Caucasus Business Week #267

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January 21, 2019 - www.cbw.ge

#267

WEEK

NGO’s Ungrounded Position Pension Reform Sued at Court

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South Caucasus: Armed Forces and Economy

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How Advertising and Media Consumption Trends have Changed over the Last Period

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Future of Georgian Fashion – Finding Inspiration in Traditional Features


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Akaki Saghirashvili Delivers Report at Global Aviation Summit Held in India

EU to Fund Infrastructure Projects by 13 billion EUR in Georgia and 5 Other Countries

Deputy Minister of Economy and Sustainable Development, Akaki Saghirashvili delivered a report at the Plenary Session of the Global Aviation Summit 2019 – Connecting the World. The Summit was held in Mumbai, India, until January 16.

European Commissioner Johannes Hahn has introduced a new project that is to finance infrastructure projects in 6 countries of the Eastern Partnership.

EU Committed to Finance The Construction of Anaklia Port The European Union is planning to finance major infrastructure projects across the Eastern Partnership countries (EaP) the European Commission and the World Bank have co-authored a Trans-European Transport Network (TEN-T) Investment Action Plan that identifies priority projects across the EaP countries. The combined amount of investment projects is about €12.8 billion.

EBRD Appoints Catarina Bjorlin Hansen New Regional Director for the Caucasus Catarina Bjorlin Hansen has been appointed EBRD Regional Director for the Caucasus.She will assume her new role based in Tbilisi on April 1, 2019.

Most Popular Schengen Zone Countries among Georgian Visitors Interior Ministry of Georgia has published the statistics of border-crossing for December 2018.

Innovation and Technology Agency Appointed New Chairman Innovation and Technology Agency of the Ministry of Economy and Sustainable Development has a new chairman. Avtandil Kasradze was chosen as a result of the competition announced by the Ministry of Economy for the position of the head of the Agency. He started his job on January 16.

Year on year Change in Mandaine Exports Structure According to the Ministry of Agriculture, as of January 15, 2019, the mandarin exports constituted 28 855 tons, up from 22 306 tons year on year.

Georgian Airways to Convey Two New Boeings in 2019 Georgian Airways plans to enlarge its fleet and covey two new Boeing airplanes in 2019, the company director general Givi Davitashvili told BM.Ge.

Feasibility Study on FTA between Georgia and India Accomplished A summarizing meeting of Georgia-India joint research group for conducting the feasibility study of the free trade agreement was held at the Ministry of Economy and Sustainable Development of Georgia.

TBC Bank Wins Payments Awards 2018 TBC Bank’s first Georgian-speaking financial chatbot, Ti-Bot, has been named the Best Alternative Payments Project in the Payments Awards ceremony organised by FStech and Retail Systems in recognition of cards and payments excellence and innovation. The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Director: Levan Beglarishvili WWW.CBW.GE Address: Aleksidze Street 1 Sales: Mob: +995 591 01 39 36 Email: caucasianbusiness@gmail.com Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Copy Editor: Ellie Rambo Reporters: Nina Gomarteli; Mariam Kopaliani; Merab Janiashvili, Economic columnist: Andria Gvidiani; Technical Assistant: Giorgi Kheladze;


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NGO’s Ungrounded Position Pension Reform Sued at Court On July 27, 2018, the Parliament of Georgia adopted a law on contributory superannuation in a third hearing, and 79 votes. The basic part of the law came into force on January 1, 2019. As a result, citizens under 40 years of age are obliged to pay pension taxes to the Pension Fund. No public discussions were held regarding the new reform, and the population was not provided with comprehensive information about the planned reforms. Therefore, there is mistrust regarding the contributory schemes, based on historical experience, and it is easy to make certain issues the subject of public manipulations. A lot of critical concerns were expressed regarding the aforementioned reform, from both the NGO sector and economic experts. Government officials have pledged to reform the existing system, but in reality, only 20-30% of our citizens will be able to make use of the contributory superannuation system. We may write a lot about gaps and defects in the current scheme, including including the fact that about half part of our population is occupied in the informal sector. Therefore, it is not obligatory for them to engage in this system, and this scheme will work as a motivator for those wishing to participate in it. At the same time, the majority of Georgian citizens have low incomes, and they will save only relatively unimportant funds with their salaries, only 600-700 GEL, despite the length of time. Even more so, our citizens will receive an increased pensions in 20-25 years, and the current pensioners or those who will become pensioners in several years cannot receive benefits from the pension system. Based on the above-mentioned factors, we can say that the adopted law on contributory superannuation

