The Egyptian market is one of the promising markets and has many growth opportunities in the field of selling smartphones, supported by the potential of 100 million consumers, of whom less than 50% have 4G-enabled smartphones.
Local competition is at its highest between Samsung, which controls the largest market share at over 40%, and Chinese manufacturers such as OPPO, Huawei, Techno, and Infinix.
Chinese companies are aggressively seeking to capture a market share that supports their growth in the Middle East, which has led them to reach customers in other ways.
According to an official in the mobile commerce sector, the trader gets commission for the achievement of a certain sales rate agreed with the company, in addition to the profit margin achieved by sales.
The first step for traders to get the commission is to raise a banner showing the name of the brand they are seeking to sell.
This explains the many shops that have recently changed their banners to show certain brand names. More so, some shops are designed to look like official sales centres for certain brands.
It would be no surprise if you find a shop with a Huawei banner today only to be replaced with an OPPO banner the next, for example.
An official at Samsung said that what matters to the end consumer is the value obtained from the phone, hence, such marketing actions by some companies do not affect the decision of consumers, who usually know the brand of the phone they want to buy before going to a store.
“At Samsung, we focus on providing the latest technologies to Egyptian consumers at competitive prices,” he said. “What we care for most is that consumers get their money’s worth.”