Domestic small and medium mobile phone brands in the crisis: betting on the future of 5G
Issue Time:2018-11-08
If the giant company proposes to "live" means that the directional adjustment of its own development path has market significance under the changes of the external environment; then the small company refers to "live", which means that it is constantly being squeezed. Market share, a major proposition that most vendors are looking for.

On November 5th, one plus mobile phone released a new flagship mobile phone in China, plus 6T. CEO Liu Zuohu said in an interview with the 21st Century Business Herald and the media that almost two years ago, the company’s mission was to “live”. "This may become the company's mission every year in the future." Because the longer you live, it means that in the T-shaped mobile phone market that is constantly being screened, the more vacant shares can be captured.

Liu Zuohu believes that the focus of small companies "live" is product focus and channel lightness. One plus is also expected to gain more benefits when 5G arrives with the support of operators such as Qualcomm and Europe.

Meizu, who is also a representative of small and medium-sized manufacturers, has similar thinking. The founder of the company, Huang Zhang, recently publicly stated that the company will focus on development and “hold on the small and beautiful strategy”. However, the hammers of different types are different. The company has been frequently exposed by personnel adjustments in recent days. At the autumn new product launch conference held on the 6th, CEO Luo Yonghao made a clarification. However, most people in the industry believe that the problem that hammers face today is still mainly because they want to do too much, and they are too pursuing "innovation" and bring capital pressure.

In this market where the channel and supply chain resources are almost controlled by domestic head manufacturers, small and medium-sized mobile phone brands have their living space, but the pressure is self-evident. Driven by new technologies including AI and 5G, it can maintain a good balance of its own funds and development, and relatively advanced ability to master the technology, may bring more imagination space for the subsequent development of such manufacturers.

Small and medium-sized manufacturers

In the domestic mobile phone market, where the top five head manufacturers occupy nearly 90% of the total, how many small and medium-sized domestic brands compete for the remaining 10% share seems to be a proposition for survival.

Whether it is the Jinli mobile capital chain crisis that broke out at the end of last year, or the recent Chengdu personnel adjustment incident of Hammer Technology, it shows that China's small and medium-sized domestic mobile phone brands are heading towards a period of great risk if they are wrong.

One plus reveals a kind of "focus" strategic thinking. Liu Zuohu emphasized to reporters that one plus will fully focus and remain undisturbed by the external environment. He pointed out that the industry changes in the mobile phone industry in the past 3-5 years are related to this.

“I think that focusing is a very important reason for our company to survive. The reason why many companies fail is because they are not focused enough, because your resources are limited.” Liu Zuohu said in an interview that Apple is worthy of respect because of its focus. Our duty is to insist on doing the right thing when facing temptation. It is very difficult."

He also recalled that the brand and development path of Jiajia are destined to be different from traditional manufacturers. “I told the team repeatedly, don’t worry, as long as you live is victory. Often the brand falls down, more is your own reason. The weaker place, the higher the moat, not the one who beats."

Meizu, which ranks 5-10 in the domestic sales category, has similar expressions. Recently, Mei Zhang, the founder of Meizu, also publicly stated that he will adhere to the small and beautiful strategy, so that he can survive from the fierce market competition. “It is more likely to develop into a big and strong one when it is small and beautiful.” In the future, in terms of software, Meizu will fully integrate with Ali resources and ecology.

Huang Zhang also replied to the netizens in the Meizu Forum, and will not be desperate in the "double eleven" for the sales. "The sales volume is basically the sale or purchase of the loss, we can't afford to have much inventory, and we are willing to be small and beautiful."

The hammer may look a little different in comparison. Although it is really defined as a "small and beautiful" brand in terms of mass and crowd positioning, Hammer Technology and its related companies have long been more than just mobile phones and mobile phone derivatives. the company.

For example, on the 6th autumn new product launch conference, with the theme of “Hammer and TA friends”, the company released air purifiers, smart speakers, and chassis, etc., after the hammer was in the CEO Luo Yonghao’s own cost comparison. Research and development in high TNT workstations and personal computers.

Business diversification is also considered by the industry to be a major factor affecting the hammer capital chain. However, Luo Yonghao believes that the series of products released with the subsidiaries and joint ventures show the support of the hammer for “Made in China” to “China Design”.

For the staff adjustment, at the autumn conference, Luo Yonghao explained that the Chengdu branch has been, "the failure is not a thing." He further explained that if R&D resources belong to three regions, the overall R&D efficiency will be reduced. “The same project was completed two or three times, and the efficiency would be very poor. Therefore, we re-integrated and led to the Chengdu R&D Center. Some of them were laid off and some were transferred to other places. Some of the teams in Shanghai were also integrated into Beijing.”

In the period when the supply chain greatly affects the development of mobile phone manufacturers, small and medium-sized manufacturers often face the problem of being less able to control the supply chain than the head manufacturers. This is also a reason why manufacturers including Meizu and Hammer are difficult to sell after the release of new products.