is a bad reform. However, it should be also noted that criticism of the reform is sometimes detrimental, including a constitutional action that Georgia’s Democratic Choice submitted to the Constitutional Court on January 11, 2019. The NGO demanded that certain articles of the law be ruled unconstitutional. The content and substantiation of the action is very weak, unilateral and ideologically biased in terms of its perception of constitutional rights and the essence of the social safety system. Therefore, it is less likely that the Constitutional Court will seriously discuss this action and satisfy it. The position of the NGO is also unclear when trying to interpret the basic law, due to its considerations not having explored international experiences. And if the NGO’s action is genuinely satisfied, in the future we may see actions against allowances for socially vulnerable citizens, tax preferences for small and medium entrepreneurs, and many other surprises. In one part of the action, the authors assert that the reform’s mandatory component is unconstitutional: the plaintiff asserts that this component contradicts constitutional requirements, namely, ownership rights (article 19 of the basic law). According to the plaintiff, the basic law determines that ownership rights may be limited only in certain law-determined cases of the public interest and necessary public needs and, therefore, the aforementioned law illegally obliges citizens to participate in the contributory superannuation scheme to pay a certain part of their salaries (2% of the salary) to their own personal individual pensions accounts. The plaintiff asserts that the aforementioned component of the law deprives the citizens of the option to decide for themselves whether to join the contributory superannuation scheme.

Therefore, the plaintiff asserts that the aforementioned norm restricts ownership rights. The appeal against the principle of mandatory participation in the pension scheme, as a social safety program, is based on erroneous arguments, and this factor proves that the plaintiff lacks knowledge of social safety goals. Moreover, it does not consider the pension provision a necessary public need or public interest, and considers society not as an interconnected unity, where each member has an influence on others, but a group of individuals isolated from each other. The point is that, in the history of social security and protection systems, mandatory participation is one of these basic principles, without which society is unable to protect their members in such vulnerable positions as old age, disability or the loss of a breadwinner. The consensus over mandatory participation in social security systems was achieved more than a century ago, and the social state, which was embodied in the basic law of Georgia after constitutional amendments, determines that in the event any person who cannot participate in social interactions and the labor market because of age, sickness or any other undesirable circumstances, other members of the society take responsibility for this category of citizens, based on the principle of solidarity. These principles motivate the social security systems in the strongest countries of the EU. The second part of the appeal demands that part of the reform be announced as unconstitutional, specifically that under which citizens with more than 60,000 GEL annual incomes will not receive a 2% contribution from the state budget, and citizens with incomes of 24,00060,000 GEL will receive only a 1% state contribution. The plaintiff asserts that this component violates

article 11 of the organic law on Equality. Extract from the action: “All citizens are equal before the law. Discrimination against racial origin, the color of their skin, gender, origin, ethnicity, language, religious, political or other opinions, social status, property, place of residence or any other sign is restricted”. And where has Georgian Democratic Choice discerned discrimination in the fact that the Government will pay less to high-income citizens? However, they seemingly have no idea that in Georgia, the budget pays about 60 GEL a month to socially unprotected citizens, and small and medium entrepreneurs pay only 1% of turnover, and are exempted from other taxes. According to their logic, high-income citizens should apply to the constitutional court with their demand to receive social allowances. For example, we have more than 20 parliament members who are millionaires, and if they apply to the constitutional court for social allowances, they would be in the same situation as the mentioned NGO strives for. In the case of pensions reforms in Georgia, the problem is not if citizens’ ownership rights are restricted for many years, but the problem is that the citizens have to pay pension taxes to the specific pension scheme, and they do not have theoption to choose between various schemes. Thus, the aforementioned constitutional appeal’s content is a weak and ungrounded criticism against the pension system, and raises doubts that there will be attempts at subjecting the pension system reform to private interests. As a result, similar unsubstantiated and artificial criticisms are the result, when the reform that does not serve pensioners, and only 30% of our citizens will make use of it. By Merab Janiashvili


