Workers at the production line of Hali-power, an Apple-licensed accessory provider. [Photo / China Daily]

 

Different strokes

Though the authorized producers are very few, there are a vast majority of unauthorized accessory producers in Shenzhen, with their own ways of building the brand and the market.

In a market that is also in sync with high fashion, it is not uncommon to see accessories sporting a gender.

"Nowadays one can find various masculine phone cases in the market. We feel that the time is ripe for female-oriented products," said Anil Utkulu, product supervisor at TTAF Elektronik, a Turkish company.

TTAF has more than 20 years of experience in cable design and production. In 2009, the company entered China and started building up its own brand by producing cases and bags for Apple.

Last year, the company's revenue more than doubled to $6 million, with 90 percent of it coming from sales of Apple accessories. The company hopes to achieve 30 percent to 40 percent sales growth this year.

Utkulu said that the company is now looking to launch products for female customers aged over 28. "They are the missing target segment in our sales strategy and the ones who are most likely to change their accessories constantly," he said.

After eight months of negotiation, the Turkish company managed to get a three-year license from HBO to launch cases featured on the US TV series Sex and the City last year. The royalty fees were about 600,000 yuan per year.

Not surprisingly, the company also has two distinct lines of business - TTAF, the male-focused brand, and Sex and the City, the female-focused label.

Chen Zhuopeng, general manager of TTAF China, said that the HBO TV series had a mature target audience and it wanted to cash in on its popularity. "It saves us both time and effort in market research and brand promotion."

Since the launch of the Sex and the City cases in January, the company has sold more than 40,000 units, accounting for 60 percent of its total accessory sales. The series contains nine cases and each case has a retail price of about 228 yuan. Plans are afoot to expand the range with new additions every six months.

Utkulu said that by next year, most Apple accessory producers in Shenzhen will be "wiped out", as they lack a clear branding strategy.

"To operate a factory and a brand is totally different. It is more than just putting a logo on your product and going to an exhibition. You have to locate your end consumers, and then promote the brand," he said.

For TTAF, the most important aspect in its marketing strategy is undoubtedly the extra emphasis on design and branding. More than 90 percent of its workforce focuses on design. This year, the company has earmarked about 2 million yuan for exhibitions and 50 million yuan for design.