Why Smartphone Makers Are Exchanging the Rich by Young People?

With maturation of the market, companies change your positioning in search of those who already know about technology

Young people are in the crosshairs of smartphone makers because they understand the new technologies

The biggest fair of the world’s mobile technology, the Mobile World Congress in Barcelona, Spain, is not only a stage for major releases. With more than 2000 exhibitors in 2016, the MWC translates the point in the mobile phone market and also the changes that are to come. One of them is the positioning of the front of the maturation of market makers: are all eyeing the young.

The race to see who can sell more devices to users who migrate from mobiles without network access, the feature phones to smartphones is coming to an end. So, Big Pharma are changing or trying to get closer to another audience. But why?

LG was the company that more made clear that new phase during MWC 2016. Rather than following the classical line of G4, which was hand-cut leather trim and a more sophisticated communication, addressed to the public, the LG premium radicalized and made in Barcelona an event full of colorful balloons-white, black, green and pink, with a DJ on stage and most common songs at parties than in presentations. To show the G5 and your line of accessories called LG Friends to your positioning strengthened South, distancing himself from South Korean sister Samsung, which increasingly walks towards the luxury and stirs up the competition with Apple according to PROZIPCODES.COM.

For Barbara Toscano, Manager of marketing for the mobile Division of LG, the change came with the Smartphone market, which is mature, and is an attempt to escape the commoditization, that is, cell transformation in commodity, i.e. in a uniform product as corn, for example. In addition, according to the Executive, even in Brazil, this younger market is huge, with room for even more premium devices as the G5.

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André Felippa, Vice President for Latin America of Alcatel, calls attention to the young man who works and has your own money. “Even though such a high income, invests in technology because it understands and wants to have the best smartphone”, explains the Executive. In the opinion of Felippa, to focus on the milleniuns , the generation who were born between 1980 and 2000, the manufacturers also arrive to the elders, because they influence the other. In Brazil, according to Fernando Pezzotti, General Manager of Alcatel in Brazil, 70% of the brand’s fans on Facebook–the page has 7 million of fans-have until 30 years. Alcatel’s strategy to enhance this relationship and win even more fans will show the cost-benefit of products according to Pezzotti, “this new generation seeking the best products, but does not accept pay for high prices that are charged. With the Idol 4, Alcatel’s new product that should reach the market until the middle of the year, the challenge will be getting a price range affordable also for that young man.

Aspirational

According to Marcel fields, marketing director of Asus, the young man has always been a focus, but most manufacturers just woke up now. According to him, Apple’s been doing it for years, since the launch of the iPod, in 2002: “not by chance young people who grew up with the iPod are investing in technology,” he points out. A teenager at the time of the first iPod has about 30 years. Moreover, in the opinion of the Executive, a very simple reason for the company are investing in young people is that they don’t go through a curve of adoption of innovations like the older ones. “He already understands, the manufacturers don’t have to convince them, because he knows what he wants, then in search of something aspirational, status,” he says.

According to Campos, the curve of the Smartphone market itself changed with maturation. Before, the devices were in the hands of older, now, the who is considered early adopter , English expression for someone who is more inclined to buy news, innovative products, is increasing, because this new generation that is coming to the labour market do not have to learn about technology, she already knows what it is. Moreover, according to him, in front of the maturing of the market, companies realized that the ideal is to conquer the consumer when he is forming your own design of the brand. “A person who has 25 or 30 years have experimented with the brands and know what is good and bad for her. If you approach the client when he is knowing the brand you have more chance to be relevant, to deliver a good experience and follow him for the rest of my life “.

The manufacturers are not crazy to focus less on the premium segment and to invest in youth. In a recent study, IDC interviewed more than 1,000 end users and found that among the various tracks of the group between ages 18-24 years has a penetration of 92%, i.e. almost all young has today a smartphone. Those who are under 18 years (until 12) are considered potential for consulting, but with no responsibility for the purchase are in the background. However, the Group of young people is a major influencer in this market, in addition to being connected to trends.

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