Author of Tencent "Deep Net" Ma Guanxia
On a normal working day in May 2015, Zhao Ming, the president of Glory, who had just taken office less than three months, encountered a tricky thing. A group of glory mobile phones in transit, extremely rare container wheel spontaneous combustion accidents occurred despite the container The mobile phone inside has not been burnt out, but a small number of mobile phones are still affected by the high temperature. The quality inspection department judged that the majority of these phones should be used after two years of use, but it is not 100% sure that there is no problem.
The 20 million mobile phones worthy of glory were prepared for the upcoming 618 e-commerce promotion. At that time, the market was selling well and often out of stock. Is it possible to sell at a reduced price and explain the situation to the consumer to minimize losses? The management team of Zhao Ming and Glory quickly dispelled this idea. In order to ensure product quality, they decided to destroy the phones.
The glory to destroy the value of 20 million mobile phones quickly spread in the circle, and also played a reputation for the upcoming 618, that year 618, glory became the best online mobile phone brand. In October 2015, Glory completed its annual sales target of US$5 billion ahead of schedule and became the new star of Internet mobile phones that year. At the end of 2015, Zhao Ming’s year-end performance was played in China’s enviable A.
However, the great glory of the situation quickly encountered the first difficulty since the birth of the brand.
At the end of 2015, in order to thoroughly implement the dual-brand strategy of mobile phones, Huawei's consumer business announced its glory to operate independently. The glory brand needs to be completely separated from the sales network of Huawei brand. Starting from the offline, the online Tmall store split, and the online sales of glory quickly fell by 40%. The glory brand, which has not yet been full of wings, has suffered from organizational adjustments throughout 2016. At the end of 2016, Zhao Ming and Huawei's senior leaders said, “It doesn't matter if the performance gives me C, but I will never allow my position to be moved. I just want to rely on the position of glory. ”
In the past three years, Zhao Ming has made achievements in his own position. The data shows that glory mobile phone has been leading the Internet mobile phone for ten consecutive quarters. Since 2018, when it has fully explored overseas markets, it is expected that overseas markets will be 2019. More than 100% growth has been achieved, and Glory Mobile has also set the latest target as China's top two and the world's top four.
How to deal with future channel changes and how Huawei's dual-brand operations work together, and how to deal with the challenges brought about by the current changes in the international situation? Zhao Ming, president of Glory, recently accepted an exclusive interview with Tencent's "Shennet" and other media, and gave detailed answers to the brand strategy of glory.
Omnichannel brand strategy
In 2019, the rapid growth of China's smartphone market has ceased to exist. According to data from China's ICT, from January to March 2019, domestic smartphone shipments reached 73.72 million, down 10.7% year-on-year. In the cold winter, major smartphone manufacturers have also accelerated their changes. Xiaomi and OV each split a new brand. Apple, which has a poor sales volume, has already carried out several rounds of price cuts in the past few months. Samsung, which has retreated to China, is also trying to make its flagship and low-end products come back at the same time.
In the face of more and more fierce competition, glory has completely bid farewell to the Internet brand and began to accelerate the offline layout. Zhao Ming previously attributed the glory to the strategic transformation including the offline layout acceleration, which was summarized as “Secondary Rocket” strategy. He said that this strategy includes highly competitive products, highly expanding channels and extremely powerful scenes. Ecology and a very young brand. If the online Internet model is the glory of the "first-class rocket", to promote the glory to quickly expand the scale and impact, then including the channel transformation of the physical store model under the power line, "four extremely" It is an important boost that constitutes the glory of the "secondary rocket", and the glory is fully transformed from an Internet brand to an omni-channel brand.
According to data released by Glory officially, glory has opened a total of nearly 2,000 offline stores, which will cover flagship stores, lower-level stores and the three models of the glory of the consumer lifestyle and youth lifestyle. Prior to April 27, glory in 2019, the 100th shoppingmall store & ldquo; Glory Life & quot; tide play shop opened in Kunming.
