Local gadget makers losing against pricey global brands

CEBU, Philippines — Local gadget brands are losing grip in the market, as buyers prefer to buy international mobile brands even if it would cost them more than buying Filipino-made mobile gadgets.

This is the observation made by gadget retailer and dealer Junrex Cellphones & Accessories Inc., chief executive officer (CEO) Jun Yap.

Yap, who is also the past president of the Philippine Retailers Association (PRA-Cebu), said that local brands such as Star Mobile, Myphone, and others, are starting to lose market grip, as international brands including Oppo, Vivo, are allocating enormous budget for advertising and marketing campaigns, which grabbed the attention of the cost-conscious, yet sophisticated Cebuano market.

Yap's business, which is one of the largest chains of gadget retailing and distribution in the Visayas has noted a slowdown of sales among local cellular brands, and interest is now directed to more popular and sleeker makers such as OPPO, Vivo, including already the strongest Samsung.

Yap attributed the shift of market buying preference that is no longer too conscious of the cost, but more on style, functionality and brand reputation, to the availability of easy credits, and cash loans that also make themselves present in the gadget stores to offer loans.

According to Yap, those customers who do not have credit cards, can easily get an installment plan for a branded and fashionable middle-end smartphone instantly within the store.

Junrex stores for instance have this partnership with a retail lender, which targets the customers who not have credit cards.

Except for Cherry Mobile, all other local cellular brands are having difficulties in competing with the international giants, especially those that come from China.

He said Cherry Mobile was the only locally-owned brand that was able to compete head-on with the giant rivals.

Cebu in particular, Yap said is known for its sophisticated taste, which regards highly for reputable brands, and its quality. This is one of the reasons why local brands are losing the competition battle in mobile phones in Cebu.

"We are a brand conscious market," Yap said adding that those that are not able to position their brand well, with minimal budget for marketing and promotions are having difficulties now. (FREEMAN)