Ren Zhengfei
Sina Technology News on the afternoon of January 2, Huawei issued today, Ren Zhengfei, president of consumer business in Huawei BG business reports and keynote speech at the forum for the future development of Huawei, Ren Zhengfei stressed the need to properly deal with low-end commercial Value, 'It's important to use low-end products to defend our top-end products for some more profit.'
Ren Zhengfei first affirmed the development of Huawei terminals in recent years, 'the results are generally good, the next one or two years will be by leaps and bounds.' He summed up the reasons behind the success of Huawei terminal: First, the most important reason is that end-users fear the hardship , Diligent efforts; Second, there is a large platform to support the company to network technology, the basic theoretical platform, slowly into the terminal development, and promote the rapid progress of the terminal; Third, a broad minded, not the pursuit of independent innovation, as long as the bundled Excellent in the world, combined is the best.
Huawei CEO Hu Houkun recently announced in his speech at the New Year that Huawei (including Glory) smartphones shipped 153 million units in 2017, with global share exceeding 10% and ranking the top three in the world. Huawei maintained its leading position in the Chinese market.
However, Ren Zhengfei also admits that while Huawei's terminals have built up core competencies in some areas in recent years, such as product competitiveness, distribution channels, retail sales and service, there is still a certain gap between Samsung and Apple. 'We need to gradually We must unswervingly continue our efforts to establish an ecological chain from China and gradually build up an ecological chain by gradually building a strategic depth and not doing enough in the strategic depth of certainty matters. To build around the world.
Ren Zhengfei also stressed that Huawei should correctly treat the commercial value of low-end machines, do not think that low-end business is engaged in low-end talent, high-end machines are high-end talent. Low-end machines to meet the needs of ordinary consumers, the world 95% normal consumer.
'To talk about business value, we have to be focused on business success.High-end brands are not high-end products, it's important to use low-end products to defend some of our high-end products, and while low-end machines make less money on business success, Defend the high-end machine market, it bleed for your sacrifice, high-end machine why you can not point money to you?
For the glory brand, Ren Zhengfei said Huawei brand to the high end, glory for the young market, forming a "double angle", each dealing with different customer groups and markets. 'Glory team as soon as possible to change the benefit-sharing mechanism to activate combat groups and teams. Dare to fully Use the Internet, but do not over-emphasize online, offline, online, offline, and sell as long as it is successful.
December 2017, Ren Zhengfei also issued a glory brand mobile phone single commission bonus program, the new program shows that glory brand mobile phone bonus = single commission * sales * acceleration incentive coefficient * contribution to the amount of profit to complete. Based on the contribution of a certain amount of profits, traction to scale up.
Ren Zhengfei also mentioned Huawei's consumer cloud service, which was approved by the company's EMT conference to launch the video business, but emphasized that the consumer cloud service is not completely for profit, and the ultimate goal is to help mobile phones to enhance the user experience and promote the sales of mobile phones. In content selection, we have our own values, we advocate the promotion of high quality content, children only from the real philosophy, history, to learn how to become a real talent. We do not do things that poison the community should have the choice of loading Instead of serving CTR. '(Zhang Jun)
The following is Ren Zhengfei speech full text:
Ren total consumer BG business report and the backbone of the forum speech
October 24, 2017 (Shenzhen), October 27 (Beijing), November 2 (Shanghai)
First, the consumer business to correctly judge the future, down-to-earth growth, opening up, cooperation, win-win situation, go one step further.
Terminal development in recent years, the overall good performance, review of the course we have gone through, in fact, is very tragic. Initially Huawei is the reason for the terminal, because then our 3G network equipment can not sell, there is no terminal. To do their own terminal, We do not know anything, how much the first terminal? Full filled with a Coaster, so we bought more than a dozen cars Coaster around Shanghai, the purpose is to help the network test pass .3 G done, first exported to the UAE, but No terminal will not be able to sell, we buy from other Japanese manufacturers, manufacturers are not willing to sell us a terminal, they have let other operators underwriting, we were forced to start to do it.
