THE MOBILE PHONE INDUSTRY IN BANGLADESH

If you live in Bangladesh, youprobably have a mobile phone.

10 Million+Smartphones in

Bangladesh

133.2

Mobile Network Subscriptions

232%3G Growth

Rate

Million

By this point, entry-level feature phoneshave become affordable enough for the vastmajority of the 160 million strong consumermarket in Bangladesh to purchase them.Robust mobile infrastructure (99% 2Gcoverage) and cheap call rates have fast-tracked the widespread usage of mobiles asthe prime communication device. However,along with affordability and functionality,offerings in the mobile industry havediversified and deepened in recent years, inresponse to changing consumer patterns.

Buoyed by strong economic growth and otherfactors such as a growing white collar culture,globalization and the growth of the middle andaffluent (MAC) consumer class, consumers in themobile phone market now often seek to fulfillsocial needs as well as functional needs throughtheir mobile phones. Key market players havequickly realized the potential represented by thegrowing aspirations of these consumers, reapingsuccess through selling products at multiple pricepoints.

Although feature phones still dominate themarket, smartphones are set to lead the packwith 129% shipment growth in Q4 2014.

WHAT SMARTPHONE CONSUMERS WANT

With an average budget of 5,000-20,000 BDT, most smartphone buyers want

facilities such as good camera and long battery life.

Value for Money

With cheap internet access, consumers extensively use smartphones to access social media.

Now there is much greater emphasis on specs, such as processor speed, camera power and screen size.

Performance

Entertainment

This is particularly true for foreign brands such as Samsung and Apple. Although this factor

is very strong for flagship models, it also has some

influence on mid-range and entry-level models as well.

Brand Recognition

Smartphones are brought predominantly by the urban youths belonging to the the middleand affluent (MAC) consumer class, who prefer living a more connected lifestyle. Althoughat the moment they number around 11 million, they are projected to grow to 50 million by2050.

What the Market Players Are DoingThe current market leader in the smartphone market is Symphony with 53% market share.Symphony uses a mix of white labeling and assembly for both its smartphones and featurephones. This, along with the open source nature of the Android OS platform, makes itpossible for Symphony to go for pricing which is comparatively lower than foreigncompetitors such as Samsung, which is in 2nd place at the moment.

Symphon

Samsung14%

Walton 12%

Other21%

Smartphone Market Share

Symphony36%

Maximus8%Nokia

6%

Micromax5%

Other45%

Feature Phone Market Share

As new entrants rush in and competition hits up in both markets, it is now the perfect timeto go for a differentiation strategy, before the curve starts to slope steeply upwards.

To find out more details about consumer behavior, the mobile phone value chain and our strategyrecommendations for both existing and potential market players, check out our full report.