Huawei hands out SG$100 vouchers to customers: But is it nearly enough?

Huawei is giving out SG$100 Huawei smartphone vouchers as a form of service recovery for 5,000 customers who registered at its stores for its recent national day promotion which fell short. This comes after CASE president Lim Biow Chuan publicly slammed Huawei on Facebook for misleading consumers, and Advertising Standards Authority of Singapore (ASAS) said it is investigating whether the company has breached guidelines after receiving 10 feedback on the matter.According to Ang Peng Hwa, chairman of ASAS, the guidelines in question are specifically "availability of products" and "bait advertising". They state that:An advertiser should ensure that there is adequate supply of his products to meet foreseeable demand generated by his advertisement or promotion. It should make clear any limitations of the product’s availability unless such limitation is inherent in the nature of the product. Products that cannot be supplied should not be advertised as a way to assess potential demand.Advertisers should not seek to entice consumers into a retailer’s premise with no real prospect of selling the advertised or promoted goods at the price offered.In a statement to Marketing titled "We want to make it right", a Huawei spokesperson said the company will be contacting the individuals who have registered interest during the promotion period 26 to 28 July 2019 within two weeks from 2 August 2019.She added: "We had prepared approximately 2,000 handsets but clearly underestimated the overall customer demand, resulting in a poor consumer experience for those trying to buy the phone."We did not carefully consider our customers’ well-being enough and should have been better prepared for this promotion.Marketing understands that all the advertisements that were distributed prior to its SG$54 promotion for the Huawei Y6 Pro 2019 model had indicated "terms and conditions apply" and "while stocks last". The company acknowledged that it should have "thoroughly checked" on its end to ensure the necessary information through media channels have been communicated clearly. The company also credited Huawei’s success in Singapore to customers’ loyalty and trust, and said that it will endeavour to provide the best products and experience.Speaking to Marketing on winning back the customers, Asia PR Werkz director Julie Chiang said a key factor that led to the backlash is that the communication was not transparent enough. Chiang said that the brand should take extra care to show its "sincerity in making good on the earlier troubles caused" and ensure that it is providing a pleasant promotional experience for the specific group of audience this time.According to her, the target audience for the promotion, individuals aged 50 and above, is another cause for concern. She explained:The audience is older and more likely not to be able to take crowds very well, so sensitivity to the target audience was also lacking."If Huawei only had a very limited number of handsets available, precaution and steps should have been taken to ensure the consumers are aware so they can make a sound decision to take part in the bargain," she said. She also suggested that measures that could have be implemented include a number system to those in the queue beyond the available number of handsets to go back on a different day to purchase. Otherwise, an online ballot system would also have helped matters.Martin Alintuck, managing director, Southeast Asia at Ruder Finn Asia, told Marketing that Huawei deserves credit for its quick apology when the incident happened. While it may not seemed like a good gesture, he said it was also "smart" to close their stores due to safety reasons."I would advise the company reaches out to the authorities and own up to the mistake. Listen to the complaints and empathise with the concerns expressed," said Alintuck. Additionally, he said the company should be preparing a contingency plan looking at the stakeholders effected, potential responses and actions to mitigate a crisis in the mean time. He added:The company needs to learn the lesson so many companies have missed: Be prepared.Meanwhile, Golin Singapore managing director Tarun Deo said Huawei, as an established firm, made a "surprisingly amateur error" that undermines the reputation it is trying to forge with their customers. "They may have meant well but they have botched the execution and now the company has to deal with the fallout and distraction," he added.CEO of Huntington Communications Lena Soh, Huawei praised Huawei for taking positive steps, such as the offering of SG$100, in its recovery. However, she said that more could be done for the people who queued such as offering drinks as  a gesture of goodwill. Such a move may have avoided the case of a customer who fainted in the process. It should also have been communicated that the queue started from as early as 4am, so consumers are equipped with "some sensing or an indication of their chances", added Soh.Nevertheless, the overwhelming response to Huawei's national day phone offer is a good sign. She said:It shows a lot of confidence in the brand, especially with the US-China issues being in the daily news.In future, Soh said more thought and better planning need to be put into its next promotion as consumers may be "suspicious" of them.On the flip side, J. Factor communications managing director Joyce Ong said it is "more than generous" for Huawei to offer 2,000 handsets at SG$54 compared to "many other marketers who have offered single or double digit quantities to draw crowds".She added: "It’s so strange that Huawei’s century old promotional idea was picked-on when it had stipulated 'terms and conditions apply' and 'while stocks last'. Of course, Huawei could have managed the crowd control SOP better, but insinuating anything else is like the pot calling the kettle black." She also said that unless the advertising bodies modify rules that all such promotions must stipulate the quantity visibly, Huawei should not be faulted.