The first terminal is the host Guo started, followed by Peng Zhiping, Peng Zhiping 900 developed more than 100 mobile phones, these people include the supply chain, administrative services, etc., including the establishment, I think an average of several people to develop a cell phone, which does not meet Huawei's strategic concentration, so put Guo Ping back again.Ping Guo proposed to bind operators to do custom phone development, this is the origin of custom phone, terminal company gradually out of the woods, began to have a little profit from that kind of tragic era It is not easy to come today, will tomorrow be better? I believe it.
First, the most important reason is that end-users are brave, hard-working and hardworking. The terminal has made great achievements and is closely linked with the efforts of all those people over the past 10 years. Thank you for your contribution.
Second, we have a large platform to support the company to network technology, the basic theoretical platform, slowly into the terminal development, and promote the rapid progress of the terminal.From July last year, the company's large platform theory system has injected into the terminal business because Some of the laboratory research in 2012 is ahead of others and can not be used in the short term in the network system, so it is injected into the terminal to rejuvenate youth. This is Huawei's spare tire program, which has played a key role in these technologies. Therefore, as Huawei forwards its entire platform and its terminal business has strong backward advantages, it will make rapid progress in the next one or two years and may each have a new bright spot in each quarter. Apple does not have a networked system and Ericsson does not have a terminal. We have both across these two systems, which is one of the reasons why we can sense progress.
Thirdly, we have a broad mind and do not pursue independent innovation. As long as the world is excellently bundled, we are the best. When we bind other people, we must work hard to make the world a leader on the issue of images. We should see that the image of the future of the information society has made a tremendous contribution to the information society in the next ten years is like ... Unimaginable ... Like 20 years ago, we do not know the Internet, 3-5 years ago, we do not know the mobile Internet. More and more developed, there is no big platform, it is impossible to achieve great business.Huawei company with 30 years of jogging, running tight, running, desperately running, and finally catch up with the development of the world, ran to the starting line .We participated in the starting, through hard work , There will be hope ahead or second place, third place; or backward, even behind, but also lead the era, and great, not to mention we may not be the last one.
Therefore, do not be self-defeating, have tremendous room for development in the future, and have room for growth; do not blindly be proud and complacent, have buildings outside and outside the building. We must correctly judge our future and survive in this world. Going forward, based on today's achievements on the move, go one step further!
Second, the consumer business First of all, a deep understanding of customer needs, identify product positioning, and gradually build a strategic depth.
1, the consumer business must really have a deep understanding of customer needs.
First of all, to determine clearly where our position, 'Maginot Line' where? 'Machine guns', 'carbines' in what position to be suitable? In this position, what the customer needs, what we can provide to the customer If you can do that, we should have a lead.You have to go through a good discussion, which depends on everyone's wisdom.Your products are all trying, being good at summing up and finding the right one s position.
Our goal is ambitious, concentrate on staring at customer needs, do not always go to the right person, or in the end may put their own advanced, but also become behind.For example, what the most typical mobile phone needs? Internet access, photo effect is good, Sound is good, other functions may be a minority demand, a small minority refers to the needs of only a few high-end people, high-end crowd is not necessarily a niche.We have to understand what the customer needs, for the customer needs, only the frontline people most clearly, the future Welcome to a group of 'second class soldiers' rose to generals.
2, the consumer business to gradually strengthen the strategic depth of the building, to grow in the best time to come up with energy to deal with the future.
We have to gradually build a strategic depth, although in recent years in some areas to build our core competencies, such as product competitiveness, channels, retail, services, but compared with Samsung and Apple, there are still some gaps in the determination As for the strategic aspect of sexual affairs, we have not done enough to reduce the uncertainty of the strategic depth. We must unswervingly and continuously strive to build an ecological chain from China and gradually build it around the world.
