The Thailand Telecom market is dominated by wireless
services – accounting for nearly 92% of subscribers; while fixed line have
shown a steady decline year on year.
While telecom players add approx.0 .7mn wireless
subscribers every month, net addition of number of subscriber has recorded a
downward trend Decline in number of net additions is primarily driven by by
delays in the licensing of 3G and WiMAX by the NTC and regulatory body on the
Telecom industry and mature growth in Bangkok and urban cities
Handset market trends are growing in accordance to
the wireless market however at a less escalated pace.
Mobile phone penetration has reached the 100% mark;
new phone purchases would be driven by handset replacements.
Smart phones are gaining popularity in Thailand
market thus estimating to capture 5% of total handset shares by 2022
Mobile phone manufacturers would be targeted on
lower-end to mass market type handsets with smart phone capabilities
Most of the Mid and high end handsets purchased are
influenced by changing life style and technology up-gradation whereas low -end
handset purchase is generally driven by the need of replacement (damage to
handsets, expensive to repair etc)
Of the 70% of handsets purchased through the
organized retail, non-branded retail shops are the most popular channel for
mobile phone purchase Handset replacements were driven by unrepairable damage
and expensive repair parts.
Consumers replace handsets on an average every 1.5
years; it is expected that replacement cycle with decline eventually, due to
availability of more affordable handsets and changing lifestyles Overall,
consumers prefer to visit standalone repair shops for damage to accessories and
cosmetic damage, where as manufacturer’s shops / gallery is preferred for
accidental damage, liquid damage etc Manufacturer’s shop are the preferred
service channels by high end mobile handset users as repair services offered at
a manufacturer’s shops are usually more expensive On the whole, handset users
are dissatisfied with manufacturer’s warranty and repair services Longer repair
time due to limited service channels is one of the main reason of high
dissatisfaction level with manufacturer’s warranty. Thai users show higher
concern levels for lost/stolen phone, followed by unrepairable damage
Actual current purchase of EWS service is low at only
1%; due to a lack of awareness of actual service program Of the aware set, more
than 70% high-end mobile user consider the purchase of EWS and mobile insuranc
More than one-third users prefer to purchase EWS from
independent firms – mid-range (US$ 200 – 300) users show higher propensity for
this channel Handset manufacturer’s are also considered highly for purchase of
EWS services
Total damage of parts were the most important
coverage across all users; this was more prominent across low and mid-tier
handset users Loss of phone were most important among High end mobile phone
handset users More than 50% of the users prefer an easy claim process from the
offered EWS products
Most of the users expect the EWS products to offer
coverage of upto 2 years – duration of coverage ties in strongly with
replacement cycle On an average, users would expect EWS to be priced at around
6% of the handset price 94% of prepaid subscribers are not willing to be
charged on a montly basis for EWS; whereas post-paid subscribers were
ambivalent to the option Almost 50% of the users are unsure about their
willingness to pay a premium price for the EWS product –reflecting the lack of
awareness of such products in the Thailand market Most handset users would
trust handset manufacturers and mobile retailers for providing quality
EWS/insurance product offerings
Extended
warranty Products available
- EWS offerings have only been launched during Quarter 2 or Quarter 3 of 2009.
- EWS services offered in Thailand are pure extension of manufacturer's; which covers the actual handset, parts and damages from handset malfunction which did not occur from owners own usage. Handset accessories are not covered by the Extended warranty. Two types of approaches exist in the market.
- Mobile sole distributor provide pure extension warranty. Subscription can be made post sale of the mobile phone handset, but must be purchased 1 month before the actual mobile manufacture warranty expires.
- Electronic retail store. Subscription must be made prior to buying a handset off the retailer. Post purchase is prohibited and no allowance is provided after customers leave the premises.
- Value added services such as Handset replacement service is provided to customers, but handset replacements are limited based on the availability. Data migration is provided only on customer request. Only contact numbers are backed up for customers. Pick up service and drop are not provided. Customers can check mobile phone repair status online for both approaches.
- Both approach provide the extended warranty themselves without partnering with additional insurance company
- EWS products are offered by two players. Electronic retail store: Powerbuy and an authorized mobile phone import and distributer of HTC products (SIS Distribution ); which is then sold through authorized mobile handset dealers; HTC care and HTC authorized dealer.
- No Third party extended warranty services have any existence in Thai market. Key Players Pricing
- Extended warranty offerings are typically priced at around 6 - 10% of the handset value
Mobile
insurance Products available
- Mobile insurance services were launched during Q3 and Q4 of 2009.
- Insurance companies in Thai market do not offer any mobile insurance services directly to customers; but partner with retailer
- to provide the service to customers. Policies can only be bought from a retailer only, since no third party provider exists in Thai market.
- Two approaches were identified of providing Mobile insurance service.
- Mobile insurance in corroboration with handset retail store and manufacturer; Costs are absorbed by the retailer to provide the mobile insurance as part of a promotional scheme to customers. Customers will receive service free of charge. The approach is provided by i-mobile retail and handset brand owner.
- Mobile insurance with partnership with retail store provide the service to customers. Policies can only be bought by the specific retail store.
- Handset insurance are provided by two particular retailers – I-mobile; through partnership with a 3rd party insurance firm not disclosed and Jay-mart through partnership with ACE INA Insurance and ACS Insurance broker. Key Players Pricing
- Depends on approach that retailers partake in term of mobile insurance service. However typically ranged at around 4% - 16% of the total handset price.
Mobile phone penetration rate were exceptionally high
at 99% and is estimated to grow up to 115% by 2010. Meaning that 1 person would
hold more than one phone.
Only 5% of current handset purchasers were aware that
Extended warranty and mobile insurance service exist in Thai market
Level of purchase among handset purchasers were
estimated at lower than 1% of total handset sold among handset sold by the
competitors providing EWS service.
There are 4 active competitors providing extended
warranty and mobile insurance service for consumers. However; only 3
competitors were directing their services to consumers
There is no industry standard best practice in the
Thai market; since majority were at early stage of introducing such a service
The current holdout is insufficient knowledge and
awareness regarding the actual benefits of EWS and mobile insurance among
consumers; however an interest is noticeable
Spanning over 140 pages, “Market Study for Extended Warranty and Insurance Mobile
Phones” report covers the Thailand Market Overview,
Thailand Telecom Market, Thailand Handset Market, Consumer Usage
Characteristics, Consumer Expectations, Understand the distribution channel,
Current Landscape, Appendix.
For further information on this report, please visit- http://mrr.cm/4QK
Find all Insurance Reports at:
http://www.marketresearchreports.com/insurance
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