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Chinese mobile phone opens up the second battlefield

via:钛媒体     time:2019/8/11 10:03:44     readed:144

Not justMobile phoneSales have slowed down, and some manufacturers’ mobile downstream channels have also spread the news of price increases.

"It was very unexpected. The sales did not feel any significant change, but some of Huawei's mobile phones did increase in price." Zhang Jun said with a slightly surprised tone. Zhang once had three distribution channels in Beijing. With the closure of the Gongzhufen mobile phone store, he had to narrow the scope to Zhongguancun and Muxiyuan.

In the past, domestically produced machines will not have large-scale price increases. Even Xiaomi is a premium due to out-of-stocks. It is the first time that Zhang Jun has raised the price of goods when the supply is sufficient.

“Upstream prices have been raised, are we not mentioning it?” Meng Yang, who is also engaged in the wholesale of mobile phone channels, is also puzzled by this price increase.

The upstream mentioned by Meng is one of his sources of goods, Shenzhen Huaqiang North. Here, there are thousands of people engaged in the distribution and wholesale of electronic products, and there are hundreds of channels.

In the middle of this year, Liu Nan, a channel dealer engaged in domestic mobile phone distribution in Huaqiang North, found that the price of Huawei's mobile phone is quietly rising, and many mobile phones are out of stock. This situation mostly occurs in Huawei's low-end machine, that is, 1000-2000 yuan price.

Liu Nan opened 18 mobile phone offline stores in Guangdong and Fujian. Among them, Huawei's mobile phone sales accounted for 55% of its overall sales, while the rest were occupied by Xiaomi, OV and other manufacturers.

Unlike Huawei's price increase, Xiaomi and OV's offline channels are still stable, and sometimes even lower prices.

"It's hard to understand. Some downstream mobile phone stores have heard of Huawei's price increase. When they get the goods, they need less, because this is compressing the dealer's profits." Liu Nan told Wise Finance.

Huawei's price increase situation occurred in the spring of 2019. Since the Meng Zhouzhou incident, a number of Huawei low-end machines have increased their prices.

"The high-end machine has not been affected, and the affected is basically more than 1,000 yuan." Liu Nan found that since then, more and more people have begun to buy Huawei mobile phones, and even you do not have to actively sell or advertise to them.

“The best seller is nova 5, which is a mid-range model.” Hebei dealer Gao Dong has been busy with the sales and distribution of nova 5. For a mid-range model, this time can be unusual. The sales volume really surprised him.

Although Ren Zhengfei claimed in an interview with the media that he should not associate Huawei with patriotism, it is only a commodity. But in the eyes of consumers, buying Huawei mobile phones is equivalent to patriotism. This is a double-edged sword. When consumers' enthusiasm is high, Huawei's sales target is also rising sharply.

Liu Nan revealed to Wise Finance that Huawei has quietly increased its market share in some areas. The original 40% of the place is now 60% or more. This sales target has brought some pressure on dealers in some regions.

According to Wise Finance, Huawei's goal in the domestic market this year is to have a 50% market share, which is equivalent to more than 200 million mobile phone sales.

The pattern of China's mobile phone track itself has been fixed, however, no one can predict what will happen in the future. Just when Huawei hit the first place in the domestic and international markets for a long time, a "war" on the other side of the ocean broke the original pattern, which affected the trajectory of the Chinese mobile phone market.

Therefore, this is a new change in the thorny track. In the face of Huawei's U.S. U.S. offensive, how should the major manufacturers respond?

01 Huawei begins to sink

The Sino-US trade war directly affected the pace of Huawei's overseas expansion and also affected the development of its business in the United States. In July this year, Huawei announced that the US branch will lay off more than 1,000 people.

For the US market, Ren Zhengfei said in an interview with the media: "I don't know what the US motive is. It doesn't matter if we don't do it in the US. As for the US market, it is not important for us to go in because it is not important to us because I am also the number one in the world without the US market. We do not have the urgent need for the concept of the US market."

