BDA - Opportunity through Insight

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Sep 24 2009	Full PDF Version

Bandit Handsets - Shanzhai Ji The Pull of the Orient

? Shanzhai Ji have an increasing impact overseas recently. If we take Shanzhai Ji vendors as a single handset manufacturer, they now constitute China's biggest handset exporter. ? Fierce competition, declining margin and saturation in their addressable market in China push Shanzhai Ji to seek opportunities overseas. ? Enormous demand and high profit pull Shanzhai Ji into the emerging markets overseas and they have managed to gain a foothold there thanks to cost effective products, careful customization and increasingly developed distribution networks. ? Looking forward, BDA thinks Shanzhai Ji export will continue fast growth in the next three years. And the overseas market will replace China as the growth engine for Shanzhai Ji sales. ? Regulatory risks, product quality and after-sale service are problems Shanzhai Ji have to cope with properly for their sustainable growth in overseas market.

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