TCL says it has seen success in its smartphone ranges because the devices are affordable and offer something for everyone.

TCL launched its second generation of smartphones in Europe this year, with the latest in the 20 series – the 20 R 5G – launching in September.

The TCL 10 series previously gained success in Europe after being launched in 2019, and expanded to the UK in 2020.

Spreading tech

“We’re all about democratising technology and bringing technology to as many people as possible. I very much believe that technology is a basic human right,” said TCL UK and Ireland country director William Paterson.

“Technology is so important and everyone having access to it is so important,- but it needs to be affordable.

“We’ve seen that over the last 18 months we have been able to keep in touch with family, friends and loved ones anywhere in the world over the phone or a tablet.”

TCL was planning a UK launch for the 10 series in April 2020, but this was delayed due to lockdown.

The vendor did everything virtually, including training and branding, but says that with the support of a hard-working team, customers, partners, channels and retailers, it was able to launch the smartphones in June 2020.

Paterson says the pandemic hasn’t stopped TCL from developing its brand.

“One of the great things about this industry is that it’s never slow, so we’re launching products, developing products and helping bring them out. Within two years, we’ll be on our third series of TCL products.”

The long-term plan is to have an ecosystem that involves all of TCL’s products being controlled by a smartphone to work as one, including TVs, soundbars, speakers and air purifiers.

When you think of Chinese smartphone brands, Huawei, Xiaomi and Oppo are probably the first three that spring to mind.

Maybe even OnePlus. But another Chinese vendor intent on growing its mobile offering is that of TCL Corporation.

The vendor, which only launched its first smartphone in 2019, entered the UK market last year.

Since then, TCL has launched a host of smartphones, including two at this year’s virtual CES event in January.

And earlier this month, TCL added three more smartphones to its 20 series, with the addition of the TCL 20 Pro 5G, 20L and 20L+.

Though still relatively new when it comes to having its own mobile brand, the company is looking to establish a foothold and become a household name in this space among European consumers.

Four decades

Yet the company hasn’t just shown up overnight: TCL turns 40 this year, having built a reputation as a manufacturer that specialises across a range of consumer electronics, including TV, air conditioners, washing machines and refrigerators.

But in recent years, mobile has been added to this stable, with TCL being global licensee of the Alcatel brand. And until early last year TCL also produced hardware under a BlackBerry licence.

For now, the company’s focus is on establishing its brand. This will be done via an array of phones and big- name ambassadors, such as Tottenham Hotspur striker Harry Kane and World Cup winning Frenchman Paul Pogba.

This marketing is a critical cog in the TCL wheel, says William Paterson, UK and Ireland country director at Alcatel.

“We have a great relationship with retailers,” he says. “Last year, we worked very closely with them to launch the 10 series. We created campaigns across the UK and focused very much on digital advertising to both drive brand awareness and sales of products.”

But the company is taking things one step at a time when it comes to setting targets, insists Paterson (below).

“Short-term, our ambition with TCL is to consolidate on the launch we had last year and move into the next generation of products through our 20 series, which launched earlier this month.

“We’ve only recently launched in the UK and Ireland – and during a pandemic – so we really are focusing our attention on how we can support our channels in the best way possible with the TCL devices.”

Early gains

After launching in Europe last year, the vendor has achieved some early success, says Stefan Streit, general manager for global marketing at TCL.

“Based on fourth-quarter results from 2020, we see the TCL mobile portfolio well-positioned across key markets, ranking second in Portugal, fourth in the UK, Spain and Hungary, and fifth in Greece.”

The brand has also seen some significant success in the sub-€150 smartphone bracket, with Streit saying the TCL ranks first in this price range in Spain, Portugal and Hungary, and second in the UK.

In addition, he says tablet shipments grew 72 per cent last year during the pandemic. The diversity of TCL’s portfolio is key to any chances of substantial success in the UK and other European markets, adds Streit.

“While it’s true that there are many different smartphone manufacturers, TCL is unique due to our complex consumer electronics business,” he says.

“In fact, we are the only Chinese end-to- end consumer electronics brand, so while others may compete with us in making smartphones, we’re the only OEM capable of offering our customers a completely integrated product offering, from mobile products to TVs, audio devices and more.”