According to Wise Finance, more than 1,000 people who have been laid off by Huawei have returned to China and are allocated to the third and fourth tier cities and towns to supplement Huawei's shortcomings in these sinking markets. At the same time, some mobile phones of Huawei overseas were also shipped back to China.

"This time their decision is very surprising." Gao Dong told Wise Finance that Huawei always ignores the third- and fourth-tier cities, because these sites are occupied by OV, and now Huawei has to come together to join in the fun.

In the current market where mobile phone sales are extremely saturated, Huawei has been in the mid- to high-end series, while the low-end machine is responsible for its brother brand glory.

"Use Xiaomi's way to play Xiaomi." Zhou Yu said, "Before the glory brand has been playing against Xiaomi, even learning the play of Xiaomi, and now the glory has begun to sink to the line." A month ago, glory The first official offline store opened in Chengdu.

Today, the glory of the site is also quietly expanding, from the traditional model of Huawei to separate and separate their own Internet mobile phone brand, glory has gone through six years of wind and rain.

Just six years later, Huawei will also attack the city on the low-end machine. In the first step, it chose to capture the offline market. According to Zhou Yu, Huawei should deploy its offline retail stores and after-sales outlets in cities and counties around the country before the end of this year.

"Huawei wants to sink at the fastest speed and replace the OV market." Zhou Yu told Wise Finance. Obviously, this has certain difficulties. The strong dragon is not over the head of the snake, but under the brand effect and interests, the local snake is also surging.

The red chrysanthemum LOGO began to gradually replace the blue-green LOGO in these areas. OV has always been a model of rural encirclement policy and a benchmark for all mobile phone manufacturers. However, now Huawei is also involved in the OV.

More and more cottage shops and mom-and-pop stores began to be compiled by Huawei. They became regular troops overnight, and Huawei authorized stores emerged from the earth in such an environment.

The sinking market pattern is suddenly changing.

"Gather more people and more businesses to play rice OV, but now look at some effects, but still resist the strong camp of OV." Zhou Yu feels that "people touch people", "people grab people" era Coming is coming.

Huawei's offensive has barely had some effects. Liu Nan and Gao Dong closed several millet experience stores in Guangzhou and Hebei respectively, and at the same time shrank some of their stores' OV business to sell Huawei. Guanmi OV, Kaihua has gradually appeared in the sinking city of the 3rd and 4th lines.

More dealers feel that Huawei is not selling at present, as long as any products that are in contact with Huawei can sell well, and at the same time guarantee their profits.

Huawei is even more urgent in this year's mobile phone layout. Liu Nan learned that there will be several heavy-duty models at the end of this year, including the Mate 30, which will also be listed half a month earlier.

Zhou Yu revealed that Huawei is currently doing something aboutTVIn the preliminary preparation work, some of the stores that have the ability to place TVs have successively received new TVs.

The Nova model has been in the waist position of Huawei's terminal series and has been used to attack OV's waist products. The Mate series has been following its own specific product line. OV's recent Find series and Nex series are also constantly encircling Mate. The series, while the status of Xiaomi is slightly embarrassing.

A mobile phone dealer in Beijing, Ishikawa, revealed to Wise Finance that in the past few months, except for Huawei’s sales, some of the domestic mobile phone shipments were significantly lower than before. He predicted that both Xiaomi and OV appeared. a 6%-9% decline, andapplewithSamsungThere has been a decline of around 15%.

02 OV sales slowdown profit is compressed

The charm of OV is gradually disappearing, and it is undergoing a transition from the era of volume to the era of shrinkage.

Today, the momentum of Apple and Samsung is being replaced by domestic mobile phones. The market is not the world of Apple and Samsung. It took only seven years from the international mobile phone matrix “Ping Sannuo” to the domestic mobile phone matrix “Huamu OV”.

In the past seven years, the intuitive feeling brought to Gaodong was that from the city to the county, the original apple changed into Xiaomi, and then Xiaomi to OV, now from OV to Huawei.

