Mobicel has rolled out hundreds of phone models since its launch roughly 17 years ago.
Polokwane-born Ridhwan Khan is the founder and CEO of Mobicel , South Africa’s only successful homegrown budget smartphone brand.Khan’s initial venture into the mobile retail industry started during a year abroad in the UK, where he refurbished and sold used phones.
He realised that his home country had a huge market for mobile connectivity, but many people could not afford the devices on offer. Upon his return to South Africa in 2002, he opened a local refurbishment business focused on the lower-income market in informal areas.However, Khan learnt that building a strong phone brand in the informal sector was difficult, where traders in places like spaza shops were primarily interested in sales. “I saw the opportunity to strike the perfect balance between affordability and quality, with the ultimate aim to manufacture a local range of devices,” he said in an He exited the used phone business and founded Mobicel in 2007, using the profit from his successful refurbishing company to create a phone brand that could compete against international heavyweights. Khan ordered a phone custom-made to his own specifications that he believed would be relevant to the South African market.His first breakthrough was securing a distribution contract with retail group Edcon. He explained that a major challenge was the stigma surrounding entry-level devices and so-called “fong kong” or counterfeit products from China. Khan said it was a game-changer when Edcon decided to list the product, but it came with a big caveat. “We had to pack the product, and we gave it to them on a consignment basis,” he explained. “It was the first time Edcon bought on a consignment, and they only paid us for what they sold.” However, the gamble paid off, as Edcon sold more units than they expected, and Mobicel was set on a path for growth. “Once we had Edcon, the other retailers opened up, the likes of Foschini and Massmart,” he said. “The big one was MTN; having a network backing your product is amazing.” Mobicel’s products are currently sold by all four of the country’s major mobile networks and additional retailing giants Pep and Ackermans. Over the past four years, many of Mobicel’s phones have been assembled at its production facility in Johannesburg. Mobicel factory tour with communications minister Mondli Gungubele and Mobicel founder and CEO Ridhwan Khan While Khan recognises the importance of a strong distribution network, he believes Mobicel also has an edge in customer service. “In our box, we have a warranty card and a hotline which they can contact, and online support. We take this seriously,” he said.At one point, Khan was CCed on Mobicel’s call centre email and said he went through everything at the end of day. At times, he would reply to customers himself.“The top-end of the market is brand conscious, not brand loyal,” notes Khan. “The bottom of the market isn’t like that. They want value, affordability is not the only thing we offer.” “We’re offering a product, value add, after-sales, and we can upsell you onto something better when you are done with that product.” Mobicel currently offers numerous feature phones and smartphones with prices from less than R500 going all the way up to R2,999 for a more capable handset.found the brand offered two of the best smartphones under R1,000 with 4G capability, a noteworthy achievement considering the flood of Chinese budget smartphones in the market in recent years.which aims to encourage constructive discussions. To get your comments published, make sure it is civil and adds value to the discussion.
Headline Mobicel Ridhwan Khan Smartphones
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