TomTom has succeeded in gaining significant market share in the South African GPS market. I have come across a very interesting article by Nicola Mawson that appeared on ITWeb.co.za. I would like to quote from this article:
“Jetten says when the regional office, in Fourways, was set up, TomTom had less than 5% of the market through its previous distributor, the Core Group. Last year, Rectron landed the contract to distribute TomTom in SA, after the Dutch company terminated its two-year relationship with the Core Group.
The surprise termination of the two-year relationship between the Core Group and the Dutch manufacturer occurred after TomTom indicated it wanted to have a physical presence in SA.
Jetten says that, according to the latest research from independent company GfK, TomTom had 51% of sales by volume of GPS devices going through tills in the month of May. This is up from the 24% it had in December.
GfK Marketing Services SA confirmed TomTom has been increasing its market share in SA, but would not divulge actual figures. This is because GfK, which measures sales of electrical items such as GPS at till points, works on a subscriber base, and will only tell subscribers what sales are.
Jetten says penetration of devices in the motor vehicle population in SA is low, at about 7%, but he believes penetration of 25% is possible, which equates to about 7.2 million cars.
Arthur Goldstuck, MD of independent research company World Wide Worx, says TomTom has been pricing its product attractively, as well as positioning it as a “cool” item, which has buoyed sales. Garmin, as the market leader, has a staid image, he says.
In addition, future sales will be weighed down by the growing incorporation of GPS in cellular phones.
GPS standalone units, says Goldstuck, are “on a growth path, but probably doomed except for specialist purposes” such as outdoor.”
TomTom is one of the Partners in the development of the Arrive Alive road safety website.