Millet in the Samsung 'back garden' South Korea's market has come a step further.
First Financial News reporter exclusive learned that the recent acquisition of Millet Xiaomi company on behalf of one of the total generation of Youmi company equity, and Youmi signed a memorandum of understanding (MOU).
According to the memorandum, both parties will complete the details of the specific investment conditions as soon as possible and formally sign the Equity Transfer Agreement (SPA) on part of the shares of Youmi Corporation. The company will also formally become a subsidiary of Xiaomi and become a subsidiary of Korea The first domestic company to be included in the millet ecosystem.
According to the first financial reporter access to China and South Korea's public information shows that you meters company for overseas investment legal person, its predecessor is in Korea sales of millet brand mobile power LK company, was established in March 2015 and set up in Nanjing at the same time Youmi Electronic Technology Co., Ltd., with its headquarter in Korea, is located in Bucheon, Gyeonggi-do, about 20Km from downtown Seoul. It also has physical stores and an after-sales service center in seven cities in Korea.
According to the company's publicity in South Korea, it has a capital of 510 million won and a sales volume of 17.5 billion won in 2016. Key personnel of the company had previously been engaged in the online shopping flow and delivery service between China and South Korea and the United States In the meantime, WizExpress system, which real-timely reflected the product data of E-commerce platform, was developed. In 2014, the company obtained the proxy of Xiaomi in Korea and imported and sold mobile power.
Until 2016, Youmi upgraded to Xiaomi's first total generation in Korea and announced that it will work together to jointly enter the Korean market and set up after-sales service centers in Korea.
In March 2016, Xiaomi signed a Korean distribution contract with trading company YOUMI (Lottery Co., Ltd.) at Lotte Hotel Sogong-dong in Seoul and will be solely responsible for the sale of a number of products in South Korea. Xiaomi will officially announce its entry into Korea. Most of the millet products on the Korean domestic SMEs and millet subsidiaries signed a non-exclusive sales contract for sale or illegal circulation.
According to the contract, Youmi is responsible for selling a variety of millet ecological chain products including sports bracelet, mobile charging treasure, No. 9 balance car, air purifier and scales in Korea, but Xiaomi smart phones, TVs, and tablets And routers and other 4 core products are not in the sale.
After more than a year of open cooperation, the cooperation between Xiaomi and Youmi has become even closer. For the recent signing of a memorandum of understanding with Xiaomi, the person in charge of Yuomi revealed to First Financial News that after the formal establishment of Xiaomi's millet ecosystem, In 2018 alone, there will be plans to launch nearly 80 Xiaomi IoT products in South Korea and to build a smart home and artificial intelligence ecosystem in South Korea. It is committed to working with South Korean telecoms companies and technology companies.
In addition, the official also said that from the previous online and wholesale sales strategy will be opened in South Korea more direct experience stores, after-sales service centers and to improve millet products Korean interface experience, 'we It hopes to enhance consumers 'brand loyalty and brand image by seizing the two factors of' cost performance 'and' innovation 'and hopes to cultivate more' rice noodles 'in South Korea.'
On the 8th of this month, Xiaomi had signed a Trademark Exclusive License Contract with Youmi, whereby Youmi obtained the exclusive right to use millet's trademark in Korea. As for the arrangements made thereafter, the official said: A number of South Korea top technology companies to discuss cooperation, which is not limited to capital investment, but also for technical and market cooperation; and will gradually expand the franchise, cooperation network in South Korea.
The millet involved in the Korean market behind the millet mobile power-led products are widely welcomed in Korea.
Historically, South Korea has been referred to as the 'grave of foreign products' by experts for its uniqueness in the market and the growth of its own brand. "Whether it is commercial distribution companies such as Wal-Mart and Carrefour, or electronic brands such as HTC and Sony, or even special Silas, HSBC and other world-class enterprises, eventually suffered Waterloo in South Korea.
According to South Korea's Polymer Battery Industry Association statistics, in 2015 South Korea's mobile power market size of about 470 billion won an average of nearly 30% of the speed is still expanding, and local industry figures predict that this year's market size, with the smart phone The popularity, as well as the rapid charge technology (Quick Charge) development, will also increase.
The statistics also mentioned: millet mobile power has occupied nearly 80% of Korea's charge treasure market.Millet in Korea, has become a "generational" mobile power.
South Korean media have also reported that due to the popularity of millet, many South Korean brands charge treasure design also affected millet.In order to compete with the millet 10000 mAh flagship Charging, Korean manufacturers have introduced more than 10000 mA Capacity products, and design similar to the millet.
Lee Kook Hsiang, a professor at the Korea Polytechnic Institute of Economics and Political Science at Korea University, told CBN: 'As always, just as millet mobile power is popular in South Korea, every move of the millet company in South Korea has become the focus of attention in the market. At the very beginning of the day, many Korean companies tried to get in touch with millet, and some of them even more unable to control themselves. They imported their products from China with the name of 'millet Korean direct selling stores' Official denied by millet.
However, when mobile power got attention, the public naturally focused on the other products that started up the millet and was sought after and welcomed by some Koreans due to the lack of mid-range products in South Korea's domestic brands. Since then, On behalf of the store in Korea, after-sales service center, this year is on the Korean version of its official website, has been the industry as a precursor to entering the Korean market, 'From this, millet through the total generation into the Korean market, will be conducive to millet The improvement of the use environment in South Korea and the increase of brand experience. "Li Guoxian said.
However, some people in the industry told CBI that taking into account the fact that millet is still deeply trapped in patents and the special circumstances of South Korea's own "back garden" as Samsung, compared with the appeals and expectations of South Korea's rice noodles, It will still be very hard to buy Xiaomi smartphones in South Korea in a short time. This act of millet should also be understood as devoted to the popularization and cooperation of the millet ecosystem in South Korea.
For the industry's most attention to the scale of investment, you meters side did not disclose to reporters, an insider told First Financial: 'Taking into account the market position of millet in South Korea, as the largest generation of millet in Korea, the scale of investment Should not be too small, and it is very likely that Millet will also expand its investment in South Korea to consolidate its advantages. "
However, the saying goes, "Some people are happy and sad." Although many of the "rice noodles" in Korea started to cheer, it was believed that Xiaomi finally "valued" these groups. However, some people in the industry in South Korea think that 'entering Korea will mean China and South Korea The direct competition between the two countries in the field of IT has begun to be reflected. '
According to South Korean media reports, Li Haizhen, founder of South Korean Internet company NAVER, said in his question about the state administration that 'Chinese companies are ready to surpass the possibilities of local Korean companies at any time by virtue of their unique capital and technological capabilities, And called on the government to create a more level playing field for local Korean companies.