“Like the county town of Hebei, or the city, the number of people who buy Huawei is now more. In the past few years, it was mainly based on Xiaomi and OV.” The change of brand role brought about market changes. Not only Gao Dong, Lin Pengfei gradually found that the mobile phone market is shrinking now - several of his peers who are doing mobile phones are closed.

The main reason for their closing is that the profit margin has dropped sharply, and the sales growth has gradually shrunk. This phenomenon is mostly caused by OV stores. "Don't mention it, it is bitterness to do the mobile phone industry now, and there is no profit." According to Lin Pengfei's friend, before it could have a profit of more than 1,000 yuan, it is now compressed to 100-200 yuan. "Do you say you can still do it?"

In many second, third and fourth tier cities, consumers almost identically identified OV. They think that OV is not as cheap as Xiaomi in appearance, and not as deep as Huawei.

"The number of people who OV is buying is also decreasing. Most of them are robbed by Huawei and Xiaomi." Lin Pengfei told Wise Finance that the current mobile phones are extremely similar in terms of configuration and appearance. The only difference is the price and the gifts. Differentiation.

The increase in OV premium space directly led to the pressure on the underlying dealers to double, so many people changed their marketing strategies, shutting down all the stores that do not make money, make less money, and lose money, leaving only the big passengers and profits. Shop (larger storefront). "It is still determined by the market, because the market has not been so bad before, even if the manufacturers can control the price, we can have profits, but now, everyone is staring at sales, everyone has pressure." Lin Pengfei said.

Meng Yang’s resentment against this, since OPPO Reno’s listing, the profits have been completely squeezed due to the excessive supply. "We are all selling below the market price, mainly for the sake of volume."

Although the OV official is emphasizing the prohibition of such behavior: the dealers caught by the arbitrarily price reduction will be fined 5,000 yuan. But this does not stop the dealers from selling at a reduced price. "As long as you don't invoice, there is no problem. They know that you haven't dropped.where toGrab. "Meng Yuan said, no loss can be, a machine purchase price plus 100-200 yuan will come out.

The sharp drop in OV profit has caused many stores that originally purchased a large number of OV products to start reducing the number of purchases. "Now the sales volume is not as good as in the same period of the previous year, the mobile phone industry is not good, not only Apple and Samsung." Meng Yuan told Wise Finance.

Nowadays, in order to get more profits from OV machines, many dealers choose to do “post-sealing machines” or “staggering machines” in addition to price reduction sales.

Most of the post-sealing machines are used by customers for new machines, and they are sold to the machines in the market again. This machine has the same appearance as a new machine.AccessoriesStill maintaining the factory state, the merchant will wipe the whole machine as new and repackage.

"Now many OVs are doing this, or there is no profit, or you can do Huawei." Meng Yuan told Wise Finance that because OV machines can't check the activation time, so many customers who get the goods will not check whether they are demolished. Sealed used.

All of these pressures come from Huawei's new style of play – the sinking strategy. At present, OV is also adjusting its strategic play under the line, they can't hold the pressure from Huawei.

"Before Huawei distributes the goods, the most nervous is OV, they will give dealers more benefits, let us sell more OV goods." Lin Pengfei told Wise Finance, on the day of Huawei's release of nova 5, OV ordered all distribution. Merchants will cut the price of the same price model, the average price reduction of each model is about 300 yuan, in order to counter the pressure from Huawei.

For this, OV has reflected on product strategy. But the DF's dilemma is that although its progress in innovation and products is obvious, it still has no appeal in the flagship market. Compared with Huawei's top-down play, it is relatively easy.

"There will be product lines for the market segments in the later stage, and the price will be fine. Like Xiaomi, each price has a corresponding model, which greatly covers the consumer groups of all classes."VivoThe staff said to Wise Finance.

Meng Yang told Wise Finance that the sales of Reno and IQOO are not optimistic. "Price and currentRed riceThe K20 series is very similar, but the K20 shipments are clearly better than the two sub-brands of OV. ”

For the mid-range model of the OV card, it still fails to surpass Xiaomi. Although glory and RI (Reno, IQOO) both want to mark the millet, the reality is that the price/performance ratio of Xiaomi has been deeply imprinted on some consumers, they think Configure high prices and only Xiaomi can do it.

