In 1995, Huawei entered the program-controlled switch market, tearing a gap in the market with the newly developed 'Megaphone'.
In the face of the industry leader Shanghai Bell, Huawei adopts circumvention tactics, subsidizing profitability and profits, adopting a low-cost strategy, and firstly occupying the backward areas in the northeast, northwest, and southwest, and then occupying the rural market with low prices that cannot be matched by rivals. And then counterattack the city, compress the profit space of Shanghai Bell, and eventually replace it.
At this time, Zheng Zhengfei, who was caught up in the fiery era of program-controlled switches in the Chinese market, should have no doubt that when the business was prosperous, he questioned internally: If China's switch market is saturated, what does Huawei eat?
In the following year, Ren Zhengfei appointed Li Li as Director of the Overseas Marketing Department and began planning for the expansion of the international market. Low prices are still the best strategy for going to the sea. Huawei first opened markets in Southeast Asia, the Middle East, and Africa at a low price, and then took third place against opponents. One of the price and more signal support to enter Portugal, step by step to attack the European market.
The business rules are always in circulation. More than 20 years later, Chinese mobile phone manufacturers faced rapid saturation of the domestic market, which caused the same doubts as Ren Zhengfei. Then, domestic mobile phones followed Huawei’s sea route in the past, in the mobile phone business. Walk again.
After domestic manufacturers took over India and Southeast Asia in the past few years, Europe finally became the next gathering place for domestic manufacturers. Huawei took the lead in layout, Xiaomi OV quickly followed, while Samsung and Apple, have been waiting in the European market for a long time.
Europe is not India and Southeast Asia. Developed regions are not sensitive to the price of electronic consumer goods. For many domestic manufacturers, the significance of conquering Europe is not only the expansion of sales, but also the affirmation of the value of the brand. The United States has no alternative but Europe is a domestic mobile phone manufacturer. The last stop before flowering in the world.
What is the pattern of European mobile phone market?
The United States is far away from the oceans and Europe is over the mountains. The European mobile phone market is much more strange than the United States. However, the survey data of major international research institutions are enough to draw a profile for Europe.
According to quarterly sales of branded mobile phones provided by Statista from 2015 to 2017, we can see the changes and ups and downs of European mobile phone market in the past few years.
As can be seen from the data, in the past three years, the European mobile phone market has the following characteristics:
Samsung Apple dominates with old
Although Samsung’s share in the Chinese market has been almost negligible, Samsung’s new dominant player after the fall of Nokia’s share in important markets such as Europe, North America, Latin America and the Middle East beyond Asia is around 30%. Samsung is also the first place in the world to sit steadily in recent years.
However, in developed markets like Europe, Samsung has always been in competition with Apple. Both sides can compete for each other. From a data point of view, in the fourth quarter of each year, Samsung’s quarterly sales accounted for the lowest proportion of the entire year—listed in September every year. The iPhone had a direct impact on Samsung sales.
The iPhone X released last year, despite high selling prices, still squashed Samsung’s flagship in sales. According to data provided by Strategy Analytics, iPhone X sold 16 million units worldwide in the first quarter of 2018, making it the world’s highest sales volume. The Samsung S9+ is ranked No. 6 on the global sales list, with sales of 5.3 million units. Obviously, in the global high-end mobile phone market, Samsung will inevitably be suppressed by the iPhone.
The two parties are fighting desperately, but the first camp in the European market is still firmly in the hands of Samsung. The domestic mobile phone makers have broken into Europe. How to seize the markets outside the two giants and further encroach on their opponents will become the biggest difficulty in the next few years. .
European market Matthew effect intensified
The Matthew effect in the mobile phone market has become extremely evident in China. From a data point of view, European mobile phone manufacturers will face the same situation in the coming years.
In the past three years, the proportion of headphone brands in the European mobile phone market has gradually increased. It is classified as the brand of other camps, and the proportion of total sales has gradually decreased from the highest 45% to 27%. This means that the European mobile phone market and domestic The mobile phone market has the same trend. In the past few years, it has gradually matured in integration. As high-quality brands continue to expand, the end brand's living space will continue to be compressed, either standing in the first camp or dying, and brand competition will become increasingly cruel.
This means that after the domestic brands enter the European market, they need to start high and take a quick and seize the market in order to survive in Europe.
Huawei's first-mover advantage, already firmly established
The success in communications has become the biggest weight in the market competition for Huawei handsets. In China, Huawei took advantage of the technical advantages of its communications business and seized the brand image of national pride, resulting in the rapid increase in the value of Huawei brand and its highest sales. The highest domestic mobile phone.
In Europe, the advancement of Huawei's communications field has provided strong support for the mobile phone business. In the past three years, Huawei's sales accounted for 13% from 2%, ranking third in the European market, and it is considered as a domestic mobile phone in the European market. pioneer.
In contrast, ZTE, Lenovo, and TCL, which once had similar sales in Europe, have fallen. In the next few years, Xiaomi and OPPO will replace them and become a further force for domestic brands to enter Europe.
