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Chinese mobile phone "turn over": from made in China to China brand
sourceChina Business Network
time2018/05/12
- Ten years ago, the hot brands of mobile phones were still dominated by foreign brands such as Nokia, Motorola and Sony Ericsson. Ten years later, among the top five global smartphone shipments, China’s mobile phone brands accounted for three seats and global smartphones came out. In the top ten volumes, China’s mobile phone brand has taken up seven seats.
Chen Jiayu and Li Jing
Ten years ago, the hot brands of mobile phones were still dominated by foreign brands such as Nokia, Motorola and Sony Ericsson. Ten years later, among the top five global smartphone shipments, China’s mobile phone brands accounted for three seats and global smartphones came out. In the top ten volumes, China’s mobile phone brand has taken up seven seats. In particular, the brand power of Chinese mobile phone companies represented by Huawei, OPPO, vivo, and Xiaomi continues to increase.
May 10 is the second "Chinese Brand Day." In an interview with a reporter from the China Business News, Glory said that today Chinese brands need to upgrade their branding capabilities in R&D and value, and gradually realize the transition from “Made in China” to “Created in China” and “Chinese Brand”.
Made from China to China Brand
In 2017, the State Council issued a document setting up May 10 of each year as China Brand Day. China Brand Day will be released and set up from the national level, which means that the tasks concerning Chinese brand building will be put on the agenda of the new period.
Under the background that China's economy has entered the new normal and supply-side structural reforms have entered a critical period, brand building will undoubtedly become an important starting point for upgrading consumption structures and improving the quality and efficiency of economic development.
Yanzhan Meng, research director of market research firm Counterpoint, stated that in the past, for a long period of time, there were no brands, cottages, low prices, and OEMs were the characteristics of Chinese products, and the development of Chinese mobile phone brands was also developed from Chinese manufacturing. In the early days, Chinese mobile phone companies were more representative factories and IDHs (plan design companies). Benefiting from China becoming the largest supplier of iPhone parts, a large number of domestic suppliers have gradually emerged, and domestic mobile phone brands have followed the same industrial chain resources and design capabilities as international brands, and have gradually emerged.
Today, building a brand has become the goal of many Chinese companies. Huawei's terminal CEO Yu Chengdong once expressed the hope that Huawei will surpass Apple. Xiao Jun’s founder Lei Jun once mentioned that Xiaomi’s Chinese dream is to create “new domestic products” with better quality than the foreign brands. Made in China, Chinese brands have also become major competitors in the global market. Domestic mobile phone accounts for 90% of the total domestic mobile phone shipments. The Chinese smart phone brand has even occupied half of the Indian market, and has achieved the first African market share. The status of Chinese mobile phone brands in the international market has also become a microcosm of the increasing influence of Chinese brands. Millet, Huawei, Glory, OPPO, vivo and other mobile phone brands in the interview with this reporter all said that the next step is to focus on overseas markets as development.
According to Sun Yanxi, dean of the first mobile phone industry research institute, the development of domestic mobile phone brands is already a concentrated expression of the powerful interpretation of Chinese brands in the consumer electronics field. This also signifies that China’s manufacturing has not only been upgraded to China’s wisdom, but also achieved An unprecedented height, and leading brands of Chinese smart phones led by Huawei, OPPO, and Xiaomi have also formed strong challenges for Samsung, Apple and other foreign brands.
Consumption upgrade brings opportunities
In fact, the price is no longer the primary factor for consumers to purchase goods. Quality, brand, and value recognition play a decisive role in consumer decision-making.
Relevant experts pointed out that the behind-the-scenes performance of domestic brands has followed the tide of consumer upgrading. With the help of new technologies and high marketing costs, it also promotes the upgrading of corporate brands.