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South Caucasus: Armed Forces and Economy “Fund Your Army, otherwise you will have to fund others’ army”. The stronger the economy, the more funds are directed to strengthening the defense industry. America is the best sample. The country with the strongest economy spends 720 billion USD on defense, triple the consolidated military expenditures of China and Russia. What is the situation in this respect in the South Caucasus? What resources do the economies of Georgia, Armenia and Azerbaijan have, so citizens of these countries feel safe more or less? In the Global Firepower Index 2018 rating, an index which estimates the military might of 136 countries, Georgia ranks 82nd. The report’s authors have compared quantity of troops and military hardware, as well as various economic parameters such as external debts, currency and gold reserves. According to the Global Firepower Index, Georgia’s defense budget is 380 million USD, against 14.1 billion USD in external debts. Purchasing power parity is 39.3 billion USD. As for gold and currency reserves, their volume is at around 3 billion USD. The report also indicates that there are about 2 million ablebodied citizens in Georgia. The country owns 2 basic seaports and 22 working airports. The total length of road exceeds 20,000 kilometers, while the total length of railroad is about 1,600 kilometers. The report also

notes that Georgia produces 400 barrels of oil a day. Confirmed oil reserves constitute 35 million barrels, while the daily consumption of oil takes up 17,000 barrels. As for Azerbaijan and Armenia, these countries have the following indicators, according to the Global Firepower Index 2018:

Other economic parameters also enable a certain analysis and a conclusion. According to the statistics committee of Armenia, in 2017, Armenia exported 2,242.9 million USD in products, while imports constituted 4,182.6 million USD. The negative trade balance is recorded at 1,900.4 million USD. Georgia’s negative trade balance is higher. According to the 2018 Armenia indicators, Georgia’s negative trade balance made up 5,56.0 • Defense budget - 512 million million USD. USD An absolutely different situation • External debts – 9.170 billion is recorded in Azerbaijan. Unlike USD Georgia and Armenia, Azerbaijan • Purchasing power parity – has a positive trade balance, and 27.210 billion USD exports exceeds imports by 5.5 • Currency and gold reserves billion USD. In 2017, Azerbaijan 2.242 billion USD sold 14 million USD in products, • Working airdromes – 11 and its imports are marked at 8.5 • Total length of roads – 7.705 billion USD. kilometers Based on all of the • Railroad length – 869 kilometers aforementioned statistics. it is • Daily oil production – 0 not surprising that in the Global • Confirmed oil reserves – 0 Firepower Index, Azerbaijan ranks 53rd, Georgia 82nd and Azerbaijan Armenia 84th. What should we expect in the • Defense budget – 1.600 billion future, and will the current USD parity change? • External debt – 16.620 million According to the IMF forecast, USD Georgia’s economic growth • Purchasing power parity – in 2019 will be 4.8% and this 166.800 billion USD growth pace will be 52nd result • Currency and gold reserves – worldwide. According to the 8.886 billion USD IMF, Armenia will record 3% • Working airdromes - 37 upturn and Azerbaijan will • Total length of roads – 52 942 record 3.5% growth. Thus, we km should not expect the near future • Length of railroad - 2 918 km to bring any impressive changes • Daily oil production - 93 000 in the economic and military • Confirmed oil reserves potential of these countries. 7,000,000,000 By Zurab Khachapuridze


