BKAV ‘s big ambition in spending 22 million USD to make Bphone
Investing of 22 million USD to make Bphone but still have to cover the loss with difficulties in production, BKAV has shown its determination in the success on long term.
Founder and General Director of BKAV Nguyen Tu Quang admitted: “Yes, Bphone is an adventure project”. Bphone project of BKAV was started in 2009, costing more than 22 million USD while BKAV still have to cover the loss of this product. At present, there is no positive signal on the future of Bphone. So what makes Nguyen Tu Quang continue pursuing this project? “We set our target on the long-term”- Quang said.
Young customers experiencing Bphone.
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BKAV does not expect to have big capacity with immediate profit, and the main objective in this phase is to building trust in customers. “We want to convince customers square and fair, but not on luck” – Quang convinced.
The mission and long-term strategy, which Quang spoke of is to transform BKAV into an independence technological manufacturer. “Our biggest desire is Bphone brand positioning, which means when mentioning smartphone in Vietnam, people immediately think of Bphone, like Iphone in US or Samsung in Korea. As such, BKAV can accept the loss to develop brand and expect in the near future, Bphone can overcome these two brands mentioned above” – Quang shared.
With regard to product strategy, talking about the reason of not going the easy way in making a cheap product to gain shares in the market, afterwards is to introduce smartphones for middle and high income customers. Quang said, BKAV want to go in the difficult path, as ambition of BKAV is to make Bphone to be equal of global brand such as Apple or Samsung.
“In order to work on this strategy, it will take BKAV 10-15 years to have position in the market. The “positioning trap” will make BKAV very difficult in the future. BKAV want to orient Bphone as a high quality product, just like the same way Apple applied. With this approach, customers will be proud of the product they are using, which is equal to that of Apple or Samsung” – Quang said.
The made – in - Vietnam product must have a strong impression of being made by Vietnamese. This is why from the research process to design, software, etc are similar to what Samsung and Apple make their smartphones. Bphone 2017 has 54% components from Japan, 23% from US, the remains are from Europe, Korea and 0.9% components are from China.
“The way Samsung and Apple make their products is the same as BKAV. I am convinced, Apple or Samsung do not have facilities to make the shape, which they are outsourcing, while we have. I cannot say beforehand we can do it in the future, but at present, this allows us to be active in production” – Quang said.
In the long term, BKAV has seen the biggest profit of the smartphone Vietnam is the middle segment. Therefore, in the coming time, Bphone will introduce the version for middle income customers with modified technical specifications. However, other aspects will not much different to the current Bphone 2. “We will continue reinvest and staying at the smartphone production until we cannot anymore”. – Quang stated.
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