[Re-post] Synrgic – the Next Xiaomi of Asia?
Originally written for Startup Tree
I peered through the busy crowd and spied a young lad dressed in a checkered shirt and jeans. Coupled with a backpack and a mobile phone in one hand, he would not have looked out of place at a university.
Meet Suan Jin Cheo, the fast-talking 26-year-old founder and CEO of Synrgic, a Singapore-based startup that was established back in 2009. The company started with manufacturing tablets; today, it has joined the competitive, bloodthirsty arena of creating possibly the hottest consumer product this century – mobile phones. Suan Jin is no stranger to Korea since Synrgic’s latest offering, the Uno is produced here. Yet, in true Korean hospitality, I was obliged to feed him with galbi (grilled beef) so that I could also grill (pun intended) him with endless questions about his entrepreneurial journey.
Synrgic CEO & Founder – Suan Jin Cheo (Source: TechieLobang)
The Synrgic Uno
At the end of April this year, Synrgic kick-started its foray into mobile phones again with the Synrgic Uno. “Uno”, basically meaning “one” in Spanish is a 4.7-inch smartphone with HD IPS Gorilla glass display running on the Android Ice-Cream Sandwich operating platform. What is interesting is that Synrgic did not follow the conventional route of using chipsets from dominant makers typically associated with OEMs, but instead chose TI’s (Texas Instruments) dual-core 1.5GHz OMAP 4470 processors (including 1GB DDR2 RAM and SGX 544 graphics chip) to power the phone. It also went against the grain by maintaining the native Android user interface for a “pure Android experience”, claiming that this will keep the smartphone free of bloatware and unnecessary apps.
The Synrgic Uno (Source: Synrgic)
Priced at USD $320, the Uno is positioned as a mid-tier phone and according to Suan Jin “targeted at young professionals in emerging markets in Asia”. Unlike other manufacturers of mid-tier to lower-end phones with the propensity to choose China as their production base, Synrgic strives to associate the brand and product with high quality, which led to its choice of outsourcing manufacturing to a partner facility in Korea.
Citing Xiaomi, a manufacturer from China that produces iPhone look-alikes as its inspiration, Synrgic is closely observing the rapid ascent of one of China’s most valuable technology companies, now valued at $4 billion (June 2012). Suan Jin believes that by applying key lessons taken from counterparts like Xiaomi, Synrgic is able to ride consumer demand in Southeast Asia for value-led smartphones with optimized quality and features. This addresses the huge market potential made up of individuals aspiring to premium brands like Samsung and Apple, but who simply cannot afford it. Therefore, he is confident that Synrgic will succeed because of Synrgic’s focus on a distinct value advantage over its competitors.
“We are targeting prospective buyers of the Samsung S3 who recognize value, and don’t necessarily want to pay a premium, or people who need a very good second phone for example. Those customers are attracted to quality products like the Uno willing to get the Uno, because you get the same specs for 60% of the price. Typically, our partners are savvy – they know good devices when they see them”
Currently, Synrgic’s business model to compete on price may be compelling; however, it will be interesting to see how the market responds especially with Samsung and Apple pumping out mini versions of their high-end phones. While some consumers look for a bargain, purchasing brands with equivalent specifications at a lower price like the Uno, there is still a large majority who prefer going for a prominent brand even if they are paying a premium for lower-tier specifications. Hence, it is easy to guess that the next critical step for Synrgic is to build up brand equity and awareness.
The Synrgic Uno has been launched in Singapore, Malaysia, Thailand, Indonesia and China. For those in Korea or other countries who would like to get their hands on what CNET Asia deems as a “geek phone”, it is available for purchase online through Synrgic’s website with free international shipping (limited time only) and a “1-for-1 exchange warranty upgrade”.
Technically, the Uno will be able to work in Korea but registration with a telecom operator is necessary for the phone to gain access to the networks. Suan Jin told StartupTree that Synrgic is in talks with one of the major Korean telecom operators to explore collaboration opportunities in the near future. It is also planning for an LTE model for release in the near future, which would be an apt move especially for LTE markets like Korea.
From School to Synrgic
I was extremely curious to know about Suan Jin’s decision to venture into the OEM business, especially as a first-time entrepreneur with no operating experience. Young entrepreneurs (out of Silicon Valley and around Asia) are usually inclined to create startups building software-related or service-oriented businesses but rarely do we see those with the guts to pursue hardware-based companies, where profit margins are volatile and slim. Moreover, startups involving the manufacturing of hardware also require substantially significantly more investment in raw materials, machinery and labor.
Suan Jin, who hails from a well-established family, credits his pursuit to establish Synrgic to his passion for and interest in technology, as well as unparalled support from his father (an entrepreneur as well). Regardless, building Synrgic right after graduating from the University of Southern California as a major in business and finance was still no easy feat. Without a formal engineering background, he had to devote extra time and effort to learning about the technical aspects of smartphones, while receiving financial backing from family also meant that there was high pressure for accountability. As Suan Jin explained,
“It is easy to believe that I casually went to my Dad and said “Oh, give me money to do this…”. This is not a casual investment. I presented all the cases and models and even had to convince skeptics and stakeholders. This led to Synrgic’s growth in 5 countries and our team of almost a hundred people across the region.”
Yet, he openly attributes his achievements to help from his father, whom he works closely with on the conceptualization of the product to human resources where he had to tap into his father’s network to recruit talent. One of the largest challenges he faced as he was on the mission to search for “the correct people for the job”. On the operations side, one major difficulty is managing the supply chain.
“The supply chain is so important in the smartphone business – a smartphone has 300 over different parts so it is a nightmare to coordinate everything. And if one thing goes wrong, everything else is affected.”
Describing his current experience as an entrepreneur “exciting yet infuriating at times”, Suan Jin turns to his family and friends for support when the going gets tough. He emphasizes that he has never regretted pursuing his path as an entrepreneur, and like many techies out there, he is inspired by Steve Jobs whom he regards as the “man behind the smartphone revolution”.
My favorite part of any interview with founders of startups is getting them to provide the 3 most important qualities they believe entrepreneurs need to succeed. Here are the 3 qualities singled out by Suan Jin:
1. Initiative and Drive
“The drive and initiative to get things done. A startup is not as structured as a large company. It is even more unstable and has lots of ups and downs. (The founder) must have the optimism and motivation to continue on and not give up.”
2. Courage and confidence
“The confidence to know that your path is correct. There will be many naysayers and people who say this and that but there is always more than one way to the goal. What is not ok on the other hand is trying to please everyone and getting nothing done in the end.”
3. Interest and knowledge
“(An entrepreneur) must really know the industry and continually read up in order to chart and formulate the best course of action.”
StartupTree wishes him and Synrgic all the best, and we hope to see more smartphones rolling off the conveyor belt soon! Maybe a Synrgic Duos?
For Synrgic Uno product reviews in more detail, visit:
- CNET Asia
- Engadget
- Techgoodu