Indonesian phone maker Cross eyes overseas push with rebranding

Indonesian phone maker Cross eyes overseas push with rebranding

Summary: Under its new name Evercoss, it will expand further into neighboring countries served by its new US$100 million local factory--a move that's supposed to be cheaper than its current model of wholly relying on manufacturing in China.

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Evercoss is now officially the name of the local homegrown brand Cross. Yes, that's right, there is no "r" between "c" and "o". Citing SWA, aside from the official announcement, the company also revealed plans to set-up an 8-hectare manufacturing plant with US$100m invested capital in Semarang, Central Java and expand further overseas.

According to Jakarta Globe, the name change was necessary for the phone maker's overseas expansion as it found out the "Cross" name had already been licensed for various products in the region, including even a ballpoint pen.

Cross Rebranded into Evercoss (Credit: YangCanggih)
(Credit: YangCanggih.com)

When a company changes their brand name, a common practice sees its domain name following suit. Until now somewhat it remains unchanged but we notice their new Facebook page has been rolled out.

According to Aries Indo Global (AIG), who owns the brand, half of the funding was from company coffers while the rest was via bank loan. Its chief marketing officer Janto Djojo said as of today 30 percent of the funds has been injected.

The factory is slated to be up and running next year. In the first stage, the local company is expected to have ten production lines--that's approximately equivalent to 500,000 to 600,000 units. It might staff around a thousand employees. Another 5-hectare land within the same location has also been prepared for future expansion.

The local phone maker was founded in 2010 through a partnership with a European mobile phone company. Its focus thus far is serving domestic market by providing Android, Candy Bar, Qwerty and Stylish devices.

evercoss
(source: crossmobilephone.com)

Based on Ministry of Trade data, Janto said that the company shipped 16 million units last year. According to Yahoo and TNS Global, the total number of mobile phone users in Indonesia in 2012 has surpassed more than 200 million, and 84 percent (or 168 million) were feature phones.

Moreover, even though it's a local brand, until now the production activities were wholly conducted by their partner manufacturer in China. Bearing in mind that Chinese labor monthly salary (by average across all industries) are three times that of Indonesia's, this corporate action will strategically dragging the production cost down. The cost benefit has already lured companies such as Foxconn to look at setting up shop.

In 2017, AIG expects the mobile phone entire production process to take place in Indonesia.

Topics: Smartphones, Asean, Tech Industry

Goutama Bachtiar

About Goutama Bachtiar

Goutama is an advisor and consultant in the enterprise IT space focusing on technology management and investment. His pieces have been seen in numerous leading publications, both online and print, across the world.

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2 comments
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  • Android, The Great Leveller

    Even while Western device makers are suffering under the Android onslaught (Nokia, Motorola, Apple), Eastern entrepreneurs have been able to ride the wave to global success.

    Of course, they will need to beware of patent trolls in the US to whom "free-market competition" is only good if it means "by US-based companies".
    ldo17
    • @ldo17

      Emerging countries particularly with tons of feature phone users in rural areas are always attractive. What they really need is (local) player whom understand what they want and delivered it with affordable device. Big brand has no significant effect to this kind of (price-sensitive) customer.
      goutama-fbbae