Market Research Reports, Inc. has announced the addition of “Market Study for Extended Warranty and Insurance Mobile Phones” research report to their website http://www.MarketResearchReports.com
Lewes, DE -- (SBWIRE) -- 04/17/2015 -- The Thailand Telecom market is dominated by wireless services – accounting for nearly 92% of subscribers; while fixed line have shown a steady decline year on year.
While telecom players add approx.0 .7mn wireless subscribers every month, net addition of number of subscriber has recorded a downward trend Decline in number of net additions is primarily driven by by delays in the licensing of 3G and WiMAX by the NTC and regulatory body on the Telecom industry and mature growth in Bangkok and urban cities
Handset market trends are growing in accordance to the wireless market however at a less escalated pace.
Mobile phone penetration has reached the 100% mark; new phone purchases would be driven by handset replacements.
Smart phones are gaining popularity in Thailand market thus estimating to capture 5% of total handset shares by 2022
Mobile phone manufacturers would be targeted on lower-end to mass market type handsets with smart phone capabilities
Most of the Mid and high end handsets purchased are influenced by changing life style and technology up-gradation whereas low -end handset purchase is generally driven by the need of replacement (damage to handsets, expensive to repair etc)
Of the 70% of handsets purchased through the organized retail, non-branded retail shops are the most popular channel for mobile phone purchase Handset replacements were driven by unrepairable damage and expensive repair parts.
Consumers replace handsets on an average every 1.5 years; it is expected that replacement cycle with decline eventually, due to availability of more affordable handsets and changing lifestyles Overall, consumers prefer to visit standalone repair shops for damage to accessories and cosmetic damage, where as manufacturer's shops / gallery is preferred for accidental damage, liquid damage etc Manufacturer's shop are the preferred service channels by high end mobile handset users as repair services offered at a manufacturer's shops are usually more expensive On the whole, handset users are dissatisfied with manufacturer's warranty and repair services Longer repair time due to limited service channels is one of the main reason of high dissatisfaction level with manufacturer's warranty. Thai users show higher concern levels for lost/stolen phone, followed by unrepairable damage
Actual current purchase of EWS service is low at only 1%; due to a lack of awareness of actual service program Of the aware set, more than 70% high-end mobile user consider the purchase of EWS and mobile insurance
More than one-third users prefer to purchase EWS from independent firms – mid-range (US$ 200 – 300) users show higher propensity for this channel Handset manufacturer's are also considered highly for purchase of EWS services
Total damage of parts were the most important coverage across all users; this was more prominent across low and mid-tier handset users Loss of phone were most important among High end mobile phone handset users More than 50% of the users prefer an easy claim process from the offered EWS products
Most of the users expect the EWS products to offer coverage of upto 2 years – duration of coverage ties in strongly with replacement cycle On an average, users would expect EWS to be priced at around 6% of the handset price 94% of prepaid subscribers are not willing to be charged on a montly basis for EWS; whereas post-paid subscribers were ambivalent to the option Almost 50% of the users are unsure about their willingness to pay a premium price for the EWS product –reflecting the lack of awareness of such products in the Thailand market Most handset users would trust handset manufacturers and mobile retailers for providing quality EWS/insurance product offerings
Extended warranty Products available
- EWS offerings have only been launched during Quarter 2 or Quarter 3 of 2009.
- EWS services offered in Thailand are pure extension of manufacturer's; which covers the actual handset, parts and damages from handset malfunction which did not occur from owners own usage. Handset accessories are not covered by the Extended warranty. Two types of approaches exist in the market.
- Mobile sole distributor provide pure extension warranty. Subscription can be made post sale of the mobile phone handset, but must be purchased 1 month before the actual mobile manufacture warranty expires.
- Electronic retail store. Subscription must be made prior to buying a handset off the retailer. Post purchase is prohibited and no allowance is provided after customers leave the premises.
- Value added services such as Handset replacement service is provided to customers, but handset replacements are limited based on the availability. Data migration is provided only on customer request. Only contact numbers are backed up for customers. Pick up service and drop are not provided. Customers can check mobile phone repair status online for both approaches.
- Both approach provide the extended warranty themselves without partnering with additional insurance company
- EWS products are offered by two players. Electronic retail store: Powerbuy and an authorized mobile phone import and distributer of HTC products (SIS Distribution ); which is then sold through authorized mobile handset dealers; HTC care and HTC authorized dealer.
- No Third party extended warranty services have any existence in Thai market. Key Players Pricing
- Extended warranty offerings are typically priced at around 6 - 10% of the handset value
Mobile insurance Products available
- Mobile insurance services were launched during Q3 and Q4 of 2009.
- Insurance companies in Thai market do not offer any mobile insurance services directly to customers; but partner with retailer
to provide the service to customers. Policies can only be bought from a retailer only, since no third party provider exists in Thai market.
- Two approaches were identified of providing Mobile insurance service.
- Mobile insurance in corroboration with handset retail store and manufacturer; Costs are absorbed by the retailer to provide the mobile insurance as part of a promotional scheme to customers. Customers will receive service free of charge. The approach is provided by i-mobile retail and handset brand owner.
- Mobile insurance with partnership with retail store provide the service to customers. Policies can only be bought by the specific retail store.
- Handset insurance are provided by two particular retailers – I-mobile; through partnership with a 3rd party insurance firm not disclosed and Jay-mart through partnership with ACE INA Insurance and ACS Insurance broker. Key Players Pricing
- Depends on approach that retailers partake in term of mobile insurance service. However typically ranged at around 4% - 16% of the total handset price.
Mobile phone penetration rate were exceptionally high at 99% and is estimated to grow up to 115% by 2010. Meaning that 1 person would hold more than one phone.
Only 5% of current handset purchasers were aware that Extended warranty and mobile insurance service exist in Thai market
Level of purchase among handset purchasers were estimated at lower than 1% of total handset sold among handset sold by the competitors providing EWS service.
There are 4 active competitors providing extended warranty and mobile insurance service for consumers. However; only 3 competitors were directing their services to consumers
There is no industry standard best practice in the Thai market; since majority were at early stage of introducing such a service
The current holdout is insufficient knowledge and awareness regarding the actual benefits of EWS and mobile insurance among consumers; however an interest is noticeable
Spanning over 140 pages, "Market Study for Extended Warranty and Insurance Mobile Phones" report covers the Thailand Market Overview, Thailand Telecom Market, Thailand Handset Market, Consumer Usage Characteristics, Consumer Expectations, Understand the distribution channel, Current Landscape, Appendix.
For further information on this report, please visit- http://www.marketresearchreports.com/vbi-solution/market-study-extended-warranty-and-insurance-mobile-phones
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