Alcatel still relevant 

With TCL now making a strong play in the smartphone market, what does that mean for its business with Alcatel Mobile?

“Our Alcatel-branded devices are still a very critical part of our overall TCL Communication product portfolio, and will continue to be so in complement to our TCL- branded devices,” says Streit.

He says the target markets are the difference between TCL and Alcatel, with the former aiming for the mainstream market and Alcatel continuing to serve the entry-level category.

“Alcatel is still a huge part of our business and is performing incredibly well,” adds Paterson.

“Through Alcatel, we speak to a completely different customer with our brand messaging, focusing on democratising technology through the ‘Great Tech, Great Price’ tagline and brand ethos.”

TCL is avoiding targeting a specific UK market share for its new device range, according to UK and Ireland country director William Paterson.

The Alcatel and Vodafone Smart device licensee made its UK own-brand debut in June with the TCL 10 series, having originally intended to do so in April.

That made it the first smartphone vendor to launch an entirely new brand in the UK during the national lockdown.

Rather than go after a specific market share, Paterson is looking to ensure that the brand shows longevity with its respective partners.

“I won’t say we’re targeting five per cent of the market or anything like that, because very often a lot of that can be outside your control,” Paterson told Mobile News. “The market has a number of vendors that all do different things.

“What I would say is we take it a step at a time. Are we happy with the way we’ve launched? Yes. Are we happy with what’s coming up? Yes, then we’ll move into next year. Success is not so much what we sell today, but about the next family of products. If we get them ranged by the same number of customers, it means the products work well, and our channels are happy with it, and that to me is success.”

TCL’s UK retail partners include EE, Tesco Mobile, Amazon and Argos, while distribution is handled by Eurostar and Data Select.

According to IDC, Alcatel shipped 132,000 smart and feature phones in the UK in the first quarter of 2020, making it the fifth-largest brand in the UK’s mobile market.

“As far as we’re concerned, the market never fell off a cliff, so I think it’s done OK,” added Paterson. “We traded really well in Q2 and we altered communications quite a bit on the Alcatel brand, focusing quite a lot on e-commerce partners; we were pleased with performance

TCL has unveiled England football captain Harry Kane as an official European brand ambassador.

The partnership runs until July 2021 and will see Kane featured in the manufacturer’s online and offline advertising campaigns. This includes an advert wrapped around the IMAX cinema in London.

TCL says that Kane will also create exclusive content for the brand to be shared across social media channels. Kane will promote TCL’s entire ecosystem of products across TVs, smartphones, headsets and soundbars.

This follows on from TCL’s BAFTA partnership, which was meant to help advertise the UK launch of its 10 series smartphones.

Kane, who has scored 17 Premier League goals in 28 appearances this season, is not the only Spurs player to partner with an electronics brand. Last year, Dele Alli partnered with Honor to launch its 20 series.

Additionally, former Spurs player Peter Crouch appeared in a Carphone Warehouse advert last year.

Elsewhere, Three’s Chelsea FC kit sponsorship has taken effect for the remaining games of the current Premier League season.

TCL has struck a partnership with the British Academy of Film and Television Arts (BAFTA).

The partnership will see the manufacturer sponsor BAFTA’s A Life in Pictures series of video interviews, as well as the upcoming BAFTA Television sessions, which are beginning in July.

TCL’s BAFTA sponsorship follows on from the Chinese manufacturer’s UK debut with the launch of the TCL 10 series.

The TCL 10 Pro launched with EE, Tesco Mobile and Argos at the beginning of June, while the 10L is also available from Argos.

“The launch of our TCL 10 series handsets has been an exciting time for us,” said TCL northern Europe area director William Paterson. “We’re very happy to announce the highly anticipated debut has seen sales start strong across the UK and Ireland. It’s clear that now more than ever, people are looking to purchase a premium, yet affordable handset and we hope this campaign will show consumers that price does not mean a compromise on quality.”

TCL is also partnering with BAFTA Crew, a professional networking programme for film productions, to create a cinema advertisement for the 10 Pro.

TCL is not the first challenger brand to strike up a branding partnership with a British cultural institution to help publicise its launch. Last year, Oppo partnered with the Wimbledon tennis tournament and the Cricket World Cup in conjunction with its UK launch.