"Yes, the red rice K20 has to go out of the rice 9." After the release of the red rice K20 series, the downstream dealers who found Meng Yuan’s goods were in a constant stream, and the price from 2,599 yuan was almost equal to their own. "Friends" product Xiaomi 9.

03 Lei Jun seeks change, make up the offline channel

For Huawei's attack on the third- and fourth-line markets, Xiaomi couldn't stand it.

According to Liu Nan, Xiaomi has repeatedly communicated with dealers in other provinces. In his view, this is a sight that was previously invisible. "Millet put down his body."

In June this year, Xiaomi announced the establishment of an offline channel committee, which will spend 5 billion yuan to increase investment in offline. Xiaomi, who has been active online, finally could not afford to pressure to choose the offline market.

In July last year, Xiaomi was listed in Hong Kong, but the appearance of various sounds after the listing and the performance of Xiaomi in the market revealed a signal that Xiaomi’s days were not so good, and the listing did not bring icing on the cake.

Xiaomi has not made a burst of money for a year, this is the voice from dealers. In addition to failing to create explosives, the sales of Xiaomi's mobile phones in China have also declined, and the stock price has also fallen.

After the re-class, Xiaomi has improved in the terminal supply chain. Most of this is the credit that Lei Jun personally took over, and this time Lei Jun could not sit still. He urgently announced the restructuring and personally served as the president of China.

The reason for the decline in sales of millet is that on the one hand, the product lacks sufficient competitiveness, and on the other hand, the problem of offline channels is very difficult. Also as an Internet mobile phone brand, has been learning the glory of Xiaomi has achieved online and offline balance in sales, but Xiaomi is still not improving under the line.

This is mainly concentrated in the small profit margin under the millet line, and the rebate is low. Gaodong opened five millet homes in Hebei. The investment in each store is about 3 million yuan. "This is the total cost of opening a store, including all display models." Gaodong is not satisfied with Xiaomi Online. Invest.

Liu Nan received an invitation letter from Xiaomi's press conference, but he is not prepared to go to Beijing. The main reason is that the travel to the conference will be borne by himself. He does not think it is worthwhile. "There are so many manufacturers that Xiaomi is the most embarrassing, like Huawei OV is very generous, but also take care of their dealers."

Xiaomi’s “抠” is forced to helpless. Its business model of small profits but quick turnover determines everything, whether it is upstream or downstream or its own employees, Xiaomi is a good account.

This is one of the reasons why Liu Nan closed the Xiaomi store. In addition, Xiaomi official is also encouraging this kind of behavior. As with the demolition, the closed stores can get a compensation of 1,000 to 10,000 yuan, but these compensations are still less than one tenth of the investment in the store.

At present, there are more than 2,000 Xiaomi homes and millet authorized experience stores in the country, which has been the effect since the expansion in 2018. But now the attitude of Xiaomi to the offline store has entered a time of victory.

For Xiaomi Home and Xiaomi Experience Store, there are different levels in the official. The priority of Xiaomi Home is higher than that of Xiaomi Authorized Experience Store. Therefore, Xiaomi Home will enjoy priority in terms of distribution.

"In the store, you will find that the best selling is not the mobile phone, but the products in the ecological chain." Liu Nan told Wise Finance that the flow and cargo of Xiaomi's home is very impressive. Many consumers come to the store instead of buying. Mobile phones, but buy products in its ecological chain.

At present, the Xiaomi ecological chain has covered hundreds of products including large and small household appliances. During the 618 promotion period, the sales of Xiaomi ecological chain products even surpassed the mobile phone itself. However, despite the hot sales, they still have no significant profits due to the low rebates given to dealers by Xiaomi.

