Huawei: brand is king
Huawei as one of China’s greatest non-listed companies, its many years of precipitation brand for its mobile phone sales has brought great help. From 2010 to 2017, Huawei mobile phone shipments each year to maintain the “phenomenal level” growth: the first year 3 million, the second year 20 million, to 2017 reached 139 million. We mentioned that Huawei, the first reaction is to fly. From the beginning, Huawei has a congenital brand advantage. This does not need to like OV, millet as to re-build.Of course, has a brand advantage is not the key to success, history, there are bad good business to do the failure of the phone. I bought a Lenovo phone a decade ago, the experience is very poor. So light brand is certainly not enough. From the beginning when the time, Huawei or holding the “carrier nurturing” mentality, through its inherent advantages to become the operator’s custom machine. This is also the “China Cool” formation. This kind of operator custom mobile phone quality is very poor, but the amount is very big, and the replacement soon. The user for the quality requirements are not so high.Huawei’s early mobile product planning is divided into four series: D, P, G, Y; respectively, diamond, platinum, gold, young; corresponding flagship, high-end, mid-entry, entry. But the D series because the unicorn is not to force and sink off the halberd, D2 after being cut off, G series is tepid, Y series is completely fade out of people’s vision.Huawei re-adjust the strategy, the mobile phone positioning in the high-end crowd, with the later is the sale of the Mate series. Large screen, metal appearance, long life, Huawei hit a large number of business people’s pain points, superimposed on its strong brand, so Mate series to help Huawei topped the domestic mobile phone market. Huawei’s mobile phone UI processing system is also very strong, a lot of Andrews phone pain point is more slowly. While the Huawei mobile phone can keep the system quickly deal with the state.If China will really sense the emergence of a high-end mobile phone, it must be Huawei. Of course, Huawei’s user portraits and pricing, also believe that its users will pay a higher premium for the brand, quality.Third of the world, who will dominate the future of domestic mobile phone?From the business model point of view, the three have great differences, it is these differences will determine the future of China’s mobile phone.As a faithful Miboy, I am still optimistic about millet. When the phone gradually become a consumer product attributes, the price will be the most important part. And only millet to the middle of the model, in order to bring real cost. The problem of millet over the past few years is that the pricing strategy is too low-end, we can see from the following figure significant differences. In the price of more than 2,000 yuan mobile phone, millet almost no. But with the introduction of millet Mix, as well as the introduction of follow-up models, I think millet will gradually enter the high-end mobile phone market.At the same time, millet sales through mobile phone sales of other hardware, including routers, bracelets, air purifiers and so on. All along, millet to platform the thinking of selling products. Lei Jun is the most understanding of mobile phone manufacturers in the Internet. And in the deep plowing of the five years after the mobile phone market, millet for the supply chain management, production line management and other industries know how to get up. The future will put more energy on the grinding of the product. Whether it is red rice Note, or millet 5 series, my experience is very high quality products.Another core is millet cloud service. Through the initial card bit to obtain the user, we have a large number of these users are stored in the millet cloud. This results in a high user migration cost. This idea is also similar to Apple, so I have always said Lei Jun is one of the deepest study of Apple.
For OV’s offline channel, I still think that its core or earn information asymmetric money. After all, a large number of three or four lines of urban users information channels are not extensive, and offline store, the brand for their attraction is great. OV also gave the dealer a very high commission, also shows that its mobile phone pricing has a lot of profits. Long look, I think the channel is the king of OV only stage products, of course, both have done very well.Huawei’s brand strategy, will make it a long-term to maintain a strong competitive edge. Better quality of goods, to attract more business people, but also bring more pricing power. However, Huawei is more concerned about the product, in the business model or pure hardware thinking, than the millet Internet thinking behind a grade.Of course, long term, product innovation is the key. So the future we will see more innovative smart phones, including dual lens, fingerprint payment and other technologies. This is the future of the mobile phone industry chain new opportunities. In the process of upgrading the model, the inevitable use of a large number of the latest hardware technology, investment will also be driven by the core competitiveness of the mobile phone industry chain suppliers. And the past few years, it is the rise of domestic mobile phones, but also led the domestic mobile phone manufacturing process.Revelation: the future of the mobile phone industry chain is still a lot of investment opportunitiesWe see a new generation of domestic mobile phone has a distinct feature, that is, regardless of the production process or pricing are not lost to the world’s top mobile phone manufacturers. Ten years ago, whether it is waveguide, Amoi, or TCL, in the production process and brand compared to Nokia, Ericsson, the gap between these brands a lot. Domestic mobile phone gives a more “migrant mobile phone” feeling. But these years, regardless of millet, Huawei, OV, etc., their production process and brand completely do not lose to Samsung or even brand. This is also the rise of China’s manufacturing industry. We also see more and more domestic mobile phone exports to overseas, even the United States have millet, Huawei. In India, the best mobile phone is also selling millet, Huawei, OV this.So the future more and more mobile phone industry chain investment opportunities will appear in China.In the entire hardware production links, China can be said to have been the world’s best. While the full competition in the domestic market will accelerate the upgrading of the technical path. The whole global mobile phone is basically two lines: apples and non-apples. Apple model because iOS to build a strong software moat, the pricing power from the system side. Rather than Apple’s Andrews model, the matching requirements for mobile phone hardware is even higher. This also brings a large number of upgrading needs.