Eurostar Global and Data Select handle TCL’s distribution in the UK.

Eurostar has continued its recent spate of partnerships with the announcement that it is an official UK distribution partner for TCL’s Alcatel Mobile.

The partnership is Eurostar’s third significant partnership in the past three months, following its deals with Lease Telecom and Cat and Land Rover brand licensee Bullitt Group.

Eurostar managing director Peter Carnall said the vendor’s range of wearables and connected devices as well as its mobiles meant it was a good fit for Eurostar’s growth plans.

“Eurostar is thrilled to partner with Alcatel Mobile and as the Eurostar business looks to bolster its branded portfolio of products to its customers, the future growth of Eurostar is in working with partners that have a strength in not just mobile, but in wearables and connected devices,” he said.

“Alcatel products appeal to a vast range of users and are backed by a trusted Tier 1 manufacturer. As a business, we are highly focused on building lasting partnerships of value to the brands we choose to work with and we welcome Alcatel Mobile to the Eurostar portfolio.”

Eurostar’s head of commercial and vendor management Steve Hankey added: “Alcatel is a highly respected brand in the UK in both B2B and retail channels – Its diverse product portfolio consisting of mobile, tablet, and mobile broadband further enhances Eurostars already significant offering out into the channel.”

Alcatel handsets will be available from Eurostar in Early December. The distributor turned over £89 million last year, and Carnall has described 2019 as a “record year” for the company.

Nearly three years since the UK voted narrowly in favour of leaving the European Union, that exit is – supposedly, at least – nearly here.

In the referendum vote in June 2016, the ‘Leave’ campaign narrowly edged out ‘Remain’ by 51.9 to 48.1 per cent, with over 17.4 million people voting for the UK to leave the EU.

Since the results were confirmed, British politics has been dominated by the so- called Brexit, with debate after debate in the House of Commons over how to secure the best outcome for the country.

Prime Minister Theresa May has already seen two proposed Brexit deals rejected by fellow MPs, with the process proving anything but straightforward and causing uncertainty for UK businesses.

There have been debates over a hard or soft Brexit, as well as several calls for either a second referendum or a “people’s vote”, with MPs voting in March to seek a three-month delay to Brexit until June 30.

With so much uncertainty, what does this mean for UK telecoms and its consumer and business-to-business markets?

TRADE AND SUPPLY

Trade between the UK and member states is expected to become disrupted as Britain exits the EU – which has effectively become a single market in which goods and people can move around as if within a country.

With the UK set to leave, many also expect the value of the pound to suffer against the euro – at least in the short term.

This is a “real concern”, says Nigel Prince, managing director at distributor New Way International. “There’s a big worry about how the currency will become affected as result of Brexit. It’s a real concern how strong the pound will be against the euro and US dollar.”

There may also be supply chain issues, says Imran Choudhary, director for technology at research company GfK.

“Aside from the currency, other negative impacts are likely to include disrupted supply chains and logistics, and higher admin costs,” he says. “For the B2B industry it will have an impact on what it will be able to export.”

In addition, concerns have been raised over a potential return of roaming charges for using data when abroad in the EU.

However, Three (for one) has announced that it will not add any additional roaming costs, regardless of the final Brexit outcome.

Three CEO Dave Dyson said “We’re committed to eradicating excessive roaming charges and will retain this customer benefit regardless of Brexit negotiations, allowing our customers to continue using their usual allowances when they travel within the EU.”

Following Three’s announcement, CCS Insight senior analyst Kester Mann believes it will be difficult for any of the other operators to apply additional costs for roaming.

“I don’t think operators will revert to this, as the UK is such a competitive market – plus these operators already offer roaming outside the EU as a differentiator.”

“In theory the operators could introduce this but if the operators backtrack on this because it could be risky for them.”

CONSUMER CONFIDENCE

There are also questions over consumer confidence during the period of uncertainty caused by Brexit.

This comes on top of several factors that have already contributed to a decline in the UK smartphone market in recent years, as it has matured.

Increased product lifecycles, better hardware and higher prices have led to consumers holding onto their phones for longer – and Mann believes that although these struggles would continue even in the absence of Brexit, the UK’s departure from the EU will not help the market.