In addition to Xiaomi, Huawei is also letting major dealers guide consumers to buy smart hardware products other than mobile phones. From computers to watches to various products in Huawei's ecological chain, they account for more than 20% of distributors' weight. In fact, for Huawei, it is also gradually building its own hardware ecosystem.

In addition to Xiaomi and Huawei, OV is still less than the two manufacturers in the ecological chain, and even in addition to mobile phones, there are no other products.

According to a vivo employee, “the top has tried similar practices, but they think it is better to first increase the sales of mobile phones and then talk about the ecological chain.” This makes the progress of vivo on the surrounding products slow. Similarly, OPPO has tried this, but only for charging treasures, headphones and chargers. Therefore, this also led to the sales of OV dealers can only sell mobile phones, unlike Huawei and Xiaomi can profit from peripheral products.

Playing millet in the way of Xiaomi has always been Huawei's strategy, but this time Huawei has reached out to OV, not only this, Xiaomi is actively learning the essence of OV.

At present, Wise Finance has learned that Xiaomi has gradually improved the rebate for dealers, from 5 points to 7 points. In the eyes of dealers, this is a "quality leap."

Lei Jun is also trying to change.

He is not stubbornly talking about price/performance, but has been testing user acceptance and acceptance of Xiaomi's mobile phone price. Therefore, Lei Jun chose to “just give up” the low-end red rice brand, and let Lu Weibing take over.

Xiaomi focuses on high-end products with higher profit margins and higher brand premiums. “Redmi is a collection of millet plus red rice, mainly used to be an international brand, and Xiaomi will re-create its own product line.” A Xiaomi employee revealed to Wise Finance.

From the glory of the play, you can see the shadow of Xiaomi, and from the play of Xiaomi, you can see the shadow of Huawei. But the difference is that Huawei already has a high-end flagship series, but Xiaomi still does not have a product that can stand in the high-end market.

Therefore, Lu Weibing led the Redmi K20 series to shock the industry as soon as he appeared. He has the same configuration as Xiaomi 9, but the price is 500 yuan cheaper, which makes Xiaomi once again facing the threat of competition.

Xiaomi mobile phone has become mediocre in the domestic market, even the recently released Xiaomi new model CC series has not been recognized by more consumers.

"Although the addition of the Mito algorithm, but many female users are still directed at Mito mobile phones, their enthusiasm for the purchase of the CC series is still less than the purchase of Mito series mobile phones." Meng Yang told Wise Finance, in his distribution channels In the middle, although the Mito mobile phone has been discontinued, there are still some downstream merchants seeking supply for some stock machines. “It’s hard to imagine the impact this brand has on women.”

At the end of last year, Meitu and Xiaomi announced that they would license Mito mobile phones and algorithms to Xiaomi, and Mito will get a share.

With the release of the Xiaomi CC series, it also brought the Mito customized version of the mobile phone. The algorithm of the Mito company was completely transplanted in the photo algorithm, but the appearance of the mobile phone model did not follow the appearance of the Mito mobile phone. The appearance of the millet series is followed. This also led some female consumers to only recognize the appearance of the picture, not the appearance of the millet.

Mito's fiasco in the mobile phone business still stems from the attack of the head manufacturers, but at present, the pressure on the head manufacturers is still huge. Huawei has withdrawn from overseas, and Xiaomi OV has increased its demand from overseas.

04 Open the second battlefield

A Tao came to Thailand in 2014. Before that, he had been working in the mobile phone circle for nearly ten years. He witnessed the changing situation of domestic mobile phones.

“There are also millet stores in Thailand, but not many. Xiaomi sells mainly in Indonesia.” The Indonesian market, which is the most valued in the smaller rice market, has to be much more deserted in the Thai market. But in the place where Xiaomi is deserted, there is OV.

In Thailand, Xiaomi's storefront is basically authorized to join, the form is similar to the domestic authorized experience store, and in the international layout, Xiaomi seems to pay more attention to the construction of the ecological chain. "When I opened the store, I didn't buy the mobile phone. I still ran some gadgets." A Tao recalled Wise Finance, the sales of surrounding products are really hot, mainly based on bracelets and mobile power. .

