Europe will probably become the most competitive market of 5g mobile phones in the world in 2020.
The week of February 24-27 is the time when the world mobile communication conference (MWC) is held. Many manufacturers had saved their energy to appear at the conference, but now they have to switch to the online form.
According to the chronological order, since this week, realme, Huawei, iqoo, Qualcomm, Ziguang zhanrui and other manufacturers have completed the global online show, and vivo’s cutting-edge concept machine apex 2020 and oppo’s high-end flagship find x2 are also on the way.
The reason why manufacturers want to get stuck in MWC comes from a consensus: now is the critical stage for Chinese mobile phone manufacturers to enter 5g global layout, and Europe is one of the high potential energy markets, and major brands are determined to win. Whether it’s young like realme and iqoo, or old like hovm. According to the original plan, vivo and realme will officially face the world for the first time with the help of MWC platform.
But challenges and opportunities always coexist. Recently, after the online press conference, Xu Qi, vice president of realme and President of global marketing, said in an exclusive interview with the 21st century business reporter that the company divided the global market into three categories for deep cultivation, and the operation mode of partial Internet enabled realme to recover quickly from the epidemic. And the resulting online release mode, combined with the company’s 5g + aiot strategy launched this year, “may have the opportunity to collide with a new spark.”.
The beginning of the epidemic
Shortly after the Lantern Festival, Lei Jun, chairman and CEO of Xiaomi group, announced on the social platform “difficult” that his flagship new product, Xiaomi 10, would be released in the way of “pure online live broadcast”. In order to unveil the first quarter of domestic brand flagship new aircraft release trend.
It’s not uncommon for mobile phone products to be released online, but before that, most of them were products with relatively close price to the people. For the flagship aircraft that contributes the main sales to the brand, this is indeed a matter full of tests.
Xu Qi told reporters that the previous online release can be traced back to September 2019. In the form of talk show, he launched real Q, a product with a price of about 1000 yuan at that time. “I was under a lot of pressure at that time, because it was a very new form, but it was also in line with the positioning of realme’s” technology trend brand. “
In special times, it is natural to do special things. This time, realme chose to launch the new product X50 Pro 5g online in Spain, the starting station of Europe. The subsidiary brands of vivo invited host Wang Zijian from the headquarters to connect the online show of iqoo 3. In the communication link after the press conference, the three guests on stage also wore masks to interact.
In contrast, Huawei, oppo and vivo, the leading manufacturers, focus on the offline channels. According to the volume of shipment, the proportion of offline sales is almost 70%. Therefore, many analysts have analyzed to the reporters of the 21st century economic report, which has a great impact on Huawei, which has a dominant domestic share.
Xiaomi, realme and Yijia may be less affected. The epidemic may catalyze some new consumption habits.
On the line
“This epidemic seems to be a new time point for popularizing e-commerce consumption. For example, the proportion of online shopping will increase rapidly. ” Xu Qi told reporters that the business model of realme is based on the Internet operation mode of “light assets, short channels and partial e-commerce”, so it can recover relatively quickly after being affected by the epidemic, and the impact is relatively small.
At the press conference on February 25, Feng Yufei, President of iqoo brand, announced that from now on, the official flagship store of iqoo will officially land on the online platforms of Jingdong, tmall and Suning. Show the determination on the plus line. “Under the influence of the epidemic, the overall online environment will be relatively better and the recovery will be faster,” he told the media
According to Xu told the twenty-first Century economic news reporter, in the face of COVID-19, from the internal sales data, there was no big abnormal or negative fluctuations. “With the recent launch and warm-up of some new products in India and Southeast Asia, our overall sales even have a significant growth, so it’s OK at present.”
However, the specialty of realme is that this domestic brand was founded by former executives of oppo in May 2018, started in India, and returned to the Chinese market in May 2019. Therefore, China has not become a sales contributor that realme relies on.
But it’s not all optimistic news. Part of the difficulty comes from the supply chain.
Shen Yiren, vice president of oppo, said frankly on the social platform before, “in fact, the epidemic situation will definitely have a great impact on the production capacity of this wave of flagship aircraft. The supply in the early stage will be tight, because the production capacity of a certain link of the supply chain (even the packaging box) will be affected, and the production capacity of the whole machine will be affected. The safety and health of employees must come first, and they can only return to work after meeting the safety conditions and approval. “
Xu Qi pointed out that the previous epidemic had a short-term impact on the progress of logistics and resumption of work, so the shipment fell in the early stage, but recently in accordance with national policies and regulations has gradually resumed work, “this year’s all projects are in step-by-step, we will try our best to ensure the smooth listing of the whole.”
In a short period of time, the channel dispute is rapidly concentrated online, which will inevitably bring new pressure.