According to the trends of sales share changes in various phases of China's mobile offline market released by the First Mobile Phone Academy, in recent years, the market share of models under $1,000 is rapidly shrinking, ranging from RMB 1,000 to RMB 1,999, and 3000. The mobile phone market share in the price segment such as yuan~3999 yuan is rising. The data shows that in March 2018, the mobile phone market share in the price segment under $1,000 reached 24.6%, which was a decrease of 10 percentage points from 34.6% in February 2017. The number of Qianyuan brand brands and the number of running models decreased from 54 models and 30 brands in February 2017 to 30 models and 20 brands in March 2018. The research of the first mobile phone industry research institute shows that this means that the market accepts two kinds of products, one is a super-high cost-effective model with a moderate price, and the other is a differentiated product with special innovation.
Glory told reporters that the current low prices are no longer attractive, with the smart phone industry in the maturity of technology, application solutions, etc., coupled with the general trend of consumer upgrades, truly attract consumers Or a comprehensive product experience.
And consumer upgrades have also boosted demand for high-end mobile phones. According to the “Analysis on the Operation and Development Trends of the Domestic Mobile Phone Market in 2017” released by the China Institute of Information and Communications under the Ministry of Industry and Information Technology in March this year, the average price of domestic smart phones in 2017 is nearly 20% higher than that of 2016, of which 3000 Shipment volume of domestic smartphones worth RMB 4,000 yuan increased by 74.9% year-on-year, while domestic shipments of smartphones exceeding 4,000 yuan increased by 170.8% year-on-year, and shipments increased from 4.9% in 2016 to 12.7%.
According to Sun Yanxi, rising handset prices are also opportunities for companies to increase their competitiveness. Brands such as Apple and Samsung have absolute bargaining power in the smart phone market, and they dominate the changes in the smart phone market. Both of them have jointly pushed up market consumption expectations. In the past, consumers bought a mobile phone and spent 10,000 yuan. Today, domestic mobile phone brands are slowly being accepted by consumers. Apple X is expensive, but consumers can choose domestic mobile phones with higher cost performance, and brand awareness is not worse than that of Apple. Consumers' buying habits are changing.
The upgrading of domestic brands and product consumption has formed a mutually reinforcing role. Yan Zhanmeng told this reporter that the wave of replacements from first-tier cities to second-tier and third-tier cities has been boosting the upgrading of Chinese brands and domestic products. "A lot of Chinese brand manufacturers have also continuously developed new products to meet the needs of some second-tier cities, even small and medium-sized cities, and the needs of some user segments." Yan Zhanmeng told reporters for example, children's mobile phones, elderly mobile phones are all brand upgrades or consumption. The product brought by the upgrade.
Still need to strengthen independent innovation
In the eyes of people in the industry, although domestic brands have achieved notable achievements in the field of mobile phones, domestic companies need to strengthen independent innovation in the long run. Apple's many years of accumulated design and innovation have enabled smart phones to subvert functional devices. Samsung's control of the industry chain and its persistence in research and development are worthy of Chinese companies' learning.
Sun Yanxi introduced to this reporter that a mobile phone contains more than 200 core components. Since overseas development started early, 20% of which are still provided by US companies, China is still unable to completely self-sufficient, and “the lack of core screen” is still China's entire electronic industry is a short board, and China has not yet commercially developed its own mobile phone operating system.
China's annual personal computer and mobile phone consumer market accounts for about 25% to 30% of the world's total, undoubtedly a huge demand market. However, China needs to import a large number of chips, display panels, and basic electronic devices every year.
Our reporter learned that the current Chinese mobile phone brands in Africa, Southeast Asia and other emerging markets and Apple, Samsung and there is no significant difference, even better, but there is still a gap in the European and American markets.
To this end, Yan Zhanmeng suggested that Chinese companies should also increase investment in high-end component control or R&D. “Only owning high-end components can create a better brand. In addition, Chinese companies need to develop at the high-end user level and in Europe and the United States. The country's market channel publicity to do homework, create a high-end brand image.” Yan Zhanmeng said that this is not a year or two can be completed, but also requires long-term accumulation.
Article Source: China Business Network
