The local smartphone market is witnessing a fierce competition between different mobile manufacturers as they seek to increase their market shares and push sales in various ways. Some companies motivate mobile phone shops financially to increase sales, while others offer them commissions to put a banner bearing the company’s brand in their outlets, and some offer traders financial incentives and leisure trips.
Chinese company VIWA offered leisure trips to stimulate traders to increase the sales of the company’s devices in the local market. The programme developed by VIWA in cooperation with its agent in Egypt—Al Safy—is divided into four segments of sales from November to January.
The first segment requires the dealer to achieve sales of EGP 20,000-EGP 75,000 monthly for a period of three months. The dealer would then get a 1% commission of the total value of sales.
The second segment of sales ranges from EGP 80,000-EGP 150,000 per month, with the dealer then getting a 1.5% commission of the total sales, in addition to an internal leisure trip, on the condition that the shop’s total sales reach a minimum of EGP 450,000 from November to January.
The third segment requires dealers to achieve sales of EGP 175,000-350,000 per month. In return, the dealer would get a 2% commission of the total sales and a leisure trip to Dubai, provided that the shop’s total sales reach a minimum of EGP 1.05m in the aforementioned period.
The fourth segment offers a leisure trip to the Czech Republic and a 2.5% commission, on the condition that the dealer achieves sales of more than EGP 500,000 per month, with a minimum total sales value of EGP 1.5m during the three-month period.
IKU also developed a plan to stimulate mobile phone dealers financially to increase their sales of the company’s products. The company launched five different programmes of financial incentives according to the sales values.
The company’s initial programme, dubbed “Silver”, determined the minimum sales level at EGP 20,000 per month, while the “Royal” programme requires dealers to achieve minimum sales up to EGP 400,000. The Silver programme offers a 1% commission on the total sales per month, while the Royal programme offers a 2% commission. In addition, IKU would provide a quarter-year incentive up to 1% of total sales during the three-month period. The company set the quarter-year sales at a minimum of EGP 100,000 and a maximum of EGP 1.5m.