Also in Thailand, the layout of OV is ahead of Xiaomi and the scale is larger than that of Xiaomi.

According to market research firm Canalys data, in the fourth quarter of 2018, Thailand's mobile phone market share ranked, OPPO climbed to the top with a market share of 22.2%, an increase of 69.8%. Followed by Samsung, Huawei, and vivo.

OPPO has launched its overseas market layout since 2009, and Southeast Asia has always been the focus of OPPO's efforts as its first stop to open up overseas markets. "My store is also doing Huawei OV. To be honest, Thailand's best sales are OV, Huawei is worse, and Xiaomi's models are few." A Tao added to Wise Finance.

In the international market, the four major brands of Huami OV are equivalent to the four mobile phone families from China, and the areas covered by the “four big families” are not the same.

For example, OV has a high market share in Thailand, Xiaomi has a high market share in India, and Huawei has a high market share in Europe. Each family is attacking the city in different regions.

It is reported that Huawei is also beginning to enter India. It announced at the beginning of the year that it will win a 10% market share in 2019. At the same time, Huawei is investing US$100 million in India for local production and opening more than 1,000 stores in the next three years. .

Xiaomi’s smartphone market share in India is still steadily increasing, and it has been ranked first for the seventh consecutive quarter. In addition, Xiaomi has entered the top five in the mobile phone market in more than 40 countries and regions around the world.

In the interview with the media, Redmi president Lu Weibing said that the overseas market still uses Redmi as the main force. Although it is the first in India, it needs to open up more international markets, such as the European market this year. Currently, Redmi is ranked fourth and will continue to catch up.

According to Counterpoint data, in the Q2 quarter of 2019, in the high-end smartphone market in India, OPPO's brother companyOne plusMobile phones ranked first with 43% of the market, surpassing Xiaomi in one fell swoop.

Whether it is domestic or international, the market structure has been surging and constantly changing positions. When the pace of the market began to slow down gradually, the strategic play of various manufacturers began to converge, and they also opened up their second battlefield.

On August 9th, Huawei Hongmeng system officially unveiled. According to the official definition, this is a micro-kernel-based distributed operating system for the whole scene. The system began research and development as early as 2017, pointing to the Internet of Things.

It can be seen that the system is a system developed for the Internet of Things, mainly for the next generation of IOT equipment, but now more people think that this is a sword against Android.

However, Yu Chengdong, CEO of Huawei's consumer business, showed an uncertain tone at the conference. "If Google Android does not develop to Huawei, we can activate the Hongmeng system at any time." But then he explained that Huawei still insists on using Android.

This shows that Android has formed a completed ecological industry chain, and EMUI is also based on Android system research and development, and Hongmeng system has just undergone two years of research and development process, although it has reached commercial level, but wants to improve the ecology of forming the system. It takes a long way to go. Therefore, for a long time, improving the ecology will be the biggest challenge facing Hongmeng.

On August 10, Huawei released a smart screen TV equipped with Hongmeng system. In this regard, Yu Chengdong said that Huawei supports glory, to build Huawei's glory dual brand strategy, to do a full life of smart life.

Zhao Ming, president of Glory, added that glory does not use traditional TV, it should be used as the spirit of mobile phones, and use innovative technology to accelerate the evolution of the traditional TV industry.

This may be one of Huawei’s compelling strategic layouts. In the context of facing both internal and external attacks, while doing the extra work, he is also doing his own internal work.

Huawei, which has just sunk in the domestic market, is facing a strategic adjustment of the rice OV, and in the European market share, it will be eaten by Samsung. At present, the international perspective of Mi OV has not touched Europe.

Not only Huawei, but also OV is facing a severe test. Whether it is in channel or terminal innovation and layout, it will face challenges from Huawei.

In addition to the first battlefield, the second battlefield of Chinese mobile phones is about to "start a war."

(Note: The respondents requested that the text be aliased.) Wen | Wise Finance (ID: onecaijing), Author | Zijiang



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