Post date: Mar 04, 2013 1:25:57 PM
Reuters Business Report
REUTERS TV REPORTER, JON GORDON, SAYING:
"So you've got ten grand in your pocket, and a burning need to fulfill your darkest consumerist compulsions. What exactly do you buy?"
Well, for that kind of money, you could get two Segways. Or even three tiny cars, if it's a Tata Nano.But if you've got that kind of cash just sitting around, you're probably more interested in something like this: the Vertu TI.
An Android-powered super phone for the super rich.
It has a luxurious build more akin to jewelry than consumer electronics.
At about six ounces and just under 10,000 dollars, this handset is literally worth its weight in gold.
I caught up with Vertu CEO Perry Oosting in Hong Kong, and I asked him what kind of customer would be willing to splash out on this new phone.
PRESIDENT OF VERTU, PERRY OOSTING,
"It's a person that has a high appreciation to be different, and for an element of craftsmanship and uniqueness. So is interested in that unique and limitation element that we offer. It's somebody who is successful by their own means, so we have a lot of entrepreneurs who are successful, and want to express their success as well. And it's somebody who is around, I would say, 35 to 50, that I would say is the majority of our typical customer."
REUTERS TV REPORTER JON GORDON,
"Now with this phone you've moved on to Android from the Symbian O/S. What does this say about customer needs - why did you go to Android? "
PRESIDENT OF VERTU, PERRY OOSTING,
"For us, Android was the obvious choice. A - it had a 68% market share. And it's not because we are after market share, but it gives you the level of applications that our customers are demanding. But also from an integration on other devices, based onAndroid, gives us an enormous opportunity."
REUTERS TV REPORTER JON GORDON,
"That makes a lot of sense, but you still do have a relationship with Nokia. So what did Stephen say when you decided to go with Android?"
PRESIDENT OF VERTU, PERRY OOSTING,
"He didn't call yet, so I don't know what he said. I believe what I understood from Finland, that it was for us, the obvious choice. Also looking where Windows Phone is at its development. That probably Android was giving us the right attention and collaboration to work together, not only to build a market share, because we have nothing to play in that sense. But also to bring the Android platform with the customizations we do on device."
REUTERS TV REPORTER JON GORDON,
"Right. Now where are you going to sell this phone? What are your top markets for this new version?"
PRESIDENT OF VERTU, PERRY OOSTING,
"Asia and Europe. So Europe - both Western Europe and Eastern Europe are as big asAsia together. And Asia is of course the greater China area. This is the most important area for us in Asia."
REUTERS TV REPORTER JON GORDON,
"Yeah, when you talk about China, A lot of these Chinese customers prefer buying their luxury goods overseas, because, for tax reasons or what have you. So how does that affect your strategy when it comes to China?"
PRESIDENT OF VERTU, PERRY OOSTING,
"Well, first of all, you want to give a great service in your stores. And we're quite unique in that respect, because we have a full vertical. We have our own retail stores, so we do a lot of training, making sure that the cultural aspect is also being served outside of Chinafor Chinese consumers. Also language, and also Chinese consultants in our stores, to deliver our great service not only on the spot, but also giving them the security when the device coming back to their home market, that they receive the same service that what they received where they purchased."
REUTERS TV REPORTER JON GORDON,
Alright, I want to wrap up with the concierge service. You get a lot of outlandish requests. What's an example of one of the tricky requests you've had to fulfill?
PRESIDENT OF VERTU, PERRY OOSTING,
"If you look at the Asian requests, it's a lot about sourcing. Where can I get the Birkin bag? How do I buy a house in London? How can you help me? Which are the consultants I need for that? And then if you look at the European and the US market, it's much more occasion driven. And usually it's the husband who forgot something. So an example we had I think about 3 weeks ago, it was for a birthday party in Hollywood, where somebody requested the plane to fly over with that special cloud, and it said "Happy Birthday!" and then the name of the person. And that was fulfilled by the Vertuconcierge.
REUTERS TV REPORTER JON GORDON,
"There you go. Buy a phone, save a marriage."
PRESIDENT OF VERTU, PERRY OOSTING,
"Or a relationship."