3% 5.4% 0.2
Sell-out Volume of Main National Distributors
The sales volume of National Distributors this quarter was 16.2 million. The share of National Distributors in GSM market was 45.74%, and the link relative ratio
declined by 2.16 percent. SYNNEX, NFD of Nokia, went on its fast growing speed.
OthersTOTAL
The Sell-out Volume and Change of the Main National Distributors (Q3,2009)
Note: Including the sell-out volume in OB channel
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5.1 5.6 7.1 7.7
6.1
10.0 10.2 7.6
5.5 6.9 6.2
7.0 6.2 6.6
3.9 3.8 4.0 4.1 4.1 4.2 5.1
7.2 8.0 7.3 6.7
6.8 6.0 6.1
0.9 0.8 0.9 0.7 0.9 0.9 1.2 1.4 1.5 1.7 1.7 1.9 1.9 2.2
0.2 0.6 0.9 1.4 1.5 1.8 1.7 1.9
0
2
4
6
8
10
12
Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
PTAC Telling Aisidi PYPO PTIC Synnex
Sell-out Volume Change of Main DistributorsUnit: M
Sell-out Volume Change Trend of Distributors
The gap between PTAC and Telling’s sell-out volumes were becoming larger. The sell-out volumes of Samsung and Sony Ericsson distributed by Aisidi were going on
increasing steadily.
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GSM Sales Value Change of Main Distributors
The GSM Sales Value of the Main Distributors
In this quarter, the sell-out volume of Telling exceeded PTAC, and the sell-out value of PTAC (5.01 billion RMB) was much less than that of Telling(6.32 billion RMB). It was mainly because that the average retail price of PTAC’s GSM products (767RMB) was lower than that of Telling (963RMB).
The average retail price of Aisidi dropped 30 RMB from last quarter, but was still high (1176 RMB). Aisidi’s sell-out value rosed by 18.5% compared with that of last quarter.
6.5
8.9 9.1 7.7
6.4 6.6 5.1 5.2 4.8 5.0 4.9 5.1
5.9 7.2
7.9 7.3
6.7 6.9 5.6
6.3
1.4 1.4 1.7 2.0 2.3 3.0 3.1 2.9
2.3 2.7
0.4 1.0 1.3 1.9 2.0 2.5 2.1 2.3
0
2
4
6
8
10
12
Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
PTAC Telling Aisidi PYPO PTIC Synnex
Unit: billion
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49.9%
67.9% 65.8% 67.8% 70.5%65.1%
60.0%66.2%
60.1%
47.0%
23.4%
13.6% 16.4% 18.7% 16.9% 17.3% 17.9% 15.1%19.8% 20.7%
11.5% 9.0% 7.9%3.6% 3.2% 9.1% 13.0% 10.9%
12.1%17.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
Nokia Motorola Samsung SonyEricsson LG SHARP
Sales Volume Structure by Brand
During the third quarter, among the brands distributed by PTAC, the share of Nokia went on the decreasing trend, from 60.1% to 47.0%. However, the share of Motorola and Samsung had increased by 0.9% and 5.6%.
PTAC Sales Volume Structure by Brand
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37.3%
36.0% 35.2% 36.0%
34.4% 35.7%38.9%
40.3%44.3% 43.9%
40.0%
34.6%32.0%
20.9% 17.8%11.6% 9.1% 8.3% 8.3% 8.6%14.2%
22.2%26.6%
36.0%
41.0% 46.2%45.1%
40.4% 33.2%31.0%
0%
10%
20%
30%
40%
50%
60%
Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09
Nokia Motorola Samsung SonyEricsson LG SHARP
During the third quarter, among the brands distributed by Telling, the share of Nokia decreased slightly, down to 43.9%(-0.4%); at the same time, the share of Samsung dropped from 33.2% to 31.0%. The share of Motorola, SonyEriccson and LG increased by 0.3%, 0.6% and 1.0% respectively.
Telling Sales Volume Structure by Brand
Sales Volume Structure by Brand
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In the third quarter, among the brands distributed by Aidisi, the share of Sony Ericsson increased steadily to 9.0%, while the share of Samsung still remained higher than 90% but showed declining trend.
Aisidi Sales Volume Structure by Brand
Sales Volume Structure by Brand
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GfK Group Mobille Phone – Distribution Channel Report Nov 2009
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Performance of Manufacturers at Retail Level5
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Brand penetration rate can be defined as the percent of stores with any dummy model of a certain brand. This rate can reach 100% for some top brands like Nokia, Motorola and Samsung, so this index can not accurately reflect the coverage change of a brand.
So, we propose a new coverage index, brand effective penetration rate (EPR), to reflect the effective brand coverage . This index is calculated by weighting the simple penetration rate in different sized retail stores (super big sized, big sized , mid-sized and small sized) with the number of each sized stores.
Brand effective penetration rate can well reflect the coverage of each manufacturers, moreover, this index indicates the coverage in the retail stores with monthly sales volume above 30 units.