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The 4th Official Ceremony of the Welcome to Georgia! National Tourism Awards On December 17, 2018 the Fourth Official Ceremony of the Welcome to Georgia! National Tourism Awards was held at the Rustaveli Theatre, where 23 BEST companies among different nominations were named. 1. CONCEPT ACCOMMODATION AWARD – Quadrum Ski & Yoga Resort; 2. THE BEST WELLNESS & SPA RESORT AWARD – Crowne Plaza Borjomi; 3. THE BEST MOUNTAIN ACCOMMODATION AWARD – Borjomi Likani; 4. THE BEST SEA ACCOMMODATION AWARD – Sheraton Batumi Hotel; 5. THE BEST VALUE – LOW BUDGET ACCOMMODATION – Hostel Pushkin 10; 6. THE BEST VALUE– STANDARD ACCOMMODATION – Ramada Encore Tbilisi; 7.THE BEST VALUE – PREMIUM ACCOMMODATION – Radisson Blu Iveria Tbilisi; 8.THE BEST FESTIVAL OR EVENT AWARD – Tbilisi Open Air; 9.THE BEST MICE TOURISM AWARD – Calypso Travel & Event; 10.THE BEST WINE TOURISM AWARD – Château Mukhrani; 11.THE BEST E-TOURISM AWARD – Travel Guide App; 12.THE BEST TRADITIONAL GEORGIAN RESTAURANT AWARD – ETHNO TSISKVILI; 13.THE BEST HOTEL OF INTERNATIONAL CHAIN IN GEORGIA AWARD – Tbilisi Marriott Hotel; 14. CONCEPT CAFÉ/RESTAURANT AWARD – Barbarestan; 15. THE BEST INCOMING TOUR OPERATOR AWARD – Caucasus Travel; 16. THE BEST COMMUNITY BASED TOURISM AWARD – Nazy's Guest House; 17. THE BEST ADVENTURE TOURISM AWARD – Altihut 3.014 18. THE FASTEST GROWING COMPANY OF THE YEAR IN THE SME SEGMENT AWARD – Wehost; 19. ICREATE – THE MOST SUCCESSFUL GEORGIAN BRAND IN THE TOURISM INDUSTRY AWARD – Lopota Lake Resort & Spa; 20. THE BEST WOMAN ENTREPRENEUR IN THE TOURISM INDUSTRY AWARD – Tinatini

Dugashvili. 21. AWARD FOR CONTRIBUTION TO TOURISM DEVELOPMENT GNTA on behalf of Ministry of Economy and Sustainable Development of Georgia – Giorgi Tavadze, GMT President; 22. THE BEST TOURISTIC START UP on behalf of PARTNERSHIP FUND – Wehost; 23. THE BEST YOUNG WINERY AWARD – Baia’s Wine. The Official Award Ceremony hosted more than 800 guests: Minister of Economy and Sustainable Development of Georgia – Giorgi Kobulia; Head of Georgian National Tourism Administration – Giorgi Chogovadze; Deputy Mayor of Tbilisi – Ilia Eloshvili, Acting Deputy Executive Director of "Partnership Fund"– Giorgi Danelia;all nominees and Project partners; government sector, private business, international and local media. Award Ceremony was opened by Minister of Economy and Sustainable Development of Georgia - Giorgi Kobulia. He spoke about the importance of tourism industry for Georgia’s economy, latest achievements of the field and significance of the project. Minister of Economy awarded – Giorgi Tavadze, President of GMT Group, for his contribution to tourism development. Founder of the Award project Maryna Chayka also welcomed and thanked guests, partners and nominees for participation in the Award Project and noted projects contribution in Georgian tourism industry and its’ global aims. 350 different companies representing tourism and hospitality market from all over Georgia including hotels, travel agencies, festivals and events, restaurants, cafes, wineries were honorably holding the status of Nominee of Welcome to Georgia! National Tourism Awards 2018. Each nominee was assessed in accordance with internationally recognized methodology by the Professional Jury Board, consisted of experts of international and local travel, culture and hospitality markets, who were separated according to categories depending on the kind of their main professional activity. As the guarantee of fairness and transparency of the Awards Project Independent Auditor “BDO Georgia” monitored all the processes, calculated

