MiDCOM changes face of telephone market
Phone distributor MiDCOM has opened 250 outlets in two years of operation to dominate the mobile phone selling market in Uganda.
By Vision Reporter
Phone distributor MiDCOM has opened 250 outlets in two years of operation to dominate the mobile phone selling market in Uganda.
Before MiDCOM came into the market, most Ugandans bought phones that were smuggled, had no warranty or were faulty. Some even flew to Dubai to get genuine phones.
According to industry sources, many of the phones sold at the time got in through illegal means. “They were smuggled in suitcases to dodge taxes and most were fake,†said an industry player.
Then big players with direct links to phone manufacturers like Nokia stormed the market and changed the process. One such player is MiDCOM, the authorised distributor of Nokia phones in East Africa.
Akash Kumar, the general manager of MiDCOM, said they were attracted to Uganda because of a great business opportunity and realisation that everybody, including the tax authority, consumer and dealers, were losing out.
“The situation was bad. People were buying phones with no warranties. The phones were not genuine and people were being ripped off by the dealers. A lot has changed since we came into the market,†explained Kumar.
He said they did a lot of branding and educating the people as a way of winning their trust and confidence.
Kumar asserted that because they are distributors, they import directly from the manufacturer, where they get good prices and pass them on to the customers.
“Our phones are genuine and prices competitive. Almost all dealers are buying from us because prices are almost the same as those in Dubai. Why risk flying if you can get the phone here at the same price?†he wondered.
Kumar said they had also invested in creating lasting relationships with customers. “We don’t treat each sale as a mere transaction.
We give one-year warranties so that we have a relationship. We also have Nokia Care where we handle all problems of Nokia phones.â€
He said the dealers no longer go to Dubai. “When one of them bought from us, he spread the word.
Since then, almost all of them buy from here. The number of dodgy phone dealers has fallen drastically. There are still some, but we shall win them over as well.â€
The company also works with telephone service providers to carry out promotions in which phone prices are reduced further.
Phone distributor MiDCOM has opened 250 outlets in two years of operation to dominate the mobile phone selling market in Uganda.
Before MiDCOM came into the market, most Ugandans bought phones that were smuggled, had no warranty or were faulty. Some even flew to Dubai to get genuine phones.
According to industry sources, many of the phones sold at the time got in through illegal means. “They were smuggled in suitcases to dodge taxes and most were fake,†said an industry player.
Then big players with direct links to phone manufacturers like Nokia stormed the market and changed the process. One such player is MiDCOM, the authorised distributor of Nokia phones in East Africa.
Akash Kumar, the general manager of MiDCOM, said they were attracted to Uganda because of a great business opportunity and realisation that everybody, including the tax authority, consumer and dealers, were losing out.
“The situation was bad. People were buying phones with no warranties. The phones were not genuine and people were being ripped off by the dealers. A lot has changed since we came into the market,†explained Kumar.
He said they did a lot of branding and educating the people as a way of winning their trust and confidence.
Kumar asserted that because they are distributors, they import directly from the manufacturer, where they get good prices and pass them on to the customers.
“Our phones are genuine and prices competitive. Almost all dealers are buying from us because prices are almost the same as those in Dubai. Why risk flying if you can get the phone here at the same price?†he wondered.
Kumar said they had also invested in creating lasting relationships with customers. “We don’t treat each sale as a mere transaction.
We give one-year warranties so that we have a relationship. We also have Nokia Care where we handle all problems of Nokia phones.â€
He said the dealers no longer go to Dubai. “When one of them bought from us, he spread the word.
Since then, almost all of them buy from here. The number of dodgy phone dealers has fallen drastically. There are still some, but we shall win them over as well.â€
The company also works with telephone service providers to carry out promotions in which phone prices are reduced further.