Innovation can make the king of domestic smartphones

After entering 2016, the smartphone market seems to usher in a rational era.

Unlike the madness two years ago, the mid-to-high end replacement price-performance ratio has become a tag that mobile phone manufacturers are willing to accept. The protagonist of the story has also changed from an emerging brand to a veteran giant, compared to the previous single-dimensional pursuit of shipments, users. Satisfaction, retention, conversion rate, product profit, etc. have become the new match point for the giants. These changes are undoubtedly becoming a new normal for domestic mobile phones.

Key words of consumption upgrade and stock exchange to become the new normal

Since last year, the media has been accustomed to "stock change machine" to describe the domestic mobile phone market where sales growth is slowing down, and mobile phone manufacturers have frequently transmitted the "consumption upgrade" signal and the corresponding strategic upgrade to the outside world. From the consumer's point of view, it seems easier to understand these phenomena, price wars and high quality naturally contradict each other, and consumers are suffering from it, and when they change machines, they become more rational.

Sales statistics aptly demonstrate this trend change. From the statistics of global smartphone sales in the second quarter of 2016 released by IDC not long ago, the shipments of 343.3 million units and the slight increase of 0.3% made every mobile phone manufacturer feel the chill. An interesting change in this data is that Apple and Samsung's shipments have declined compared to the previous quarter, while domestic Huawei, OPPO, and vivo have achieved different levels of improvement.

In addition, regardless of GFK or IDC statistics, changes in market share at different price points are particularly evident. In the data released by IDC, the market share of mid- to high-end models above 2000 yuan increased by 4.78% year-on-year to 47.59%, while the market below 2000 yuan and the market of thousand yuan fell by 1.17% and 3.21% respectively. GFK's data is even more pointed out that the top 5 mobile phone manufacturers have gained more than 90% market share of more than 2,000 yuan. This proves to some extent the success of domestic mobile phone manufacturers in the mid-to-high end strategy.

At the time of the stock exchange trend, some experts predict that domestic mobile phones will evolve to the "M-type market", that is, the high end and the public. However, for the definition of the high-end market, the definition of the mass market itself is rather vague. However, it is worth noting that two years ago, many domestic mobile phone manufacturers, under the containment of two big mountains of Samsung and Apple, have hoped that they will hope for the mid-end market. Under the new normal of consumption upgrade and stock exchange, they will retreat. Entering this market is clearly a more sensible choice. There may be many explanations for this, but it is still consumer-driven in nature.

Zero-sum game? Value-creating players can get out of the dilemma

This is also the case. Many mobile phone manufacturers are beginning to put "consumer-driven" in their mouths. It seems that there is nothing wrong with following the preferences of consumers. However, insight into the industry's general trend and consumer trends and targeted strategies, although not going wrong, but also less threshold and differentiation advantages. The micro-growth of the smartphone market has forced mobile phone manufacturers to make similar choices, and the zero-sum game situation will be re-enacted.

On the one hand, in order to enter the mid-to-high-end market, many mobile phone manufacturers began to adopt the differentiated function that caters to the consumption trend, and successfully raised their prices. However, the so-called differentiation that is not high in threshold is becoming more and more pursued by latecomers. On the other hand, many manufacturers have failed to get rid of the value-taking thinking mode. What the market needs, what is it, the direct way is to stick to the competitors, from the function, configuration, appearance, marketing strategy. In the end, there is still a risk of consumer aesthetic fatigue.

If this kind of competition does not change, the current glory of the mid- to high-end market will not last long, the second echelon will soon come in, and the first-in-comers do not accumulate too many advantages.

I appreciate the view of Zhao Ming, the president of Glory: "To make a mobile phone for young people, we must first have a young mindset." This is not only an insight into the needs of potential consumers, but the starting point of the enterprise is not only the role of the value consumer of the target consumer group, but also allows them to deeply intervene in the market and lead demand, and actively create demand for consumers. Open a known stock market and actively seek incremental space. The performance of glory has also proved that they not only meet the subdivision and diversified needs of users under the current consumption upgrade trend, but also actively open up new demands and markets, thus creating incremental value that is difficult to replicate.

The difference between value extraction and value creation is that the former is dominated by stocks and the latter is based on incremental creation. It is undeniable that the competition status of the current stock exchange has made some manufacturers taste the sweetness. Just like some Internet mobile phones that were two days ago, the pigs can fly on the wind, but the wind stopped but did not find the landing site. The concept of “value creation” is not difficult to understand, but it is not easy to implement. It is not easy to develop new markets, develop new functions, and create new brand image.

