The management from China cottage factory are operating more efficiency than any multi-national companies, it's not the joking, it's from real case. There are many copy factories who provide the mobile phone with excellent camera function and with zoom and editing function, eletro-plating of gold, BMW and LV casing etc. And the selling price is only one third of the original. In China, near 1 billion consumers are lacking of the middle grade education, they do not care any brand, high radiation, poor quality battery or the after sales service, things cheap is right.
Any brand war, service wall, advertising ware are just the same meaning of the price war. and the reseller are also not care of holding the customer community, no one would like to be a high loyalty of any specific brands from that 1 billion consumers market. Any reseller, if you are willing to go to the village and the third and forth grade cities to seek for the business, they can get the good order. And all of the repairing works are putting to the local repairing soho.
The cottage mobile phone factory are operating with excellent management as well as supply chain. The chipset, LCD, touch screen, LED, crystal, cable, camera module, refurbishing mobile phone sourcing networks and selling channels are highly tie each other. It needs just a phone call, all the goods will come to the door within 1 days.
And due to the huge profit, all people work hard, plus many mobile phone wholesales market places in the different cities, it accelerate the distributing of the cottage mobile phone.
In 2009, Samsung launched totally 47 new models in China, Nokia launched 19 models. And the cottage mobile phone launch daily 4 new models, in a year, it launched more than 1,000 new models with one third of the original mobile phone price.
The cost BOM of the cottage mobile phone is very low, they do not have advertising (base on personnel network), no official factory, use recycle materials, no R & D cost, copy, so, the cost is extremely low.
The big support from the parts factories and the demand from the 1 billion local consumers, it helps the cottage develop fast of selling 150 million pieces mobile phone within 3 years. Which is the single biggest market share in China.
Now, the cottage factories are entering the MID, MP3, netbook, PC and other profitable digital products. The government know it, and the government do not care. since there are under running of a policy of pushing the home appliances to the village to let the farmers can also enjoy from the digital life. LCD TV and mobile phone are the 2 main digital electronics that the farmers want to have or currently have one of them.
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