the results and based on the points awarded to each Nominee determined the finalists and the winners in each nomination. The main mission of the Welcome to Georgia! National Tourism Awards is to encourage tourism and hospitality industry in Georgia and to promote the awareness of the high-achieving tourism business and brands that create a positive image of the country worldwide. For the fourth year already Georgian National Tourism Administration on behalf of Ministry of Economy and Sustainable Development of Georgia is Co-organizer of the Award Project. Official Supporters Tbilisi City Hall, Partnership Fund; Co-organizer - Bank of Georgia. General Sponsor - Alliance Group. Sparkling Partner – Swarovski. Sponsors: Rustaveli Theatre; Event Space ‘’Republic’’;Altido; Tbilisi Business Hub;Audio Guide Georgia; Zigie;Beko; Julius Meinl; Vesta; Ardi;Sarajishvili; Vistoria Security; Elements Group; UPS;Domson’s Engineering; Gagra Plus; Giffer;Tbilvino;Budget; Sakurami; Lasha Jokhadze Fashion House;Vineria;Inglot;Arch Trade; Euro Product. Hotel Partners: Grove Design Hotel; Amante Narikala; Gallery Palace;LM Club Hotel; King Gorgasali hotel.


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Ekaterina Kvirikashvili: "How Advertising and Media Consumption Trends have Changed over the Last Period" Interview with Marketing and PR Manager of Samsung Electronics Ekaterina Kvirikashvili. Tell us about how you got into the field of marketing, and what factors have played an important role your choosing this profession? In fact, my interest and aspirations in this field came up during my time in school. If you’d asked, I wouldn’t have answered that I wanted to get into marketing, but as soon as I was in touch with the curriculum of this field, I realized that this is a field where I feel comfortable and needed. It's very difficult to find a sphere where you feel truly happy. I love to say: ‘choose the job you love, and you will not have to work a day.’ I think that's where I should be. What challenges do you face as the head of the marketing service because of technological changes? I observe technological changes every day. Samsung is one of the world's largest manufacturing companies, and aspires to a position of technological leadership, and in many ways maintains the top position. In terms of growing competition and technological development, it is a big challenge to maintain this position, but with a customer-oriented approach, it is possible to achieve great success. What are trends have you seen in the last 5 years in the field, and what changes are expected now? The types of advertising and media consumption trends have changed over the last period. Digital Media and Influencer Marketing were specially developed. The user pays great attention to blogs and discussions. I think that there is still great potential for development in Georgia. In your opinion, what are the important features of a marketing manager, and what is their role in an organization? One should be hardworking, and think outside the box. A Marketing Manager should know her own prod-

uct, and customer (target audiences) to provide the relevant information, so that sales are effective. How do you support organizing in order to keep up with trends, and make use of innovative approaches in the field of marketing? Global organizations are creating trends in the world, on the one hand, and on the other hand, try to implement individual, innovative approaches. In our case, the head office regularly updates regional offices on interesting approaches that we customize according to the specific idiosyncrasies of the local market. What is your organization's business model marketing like? Samsung always tries to develop a product basedon the customer's demand and interests. Additionally, our brand philosophy provides a positive change in people’s lives, and takes into consideration their motivations.

A clear example of this is the "Do What You Can't" campaign, which is going on globally in a big way. One word that describes your job. Challenging. The most useful advice you’ve received in your life? Always think positively. Describe the person who inspires you, from a professional perspective. I would say that the environment and market condition inspires me more than a single person. But I'm very happy to watch good marketing work, and their results. I respect all interesting, successful and risky projects - many of which are backed up only by the selfless work of many people.