Zhao Ming revealed that the glory Life Chengdu store will also open in the near future, and this year there will be such offline stores. When talking about the brand concept of glory Life, Zhao Ming said, “I hope to let consumers better understand what the original glory brand advertises, “young, technology, tide goods” is how he interprets. Can see, feel, and experience perception. ”
However, Zhao Ming also stressed that the light business model of glory will not change because of the power line. “Glory closely cooperates with the channel and retail partners, and each of their own good things will never change, such as Kunming. That store is that we sent the team of the brand department and the domestic retail department to Kunming to do with them. The store is not glorious. The store was built according to the glory of the store, but it is our retail partner. This store in Chengdu is built by our brand department. It is not a domestic sales team. How much do you want to build a brand department? It is definitely a show for all users, so that everyone can better understand our brand image. What is the brand concept, and what kind of experience can consumers have in the glory of the storefront? This is a comprehensive and comprehensive relationship. ” Zhao Ming said.
It doesn’t make sense to put two fists together.
Zhao Ming once compared the relationship between Huawei and glory to Volkswagen and Audi. Huawei and glory are completely separated in terms of brand and sales channels, but they share some basic technologies in research and development.
When faced with the question of whether the future Huawei and glory brands will be more united in response to the new global form, Zhao Ming bluntly said that internal unity and external independence are not contradictory. He said that “the future two brands will create a new one together” Ecology or brand new, unite more people together, we make the whole industry better. It is inevitable that they support and cooperate with each other from different angles and different dimensions. ”
However, as the dual brand of Huawei's consumer business, glory and Huawei's business overlap, how to balance the competition and resource building issues is particularly important. In this regard, Zhao Ming said that the glory and Huawei brands have always achieved a good balance in this regard.
“As a dual brand under the Huawei system and the group, we have made a difference in our respective target user groups, business models and basic brand concepts, and we have done things according to our defined business model brands and target user groups. So in the past few years, we have not been confused when we do this. ” Zhao Ming said.
He also said that the glory and Huawei brands have reached a consensus on the highest strategic level when it comes to the coincidence of product prices. “When the market and target user groups and the competitive situation change, this problem naturally comes out. What we do is to adapt to customer needs and the market and competition naturally comes to this. This is a natural process as a business management organization and team in this process. ” Zhao Ming said.
In Zhao Ming's view, glory can only go farther and farther by sticking to its own path, and Huawei and glory are like two fists. It doesn't make sense to be together.
“We will not rely on Huawei to be more and more high. You only have to walk your own way, and this road will become wider and wider. When Huawei set up the two brands of Huawei and Glory, it was hopeless that two horns, two fists, and finally two fists would become a fist. This is meaningless. ”
How to deal with the challenges of the international situation
Due to the latest changes in the international situation, Zhao Ming frankly made appropriate adjustments to the previous goals, but he also said that the overall direction and strategy of glory will not change.
“We didn’t think that the international situation was a change in this way, but we felt that the boots had to land, and the boots had to land, no matter what, the direction and goal became unique to us. ” Zhao Ming said.
Zhao Ming said that under the current circumstances, glory will further strengthen the Chinese market. At the same time, Huawei already has alternative solutions such as chips and operating systems. Zhao Ming believes that this may be a better opportunity to work with more Internet partners around the world to create a unique ecosystem.
“There are many Internet companies in Europe and there is an ecosystem similar to the Internet like China. In fact, everyone is open, and the future of Internet services may be a new opportunity and development. You will find that this is still a feeling that people can make a lot of different things in the future. ” Zhao Ming said.
In terms of the product competitiveness of the mobile phone itself, Zhao Ming believes that the key to the next step of competition is the experience of software and operating systems. According to Yu Chengdong, president of Huawei's consumer business, Huawei will launch its own operating system as soon as this fall and at the latest next spring. Yu Chengdong also said that Huawei's operating system will be compatible with all Android applications and all Web applications. The experience of software and operating system may become the highlight of Huawei's mobile phone in the future.
Zhao Ming finally revealed that glory will launch 5G mobile phones at the end of the year, but the release time and location are still undetermined.
The following is an interview record (slightly adjusted without changing the original intention):
Q: Before Yu Zong (Yu Chengdong) said that support for glory development, including products, brands and channels, glory 20 is the first shot? After that, in terms of the rhythm of the product, in the first half of this year, we watched the product slower and the brand rhythm was relatively slow. What are the plans for the second half of the year?
Zhao Ming:In fact, in the first half of this year, we should be preparing products. If we say that we can further enhance the overall experience and performance of Glory 20 and 20 PRO, this product should be released in April according to the rhythm of last year, around mid-April. More than a month later, the domestic release should be No. 31, the sales should be June 1, and the second day after the release. We postponed and hoped to be able to polish it carefully. This time, we did not have any discounts to build a product to the consumer. This is the change in the rhythm control of our product planning this year.
