On the bustling Huaihai Road in Shanghai, OPPO recently opened its first 'Super Flagship Store' in the world. As the incremental ceiling effect of smartphones becomes more evident today, OPPO hopes to consolidate the current market through such a method Start an exploration of brand upgrades.
'The current handset market has undergone fundamental changes from a pyramid to a T-shape, with the top five handset makers accounting for more than 80% of the overall market, in which case any vendor wishing to eat someone else Of the share is very difficult. "OPPO vice president Wu Qiang told First Financial said that the head of the company's competitive landscape has been formed, the competition will be more intense, in this case, the mobile phone companies can not make mistakes .He stressed that OPPO hope Super flagship store as a starting point for brand upgrades.
In fact, the omnichannel competition has entered a white-hot phase.First financial reporter noticed that in the 15 minutes away from the OPPO super flagship store, there are Apple and Huawei stores.In addition, online brands penetrate to the line Has already started, millet House and the glory of the offline store has been outbreak last year to millet, for example, as of the end of last year, there are more than 50 millet stores across the country, a week to open a shop to advance the speed earlier this year Lei Jun set the team goal is to open 200 a year, an average of one or two days to open a.
Canalys analyst Jia Mo told reporters that at present the domestic market as a whole is in a slightly contracted state with the market share of leading manufacturers increasing gradually and the scale advantage is more obvious (such as channel bargaining on large scale, supply chain bargaining power, etc.). Channels, we see in Xiaomi, Huawei massive aggression in the first three cities showed a more stalemate with the end of the city dividends gradually disappear, to the offline channel dominated ov and other manufacturers to bring more Serious challenges. So it shows ov to increase investment in the development of online channels trend .At the same time online brand upgrade.Jia Mo told reporters.
In any case, the explosive growth of the mobile phone industry is coming to an end, is to hold the current market or aggressively to the market offensive, offensive and defensive, each vendor are making their own choices.
'T-type' competition
The growth rate of smartphones slowed sharply in the second half of the year.
According to "China Mobile Market Operation Analysis Report in November 2017" released by China Information and Communication Research Institute under the Ministry of Industry and Information Technology, the domestic mobile phone market in November this year shipped 43.2511 million units, down 20.7% from the same period of last year; 77 new models were launched, up from the same period of last year Down 22.2%.
'The smart phone industry is not as fast growing as in previous years due to the fact that in the first half of the year there is no product that has not been technologically innovative and the user's switchboard replacement factor is not so strong and the willingness of consumers to switch over is also declining. , This trend will continue. The challenge in 2018 will be even stronger than in 2017, and the overall market will still have a slight decline.
According to GFK, in the sense that entering the second half of 2016, China's mobile phone market will rapidly concentrate its resources from the "inverted triangle" to the "T" The pattern is that head brands continue to expand their product lines, high schools and low-priced shufflers across the board, and the waist brand space has been greatly reduced. The scale is limited. Small-brand products and consumers form a fault. The channels are hard to infiltrate and the market vitality is greatly weakened.
Wu Qiang agree with the formation of T-type structure, and said that every change to this pattern can not make mistakes, and need to make new strategies to deal with.
For the OPPO, a strong offline market is an advantage, and how to achieve the brand upgrade has become the most questions over the past year or so Wu Qiang. In Xiaomi and Huawei and other brands under the aggressive market strategy, OPPO want to explore a 'super flagship Shop 'model, to better establish the brand image of OPPO.
Wu Qiang said that such as the absence of KPI assessment, the introduction of top designers for store design, and set up more sharing courses to communicate with consumers, 'abandon' the past OPPO shop 'pull people' routine ', upgrade. Do not know if it will succeed, but this is the beginning.
In front of a huge sales store, OPPO hopes to maintain a certain pace of 'addition and subtraction' to optimize the store image, but emerging brands such as Millet and Glory started a battle last year about the channel.
'Millet's full-year revenue is expected to be around 6 billion yuan within 10 years to 10 billion US dollars, but also increased by 10 times, there is a chance.' 'Lei said after the opening of the flagship store in Shenzhen Xiaomi's home.
After two years of grinding, the team made a complex model to consider the store's performance, efficiency, cost rate, conversion rate, etc. Ping efficiency is the efficiency per square meter, millet home can currently be done 270,000 yuan, In the field of consumer electronics ranked second in the world, the first is Apple, you can reach 40 million.
The proportion of Glory Online has also started to increase steadily. According to the data released before Sino, the proportion of glory offline and online channels in the first eight months of this year is close to 1: 1.
To overseas
Overseas markets are also the head of another mobile phone manufacturers compete for the market.
In honor of the fourth anniversary of glory, President Zhao Ming glory said publicly that in three years into the world's top five mobile phone brands, including overseas market share increased from 15% to 50%.
The world's top five mobile phone brands each ship more than 100 million, accounting for 50% of overseas sales, which means that the glory of overseas shipments in the next three years will grow by more than 40 million to 50 million shipments , Which is obviously a difficult challenge for any mobile phone business.However, Zhao Ming told First Financial said that foreign markets are pit or cake, we must personally try to know that the overseas market is the glory of the future The basis of growth.
Xiaomi is also speeding up the international market layout.Lei Jun told reporters that in 2017 millet's international business has grown by 300%, but is expected to reach 100% next year.
In recent years we have highlighted the key points of internationalization. For example, India must take the first place. We have done it in three years and also entered markets such as Europe. We have already reached the fourth place in Eastern Europe. Lei Jun told reporters that in order to further develop the market, he will be in Indonesia for some time later this month, and in September he had been in that market for a week.
For the "cake" but the competition is particularly fierce in the United States market, Lei Jun revealed that the current internal has begun to have the appropriate timetable.He expressed the hope in the North American market in one fell swoop success, there are already some small products in the channels, markets and other aspects conduct experiment.
For whether to adopt the same method to enter the overseas market, Wu Qiang said that currently the proportion of overseas markets accounts for 30% of the OPPO, and the pace of expansion will still be steadily going ahead without any rush ahead.
Jia Mo told reporters that from overseas, in fact, OPPO and vivo development in Southeast Asia and India has been remarkable, but still concentrated in the same low-end series like millet.While the cost of domestic channels, the market saturation, To go to sea has become the only way for enterprises to expand and maintain growth, but how to choose to enter the market is the need to weigh the manufacturers. Developed countries such as Western Europe and North America can bring better margin, but the limited proportion of open channels. To cooperate with operators, will make ends meet.Choose to more appropriate to their own channel strategy and product markets to try the most secure, such as the development of millet ov in India, directly captured the share of local manufacturers.
Yan Zhanmeng, director of research on intelligent devices and ecosystems at CounterpointResearch, told CBN reporter that every vendor needs to make some choices after measuring its strengths and weaknesses, both in domestic and overseas markets to stimulate more markets Demand is now the new challenge for domestic handset makers.