80% of Nokia mobiles sold in Lanka are counterfeit

From Elmo Leonard in Beijing

Teeming numbers of grey mobile phones enter the sub continent including Sri Lanka, it was disclosed here, in Beijing, the hub of global industrial manufacture. But the Chinese here, say that they are at the butt-end of this unethical global trade practice.

For, this emerging global economic superpower is also the largest manufacturer of cellphones, besides being the largest user of this consumer durable. Twenty percent of the world's total mobile subscribers, live in China, Hera Siu, vice president, Nokia China and general manager of Nokia Telecommunications Ltd, said.

In Sri Lanka 75-100,000 mobiles add to its emerging mobile phone market every month and an excess of 50 percent of it makes up the Nokia brand name, a survey conducted by Nokia in the subcontinent reveals.

But, 80 percent of Nokia mobiles sold in Sri Lanka are counterfeit. In Bangladesh, where 0.5 million mobiles add to the market per month, the situation two months ago, was 60 to 70 percent, grey Nokias. Nokia, then began an advertising and education campaign and the number of Nokia reproductions reaching the consumer in that nation, has reduced to 50 percent, Prem Chand, general manager customer and market operations for emerging Asia Pacific, told visiting journalists and dealers from Bangladesh and Sri Lanka.

Nokia, the largest manufacturer of mobile phones, considers India, Pakistan, Bangladesh, Nepal and Sri Lanka as their emerging markets in Asia. To further strengthen market share in South Asia, Nokia will exploit the Free Trade Agreement between India and Sri Lanka, Chand said.

"You save a dollar or two, and get a fake product," Chand said. He refused to divulge the specifics of an intensive media campaign to begin in Sri Lanka, mid-August, where the Nokia multinational will benefit in the long term.

For, in the marketing norm, a sale is not complete if the customer is not satisfied with the product purchased. In a further drive to gain market share, the Nokia sales service centres to be set up in the island, will undertake the repair and servicing of fake Nokia products, but the user will be charged for the repairs and servicing. Genuine Nokia cellphones will be repaired free covering a year of warranty.

"The battery of a fake Nokia product will be one of the first parts to pack up," Chand said in answer to many queries.

In the Bangladeshi experience, Nokia initially put out nine mobile types bearing Bangladeshi language instructions. In Sri Lanka too, initially, nine types of mobiles will carry Sinhala and Tamil language instructions, besides the standard English.

Nokia's roots go back to Finland, in 1865. With mergers, in 1980 Nokia strengthened its position in telecommunications. At the end of 2005, Nokia operated 14 manufacturing facilities in Brazil, China, Finland, Germany, Hungary, Mexico, South Korea, UK, US and in March, in Chennai.

Nokia celebrates 20 years in China, recording 32.5 million phones for 2005, a full year growth of 72 percent. Nokia's net sales and exports for 2005 was Euro 6.7 billion.

Wherever, Nokia is made, Finland, Hungary, UK, US or China, the products which go into Nokia are of the same standard specifications, the same technology and same quality equipment. This means the ultimate product is the same quality and standard, and bears the same warranty, Chand said. For this year, to-date, Nokia had got down 40,000 "delegates" to Beijing, to tell them just that. The success of the fake manufacturers had been that they have sold the consumer the story that only Nokia sets made in Finland or Hungary, are genuine products.

Answering queries, some journalists who represented prestigious computer and telecommunications publications, Chand said, "Buy from the authorised dealer. In Sri Lanka, Softlogic is our sole distributor."

Answering questions, Gerry Wang, senior manager, quality operations and logistics, Asia Pacific, acknowledged that Motorola is Nokia's largest competitor. "Each product has its own pluses." The mobiles sold in Sri Lanka bear facets that have a need for the Sri Lankan market, but, consumers also have access to more sophisticated types. In China, the mass market does not need some features, like photography, included in their mobiles.

There were many questions unanswered, possibly, not wanting to divulge Nokia's projected strategies to strengthen market share. But, when Chand said, that service stations will be set up everywhere, even in Sri Lanka, so that the mobile subscriber will not have to travel for more than an hour, he possibly, revealed much.