Marketing, products, strategy, how to change mobile phone manufacturers?

The standard for measuring whether a mobile phone manufacturer is a value-creating player is inconclusive, but at least in marketing, product and strategic layout.

Start with marketing. Although many companies have similar marketing methods, the subtle differences show the different corporate culture behind them. In many cases, this difference can be described in thousands of miles. For example, in the Olympic Games, which is in full swing, the media gold medal list is common in all major mobile phone brands. The specific effects are still unknown. In this way, the money-saving model is less creative.

In contrast, the practice of brands such as glory seems to be more worthy of admiration. First, Zhao Ming is a guest of the Xinhuahui living room to talk about the brand spirit of “Be brave to be yourself” and seamlessly connect the brand concept of glory with the Olympic spirit. Soon after, Xinhua News Agency reporter Wang Yong was carrying the latest two flagship products of Glory, Glory 8 and Glory V8, to launch the Rio. The national audience broadcasted the Olympics on the front line, and the glory brands and products obtained endorsements from national media. The reporters rushed out of the main equipment, directly hit the event and recorded the historical function of the event. Invisibly, the quality and high performance of the glory products were once again tested. This kind of intangible recognition, the effect is that more advertising can not be bought. .


Glory President Zhao Ming is a guest at Xinhuahui Living Room

The flagship machine glory 8 of the year became the exclusive shooting equipment for the opening ceremony of the Xinhua News Agency

Glory brand new V series flagship first product glory V8, help Xinhua News Agency direct attack Olympic live game

A major feature of mobile phone manufacturers in the new normal is that advertising and celebrity endorsements, when consumers are indiscriminately bombarded and begin to feel tired, higher-level, more ambitious marketing strategies may be more impressing consumers.

Next, talk about the product. The product is the biggest bargaining chip for retaining target users, and it also reflects the true strength of mobile phone manufacturers. In the era of consumption upgrade, the top 5 mobile phone manufacturers have a common feature, that is, to abandon the sea tactics and start the intensive development of the boutique strategy. Of course, for Apple, this is also its advantage from the beginning to the present. On the surface, Samsung, Huawei, and vivo all do subtraction on the product line, cut unnecessary product lines, and focus on their own superior products. From a deeper level, innovation is always the biggest driving force for products to consumers, which is why communication technology, fast charging technology, and camera technology form a strong selling point. For example, the glory 8 main high-value, and smart dual-antenna and dual-function fingerprint function, glory V8 main long battery life, 2K screen, dual lens. This kind of innovation is not only in the appearance of the ID, but also in the cutting-edge technology, breaking through the industry's conventional practices, is undoubtedly very forward-looking and landscape.

The last thing to say is strategy. The strategy determines how far you can go, which is critical to the future of a brand. Under the new normal of stock change and consumption upgrade, the mobile phone manufacturers with the correct strategy have come to the front line, such as Huawei, OPPO, etc., and the brand of strategic mistakes has disappeared in everyone's field of vision. There are more cases in this regard.

All along, under the fierce competition situation, many mobile phone manufacturers have been ignorant of their strategic intentions, so as not to be quickly imitated by friends, overtaking the curve. But in fact, the strategy of truly building a competitive barrier for a company or brand cannot be imitated. How to enter the no-man's land in the Red Sea market depends on this "blue ocean strategy" that cannot be copied and copied, that is, to find incremental markets in the stock market and create incremental value.

The establishment of the glory 8 and glory V8 double flagship layout, as well as the glory of the newly released large-screen mobile phone NOTE8, fully reflects the glory to open up the strength and ambition of the exclusive blue ocean.

With the official launch of Glory 8 on the 16th of August, the “Blue Ocean Strategy” of Glory began to formally march overseas in the Chinese market. In the previous overseas market, the outstanding achievements also made glory enjoy the matching benefits, mainly reflected in product sales and brand influence. With the re-emergence of glory 8, Glory is committed to becoming the global leading brand of Internet mobile phones. It has also become more logical.

It is not difficult to find that under the new normal, the marketing of mobile phone manufacturers should be more “heart-to-heart”, products should reflect innovation, and strategic layout needs more forward-looking. Facts have proved that the mobile phone market does not have a permanent leader. The competition under the new normal has just begun. Whether it can balance the advantages between marketing, products and strategy will be the key to whether the next wave of demand will continue to laugh when it comes. Glory's performance and brand performance are also a successful example for other mobile phone manufacturers.

We are in an era of constant change, with a temporary success and a short-term failure, but the future is bound to be a value-creating player who can create demand.

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