“The downward trend will continue with or without Brexit, despite the innovation we saw at the Mobile World Congress,” he says. “However, with Brexit we might see that consumer confidence won’t be as strong, as people will be more nervous about making big investments.”

Choudhary, meanwhile, says that British consumers have been “stoic” in the face of the unknown, but does foresee a downturn in SIM-free handset sales.

“These sales will come under increasing pressure,” he says. “They are currently on a growth trajectory, but this could be dampened by Brexit. Consumers may be less likely to spend money on brand new phones.”

PLANNING AHEAD

With Brexit looming, many businesses will have planned for the future with this in mind – something that has been the case for New Way.

The distributor, which has a business in Germany, opened a further centre in the Dutch city of Rotterdam in September.

In the event of Brexit, this international presence also offers backup for the business, including staff, logistics functions and a warehouse.

Despite not being too concerned about the UK’s departure harming how New Way operates, Prince says that having a plan to cater for it is essential.

“We’re one of the more fortunate UK businesses, as we already have an established business out in Germany,” he says. “With this, we have staff, logistics and a warehouse, and this offers us a backup plan.”

Prince adds: “We’re ready to do what we need to do, whether that is moving stock around or selling stock in Europe directly.”

Meanwhile, vendor Alcatel has said it has been planning ahead for the worst-case scenario in the event of Brexit, inlcuding for the possibility of a no-deal outcome.

At the Mobile World Congress, Alcatel’s UK and Ireland country director William Paterson told Mobile News that the firm has planned for the worst when it comes to potential stock issues.

“We planned and reorganised the supply chain to bring in products in a sufficient manner,” he said. “We will be bringing products directly from China to the UK and avoiding customs in Paris.”

5G QUESTION

There is also a question surrounding whether Brexit will affect the launch of 5G in the UK, given the investment required at a time of uncertainty.

Operators EE and Vodafone plan to debut the technology this year, with EE launching in 16 cities and Vodafone in 19 this year.

Mann doesn’t believe, however, that 5G rollout will be affected, as the infrastructure is already in place.

“I don’t expect 5G to be impacted by Brexit,” he says. “EE in particular is determined to be at the forefront of this and Vodafone isn’t far behind.

“It seems to be full steam ahead for 5G, and the operators seem to be pushing on with plans rather than reining them in. It appears that Brexit isn’t influencing this, which is quite encouraging.”

Choudhary agrees, adding that he doesn’t think the UK will fall behind with 5G because the investment has already been put in place. 

“5G is critical to the development of the mobile industry,” he says. “The capital expenditure required for 5G has already been thought of and all the mobile operators are working towards this.” 

Choudhary does, however, believe that the Brexit situation could affect SMEs and larger businesses.

“Brexit might have a broader impact on the SME and corporate landscape in the UK, as a lot of these businesses might be planning investment in IT and telecoms infrastructure,” he says. “The uncertainty around Brexit might put them off investing in 5G hardware.”

BRIGHT SIDE?

While Brexit is anticipated to be a challenge for the UK’s telecoms industry, will there be any positive outcomes for the telecoms industry?

Some think so – or, at least, that the impact will be relatively neutral. Edward Elliot-Square, sales director at phone trader IPT.cc, says, for instance that the uncertainty doesn’t phase him.

“I’m not worried at all,” he says. “I think it is going to be positive for the industry if anything, in particular for the mobile industry.”

Elliot-Square believes the UK will be able to control its own laws and regulations, and could even become a focal point for trade.

“There will be new rules to adhere to, but this might even see the UK become a trading hub, the likes of which we see in Switzerland and Dubai,” he says. Under this scenario, he explains, other countries could “trade with confidence” with the UK because they would be dealing only with that country.

Elliot-Square also believes that from a mobile manufacturer perspective, little will alter.

“Most, if not all, of the mobile manufacturers are outside the EU, so nothing is going to change. There’s no duty on the movement of mobile phones across Europe, so I don’t see how there can be an issue with Brexit,” he says.

Eurostar Global Electronics MD Peter Carnall, meanwhile, says it will be “business as usual” once the UK leaves the EU.

Carnall shot down fears that Brexit will slow down goods entering the UK and revealed that the distributor has explored contingency options over the past two years.