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Business News Anna Ke Named Georgia’s Representative Artist for 2019 Venice Biennale

Giorgi Barkalaia Appointed as Marketing Director for Anaklia Development Consortium

Düsseldorf- and New York-based Anna KE has been announced as Georgia’s representative artist at the 58th Venice Biennale.

Giorgi Barkalaia has joined the team of Anaklia Development Consortium. The company is expanding its operation and more successful persons are invited to the team. Georgia to be Presented as Honorary Guest at Paris Book Fair

Canadian Company Introduced Project of Industrial City Construction in Rustavi Children’s World to be Built on Burned Shopping Center Site at Station Square Two years after the shopping center ”Children’s world” burned down, the founder Giorgi Machavariani states at Commersant that it will be renovated after the investigation is completed.

The Minister of Economy and Sustainable Development, George Kobulia held a meeting with the representatives of the Canadian Investment Company – the KAMCON INVESTMENTS. The Canadian company introduced its project that envisages the construction of an industrial city over the 400 ha plot of land in the city of Rustavi.

Georgia will become an honorable guest country for another important literary platform, Paris Book Fair. According to the Public Relations Service of the National Library of Georgia, the offer was made still in the framework of the Frankfurt Book Fair and presumably will be held in 2021.

German-Austrian Company to Carry Out Flights in Gudauri According to Civil Aviation Agency, another foreign company will operate in Gudauri resort zone. The agency issued a permit for the company “HTM Helicopter Travel Munich GmbH” to carry out flights on January 15.

Vazisubani Estate Launches Logistic Center in Europe

Bitfury Group Announces Blockchain-Based Music Entertainment Division

This year, the company Vazisubani Estate plans to open a warehouse in Germany, from which the company will be able to deliver the product in all European cities.

The Bitfury Group today launched Bitfury Surround, a music entertainment division that will design blockchain solutions to address challenges faced by artists and other stakeholders in the music industry.

6,6 Million GEL Allocated for Georgian Wine Popularization on International Market 6,6 million GEL is planned to be spent for Georgian wine popularization on international market. National Wine Agency is waiting for consent from the Procurement Agency.

Finnish School in Saguramo to Receive Pupils starting September 2019 In partnership with the Finnish leading educational consortium, Alliance Group Holding plans to open a Finnish school in Saguramo, which will receive pupils starting September 2019.


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Future of Georgian Fashion – Finding Inspiration in Traditional Features When looking back grandparents’ photo albums, I always wonder where did this unique fashion go? Why create something new when we already hold such formula?But the answer is easy, it’s inconvenient and impossible to get around with it in our fastpaced lives. Although it’s all about finding a sharp solution, Megi Bezhanishvili restored traditional elements in a way that fits the contemporary lifestyle. CBW had an interview with a founder of MEGI, Megi Bezhanishvili: How did you come up with the idea, which factor helped you to implement and develop your startup?

I’m not a modeler by profession, I graduated from ESM Business School. I was employed at various companies back then as a Manager and finally founded my own Advertising Company. I was always into sewing, one fine day, I decided to drastically change my occupation and start doing what I’ve always enjoyed. It took me years to research Georgian clothing, meanwhile, my relative offered me a business idea related to that, and I took a chance implicitly. I called all the advertising company’s clients and redirected to other companies. We divided our work, I took a charge in a production process, while she took care of administrative issues. We presented the first line after one month of hard work. We see traditional elements in your clothing line, what is your source of inspiration? Georgian traditional clothes are distinguished with elegance and simplicity. I try to get these motives back to daily life. General lifestyle has changed and it requires clothes to adapt so that

it’s more than a museum exhibit or holiday costume. How did public react to the appearance of your brand and who is your target group? People’s feedback was quite positive. The main Georgian features were accepted positively, as it’s relatable. Many people thanked me in personal messages for presenting their region’s characteristic elements in a nice way. It’s a great motivation for me, meaning I took the right direction and didn’t spoil the philosophy of different regions. Nevertheless the fact it went viral in a social network, expressing approval, they stayed passive in terms of sale for the first few months. Clothing trade is not for those who want to get rich rapidly. Especially, when you produce specific, non-massive and slightly distinguished clothes. However, sales grow geometrically after the first customer, each customer brings at least three new one. Now the demand increased so much that I need to delay some orders,

