Southeast Asia’s Largest Economy Beckons: Honor Sets Sights on Indonesia
As the largest economy in Southeast Asia, Indonesia is poised to become a key battleground for premium smartphone makers. Chinese manufacturer Honor, spun off from Huawei Technologies in 2020, is gearing up to tap into the country’s growing appetite for high-end handsets.
A Market Ripe for the Taking
With a massive and youthful population, Indonesia presents a lucrative opportunity for Honor to expand its presence in the region. According to Justin Li, president of Honor South Pacific, the company is confident in the potential of the Indonesian market, both in terms of overall market growth and the mid-premium smartphone segment.
Aggressive Expansion Plans
Honor plans to launch over 30 products in Indonesia this year, ranging from smartphones to wearables, as well as open more than 10 “experience” stores across the archipelago. The initial batch of products, set to launch in the first quarter, will include mid-premium handsets, foldable smartphones, laptop computers, and tablets.
Focusing on Mid-to-High-End Products
In Indonesia, Honor will focus on mid-to-high-end products, pursuing long-term investments in the market. This strategy is likely to pit the company against established players such as Samsung Electronics, Oppo, Vivo, and Xiaomi.
Lessons Learned from Apple’s Troubles
While Apple’s recent troubles with the Indonesian government did not influence Honor’s decision to enter the market, the company has taken note of the importance of complying with local requirements. “It is important to make a thorough preparation and comply with local requirements to ensure there are no issues in business continuity,” Li emphasized.
Complying with Local Regulations
Honor is working with a local manufacturer to produce handsets for the Indonesian market, ensuring compliance with the country’s domestic component level policy. The company plans to continue optimizing its local production capabilities based on business development and market demand.
A Growing Market
Smartphone shipments in Indonesia rose 4% in the September quarter last year, driven by steady economic growth and pent-up demand. As the country’s top smartphone vendors, Xiaomi, Oppo, Vivo, Samsung, and Realme, continue to dominate the market, Honor is banking on its experience in other Southeast Asian markets to gain ground in Indonesia’s mid-premium smartphone segment.
Gaining Traction in Southeast Asia
In Malaysia, 53% of Honor’s foldable smartphone users were previously Samsung and Apple users, demonstrating the company’s ability to attract customers from established brands. With its sights set on Indonesia, Honor is poised to become a major player in Southeast Asia’s thriving smartphone market.
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