Emerging Markets, how to approach?
There is a continual stream of companies getting engaged in the mobile industry around the world, monetising on premium content such as ringtones, wallpapers, videos, jokes, and horoscopes etc. The reason that they were so successful in economically developed countries, is due to the fact that people have disposable income, and mobile is seen as a luxury, and are used to paying for services that can be provided to the device.
A few comparisons:
PC based services (Free)
Messaging - Email, IM
Content - Desktop Wallpapers, News Videos, Comedy Clips, Streaming Audio
Mobile based services (Premium)
Messaging - SMS, MMS (£0.10 - £0.50 per message, or bundled for a charge)
Content - Wallpapers, Ringtones, News Videos (Costs vary per content provider)
It has been noted that this market has started to see a decline in premium content usage, and so the mobile industry is set explore new markets. Many have decided to turn to the Indian or Chinese companies, and pitch their products to them. However, these companies have been struggling to capture the full potential of the mobile content market in the same way that Europe, Japan, Korea and America have.
A new approach is needed
China has a well known issue with piracy, and many software products that are sold are illegal copies. This does not stop at the software industry, why would a consumer in China think it is acceptable to pay up to $5 for a content item such as a small picture for a wallpaper, when they can “rip” them from the web for free. Piracy is not the only issue that faces these markets, but also the income of the people living there.
Content is not the answer
Money can be made from the mobile industry in many ways (apart from premium content), through advertising and deals with corporations that offer services to users. The important thing to note, that emerging markets do not use mobile devices in the same way that economically developed countries do. Mobiles are the only form of communication, as minimal infrastructure is needed, compared to traditional fixed line services, and they consume a low amount of power. This can mean that they do not need a constant supply of electricity to use the services on the device, and they can be charged on a relatively low power source, such as solar, and wind up based chargers. The ability to be “wire-free” enables remote tribes and villages to communicate with each other effectively. This is the key market to utilise.
I feel that one of the next big innovations in the mobile industry, will help to provide an effective communication service for mobile users in developing nations. But they key thing to success, is not to charge the end user for the service.
