How Chinese Phones Won in Africa: Targeting young consumers with devices that meet local needs

Among the sponsors of the Africa Cup of Nations is a Chinese smartphone brand that many people in Africa are familiar with. The company is called Transsion. Today, we explore how their phones are cracking the African consumer market.

YANG CHENGXI Chongqing "This Chinese phone is made by the world's fourth largest smartphone producer. It's a massive Chinese brand by the sound of it, yet, few people seem to know about it here in China."

"Do you know about this phone?"

"No."

"Do you know what this is?"

"A phone?"

That's because they are not sold in China at all. Instead, they account for over half of all smartphone sales on the other side of the world, in Africa. The name of the company is Transsion, and it owns three top selling smartphone brands sold throughout many African countries.

ARIF CHOWDHURY Co-founder and Board Member, Transsion Holdings "Transsion is a company from China, but in Africa, we are deeply rooted in the continent."

The phones are cheaper than those made by most competitors, with its cheapest handsets costing as little as…wait for it, 10 U.S. dollars.

YANG CHENGXI Chongqing "But, are low prices all there is to Trassion's success in Africa? In fact, there's much more to it than that. In this episode of InFocus, we explain how these Chinese phones have won over the African market."

I visited Transsion's factory in Chongqing China to find out its secrets, but soon realized that my discoveries were more about the African market than about smartphones themselves.

ARIF CHOWDHURY Co-founder and Board Member, Transsion Holdings "We have done a lot of research before launching any product."

As the company developed phone features tailored to African users, they discovered many preferences specific to the region. For example, the phone cameras have been designed to more accurately and respectfully capture darker skin tones.

"When you're taking a picture, it's very clear any time, day or night, it's very clear."

This strategic focus on the so-called selfie generation targets the potential of young African consumer markets.

ARIF CHOWDHURY Co-founder and Board Member, Transsion Holdings "This is the youngest continent in the world."

ANTONIO WANG Vice President, Client System Research, IDC China "In terms of population, growth has slowed down in many places such as Europe and America. In contrast, a larger proportion of global population growth is now coming from regions like Africa."

Top global brands often compete with expensive high-end 5G flagship models, which Transsion also does. However, the company's primary focus is not on this segment. Transsion says it recognizes unmet consumer needs in Africa's underdeveloped regions, which have traditionally been overlooked by others.

To capture this market, many of Transsion's phones come with long battery life for areas with unstable power supply and signal-boosting technologies for regions with poor connectivity, among other features.

LIU BIN Deputy Director, Hardware Department, Transsion Research & Development Center "We have an anti-sweat coating designed for use in tropical climates, as well as dust blockers in the holes intended for use in areas with high levels of sand and metal particles in the air."

For many, it is an affordable upgrade to their digital lives. Maurice is a retired teacher who has ventured into farming in one of Kenya's remote counties. His new Chinese phone allows him to make digital payments to his helpers.

MAURICE ANDANDA Kenyan Farmer "You may have money. For security purposes, it's not easy to put it in your pocket. Now I don't just take money from my pocket and pay them at the end of the work. They have their phones. I transferred the money from my phone to theirs."

ARIF CHOWDHURY Co-founder and Board Member, Transsion Holdings "Let them feel the essence of the free flow of information technology."

ANTONIO WANG Vice President, Client System Research, IDC China "Globally speaking, it's common for people to think that the mobile market has already entered the 5G era. However, in reality, more than 30% of the world's market share still comes from 4G and 3G technologies."

However, Transsion's growth is not without its future challenges. Experts point out that, as affordability has become integral to its brand identity, a significant portion of the company's future phone profit margins may rely on its ability to continue keeping costs low.

DAI FANG General Manager, Chongqing Factory, Transsion Holdings "In the past years, we've been pushing for replacing humans with automation, in order yo increase efficiency and reduce costs."

For now at least, Transsion is having its day. In January, it sponsored the 34th African Cup of Nations, and pledged to refurbish 100 community football pitches across Africa over the next five years.

JAY-JAY OKOCHA Nigerian Football Star "It is a win-win for all of us, and hopefully the result will show itself in the future."

Call it charity or a marketing maneuver, at the end of the day, it's a testament to just how far Transsion has come in Africa. This is as much a reflection of the distinctive opportunities present in Africa as it is of the business strategies employed to seize them.

However, another challenge lies ahead. Currently, Transsion phones have expanded into over 70 global markets. For instance, this particular batch is destined for South America's Ecuador.

DAI FANG General Manager, Chongqing Factory, Transsion Holdings "We operate in Southeast Asia, South Asia, Latin America, and the Middle East: we are going from Africa to global emerging markets."

Can Transsion replicate its triumphs in Africa? The company has been focusing on developing localization features for regions such as South Asia. Experts emphasize that these efforts will be crucial in determining whether the Chinese brand will continue to be a success story in the years to come.