This time, huami ov will burn the war to the European continent 8000 km away after experiencing the scuffle between the domestic market and the fierce battle between India and Southeast Asia. At the end of last month, as the last domestic mobile phone manufacturer to land in the European market, vivo officially announced its entry into six countries, including Britain, France, Germany, Spain, Italy and Poland.
Domestic mobile phone manufacturers seize the European Highland
With the gradual saturation of China's smart phone market, domestic mobile phone shipments declined for the first time in 2017, and showed a growing trend in recent years.
According to the latest report released by China Academy of communications and communications, in October 2020, the domestic smartphone shipment volume was 25.014 million units, a year-on-year decrease of 27.7%; from January to October 2020, the total domestic smartphone shipment volume was 243 million, a year-on-year decrease of 21.5%.
The slowdown in the domestic market has prompted Chinese mobile phone manufacturers to look for opportunities abroad a few years ago, while India and Southeast Asia, which are dominant in terms of geographical location and cultural concepts, have become the preferred markets for millet and OV to go out to sea.
If we say that India and Southeast Asia are one of the main ways for domestic mobile phone manufacturers to get rid of the "ceiling" of domestic growth, then the market vacuum left by Huawei's loss in Europe has become the "accelerator" for Xiaomi and OV to move westward.
Affected by the double ban on Google and chips, Huawei has suffered heavy losses in overseas markets since last year, while in Europe, its most important base, the situation is even more severe.
In the past three quarters, Huawei's market share in Europe has dropped to 21%, 17% and 14% respectively, with a year-on-year decline of 35%, 17% and 31%, respectively. The market ranking has also dropped from second to fourth. It seems that Huawei's desire to surpass Samsung to become the European smartphone overlord has been dashed.
Even worse, if the crisis is not lifted smoothly, it will be difficult for Huawei to break through the market against the trend, and the hard over the past decade is likely to be lost.
While Huawei was struggling with the ban, Xiaomi and ov, which had been suppressed in the domestic market, saw the opportunity from each other's crisis and quickly eroded Huawei's lost market share in the European market.
In recent months, Lei Jun began to report good news frequently on Weibo, announcing Xiaomi's brilliant achievements in Europe and threatening to focus on European market in the next two years.
According to canalys' report, Xiaomi's market share in Europe increased steadily in the first three quarters of this year, from 14% to 17% and then to 19%, achieving year-on-year growth of 58%, 65% and 91% respectively.
It is worth noting that Xiaomi's market share in Europe has surpassed Huawei for two consecutive quarters, and has been ranked first in the market for three consecutive quarters in Spain, its largest European market.
Compared with Xiaomi, oppo's rise is more amazing. In the first and third quarters of this year, oppo successfully ranked among the top five in Europe with a year-on-year growth of 1014% and 396%, respectively. Currently, oppo is only behind Huawei.
Operator: domestic mobile phone manufacturer
The magic weapon of conquering Europe
In fact, Xiaomi and oppo entered the European market one after another before Huawei encountered the crisis.
In November 2017, millet took Spain as its first stop and officially launched the first shot in the European campaign. After tasting the sweet taste, millet quickly expanded the battlefield to the developed countries of Western Europe, such as France, Italy, Britain and so on. In the Middle East and Eastern Europe market, where purchasing power is relatively weak, millet has entered Hungary, Austria, Greece and Poland.
Different from the domestic market, European users are more used to buying contract machines through operators rather than buying bare machines through e-commerce channels. As a result, in the European mobile phone market, the proportion of operators' channels is more than 50%, that of open channels (offline channels) is about 40%, while that of online markets (e-commerce) is less than 10%.
Therefore, for Xiaomi, whose online channels are dominant, it is very likely that the set of Internet playing methods in China will not work here. In order to conquer the European market, establishing good relations with local operators and paying attention to the laying of offline channels have become two mountains Xiaomi has to cross.
When entering the Spanish market, Xiaomi cooperates with Ingram micro and Ali express to carry out product marketing, distribution and other support services. In addition to selling on Xiaomi's own e-commerce platform, global express also set up an official store to officially sell Xiaomi's products for the first time. In addition, Amazon, Carrefour, MediaMarkt and phone house also provide online or offline purchasing channels for a variety of Xiaomi products.
In terms of operator channels, Lei Jun also paid a special visit to Li Ka Shing and reached cooperation with him, so that millet products could be sold in the other side's Changjiang Hutchison stores, including more than 1000 operator service stores in Europe. In addition, Xiaomi has further consolidated its operator channel building by establishing cooperation with other major European operators such as orange in France and Vodafone in the UK.
With the omnidirectional channel laying, coupled with its investment in brand marketing and the "low price and high quality" selling point, millet quickly opened up the market in Europe.
In the first quarter after entering the European market, the shipment volume of Xiaomi's smart phones was as high as 2.4 million units, and the market share achieved an amazing growth of more than 1000%. Therefore, Xiaomi has successfully ascended to the fourth place of European mobile phone manufacturers.
In the following two years, although the overall shipment of smart phones in Europe declined year by year, and even Samsung and apple and other mobile phone giants were unable to resist the decline, Xiaomi continued to grow at a rate of more than 50%, and finally caught up with Huawei in its "distress" situation and seized the market gap left by Huawei in Europe.
