2007 White Paper on Mobile Phone Service Satisfaction Survey in China
formally released
BEIJING, July 4 /Xinhua-PRNewswire/ -- CCID Consulting, the first Chinese professional provider of management and market consulting and IT outsourcing services listed in Hong Kong, recently released its 2007 White Paper on Mobile Phone Service Satisfaction Survey in China (hereinafter known as 'White Paper') and its 2007 Blue Paper on China's Mobile Phone After-Sales Services Industry (hereinafter known as 'Blue Paper').
The White Paper sums up the current characteristics of China's mobile phone services market and makes forecast for its development trend in the next 3 years. It is pointed out in the White Paper that as 3 major structure changes emerge in the mobile phone services field, users' satisfaction with mobile phone services has dropped. Structural changes in services entities, services contents and consumers not only affect changes in the whole services industry. Falling service satisfaction becomes the prelude to the needs to improve the services market. The emergence of integrated third party services providers will become a logic trend in the market.
CCID Consulting's survey data show that between 2001 and 2004, the mobile phone service satisfaction rate rose. During this period, as mobile phones penetrated the mass market, firms also rebuilt their services. Consequently, service satisfaction rose. However, starting in 2005, service satisfaction dropped. As the number of mobile phone firms increase and multimedia functions emerge, user demand for mobile phone services is no longer merely after-sales repair. As consumer demand for services was not met, services satisfaction rate fell for the first time in 2005. In 2006, product manufacturing changes made by MTK and other enterprises pushed forward changes in the whole mobile phone system. Particularly for homemade mobile phone, cost and prices continued to drop, while product renewal sped up. Firms continuously expanded their services outlets and extended their services contents to adapt to the new demands in the market. This led to a slight rise in service satisfaction rate. But in 2007, the same outcome as a result of structural changes in the market surfaced again. Service satisfaction rate fell again, only standing at 38.89%, down by 1.79% from 2006.
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(Caption: Fig. 1 Mobile phone service satisfaction rate, 2001-2007; Source: CCID Consulting, June 2007)
Changes in services entity structure call for third party services companies
Starting from 2004, mobile phone services entity structure changed quietly. The relaxation of market access policies and changes in the upstream production link saw a large number of mobile phone firms entering market competitions. These firms vary greatly in terms of technical strength. Also, their main efforts are placed on product promotion and sales. To a certain extent, they have neglected after-sales services for the products or lag behind in providing such services. Some small mobile phone firms have not bought their services in pace with market changes. Only enterprises with a mature services system such as Motorola, Lenovo, Haier and Nokia can continuously innovate and improve their services in relation with the changes in the product market to meet consumers' new services demand.
On the other hand, operators gradually gain a notable position on the mobile phone industry chain. Their services not only affect product functions but also have a certain influence on mobile phone services. Operators customize their services into products. While the emergence of customized products bring more customization businesses to operators, after-sales repair services for the customized products are also brought to surface. Because operators focus on developing and maintaining services products, they do not have notable advantages in the professional repair field. Consumer services demand again is not met. Changes in mobile phone services entities in the market put forward new comprehensive and professional requirements for services providers. The market calls for the entry of integrated third party services institutions with strong comprehensive services abilities to improve the situation of services entities so as to adapt to the new market changes.
Structural changes in services contents call for new services
In 2005, 2.5G products gradually started to become popular. The emergence of multimedia functions has made an impact on mobile phone services contents. Product renewal has resulted in services content structural adjustment. Consumer demand for services contents due to structural changes is also continuously upgraded. When current services contents cannot meet consumer demand, service satisfaction falls.
The emergence of second generation 2.5G multimedia mobile phone represents a revolution in terms of product and technology. To a certain extent, these multimedia functions are to make preparations for future applications in the 3G market. The revolution in 3G mobile phone products is further reflected in functional applications. The application of storage, transmission, network and battery functions has gradually grown in popularity. When 3G is achieved, more value-added application services will emerge. There will be greater demand for services contents.
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(Caption: Fig. 2 Services which interviewees hope to get; Source: CCID Consulting, June 2007)
Current services have yet to complete the transition from hardware repair services to value-added soft services. Some mobile phone firms have obviously realized the market opportunities for content changes. By changing their services mindset and upgrading their services contents, they aim to lay a foundation for future development. The mobile phone software upgrading services introduced by Sony Ericsson, the value-added services experience centers promoted by Haier and the blog network services offered by Nokia are all extensions to their existing services. CCID Consulting's survey data show that mobile phone TV and music download are the services which users want to get most, accounting for 41.6% and 38.3%, respectively.
Services users undergo structural stratification, while consumer demand has polarized
By using their mobile phones, user groups have also gradually undergone structural changes. Users who change phones have gradually dominated the market. Different consumers have their different services needs. But current mobile phone services are rather monolithic and lack purpose. This has resulted in service satisfaction drops.
Consumers who require just the basic call function mainly accept traditional after-sales repair services. CCID Consulting's survey data shows that 68% of the consumers have repaired their mobile phone, while 28% have repaired their mobile phone 3 times. These consumers think that current mobile phone services are still problematic. Survey data show that "unclear service charge rates", "non-transparent causes of fault" and "too high prices of accessories" are the most notable services problems in the eyes of consumers. It can be seen that users hope to get a clear knowledge of the mobile phones when they make purchases. When getting services, they hope even more to know how charges are made so as to safeguard their rights and interests. Currently, some firms have improved their services after seeing changes in user demand. Regarding the issues of repair cycle and spare parts which users care about most, Lenovo has made the promise of reparation within 24 hours and the average repair time nationwide is not over 3 days. It has also introduced "1- hour fast repair" services to further improve its repair efficiency.
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(Caption: Fig. 3 Reasons for second mobile phone purchases by interviewees; Source: CCID Consulting, June 2007)
As mobile phone functions continue to be updated and average product price in the market drops, there is a higher probability for users to change their mobile phone. Also, they will change their mobile phone faster. CCID Consulting's survey data shows that 41.9% of the interviewees have changed mobile phones because their former phone "is of poor quality", while 29.9% changed mobile phone because their former phone "does not have appearance or functions fashionable enough".
This gives rise to the second type of consumers who want to get value- added services for the new functions of multimedia mobile phone. Their services needs are also gradually changing to soft services. Some firms' existing services networks and services resources can no longer meet such new users' demand, such as mobile phone software upgrading. Firms therefore need to provide corresponding software services on their websites or services websites.
CCID Consulting believes that facing an upcoming 3G market, mobile phone services providers need to make structural adjustments according to market changes and gradually establish their comprehensive services system. This is the only way to improve service satisfaction.
About CCID Consulting
CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
Based on four major competitive areas of powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance and automobile, to government departments at all levels and diversified industrial parks.
CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com/ .
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd
Tel: +86-10-8855-9080
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