Huawei Consumer Business CEO Yu Chengdong
On the evening of June 11th, Yu Chengdong, CEO of Huawei’s consumer business, personally staged the Play Conference at the recent glory Play. It is worth noting that apart from officially publishing Huawei's "very scary technology" GPU Turbo, Yu Chengdong also set a target of 200 million units for Huawei in 2018. In 2017, Huawei shipped 153 million smartphones globally. Can Huawei achieve its target in 2018?
200 million targets will increase by 30% in 2018
At the scene, Yu Chengdong announced that Huawei and Glory's dual-brand sales in the global market ranked the top three and approached the second. According to him, Huawei & Glory increased its sales by 51 times in 7 years from 2010 to 2017. In 2017, global shipments reached 153 million units, ranking third in global sales, and ranking first in sales in China.
Prior to this, Yu Chengdong had proposed to surpass the goals of Apple and Samsung on several occasions. In the current situation of slowing growth of the global smart phone industry and the cold winter in the Chinese smart phone market, Yu Chengdong believes that this is an opportunity for Huawei to be stronger and stronger.
In an interview after the previous P20 press conference, Yu Chengdong stated that Huawei is currently the third largest in the world. This year and the latest next year, Huawei will have the second largest share in the global smart phone market. "The history will inevitably be ours." one. ”
At the glory Play conference, Yu Chengdong set a target of 200 million units for Huawei in 2018. Comparing to 153 million units in 2017, this means that the growth rate of Huawei smartphone shipments this year will exceed 30%, far exceeding the increase of 10% in 2017.
Huawei + Glory dual brand operation into support
GPU Turbo is Yu Chengdong's "scary technology" and claims that it can greatly improve GPU performance. "This technology can even make Android's gaming experience surpass that of Apple, allowing thousands of machines to play large games." ” Yu Chengdong said. This technology is also first applied to the new series of glory new Play.
Yu Chengdong’s major technological breakthrough has been chosen for the first time in the Glory product line, and his expectations for glory products can be seen. The meeting of Yu Chengdong's platform glory also reflected the positive affirmation of the dual-brand operation. This measure is enough to prove the importance of glory to Huawei.
Regardless of which brand, it is obviously impractical to want to use all users at all levels. It is also a point that many manufacturers have a dual-brand strategy to separate the main user groups at different levels. However, it is rarely successful.
The biggest contradiction between the two brands should come from the internal resistance of the brand. Uneven distribution of resources and reciprocal fighting can't be avoided. Huawei and Glory have found their own position and boundaries, both independent and back-to-back.
This is particularly evident in R&D. Huawei and Glory share Huawei's hardware R&D and supply chain system. Yu Chengdong revealed on the site that as of 2017, R&D investment from Huawei + Glory reached 394 billion yuan, and R&D investment in 2017 reached 10.4 billion euros, accounting for 14.9% of revenue, which exceeded Apple’s 9.5 billion euros in 2017. This also provided support for Glory's innovative research and development.
Glory's Overseas Campaign
In an interview in March this year, Zhao Ming revealed that it was actually controversial that Huawei had previously implemented a dual brand mobile phone strategy globally. In 2017, Glory chose some typical markets in Europe, Asia Pacific, the Middle East, and Africa to explore and verify. “We have found that Glory brands, products and business models can all find a reasonable position and develop rapidly in the region. "Huawei has also received policy support from Huawei after communicating with the company. In December of last year, Huawei's president Ren Zhengfei issued internal documents for the "Glory brand mobile phone single commission bonus plan", which transformed the honorable mobile phone bonus program.
At the end of 2017, Zhao Ming announced the 2018 strategy in his internal e-mail: building a twin-engined overseas development model, focusing on the United States, Europe, Russia, Africa, Turkey, India, Indonesia, etc., relying on the Internet light asset model, In the global mobile phone market has become a "five years ago" brand; in 2020, overseas market sales accounted for 50%.
According to Zhao Ming, overseas sales of glory this year will increase by more than 100% from January to May, and the growth rate will reach 150% or even higher in the second half of the year. At present, the overseas sales ratio has exceeded 20%, and it will reach 25%-30% this year.
Glory's rapid growth in overseas markets has also become the basis for Yu Chengdong's goal of setting a target of 200 million units for Huawei.
However, Zhao Ming emphasized that Glory's overseas market strategy will be both high-speed and effective, and it will be necessary to shape the brand instead of relying on low-end machines like millet and other friendly businesses. He believes that glory in the overseas market to be a sustainable brand, every country into the channel to do a solid, good products, not rely on money to embarrassment. "A lot of sales figures are imaginary," Zhao Ming once said, and the glory of 2018 should be built on capabilities and business models overseas, rather than simply pursuing sales and sales.