Transsion: Localized Innovation Focused on Emerging Market Users

Transsion Holdings is committed to becoming the most popular provider of smart terminal products and mobile internet services for consumers in emerging markets. Since the establishment of the company, Transsion has been striving to provide users with high-quality multi-brand smart terminals centered on mobile phones, and based on the self-developed smart terminal operating system and traffic portal, it provides users with mobile Internet services. Transsion owns well-known mobile phone brands TECNO, itel and Infinix in emerging markets, digital accessories brand Oraimo, home appliance brand Syinix and after-sales service brand Carlcare.

Arif Chowdhury is currently the Vice President of Transsion Holdings, responsible for strategic account management, new market development and other businesses. Arif has served as regional manager, sales director, and general manager of the strategic customer division of Transsion. As a member of Transsion's start-up team, Arif has extensive experience in developing emerging markets, helping Transsion successfully enter many emerging markets including Africa, India, Bangladesh, etc., providing local users with multi-brand smart phones centered on mobile phones terminal, and based on the self-developed intelligent terminal operating system, it provides users with mobile Internet services. Under his leadership, Transsion has carried out localized innovation with the needs of users in emerging markets as the core, and has carried out in-depth cooperation with world-renowned companies such as Vodafone, Orange, Google, and Facebook to better meet user needs.

Focus on award-winning management practices

Understanding Africa is the first step for Transsion to conquer local consumers. Based on this concept, TRANSSION's R&D team has conducted a large number of on-the-spot investigations and researches in the local area. Farewell to the growth model of quick success, based on solid preliminary investigations, TRANSSION meets the diversified needs of local consumers through localized and innovative products.

For example, in terms of mobile phone imaging functions, Transsion has established a dedicated imaging R&D team according to the skin tone and skin texture of African users. After in-depth research and analysis, it has developed imaging algorithms suitable for African users. Technology, including dark-skinned face recognition, portrait night photography, smart beauty, etc. At the same time, based on these localized needs, we deeply customize Camera hardware devices for local consumers, and combine local aesthetic trends, image debugging standards, and image algorithm technology to make photos more clear and natural, and more in line with the aesthetic habits of local users. , so that African users can also take good-looking photos.

On the "Top 100 Most Favored Brands by African Consumers" published by the British business magazine "African Business" in June 2020, Transsion Holdings' three mobile phone brands TECNO, itel and Infinix ranked 5th, 21st and 27th respectively. Among them, TECNO has ranked first among the selected Chinese brands for many years, and itel ranked second among Chinese brands.

Dialogue with award-winning companies

CEConlines: At that time, what was the opportunity that drove your company to implement the practice of "localized innovation with emerging market users as the core"? What kind of internal and external environment was the company in when the practice was launched?

Arif: Since its establishment, the founding team of Transsion has embraced the dream of "building a high-quality brand". In the early days, the penetration rate of mobile phones in Africa was low, and international brands were the mainstays. Local consumers had an urgent need to meet the needs of mobile phone products with high quality and low price. This also created an opportunity for Transsion to build a high-quality brand.

Transsion will not be a company that "makes quick money". We are more concerned about what we can bring to the market and how to let the wider users in emerging markets experience the convenience of technological development. Vision and original intention, Transsion is to be a "long-distance running" enterprise.

Transsion believes that good products will speak for themselves. Localized innovation, the first is the product, the product is the fundamental. By going deep into the local area and consumers to understand and discover, we have captured the differentiated user needs of consumers in emerging markets for mobile phone products: such as large batteries, large speakers, oil and anti-corrosion functions that were initially focused on, and later focused on dark skin tones. In the field of photography technology, we are now focusing on the field of OS systems and mobile Internet products and services, and gradually build a good ecosystem for the balanced and coordinated development of smart terminals and mobile Internet services. "In-depth insight" and "highly appropriateness" to local user needs are the basis for TRANSSION's product localization innovation, and it is also the key to winning the favor of local consumers.

Africa is a vast continent with 54 countries with different languages, cultures, customs and policies. In the process of initially exploring the African market, Transsion also faced various difficulties and challenges, but we have the determination to develop in the local area for a long time. Transsion has always adhered to the development concept of Glocal, namely global thinking and local innovation (Think Globally, Act Locally). We carry out multi-dimensional innovations that are highly suitable for local needs in terms of products, channels, business models, etc., and finally open up the market bit by bit.

CEConline: How does this management practice relate to your company's corporate strategy or your long-term future plan?

Arif: Transsion's corporate mission is to "enable as many people as possible to enjoy the good life brought about by technology and innovation as soon as possible". The management practice of "localized innovation with emerging market users as the core" serves precisely to fulfill this mission. Guided by the needs of users in emerging markets, Transsion provides intelligent terminal products and mobile Internet services that satisfy them through localized innovation and diversified strategic layout, allowing local users to enjoy advanced technology products and embrace digital life.

CEConline: What measures has your company taken to promote the implementation of this management practice? What obstacles did you encounter in the process of advancing, and how did you solve them?

Arif: The specific implementation of the management practice of "localized innovation with emerging market users as the core" is as follows:

1. Product innovation: Transsion attaches great importance to For market research, our team goes deep into local users to gain insight into the consumption habits and pain points of local users, maintain close contact between domestic R&D centers and local product managers in Africa, and continue to pay attention to changes in local user needs. Subsequently, domestic and local partners were organized to jointly develop products to meet the changing needs of consumers through product iteration.

II. R&D innovation: Transsion is continuously increasing R&D investment to strengthen the company's overall continuous innovation capability. Core technologies in many fields continue to maintain its leading edge in emerging markets, including: dark-skinned photography technology, hardware New material application innovation, OS systems and mobile Internet products and services.

