It is interesting that a man whose career in telecommunications spans two decades and numerous markets across Europe, the Middle East, Africa and Asia, should draw inspiration from Hong Kong’s MTR subway. It’s a service he describes as a “focus group” that allows him to observe the ways in which people interact with mobile technology.
Eric Mallia’s enthusiasm for his role as marketing director at SmarTone-Vodafone sometimes makes you forget you are discussing work.
And indeed, his work appears to encompass three of his major passions - music, communication and brands.
Having joined the Hong Kong-based mobile phone operator from Vodafone in the UK just over two years ago, Mallia is committed to making the brand stand out in a small, well-supplied and hence fiercely competitive market where, he says, “there are far too many operators and far too many brands”.
The winning approach, he explains, lies in avoiding the temptation to be everything to the city’s entire population of seven million. “The brand is not for everyone,” he says, pointing out that a premium product must come at a premium price.
Competing chiefly with PCCW and Hutchison Telecommunications, SmarTone-Vodafone aims to differentiate itself by providing the market’s largest mobile music inventory, high-quality mobile TV, a branded 24-hour news service, an online experience resembling that on a computer, and enhanced customer service.
“Diversifying from the core voice and text messaging is something we must do to survive. Our last results show that 22 to 23 per cent of our revenue streams came from data. We think that in three to five years we’re going to have to be more of a media company than a traditional telco.”
Citing the Hong Kong public’s “insatiable” appetite for news, Mallia says that mobile internet has proved to be the main factor behind the company’s growth.
The next focus, he says, will be digital music distribution - a feature that despite having been available for several years from a number of providers, has been slow to take off.
“The jury is still out on digital music distributed by mobile operators.” Although consumables, such as ring tones, have achieved popularity, full tracks and music videos have yet to achieve traction as a commodity among mobile users.
“As an industry, we have to come together in a more cohesive fashion, start letting go and working as a holistic unit.”
Mallia hopes SmarTone-Vodafone’s MusicXS, which allows subscribers to download more than 600,000 English and regional tracks to their computer that can subsequently be side-loaded to mobile handsets, will act as a catalyst. The goal is to raise the profile of mobile music sufficiently for it to become a major source of revenue in Hong Kong. He claims that while record labels are keen to participate, education is necessary to convey the message to consumers that owning music on a hard disk or mobile is preferable to streaming. The other major hurdle to overcome is piracy.
“There are many consumers in this marketplace who know how to source free content. Once this has been instilled, it’s very difficult to get people out of that, and this is where we as an industry have got to work to legitimise music and reassess the value of recording it.
“It’s our job to market music better and make the recording artists appealing again.”
Another area Mallia feels has yet to live up to its potential is mobile advertising. “It hasn’t really taken off yet, but we’re on the cusp. Advertisers need to hear a compelling argument that mobile gives them better measurements and reporting than other media. They need to understand that it’s all about personalisation and relevance of targeting.”
Rather than concentrating on the online space, Mallia believes advertisers should be taking advantage of the possibilities offered by mobile TV.
“The opportunities are huge, but we need to educate advertisers better. Agencies and media companies can also engage more with us as an industry and put mobile centre stage. A 30-second made-for-TV ad is not going to cut the mustard on a three-inch screen.
“We’ve got to look at made-for- mobile ads and spots - clear, quick, concise and crisp.”
Eric Mallia’s CV
2006 Director of marketing, SmarTone-Vodafone
2002 Regional brand manager, Vodafone Group
1996 Independent marketing and brand adviser
1994 Market planning manager, Cable & Wireless Mobile
1991 Marketing manager, Mercury Communications
1988 Market analyst, Ashton-Tate Europe
