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Pierre-Matthieu
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Thank you for the great post Lucy! It is fascinating to see how one company became so successful by flipping the traditional mobile phone business model on its head. Managing to remain so popular, despite a much lower frequency of product updates is revolutionary. It often seems that in Western markets, lack of product innovation in the mobile phone industry is simply not an option.
I wonder what makes it possible in China? Would you say it is the quality of the company’s relationship with its customers, the higher quality of its products or possibly the lower disposable income of the population, which by decreasing the ability to change phones frequently means there is less of a need for constant product updates? I also wonder how applicable this model is in more developed markets.
Overall, a very interesting company and business model!
Hi Winnie,
Thank you for a very interesting post. Axalta focus on emerging markets clearly makes sense, considering the growth in these regions compared to those in developed countries. However, don’t you think there are significant risks from putting so much importance on the Chinese markets? Three issues would seem most concerning:
1) A slowdown in growth
2) Rise of local competitors
3) Regulatory hurdles and rising costs of productions putting a dent in profitabilityI do think that developing environmentally friendly products could be a game changer however in the country, both considering the recent efforts by the Chinese government and the recent agreements signed in Paris.
Pierre