Domestic brands attack Europe
For domestic brands, entry into the European market is an important step for overseas markets in the absence of domestic demographic dividends and market saturation. As a developed market, Europe’s value is much more than simply increasing sales.
At present, millet outside Huawei, OPPO have clearly put forward the strategic plan to enter Europe. In the past quarter, Xiaomi has created a good sales performance.
According to data provided by Canalys, in the first quarter of 2018, Huawei's sales growth was 38.6%, and its 16.1% share continued to sit firmly at the third place. However, Xiaomi inherited the rapid stance in the domestic market as well as the Indian market. No trace has won 5.3% of the market share, and the growth rate is as high as 999%+.
The success of Huawei and Xiaomi indicates that domestic mobile phone manufacturers have received positive feedback on their tactics. Today, after ten years of turmoil, Chinese brands have forsaken their rivals in the wave of smart phones and become the most important force in the global market. Today, entering the European market will be an important stop for domestic manufacturers to win with brand, quality rather than price.
According to the statistics of European products by Canalys, in the first quarter of 2018, there was no difference between the European mobile phone market and the mainstream market:
18:9 The overall screen has gradually become mainstream; dual-card dual-standby models have become more popular; the models with 4G or more RAM have increased by 82.7%; and the dual cameras and three-camera models have increased by 155%.
Obviously, domestic mobile phone response to the market trend can be described as rapid and even radical. Huawei's first introduction of three cameras, its meaning is not obvious. And the cooperation with Leica, Huawei has become the strongest endorsement in the field of mobile phone camera.
In addition to Huawei, Xiaomi and OV also continue to take various measures to increase the brand's influence in Europe.
Not long ago, Xiaomi announced the listing prospectus and formally launched the plan to list in Hong Kong. Subsequently, Lei Jun visited Li Ka-shing and showed him the Xiaomi mobile phone and reached a cooperation. He joined the global strategic alliance between Hutchison Kee and Xiaomi, and put Xiaomi’s smart phone in smart. Hardware and lifestyle products were introduced into the Yangtze River and Hutchison's telecommunications and retail sectors throughout the world.
There are more than 17,700 retail and telecommunications shops in the world of Hutchison’s Hutchison, and nearly 130 million active mobile telecommunications customers in 11 countries. Europe is also an important market for Changjiang Hutchison. This cooperation will enable Xiaomi to enter the European market. The channel problem can be followed by Huawei and Huawei.
Compared with Huawei's millet, OPPO's advantage in entering the European market is not obvious. At the Qualcomm 2018 cooperation summit, OPPO formally announced that it will enter the Japanese and European markets. At present, the Japanese market has obvious movements, but the European market is not moving.
Compared with domestic and Southeast Asia, the attributes of developed regions in European markets make users insensitive to prices, and shopping is relatively rational, and OPPO's marketing skills are not applicable to European markets. At the same time, OPPO's disadvantages in products are relative to European markets. Obviously, OPPO requires more powerful product support for configuration, industrial design, and innovative features.
However, according to the news, the Find series with OPPO's many years of shutdown is expected to be available in the second half of this year. As OPPO's flagship series, Find will undoubtedly become an important weight for OPPO in terms of product competitiveness.
As an OPPO's first brother, Vivo announced its entry into Europe as early as 2017, but so far has not seen vivo's role in the European market. However, at the beginning of this year, MVC, Vivo with an Apex model has attracted international media attention. The fingerprint technology under the screen is also the most mature in vivo. It is clear that vivo is already in the product technology reserve and is ready to fully enter Europe.
Huawei millet OV, the four giants of China's mobile phone brands, after conquering the domestic and Southeast Asian markets, finally blew up the clarion call to conquer Europe in 2018 and looked for their respective advantages to seek a breakthrough in the European market. In the coming years, Market performance of Chinese brands, Europe will become one of the most important indicators.
postscript
For Huawei Millet and OV, entering Europe is an important step in global expansion under sales anxiety. However, unlike India and Southeast Asia, domestic brands have succeeded in occupying the European market. Alleviating sales anxiety is not only important, but also important. Brand anxiety and product anxiety.
In many developed countries in Europe, their economic culture is very different from that of developing countries. The differences in consumption habits and the requirements for brands and products are obviously much higher. It is difficult to make a difference in the European market by relying solely on price wars.
This difficulty is a new dilemma that domestic brands have never encountered in the previous market expansion. How to make European and American users understand the product quality and innovative strength of any domestic brands will be an important step for Huawei's millet OV. However, Judging from the many screens of Liu Hai's screens and vertical cameras this year, domestic manufacturers have not yet formed strong enough product strength, and the last trace of “cottage” atmosphere awaits the removal of major brands through technological innovation and cultural enhancement. Take a strong stance and fight positively with Samsung Apple.
In the past, Huawei ZTE has been shut out by the United States. The haze of patents will continue to be a sensitive area for domestic mobile phones for a long time. However, before entering the US market, domestic manufacturers will be on the European battlefield. After going through a “departure war in developed countries”, he will enter the North American market and break into all major markets around the world to form a practice battle.
The European market will be a difficult stop for domestic manufacturers.