Third, multi-brand strategy: Transsion has established a multi-level brand and product matrix for different consumer groups to meet different consumer needs.

Take mobile phone products as an example: TECNO is a mid-to-high-end brand under TRANSSION, targeting middle-class consumers in emerging markets, providing leading camera and imaging technology and excellent user experience. As a popular brand, itel provides basic consumers with high-quality, affordable and durable products. Infinix provides a fashionable and intelligent product experience for young people who are pursuing fashion technology, emphasizing the combination of online and offline.

In the process of entering the African market, it is inevitable to encounter various difficulties and challenges. Transsion has always adhered to the development concept of "co-creation and sharing" in the process of business operation. In general, our development is relatively smooth.

CEConline: Up to now, what positive impact has this management practice brought to your company's business development, especially in terms of performance, and what achievements have you achieved?

Arif: Adhering to the practice of "localized innovation with emerging market users as the core" is the foundation for gaining consumer recognition.

The reason why TRANSSION's products are deeply loved by consumers is precisely because TRANSSION is rooted in emerging markets, with local users as the core, and accurately captures their pain points and needs in mobile phone and mobile Internet services, Through the cooperation between Chinese and local teams, the objective characteristics and preferences of localization have been analyzed, and opportunities for innovation have been found.

Up to now, Transsion's global sales network has covered more than 70 countries and regions in Africa, the Middle East, Southeast Asia, South Asia and Latin America. In 2019, TRANSSION shipped 137 million mobile phones. According to IDC statistics, the global market share was 8.1%, ranking fourth; the African market share was 52.5%, ranking first; the Indian market share was 6.8%, ranking fifth; Bangladesh has a market share of 15.6%, ranking second.

CEConline: What is the focus of your company's management optimization and upgrading in the next stage? Faced with the current complex economic situation at home and abroad, how will your company respond?

Arif: Over the years, TRANSSION has deeply cultivated emerging markets and built its own unique advantages. The external market environment is constantly changing, and we must fully respond to it. Through continuous R&D investment, we will promote localized innovation, maintain industry-leading core technologies, and stay at the forefront of changes.

Transsion also continued to promote the construction of processes and systems to enhance product strength and synergy between production and sales. We must ensure that the previously built system of "doing the right product" can operate well, and on this basis, promote the process system and capacity building of "doing the right product". Quickly respond to changes in market demand and industry technology, improve the standardization and efficiency of large-scale collaboration, and significantly improve product time-to-market, development costs and project success rates. The rapid response and efficient operation have been developed into the differentiated competitiveness of the company's management system.

As an overseas technology company oriented to emerging markets, Transsion has always paid close attention to changes in the international situation and market environment, continuously improved its anti-risk capabilities from the business level, adjusted market strategies flexibly, and responded calmly.

Reviews from experts

Wang Sai

Partner of Kotler Consulting (KMG), well-known growth strategy expert

On emerging markets Insights, understanding, and layout are absolutely inseparable from the high emphasis on localization, market research, and innovation, which is exactly what TRANSSION does. This company really sees, thinks and launches technology products that can solve the pain points of local consumers and meet their needs, and consolidates product capabilities from the perspectives of development concepts and process system construction, and continues to bring new value of technology to emerging markets.

Wang Shaokai

Hejun Consulting Senior Partner, Director of Group Strategy and Group Control Research Center

Transsion may be the implementation of "multinational localization strategy" by Chinese enterprises One of the most successful cases; but with the rapid increase in access to country markets, the cost structure of this strategy will become higher and higher, and it will become increasingly difficult to obtain experience curve benefits and location benefits. This requires TRANSSION to rapidly upgrade its development model to a "transnational strategy" that takes into account global collaboration and local focus, but it also means greater challenges to its management system and capabilities. We are very pleased to see that TRANSSION is doing this make efforts.

Xie Zhaohui

Founder of Zhixue Consulting and Chinese Partner of Balanced Scorecard

Focusing on emerging markets, with Glocal global thinking and localization Innovation is the core concept, combined with regional characteristics, in-depth insight into consumer needs, driven by technology co-creation and innovation iteration, to build core competitive advantages around "product, technology, brand", and form a very distinctive business development model. Successful practice of technology-driven companies implementing internationalization strategies.

Yang Bin

Founder of Analysys and Co-founder of Analysys Digital

Products are the core competitiveness of enterprises, enterprises should take a long-term perspective, Guided by the needs of users, we insist on developing products that are truly suitable for different customers. TRANSSION is an excellent example. In order to allow the vast number of users in emerging markets to experience the convenience of technological development, TRANSSION continued to invest in research and development under the leadership of Mr. Chowdhury, and deeply cultivated localized innovation, making China's TRANSSION an African, even The backbone of the global mobile phone industry. Transsion's craftsmanship and sense of social responsibility are admirable.

Ye Xiaosong

President of Xiamen Economic Management Consulting Association, founder of Hill Consulting, founder & Chairman of Yin Consulting Group

There is a point of view that It is said like this: "You can't be a tiger in the vast forest, then you can be a king in a place without tigers. This is the wisdom of the wolf."

Shenzhen Transsion Technology Co., Ltd. The African market, which is valued by international first-tier brands, is regarded as its strategic customer, and it is devoted to analyzing the market and researching customers, so as to be the company that understands the African mobile phone market best. The price is very close to the people, and the multi-level brand and product matrix are established for different consumer groups.

Being the No. 1 in the market segment, Shenzhen Transsion Technology Co., Ltd. has finally achieved No. 4 in the global mobile terminal market.

This is the power of strategy, the power of the law of focus!