The Glory 20 Series is indeed the first product to carry our new strategy in the entire new strategy. This product has been seen today, 20 and 20 PRO. I believe that when you use 20 and 20 PRO to take pictures, I can say Compared with any camera in the market, it is not lost, even in many places, we are carefully adjusted and polished.
In addition, in the second half of the year and the future glory product market strategy, it also matches our entire business strategy and market strategy. We also match the product strategy, so after the glory of the 20 series, it will be followed by the second quarter, June 1 Officially launching our 20 series, very fast in the third quarter, very strong products will come out, including the next four quarters we plan to launch 5G corresponding products.
This series actually carries a new business strategy of glory, and this business strategy is not affected by the current situation and changes, or we will be more active and proactive.
Q: What do you do with the follow-up actions in the future?
Zhao Ming:I should be able to see a little bit of this year. I am not announcing the glory of Life. In fact, glory Life was first tried in Kunming. Immediately in early June, we will build another store in glory in Chengdu. You will see a new experience that we hope to combine online and offline to give consumers and our users a better understanding of the brand. If we always spread our brand ideas and ideas online, in fact, we still lack the most intuitive first perception. This is also the concept store that we will later consider with Xiaoyun and the brand department to build some glory brands nationwide.
It is to let consumers better understand the original glory of the brand, "Young, technology, tide goods" is how to interpret, he can see, touch, experience perception. This year, we will actually have such an offline storefront display, which is very different. So I also invite everyone to go when the Chengdu store opens.
Q: Why is this time?
Zhao Ming:We say that this is a public back garden. Anyone can come in and sneak. We never say that online is our reserved land. In the future, several brands will become omni-channel brands. OPPO, VIVO, Huawei, Samsung, Xiaomi, you will see that starting from last year to this year, I am not particularly emphatic of the Internet brand, glory to become a full-fledged brand. I simply don’t think it is enough to describe today’s market situation. Huawei, OPPO, glory, Apple, and Xiaomi have already occupied 95% of the Chinese market. In this case, everyone is looking for This is a very normal thinking logic for new growth opportunities. We are just like glory before the changes in the entire market, we have one or two quarters in advance, half a year to nine months to discover, and made transformation and transformation in advance.
Looking back on these years, from 2015 to the present, every time we make a pre-judgment on market changes, we are very accurate, so we are prepared in advance, and some pits have been avoided.
Q: Will the light business model be adjusted, will it be a certain degree of aggravation?
Zhao Ming:No, we should have said that when the store of the glory Life in Kunming opened, glory closely cooperated with the partners of the channel and retail, and each of their own good things will never change, such as Kunming. The store is that we sent the team of the brand department and the domestic retail department to Kunming to do with them. The store is not glorious. The store was built according to the glory of the store, but it is our retail partner. This store in Chengdu is built by our brand department. It is not a domestic sales team. How much do you want to build a brand department? It is definitely a show for all users, so that everyone can better understand our brand image. What is the brand concept, and what kind of experience can consumers have in the glory of the storefront? This is a comprehensive and comprehensive relationship.
Q: The brands of glory and Huawei are becoming more and more independent. Now, under the global situation, is it possible to go in a more united direction in the future?
Zhao Ming:The internal unity and the external independence are not contradictory. In the future, the two brands will create a new ecology or brand new together, unite more people together, and we will make the whole industry better. It is inevitable that they will support and cooperate with each other from different angles and different dimensions. The philosophy and user group of the glory brand is unique in the entire Huawei and glory brands.
So from this perspective, we may be building more ecological places in the future, and glory will be more positive.
Q: You will feel that glory should be a Huawei company. When do you feel that glory should be a glory, because this thing, when you and Huawei are definitely involved in the issue of competition and resource building, this is a difficult problem to match. How do you see this problem?
Zhao Ming:We are now well balanced, and glory is in many daily things, basically we make our own decisions. Today, no one has come over to give me a platform, and no one. As the dual brands under the Huawei system and the group, we have different opinions on their respective target user groups, business models and basic brand concepts, and each has done things according to our defined business model brands and target user groups.
So in the past few years, we have not been confused when we do this.
Q: Did you consider that Huawei will come over and the glory will pass over? The glory will come out with products that involve the price of Huawei P series. It involves product overlap.
Zhao Ming:This is the consensus reached at our highest level of strategy. The latter thing is discussed and entangled in this matter. There is no way to do this.