“There’s not going to be a delay on products entering the UK; if we leave the EU, the goods will still come to us at the same speed they do now,” he says.

“There’s a fallacy that the doors are going to come down and goods will take forever to be shipped. I don’t think the UK government will allow that to happen.”

WAITING GAME

Although it is difficult to forecast the UK’s future with Brexit on the horizon, the shared feeling among those in the mobile industry is therefore that the impact won’t be too detrimental.

But Choudhary thinks it is a case of playing the waiting game before the full implications of Brexit for the mobile industry can be determined.

“Although most businesses will have planned for Brexit, it’s difficult to know exactly what will happen, and the long- term effects won’t be known for years,” he says.

He believes the final impact of the UK leaving the EU will hinge on how much of a hit there will be on consumer and business confidence in spending.

Alcatel is preparing “for the worst” in the event that the UK departs the European Union without a deal by shipping stock directly to the UK.

By doing so, the French manufacturer will avoid EU customs in Paris, which is its usual practice.

The change of plan is to prepare in the event that the government is unable to reach a deal with the European Union before March 29.

Alcatel UK and Ireland country director William Paterson said the firm “planned for the worst” to mitigate the potential stock issues, due to uncertainty surrounding the UK’s departure from the EU. On March 5, ministers resumed efforts to secure legally binding changes to Theresa May’s widely criticised Brexit deal that might receive MP backing before the departure date.

The Prime Minister’s deal was rejected by a historic margin of 432 votes to 202 in the House of Commons.

Paterson said: “We planned and reorganised the supply chain to bring product in a sufficient manner. We will be bringing product directly from China to the UK and avoid customs in Paris.”

Alcatel has launched a nationwide advertising campaign to promote the four device strong Alcatel 3 series.

The UK’s third largest manufacturer in terms of shipment volumes (according to GfK), will advertise through street placements, online, and social media.

Alcatel launched the 3 series at Mobile World Congress in February. The line comprises of four smartphones: the Alcatel 3, Alcatel 3X, Alcatel 3V and Alcatel 3C. An 18:9 aspect ratio display, face unlock and fingerprint sensor feature in all four devices. All four smartphones have a prepaid price below £200.

Mobile News has enquired on availability of the range.

Alcatel UK and Ireland country director William Paterson said: “We are delighted to be number 3 in the UK and am happy we can provide the most exciting smartphone technology to all, that fits with everyone’s budget.

“Currently, it is a hugely competitive market, which has experienced a global drop in sales, possibly due to the longevity of devices, and the additional investment required for consumers to be able to afford new high-end handsets”.

Alcatel has rebranded itself in a move it claims will help it remain in the market ‘for the next 20 years’.

The manufacturer, owned by Chinese parent group TCL Communication, announced the brand changes as it unveiled its latest A5 device. It follows a previous major rebrand at last year’s MWC which saw it ditch ‘Onetouch’ from its name in a bid to appeal to a millennial audience.

New branding will be accompanied by the tagline ‘Enjoy Now.’ Its aim is to appeal, not only to the millennial generation like the previous brand campaign, but also a maturing audience who might also use applications such as Uber, Tinder and Deliveroo.

The brand’s advertising will be altered to include those in its new targeted demographic using such software on Alcatel’s new phones.

TCL CEO Nicolas Zibell (pictured) claimed this new message, combined with the new range of affordable smartphones would help create a completely different view of the brand.

“We now have a different brand positioning,” he said.

“The market is maturing and we need to design new devices to match this. Ones that will bring all the latest technologies and make them accessible at an affordable price.

20 more years

“We believe Alcatel will be here for the next 20 years. These new devices will give you a completely different view on the brand. We are not just targeting

millennials. It’s not about age. Anyone can enjoy these products and the various different apps available. Deliveroo, Tinder and Uber; everyone uses these apps and we’re designing our products and brand to represent this.”

Alcatel is currently positioned third biggest smartphone manufacturer in the UK by share, after leapfrogging the likes of LG, Sony and HTC to account for 10.5 per cent of the market.

This was revealed to Mobile News by UK and Ireland country director William Paterson, who quoted figures from leading market forecasters GfK, last month.