China-based vendor ZTE launched its first Windows-based smartphone in London on Wednesday in scenes reminiscent of Lewis Carroll’s Alice in Wonderland.

It’s difficult to know where to start about a phone called Tania that saw its debut in one of west London’s hippest venues amid screaming fans of one of the UK’s up-and-coming music acts and swimming-suit clad cabaret performers inserting themselves into giant balloons.

If ZTE and Microsoft wanted to make a splash they certainly succeeded, although it was clearly too much for some bemused-looking journalists, including this one, who left before rapper Professor Green took to the stage after a two-hour delay because of a technical glitch.

Amid all the glitz and glamour it was easy to forget that ZTE is on a serious mission. The company, which according to IDC is now the world’s fourth-largest mobile phone vendor with an overall market share of 4.9 percent at the end of last year, has a big prize in its sights.

In common with compatriot and competitor Huawei, ZTE is moving from manufacturing white-label handsets in Europe to own-brand devices as it hopes to capitalize on the boom in smartphone sales.

Tania is its first Windows-based phone and follows a path that Nokia, whose Lumia devices launched at the end of last year, is also travelling along – both companies are hoping that some Microsoft magic will rub off on them.

According to Gartner, they could be backing the right horse. The analyst firm predicts Microsoft will become the world’s second most popular OS by 2015 with 20.3 percent market share.

The Tania looks similar to the Lumia at first glance, although ZTE is trying to differentiate its device by aiming at being an “affordable” smartphone. The company said it will be sold on contract at tariff points between £10 and £20.

As a result, the features are not as high spec as the Lumia, but as proved by ZTE’s sponsorship of Professor Green’s tour, the company is aiming at the youth market and hopes features such as a direct link to users’ Xbox LIVE accounts and Zune music streaming will tip the balance in its favour.

While that is no certainty, ZTE the company is on an upward trend. Although we are awaiting full year results, the first nine months of 2011 showed overall revenue growth of 26.5 percent – figures that European competitors can only dream of.

It has a clear focus on Europe too; as European Communications reported last August, ZTE opened the first of a series of innovation centres on the continent that it hopes will boost business with the region’s major operators.

In a statement, the company’s director of mobile device operations promised “a growing range of devices” in the future.

If the launch is anything to go by, following ZTE’s progress should be anything but dull.

It nevertheless has much to do. Gaining a foothold with European consumers, particularly from a brand point of view, is perhaps the biggest challenge. It might sound trite but at least compared to Huawei, ZTE doesn’t have to explain how its name should be pronounced.

Its partnership with Microsoft is certainly a good starting point, but it must be careful to carve out is own niche; the “affordable” smartphone route is a bold if not revolutionary step in the right direction.

Certainly if money counts for anything, ZTE should expect a healthy return on its investment. But while it can certainly help, success is not guaranteed. As Alice once said “curiouser and curiouser.”