Q: But how is this strategy achieved?
Zhao Ming:When the market and target user groups and the competitive situation change, it naturally comes out. For example, when we were honored to be an Internet mobile phone, the flagship machine was 1999. At that time, we said that 1999 is a very good standard price that we can do, and then we can make a good mobile phone. Now you can use 1999 again. It is very difficult. . This time is actually the development of the market and the whole technology. We used to make a camera, and now we have used four. The original photo was 12 in the year, now it is 48, it is 64 soon, and it is not a billion-level pixel. This is the need for technological development. The development of your technology, the development of demand, the product you want can be made for four thousand dollars, but you still guarded 1999, you are eliminated by history and market. What we do is to adapt to customer needs and the market and competition naturally comes to this. This is a natural process as a business management organization and team in this process.
Q: How do you evaluate the route and development of the two dislocation competitions of glory and Huawei? For example, young people's spending power is higher than that of middle-aged people. Is the definition of glory products more advanced than Huawei?
Zhao Ming:It’s not completely high-grade or high-level. When we were released in Europe in the past two years, we also discussed the materials for the conference. The young people nowadays, because many young people in Europe buy glory mobile phones, they Based on what kind of ideas, we have recently communicated with many of our operators' customers, including our young fans. The first impression we found that glory is a brand that increases input and flow to them. That is to say, the brand of glory is different from other brands on the market. Many people are users of other operators because they like glory products. Transferred by other operators. This is the spirit of your brand, which is why these years, you are also asking, is Huawei and glory sometimes well maintained, because we have defined the front, we will not say that Huawei is getting higher and higher today. Go to him, no. You only have to walk your own way, this road will become wider and wider. When you go to other people's roads, if Huawei sets up the two brands of Huawei and glory, it is hoped that two corners, two fists, Finally, turning two fists into one fist is meaningless.
So when the entire glory of the brand and products are operating, the old bear just said that our target group, what is our brand core, we continue to do in this direction, what it is like.
You said that the future glory of the user group likes to listen to music and play games, then we will improve the game's attributes, and add better, better accessories for the game, such as using graphite to dissipate heat, in the glory 20Pro, The heat dissipation performance is very good. I can meet the needs of more users in this area. If you are a professional gamer, we don't necessarily satisfy your professional game.
Therefore, in the entire product design, glory will firmly follow our existing strategy. You will see that when we split 20 and Pro into two products to define a series, it actually gives us a bigger Flexibility, sometimes our user base still wants to buy glory 20 products at a reasonable price, but some people feel that it is worse for me, we will use glory 20 and Pro products to better cover it completely.
Q: You said that three years ago, five years ago, will this challenge increase the time point?
Zhao Ming:We will make appropriate adjustments to the changes in the international situation, but our overall direction and strategy will not be adjusted. Big direction and strategy, you have to say three years and five years, we have not thought that the international situation is a change in this way, but we feel that the boots are always on the ground, the boots only have to land, no matter what, For us, direction and goals have become unique.
Q: Under the circumstances of the situation just mentioned, the business strategy will be affected, but there should be some changes in the layout and attention of the market. In this year's situation, we are in the global market, for example, which markets will focus on, especially if the Chinese market will be bigger than before?
Zhao Ming:We started in China, so in this case, the Chinese market will definitely be further strengthened. There is no doubt about this. So in terms of the global market strategy, it is certainly because of this matter, it takes a certain amount of time to obtain various solutions. However, some of the existing products and products being sold are also unaffected and can continue to be sold. And everyone has seen it on the Internet. We also have corresponding devices and chip alternatives and measures, so we will definitely Keep going forward.
In the future, it is a good opportunity to work with more Internet partners around the world to create a unique ecosystem. There are many Internet companies in Europe, and there is an ecosystem similar to the Internet like China. In fact, everyone is open, and the future of Internet services may be a new opportunity and development.
So we said that what we have seen is actually a big challenge. Today, we don’t have to deal with this matter. But in addition, you will find that you can feel that you can make a lot of different things in the future.
Q: At present, the market in China is already very fierce. In addition to the polishing of products, what kind of measures will we take, such as the brand facing competing products, what are the more favorable or independent measures, and there is no way for other families to imitate Measures, do we have plans or ideas in this regard?