However, the manufacturer's own endowment is also different, for example, one plus has a comparative advantage in the supply chain resources. At the end of October, when interviewed by the media in New York, Liu Zuohu said frankly, "In the supply chain, the relationship with OPPO has solved a lot of problems for me. But other, OPPO can't help me."

Canalys analyst Jia Mo analyzed the 21st Century Business Herald reporter. From the perspective of the development of the second and future echelon mobile phone manufacturers in China, medium-sized manufacturers including Meizu, etc., the development focus is on the clarity of product strategy. "Meizu is now in a somewhat embarrassing position in the original second array. Samsung, Jinli and other manufacturers have been defeated one after another. The Meizu mass is generally good, but it faces great challenges in terms of operating cost control, especially with Xiaomi. Mainly in the fan market and the geek user market, and in the face of a very cost-effective positioning, there is no obvious improvement."

He further pointed out that Huang Zhang’s recent statements indicate that Meizu’s ideas in product planning are becoming clearer and clearer, but in the future, it will still face the problem of ensuring market volume. Once strategic deviations or mistakes occur, there may even be a situation in which development is not successful.

Jia Mo believes that Yijia has a good momentum of development in overseas development and has a promising future prospect. The development model of hammer refinement, positioning the segmentation market, it is necessary to expand as many users as possible, and to ensure the loyalty of old users.

"Through the cancellation of offline stores and low-end products in 2016, it shows a plus corporate style, which is a relatively efficient operation, while providing extremely cost-effective products." Jia Mo believes that Meizu is relatively passive, due to business It is mainly based in China, it is difficult to go to the first camp, and it is easy to face various cost crises. “The operational risks and costs of the central manufacturers will be even more dangerous. They need to demonstrate unique competitiveness and strength.”

Grasp the new technology

Among the skills that mobile phone manufacturers are now “must have”, AI and 5G have become the focus. It is precisely because in the 4G era, some mobile phone manufacturers have a slightly conservative layout, which directly led to the lag in the subsequent development. Many people in the industry believe that in the 5G era, the second ladder and later manufacturers may also face a re-division of market share.

This has also led to the development of 5G services. Although the domestic spectrum has not yet fully landed, the information on the progress of R&D of mobile phone manufacturers in overseas laboratories is very positive.

Liu Zuohu also told the 21st Century Business Herald that due to the rapid progress in the European and American markets, the pace of 5G promotion in the European and American markets will be relatively fast in 2019.

"I feel that one plus is overseas, for example, the growth space of the European and American markets is very large." He pointed out that according to the current development of manufacturers in 5G, in fact, operators can choose not many partners, and one has already been in Europe and America. Certain influence.

Jia Mo also analyzed with reporters that not only the infrastructure construction and R&D, but also the consumption acceptance, it is still difficult to popularize 5G in the short term.

"After the 5G infrastructure is mature, the initial cost of the manufacturer entering the 5G market is still very high. The patent expenses lead to high equipment costs. Advance entry and try to reduce the price, there will be a first-mover advantage." Jia Mo pointed out that, for example, Europe and the United States can accept operators. The cost of the package is 20-30 euros or even higher, but it is still difficult for large-scale acceptance in China, and operators need to continue to solve this problem later.

Of course, the mobile phone manufacturer's first-line layout is particularly important. Once the 5G network can be implemented, consumers do not find a matching product in the favorite brand. For the manufacturer, it means losing the opportunity of the 5G era. He also pointed out that from the perspective of 5G research and development, head manufacturers still have relative advantages in terms of capital and other strengths, but they are also related to the enthusiasm of the manufacturers themselves.

But at present, the maturity of the commercialization of new technologies still takes a lot of time. Liu Zuohu said frankly that 5G, as a revolutionary technology, can really play a better role after five years.

"Real 5G will bring changes to the user's disruptive experience. It should be the Internet of Everything. On the mobile phone, the first phase is of course a faster speed up and down experience, but I think this is not revolutionary. When you are faster When the operator may give you better service, you will forget the concept of local and cloud, this basic experience will be better, but it may be three or five years later," Liu Zuohu said.

In the artificial intelligence application and research and development that mobile phone manufacturers repeatedly emphasize, Liu Zuohu believes that AI will inevitably change the technology life of the whole human being in the next five years, but the current AI function is still weak.

“The real AI is the habit of learning one person every day, and it takes lifelong learning. Like a personal assistant, the longer it stays with you, the more you know about you, the more you learn on your mobile phone, the terminal AI. This is The future direction. It is far from enough.” In Liu Zuohu’s view, the next technological breakthrough in mobile hardware by mobile phone manufacturers will include the development of the camera under the screen.

Article source: 21st Century Business Herald

HSEM    M5501

Branded mobile phone style, Leading the fashion trend.M5501is A cost-effective mobile phone

 HSEM    x9

High-definition camera, shooting more beautiful picture.

HSEM    I6