the composition. No matter what kind of design I create, if the fabric is not the highest quality, it makes no sense. All the details of the processing are given a lot of attention. The beauty of the clothing is in professionally developed detail. I am lucky to find professional tailors, who work hard towards perfection, and I can see pride and pleasure in their eyes for the flawless outcome. We have both a hand and a sewing machine embroidery service. Old Georgian embroidery is characterized by a high technological level. This has led to the fact that we love championship in everything. In earlier women it was a very common work, everybody would try to create something one of a kind. All old embroidery

is unique and Georgian embroidery has a high price overseas. Where can customers reach you to buy your product? especially in the last few months. Sadly there was a negative side of this growth, in terms of management. If I worked alone before, now it’s six of us, trying to organize chaos together. Meanwhile, the audience has been identified, for whom it’s interesting for me to work. This is middle and high-level class people at the position of manager, who blindly trust me in everything. I’ve experienced the rhythm of their lives from previous work so that I can define which clothes will fit in their lifestyle.

Our showroom is located on 95 Lvovi st. Although, we have a surprise for our customers in the nearest future. What excites you most right now and what do you see as your next step?

What material and technology do you use to create your product?

I’m all about composing currently, it’s hard for me to find time for something else. I don’t have a certain plan, as events develop spontaneously. I don’t thrive to establish a large organization, as I always felt more comfortable in smaller companies, where there is no intrigue, everyone’s equal and it’s easy to maintain the family-like environment.

I use only 100% natural fabrics, strictly control

By Nina Gomarteli


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Sales of HUAWEI Smartphones Exceeded 200 Million Units in 2018 The business team of the HUAWEI Company has announced that its smartphone shipments for the 2018 year have exceeded 200 million units. The representatives of the company state the given result has been achieved by the enthusiastic support of consumers and partners around the world, as well as the strength of the smartphone products. The experts relate this recordbreaking success to the launch of the new innovative smartphones with the modern technological capabilities by the company, such as HUAWEI P20 and HUAWEI Mate 20. During the last 8 years, the business team of HUAWEI has applied the consumercentric concept and approaches. The company has also made important steps forward in the most popular, innovative and competitive technological spheres, such as photography, battery durability, communication and AI (artificial intelligence). In the past eight years, Huawei’s smartphone shipments have increased from 3 million units in 2010 to 200

million units in 2018, reflecting approximately a sixty-six-fold growth. In the global smartphone market, Huawei has gone from being dismissed as a statistical “Other” to ranking among the top 3 players in the world. And in the second and third quarters of 2018, Huawei became the world’s second largest smartphone manufacturer, with a global market share of 14.6%. Today, HUAWEI smartphones are used by more than 500 million consumers in more than 170 countries across the world. According to IPSOS data, the brand of HUAWEI is associated with progress, strong and innovative capabilities, and trustworthiness. „Looking to the future, Huawei’s consumer business will focus on the core concept of ‘consumer-centric’, and will dare to keep innovating, and make every effort to become a pioneer and leader in the next wave of the smartphone revolution, as well as constantly create new value for consumers, let our consumers better enjoy their lives, and truly make Huawei a brand that is

beloved by consumers the world over“.– Stated Richard Yu, CEO of Huawei Consumer BG. HUAWEI products and services are available in more than 170 countries and are used by a third of the world’s population. There are 16 research and development centers operating worldwide in the USA, Germany, Sweden, Russia, India and China. HUAWEI Consumer BG is one of three business units of HUAWEI, mainly focusing on the production of smartphones, personal computers, tablets and cloud services. HUAWEI Global Network is based on 20 years of experience in the telecommunications business and serves to the production of innovative technologies to customers around the world.


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