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Mobile phone retail: From stores to kiosks

Kiosks are becoming the preferred option.
By Carlo P. Mallo |

In early 2000, Roy Garcia established Mobile Networks in Davao City together with the wave of entrepreneurs who saw opportunity in the mobile phone market. Soon, Garcia expanded his business to other cities which includes Cagayan de Oro, Valencia in Bukidnon, Butuan City, Iloilo, Antique, Palawan and in Paranaque.

But the market for mobile phones has been heavily saturated since its dawn 11 years ago. Nearly every mall in the country has at least 10 mobile phone retailers offering rock bottom prices.

Last year, Garcia shifted his approach to the mobile phone retail industry by focusing on opening kiosks that are focused on a single brand – the Filipino brand, MyPhone.

“Instead of opening full stores, we are opening kiosks as it requires lower capital to start and lower overhead cost to maintain,” says Garcia. “And the way things are looking right now in the mobile industry that seems to be the direction in the next few years.”

While concept and retail stores of mobile phones will always be around, expect to see more and more kiosks opening up throughout the country.

Here are three reasons why we think a kiosk is more effective and cost-efficient approach in selling mobile phones:

1.    It’s cheaper. There is no question that a kiosk is definitely more affordable than maintaining a full store. Added bonus? The rent is lower too.

2.    Easy to construct. Made mostly out of wood, glass, and steel, a kiosk can be completed in 15 days, unlike the 45 days standard completion of a full store.

3.    Less personnel. An average of 2 personnel is sufficient to man a kiosk, while a complete store needs more people to run efficiently.

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