In the early days of Huawei, I most admired Bell Labs. Where is the Bell Lab today? No, but the times are still developing and the peach blossoms still with a happy smile. If Huawei does not exist in the future and the times are evolving, we should leave human beings Our contribution, but we have to think about why it does not exist, we have to survive, we must think and learn.Maybe in some ways we exceeded others, but others excellent place, we do not enough, only Up front, it will not be outdone.Press consumer business is facing greater pressure than the operator business, we have to grow energy in the best time to deal with the future.
3, to commercial success as the center, high-end products to enhance growth, but can not ignore the role of low-end products to protect our market space.
First of all, we must correctly treat the commercial value of low-end machines, do not think that engaged in low-end business is the low-end talent, high-end machines are high-end talent. What is the high end, what is the low end? We are not academic units, not universities, not On the size of technical ability, not on the number of test scores, and to commercial value, we must focus on business success .High-end brands are not high-end products, McDonald's, KFC, Sam, is the high-end brands. In fact, the sales volume of small African countries is far lower than the Guangzhou representative office, but we can not give up .If we continue to withdraw from the difficult areas, war-torn areas ... ..., retreated to only the Chinese market, And then retreat in the north, Guangzhou and Shenzhen these developed cities will eventually be easily destroyed by others as ants .So, with low-end products to defend our high-end products more profit, it is important.Although the low-end machine in commercial success made less money , But to defend the high-end machine market, it bleed for your sacrifice, high-end machine why you can not point money to you? Resource value system needs to be adjusted. Difficult areas can be a general, low-end products but also the generals.
Second, the low-end machine to do good quality, low cost, maintenance-free life cycle.To polish mature, high-quality mass delivery products, this product after tens of millions of washing and running, there is no fault, quality Upgrade, there is no technical risk, and then through the bulk purchase, reduce procurement costs, which is the low-end machine approach.Low-end machines to meet the needs of ordinary consumers, 95% of the world or the average consumer.Low-end machine does not take up much resources Why is the same waterline? High-end machines share the cost of new technology research, low-end machines use these mature technologies do not have to share the cost, so as to form a low-cost price system, but also one or two machines. The success of the machine, positioned as a commercial success.
4, emphasis on technology and aesthetics, to create high-value products.
At present, there are three functions of the mobile phone: the communication function; the mobile phone is actually a cloud, a management platform and a terminal. Therefore, the Huawei terminal is actually a huge network platform; and the mobile phone is also a kind of artwork.
First, as the information industry moves toward horizontal development, technology is easy to converge and products are seriously homogeneously unblocked. They not only attract customers through functional improvements and quality services, but also compete through technological and aesthetic improvements We set up the Institute of Aesthetics, is to solve this problem .We must pay attention to the needs of the times, if only a group of science and engineering men who came from electronics to discuss the value of Yan, I think the problem is not correct .Psychology is also aesthetics, we consider the establishment of consumption in Italy Institute of Psychology Now that you face the huge population of 6.5 billion people around the world, there are black, white, Christian, Islamic, Buddhist and other religious believers, happy people, unhappy people, ... ..., if you do not Understand psychology, but also think that their best-selling goods, I think it is your own imagination.
Even if the foreign unification can not even, the domestic product value of the design are unification can not be unified, can not implement a unified platform design services, the value of the self-employed is really strange phenomenon.As the princes, the product line manager, decathlon, all are Chu Bawang We still have to implement company-wide modular platform design services.
Second, R & D should be from product development to R & D, production, service and other processes through to the R & D to tell everyone how to manage the process, how to manage manufacturing, how to manage parts and components to the depth of the factory to go to ... .... Automated production, R & D personnel must be familiar with, in order to complete the high-quality technology. Technology is also competitive, these days to see you in the process and the design and development of a large team, I am very happy.
Third, build a glorious independent brand, keep the 'Himalayas' north slope.