Zhao Ming:The most important thing is the design and experience of the product. Frankly speaking, other aspects can be quickly followed up and imitated, such as price. The core of the product is what we add after the device is put together, the screen you can get, I can also get, CPU, processor, structural parts, when these devices are put together, as a device The value is fixed, but as the mobile phone brand and manufacturer, the most important thing is when you put your system design and software design architecture together, what value do you bring to him, the product itself It is the added value brought to him by the next hand. We may just want to use our innovation and technology to bring more added value, and then we give back to consumers.
In the ongoing strengthening of the future, we have a very high position in our organization. We only have one vice president, the old bear, and our vice president of products.
Q: Just now you said the product competitiveness. Can you elaborate on it? I feel that the main competitiveness of the PRO is the camera. Is it that the current competitiveness is mainly the camera? Is there any other?
Zhao Ming:The next step is still in the experience of software and operating systems. In fact, objectively speaking, the experience of taking pictures is the most intuitive, and the best display and interpretation are the most intuitive. Second, we have to see the current consumers, using a mobile phone for a period of glory, Huawei’s mobile phone is also good. You will see that after half a year or even one year of application, the entire product experience is the best for consumers. In this respect, we can do the corresponding market research. Our entire Huawei and Glory team has spent a lot of energy to understand the experience of consumers after using our products.
So you will see why in the past few years, the retention rate of our users or the proportion of Huawei mobile phones and glory mobile phones has been the highest. And our users' NPS, in the past Chinese market, we are all ahead, this is the key to competition.
Since the user has been using it for a while, you will find that we may be scaled from 90 to 70, which may be our marketing and communication capabilities. In turn, what is the benefit? Our word-of-mouth marketing has been accumulated from generation to generation. Each generation of our products is continuously increasing in sales on the basis of the previous generation. Glory 8, Glory 9, Glory 10, each generation They are better than the previous generation. This time the glory 20 series has two products, not to mention, it is definitely a bigger explosion.
There are some brands whose flagship machines are very ups and downs, and our generation is better than the first generation. The first generation of people who use our products will eventually form a good reputation with the friends and family around them. I have used this series on this basis. We are increasing.
So you will see glory in the past Chinese market in the past few years, we are all very stable and steady development. For many fluctuations in the market, the relative impact on glory is minimal. In recent years, our channels have been steadily improving, especially in the offline part, and the offline is also the most efficient driver. Therefore, under the overall market situation and in the face of competition, we will adhere to our own strategies and styles to comprehensively enhance our comprehensive capabilities. This comprehensive capability is not only reflected in the configuration of hardware, but also in configuration. In the end, you find that the features and features that consumers really want are on the glory of the phone. On the other hand, we spend a lot of time on the experience that consumers can't see, because the propaganda is not visible. We used to joking that we can take the high-speed rail. You can compare it and use our mobile phone to take the high-speed rail and the friend's mobile phone. In comparison, at the speed of 350, whether it is data business or entertainment business, our experience is better than others. But this place is not like taking pictures and patting the moon. It’s easy for everyone to look. The moon is now a stalk.
Then we developed the elevator mode, looked at the things inside the elevator, and returned to the 4G network with the fastest speed of the elevator. We just for those seconds, we can optimize back to 4G network three to five seconds faster than others. We Will put your energy here.
So you finally found out that the future is really in this market. We believe that many and many details are polished and invested in places that others can see and see, but the impact and experience on you can obviously make you apply. It can be perceived afterwards. Someday you may have bought someone else because of other parameters, but for a while we firmly believe that he will come back.
Q: 5G will be issued at the end of this year. There are also operators' channels. Will we strengthen the channels of operators in the future?
Zhao Ming:In Europe, we have more and more cooperation with operators. Glory has a characteristic. To enter any market, we must start from the open market. In the open market, we will verify the cooperation of glory brands, products and our retail. Well, when this verification is completed, we will go to work with the operators. You will find that glory is a market. After a few to three months, it will spread like a big bang. We are not. There have always been two points, three points, five points, ten points, step by step, but this way we walk every step is very practical, we take our own core skills firmly in each step. In your own hands, and everyone knows that you are going every step down, you are ready. When you see the glory today, we have made a good reserve for the next step of growth. So this forms a positive cycle that keeps moving forward.
Q: I finally want to know about the planning of the glory 5G mobile phone. Is it the first in China to be the first in China?
Zhao Ming:Now we have not yet released, it should be in the country. There is no final conference yet, and the fourth quarter conference has not yet decided where.