Like Xiaomi, oppo, which entered the Bureau in the late half of the year, also chose the sales mode of combining the operator channel and the open channel, and the e-commerce channel was integrated as an auxiliary.
In June 2018, oppo started its European journey in the Louvre, France, and in the following six months, oppo successively landed in Western European countries such as Italy, Spain, the Netherlands, the United Kingdom and Switzerland.
In May this year, oppo also signed a strategic cooperation agreement with Vodafone, the largest operator in Europe. Oppo's full range of mobile phone products have entered Vodafone's European market since May, including Vodafone in Germany, the United Kingdom, Spain, Portugal, Romania and the Netherlands.
However, although oppo's growth is gratifying this year and it has become the fifth mobile phone brand in Europe, there is still a big gap between oppo and Xiaomi's 19% and Huawei's 14% in terms of its current 3% market share.
For vivio, who has just set foot in the European battlefield, it is in the initial stage of entering the market. Before conquering the European market, vivo still has a long way to go in establishing the relationship with operators and opening up brand awareness.
Domestic "low-end" mobile phones in Europe's high-end play
The reason why Xiaomi ov entered Europe collectively is not only coveting Huawei's lost market share in the region, but also because the European market is a necessary way for domestic mobile phone manufacturers to truly go global.
Unlike markets such as India and Southeast Asia, Europe has long been synonymous with the high-end mobile phone market.
According to relevant data, in the whole year of 2019, 58.3% of the medium and low-end models from $100 to $400 in the European market, and 26.7% of the high-end models with more than $600 in the European market. As a comparison, 70.4% of the models with $100 to $400 in the Chinese market during this period, while only 13.7% of the high-end models above $600.
It is not difficult to see that the proportion of high-end mobile phones in Europe is almost twice that of China, and as we all know, high-end mobile phones represent high profits.
For example, apple, which focuses on the high-end market, although its shipment volume is not the highest, the average net profit of each smartphone can be as high as $150, far exceeding Samsung's $31, Huawei's ov's $15 and Xiaomi's $2.
Therefore, for the domestic mobile phone manufacturers who are in urgent need of finding new market growth points, Europe, which has a huge market space, has naturally become a battlefield for strategists. However, for Xiaomi ov, which is used to the "cost performance" method, what do they want to compete with Samsung and apple, which are firmly at the high end of the market?
Since entering the European market, Xiaomi ov has been trying to attract local users with high-end mobile phones. To this end, the three manufacturers have launched their own high-end flagship models: Mi series of Xiaomi, find X series of oppo and x515g series of vivo.
However, according to market feedback, the low-end mobile phones of the three manufacturers are more acceptable to European users.
In the French market just opened by vivo, the mobile phone that the brand is more popular with consumers on the local e-commerce platform FNAC is its y70 series. The product price is slightly higher than Xiaomi and oppo, which is 279 euro.
Judging from the user comments on the above e-commerce platforms, the reason why the high-end models of Xiaomi ov have not yet opened up in Europe is mainly because the high-end brand image of Samsung, apple and even Huawei has been deeply rooted in the local people's hearts. In addition to further increasing its popularity in the market, Xiaomi OV needs to gradually take off the label of "cost performance" and realize its goal as soon as possible The process of high-end brand transformation.
In addition, among all the non-five-star reviews on the high-end Xiaomi ov model, the issues related to the technical innovation and market positioning of its products are the most mentioned by consumers.
Many users commented on Xiaomi Mi 10 Pro: "although this mobile phone is very good, if I want to spend the same money, why don't I choose Samsung and Huawei? After all, in addition to fame, the latter is better than Xiaomi in terms of mobile phone performance, so I think it would be more appropriate for this mobile phone to be cheaper by 100-150 euros. "
It can be seen that although Xiaomi ov's high-end mobile phones are enough to satisfy European users in terms of appearance, battery life and camera performance, there is still a long way to go for consumers to be "amazing".
Therefore, the continuous improvement and innovation in technology has become the key breakthrough object since Xiaomi ov entered the European high-end market.
Recently, Lei Jun has repeatedly labeled Xiaomi with technology labels in public, and said that he would recruit 5000 new engineers next year, focusing on Xiaomi's camera imaging technology, screen display technology, fast charging and wireless charging technology, as well as 5g and 6G communication technology.
Oppo and vivo have also set up a number of R & D centers at home and abroad, and have launched the latest technologies and products in Europe for many times, such as oppo's 10x Optical Zoom technology and the first 5g mobile phone.
In general, although xiaomiov has successfully established its foothold in European market, to truly compete with apple and Samsung and be accepted by local users, it also needs to increase investment in brand promotion and technology innovation.
Throughout the world, Chinese mobile phone manufacturers have already occupied many markets such as China, India, Southeast Asia, South America, the Middle East and Africa by virtue of their advantages in technology and price. As the last two "virgin land", European and American markets have been deterred by high entry threshold and fierce competition.
Now, with Huawei's overseas crisis, Xiaomi ov has begun to speed up the layout of the European market, thus achieving a certain degree of growth. But in the European market, which is dominated by high-end mobile phones, can Chinese mobile phone manufacturers, which are not dominant in technology, replace Huawei and seize the territory with Samsung and apple?