The second Wolff Olins/Goldman Sachs joint survey into the mobile phone market suggests that the Chinese and Indian mobile handset markets are coming of age. With rising incomes, strong purchase intentions, high levels of interest in technology and admiration for handset brands, these markets could rescue handset manufacturers from the margin pressures they face elsewhere.

But not everyone will succeed. The survey reveals that Chinese and Indian consumers are very brand-aware, and the global brands that develop strong emotional bonds will win, preserve margins and avoid ultimate commoditisation.

The online survey which sampled 8,800 respondents from US, UK, China and India shows that in China and India:

•        80% of respondents (compared to 55% in the UK and 48% in the US) are planning to replace their handsets within a year and at least 40% of those who are planning to replace their handsets are intending to spend more than they have done.

•          Consumers are more interested in handset technology and design than consumers in UK and US, and have strong emotional bonds with their handset brands (measured by the Wolff Olins Love Index).

•          Handset brand dominance is likely to continue with minimal challenge from operator brands, unlike in the US.
For more information: www.wolff-olins.com