Xu Qihe’s team found that young users are more inclined to “offline experience, online order” consumption, and realme needs to think about how to expand more channels for the public to understand; at the same time, the competition between friends and merchants is very fierce, and the market development over the past few decades has made the channel and share of the Chinese market relatively fixed, that is, offline channels account for about 70% of the total shipment. “It’s a test for our team how to seize more markets while maintaining our existing share at this time.”
Overseas war starts in full swing
Vivo, one of China’s top four giants, originally wanted to make up the global map with the help of MWC to capture cities and lands in Europe on a large scale. You know, the other three big factories have been working in Europe for many years.
It’s also the first global launch of realme. As one of the main positions in the 5g war, Europe is a battlefield that every mobile phone brand with growth momentum can not ignore.
Jia Mo, an analyst at canalys, told the 21st century business reporter that in addition to Huawei’s external influence limiting its rapid expansion in the European market, the other three top brands have put Europe at a higher strategic level.
Jia Mo pointed out that in 2020, Europe may become the most competitive market in the world. This is because Europe is an important chip for domestic brands to establish their global status; meanwhile, the central and Eastern European market represented by Russia is in the mature but not saturated stage of the smartphone market. “In 2019, the global smartphone market’s shipment volume fell by 2%, but Russia, India and other countries contributed most of the increase.”
Xu Qi told reporters that realme will roughly divide the global market into three categories, and will use the dual strategy of “5g + aiot” to strengthen the development of mature markets, emerging markets and other markets.
Among them, the mature markets, that is, countries and regions with fast development of 5g, include China and Europe. In this kind of market, realme plans to use one year to complete the product + ecological layout of aiot, and will also seize the 5g entrance. He stressed that he will “achieve comprehensive 5g in China, and no longer produce 4G mobile phone products.”.
The progress of 5g development in emerging markets is relatively in its infancy, including India, Indonesia, Southeast Asia, etc. “We will bring global 5g products and 5g cutting-edge experience to these markets, establish the 5g leadership position of realme, and strive to be the head brand of local aiot.”
Other markets are mainly for Middle East Africa and other markets. Realme will build local users’ awareness of 5g and aiot products, and vigorously develop 4G products.
“We will focus on two regions this year, namely China and Pan European region,” Xu said. China is the Red Sea market, where the gods fight, and realme wants to continue to make breakthroughs in China; Europe is a high potential energy market, and 5g also has a certain development trend, with great market opportunities, which is more in line with the overall positioning of realme. “
Now realme takes Spain as the starting point of Europe. This year, the plan is in full swing and will be jointly promoted in different countries in eastern and Western Europe. “In June last year, we have officially entered the Russian market and spent a lot of time and energy thinking about how to establish a brand and open channels. At present, realme is on the track of going forward in the Russian market. ” Xu Qi said.
Seize 5g ecological entrance
Another difference in the 5g era is the terminal form. With the gradual implementation of Pan IOT and high-speed network features, seizing more connection entrances has become the next place for mobile phone manufacturers. Chen Mingyong, founder and CEO of oppo, has previously stressed that oppo will no longer be a mobile phone company.
Xu said realme expects to become a global 5g popularizer. In the market where 5g is not yet popular, we will deeply participate in the construction of 5g network and explore 5g scenarios with local industry partners; in the field of aiot, we will expand around the three scenarios of individual, family and travel.
In terms of operation mode, aiot will also adopt the mode of “light assets, short channels and partial e-commerce” like mobile phones.
But the problem is that the circle of Xiaomi’s ecological chain has been expanding, and Huawei has released different terminals one after another. How can the latecomer brands go?
“Now Chinese consumers should be no stranger to the ecosystem. This is a great challenge for us. We will think about three aspects: first, for which people do we build our ecosystem? We define it as the technology trend brand of young people; second, how to enhance the experience of interconnection between products; and the richness of products. ” Xu Qi added that the realme link being built as a traffic hub, hoping to connect multiple categories of aiot products, is a very important part of realme brand building and experience enhancement.
In fact, the Internet of things between different mobile phone brands is also trying to promote. Xu Qi said, “what we are building is the exclusive aiot product of realme. In the future, we will open some ports, introduce some other brands that are more commonly used in our lives, and join in the ecology of interconnection of all things.”
According to Xu Qi’s analysis, from the global market, India and Southeast Asia have a good foundation for the popularization of aiot, and realme expects to become the top 1 brand in the local aiot industry; in the central and East African market, the popularization rate of aiot products is seriously polarized, and realme needs to be the popularizer of local aiot; Due to the rapid development of 5g infrastructure in China and Europe, young users need more personalized choices, and realme will gradually establish a complete aiot ecosystem.