Huawei and glory dual brands operate separately, Huawei brand to high-end, glory for the young market, forming a "double angle", each dealing with different customer groups and markets. Glory support the use of light assets to overseas radiation method, in compliance with internal and external compliance You build the North Himalayan team as soon as possible, and the Consumer Business Management Board and Consumer BG will help Glory quickly deploy global organizations and teams.
1, we must objectively clear the glory of strategic positioning, to build a 'Maginot Line.'
Glory is not to win all the others, it is impossible for all fronts to lead.Define where to set up a line of defense, what weapons are needed, to lay a line of defense in this position, and to lock in this line of defense to deepen the contribution to the market. Change, but do not change the position of the 'carbine' and 'machine gun' in a short time.After one or two years, the discussion of retreat to re-determine where the defense.
2, glory sales in informal form.
Dare to make full use of the Internet, but do not over-emphasize online, offline .Doing online is advertising, offline is to do physical sales, online, offline can be cross, as long as the sale is successful .Online cooperation brand Chaoshui shop, take into account the interests of distributors offline, do not disrupt the market.
3, the glory of the team as soon as possible to change the benefit-sharing mechanism to activate combat groups and teams.
Simplify KPI, PPT reporting, as long as the internal and external compliance, in line with financial management, financial management, supply chain warehouse management process, goods to the store sold out, our bonus will be promptly implemented. Other products can also think about how to reform The terminal company is to sell 'matchbox', do not take the 'little girl' pass the test, we need to change the way of assessment to form a different team collective cooperation, internal sharing, the capital recovery factor can also be used as a test standard, the supply chain Offline store inventory management, to avoid channel merchants on the best-selling product hoarding too much risk too ... ... The reform of the organizational structure of the company is the Anping System Department as a pilot, from the market to the pattern of incentive system reform to glory as a pilot Simplify the KPI, glory to call 'the mighty army immediately battlefield' legitimate to make money.
Fourth, the purpose of consumer cloud service is to help mobile phones to enhance the user experience, we have to identify the direction of the difference efforts, the main push valuable high-quality content.
After the approval of the company EMT meeting, agreed to give a try video business.We do not entirely for consumer cloud services for profit, the ultimate goal is to help improve the user experience mobile phone, mobile phone sales.So in the content selection, we have to own Values, differentiate the direction of the efforts to find and choose good content. We mainly promote high-quality content, because these are valuable, children only from the real philosophy, history, to learn how to become a real talent. We do not do poison Social things should have the option of loading instead of serving click-through rates.
Fifth, the terminal supply chain business to strengthen the structural organization, reduce risk and ensure high quality delivery.
Terminal design, brand marketing, channels, etc. themselves can grasp, more difficult to grasp is the supply chain, so we should according to their own weaknesses to strengthen the structural organization, and the establishment of high-level 'risk management team', like special forces As always staring at the risk, can quickly rushed to solve the problem.
Logistics and information flow can be separated. The flow of information from Huawei to distributors / contractors to retailers, and physical delivery may be done directly from Huawei to the retailer stores. After the separation can reduce the logistics time. Goods to stores, the logistics and distribution efficiency requirements will be high, the supply chain to think about how to enhance the logistics network capacity.
Six, we want to establish a broad range of talent based terminal company, eclectic use of qualified personnel.
In the past two years, a batch of outstanding cadres from the Pan-Internet Network will have the opportunity to be transferred to the terminals and attract excellent foreign personnel to join Huawei. The terminal managers must open their minds, boldly appoint and use talents without exception, and terminal services and pan- Big difference, the terminal in the face of the vast consumer base, do not rigidize the dogma in the use of talent, with a broader mind to meet a wider range of talent, you may be able to do the lead.
In this era, we must attach importance not only to various specialties such as statistics, systems engineering, cybernetics, and neuroscience, but also to philosophy, since these sciences all have a huge role to play in the future, not simply The philosophy of mechanics plays a role.Philosophy, not immediately reflect the commercial value, but like the land in the northeast, if not cultivated, not sowing, black land is black land.Philosophy is black land, systems engineering, statistics and so these are It is black land.