Note:Criteria of store size: super big ( sales≥1500 items/month ) ;big store ( 800~1500 items/month ) ;mid-store ( 400~800 items/month ) ;small store ( 100~400 items/month ) ;tiny store ( 30~100 items/month)
Brand Effective Penetration Rate =
# of stores with sell-out volume for X BrandTTL # of stores
∑w
Definition of Effective Penetration Rate
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In the third quarter of 2009, the main brands effective penetration ratedeclined variously except Samsung(+0.8).
Nokia’s EPR declined for maximum percentage (-2.1) and hit a record low in 2009.
Main Brand Effective Penetration Rate
Trend of Main Brand Effective Penetration Rate
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In this quarter, the main brands’ EPR declined in all channels , except LG; LG’s EPR in PTAC channel grew by 1.4 percentage.
Effective Penetration Rate by Brand by Channel
Effective Penetration Rate of Main Brands’ National Distributor
Nokia MotorolaSamsung SonyEricsson LG
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GfK Group Mobille Phone – Distribution Channel Report Nov 2009
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Distribution Modes for Key New Products6
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1000
2000
3000
4000
1681c
5000
5320XM
N72
N79
6208C
8600
J808E
E1120C
D988
M628
C3610CI458
I788
L878E
W156
VE66
A3000
V8
W360
A810
EM30
V8 Golden
J110c
K818c
W810c
W200c
P1c
S500C
W958c
2680s
N96
N95
N78
5611XM
1202
5220XM
B5712C
E1100C
C3050C
S3500C
I728
A1600M
A1200
W206
EM325
A1210
W595C
W580c
R306C
F305C
W350
W395c
K858c
C702c
J708
E1110c
D888
F268
S7350C
S5230C
E1360C
I908L
Distribution Mode of Best Selling Products Q3, 2009
Price Tier
Nokia MotorolaSamsung SonyEricsson
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1000 RMB
2000 RMB
3000 RMB
4000 RMB
Distribution Channels of New GSM Products Q3, 2009
Launch Price
Launch Price
PTAC Telling Telling PTAC
2700C(998 RMB)2322C
(425 RMB)2332C(575 RMB)
S5200C(1787 RMB)
S3650C(1542 RMB)
B5702C(3233 RMB)
S8000C(4342 RMB)
S6700C(1836 RMB)
1682C(376 RMB)
Launch Price
No product
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1000
2000
3000
4000
1000
2000
3000
4000
1000
2000
3000
4000
Distribution Channels of New GSM Products Q3, 2009
Aisidi PTACPTAC Telling TellingTelling
Launch Price
Launch Price
Launch Price
S312C(1158 RMB) GB230
(911 RMB)
GB101(224 RMB)
GT505e(2125 RMB)
KS360(1300 RMB)
SH6110C(1666 RMB)
SH6118C(1515 RMB)
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GfK Group Mobille Phone – Distribution Channel Report Nov 2009
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Appendix7
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Development of GSM Channel Structure by Province Q3, 2009Provinc
e ND DD FD NFD DRP OB Province ND DD FD NFD DRP OB
Guangdong 35% 24% 10% 4% 15% 12% Shanxi 34% 24% 14% 3% 8% 17%
Jiangsu 27% 19% 6% 3% 15% 29% Hunan 25% 16% 9% 4% 15% 31%
Zhejiang 30% 19% 8% 3% 20% 20% Heilongjiang 30% 27% 8% 3% 14% 19%
Shandong 40% 21% 8% 3% 19% 9% Jiangxi 31% 26% 9% 3% 6% 24%
Hebei 33% 27% 7% 3% 16% 15% Chongqing 31% 23% 10% 4% 12% 20%
Sichuan 23% 20% 4% 2% 26% 25% Jilin 29% 21% 9% 3% 17% 21%Beijing 32% 12% 2% 3% 39% 12% Tianjin 44% 19% 11% 5% 13% 8%
Henan 37% 29% 12% 4% 6% 14% Inner Mongolia 39% 23% 12% 5% 8% 14%
Shanghai 26% 10% 4% 3% 41% 16% Guangxi 33% 30% 8% 3% 12% 14%
Liaoning 31% 27% 8% 3% 11% 21% Guizhou 23% 24% 5% 2% 21% 25%Hubei 34% 28% 10% 4% 6% 18% Xinjiang 31% 30% 10% 5% 12% 12%Fujian 30% 20% 10% 5% 12% 22% Gansu 30% 30% 11% 5% 10% 15%Anhui 25% 15% 7% 3% 18% 33% Hainan 29% 23% 9% 4% 5% 30%
Yunnan 23% 29% 7% 2% 15% 23% Ningxia 26% 33% 7% 3% 15% 16%Shaanxi 27% 28% 7% 2% 18% 19% Qinghai 40% 24% 12% 4% 12% 7%
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GfK ChinaGSM Mobile Phone – Distribution Channel Report2009 3rd Quarter