Wen / Zhong Wei
Source: connect insight (ID: lxinsight)
A month ago, millet founder Lei Jun ushered in a good news, he can not hide excited in the personal WeChat official account, in the third quarter of 2014, millet first entered the world third, 6 years later returned to this position.
What supports Xiaomi's return to the third place in the world is its achievements in overseas markets. In the third quarter of this year, the overseas market revenue of Xiaomi exceeded that of the domestic market for the first time.
After several years of overseas campaign, Chinese mobile phone brands have produced a good report card.
It is hard to believe that Chinese mobile phone manufacturers have not only survived, but also achieved explosive growth in overseas markets far more complex than China.
Xiaomi Ov the earliest overseas competition occurred in India. And when OPPO、vivo executives arrived in India for research,
After that, Huawei made efforts in the high-end market. In overseas markets, especially in Europe, where consumption power is high, Huawei successfully ranked among the top three in terms of mobile phone sales, and pushed apple out of the altar to replace its second position, ranking second only to Samsung. Such achievements have been amazing both inside and outside the industry.
Witnessing Huawei's success in the high-end market, Xiaomi ov has also successively impacted the high-end market, setting up overseas headquarters, recruiting recruits, attracting online and offline channel providers, and investing heavily in marketing.
As China's mobile phone brands are breaking down, dramatic changes have taken place in the market pattern in the past two years.
Huawei has always been a very competitive player in overseas markets. However, with several bans issued by the United States, Huawei's mobile phone software and hardware from system services to chips are subject to blackmail. Huawei is faced with the crisis of Google cutting off supply to Android, and on the other hand, it encounters the termination of cooperation from chip suppliers, and the chip inventory is in urgent need.
Huawei decided to sell glory under pressure. On november 26th, Huawei internal website voice community published founder ren zhengfei's speech at the glory farewell meeting, saying that glory left the Huawei for agents and distributors in 170 countries,
At the same time, he hopes glory can take Huawei's vacant market share, surpass Huawei or even defeat Huawei.
Huawei has not given up the high-end market represented by Europe while preserving its high-end products. However, under this situation, the overall sales of Huawei mobile phones overseas are still very difficult. In March this year, according to foreign media information reports, Huawei's internal forecast is that the annual shipment volume will drop by about 20%. At present, Huawei has shifted its focus to the domestic market.
With the sharp decline of Huawei's overseas market share, Xiaomi ov is competing for Huawei's overseas market share.
This is followed by considerable data growth. Xiaomi's market share in Europe has surpassed Huawei for two consecutive quarters. According to canalys, oppo's market share in Europe reached 3%, with a year-on-year increase of 396%.
However, the Indian market has changed. Samsung has taken Xiaomi's position, while oppo and vivo are also expanding, launching new products and laying out the whole line of low, medium and high product lines.
In the European market, Xiaomi ov has constantly launched high-end mobile phone products, but they still have to face rivals such as apple and Samsung. How much share have they captured so far?
1 Xiaomi Overseas
Since 2015, Lei Jun has personally managed the Indian market, flying to Garor every quarter for at least seven days each time.
Xiaomi has gone further and further in overseas markets, and its territory has expanded from India and Southeast Asia to Europe and the United States. Xiaomi, who has been working in overseas market for a long time and was once not optimistic, finally produced a good report card.
However, Xiaomi's position is being shaken in its first Indian market.
This is largely affected by external factors, the impact of the epidemic has just gone away, and the sudden resistance caused by Sino-Indian friction
Under the dual influence, Xiaomi's mobile phone shipment in India fell sharply. In the second quarter of this year, the year-on-year decline was even as high as 50.6%, and Samsung took the lead in the Indian mobile phone market.
India is Xiaomi's first battle field overseas, which is also one of the most fierce overseas battlefields for domestic mobile phones, because outside China, India is the world's largest smartphone market.
In response to competition, Xiaomi identified an overseas market
This means that in all overseas markets, Xiaomi's product line and supply line tilt to India. Lei Jun has mentioned:
This is a very risky situation
However, Xiaomi did not have a smooth life during this period. In 2016, Xiaomi's mobile phone sales experienced a cliff dive, and its global share fell from third to fifth, being overtaken by its rival Huawei. This is a very difficult time for Lei Jun to say frankly.
But soon Xiaomi
It can be seen that in the overseas market, Xiaomi still continues the tried and successful cost-effective path in the domestic market. With this, Xiaomi has won the middle and low-end market in India.
Xiaomi's home, the official website of Xiaomi
After that, Xiaomi took India as the starting point and expanded to Southeast Asian market, occupying a place in countries including Indonesia, Vietnam, Singapore and so on.
Now the Indian market competition intensifies, millet began to further impact on the high-end market. In 2020, Xiaomi will restart poco, a sub brand without new products in India for a long time. The newly released poco F2 Pro will be sold for about 40000 rupees (about 4000 RMB).
This model has been verified by the market in China, that is, the relabeled redmi K30 pro, with a price of 40000 rupees, has become a very challenging high price in the Indian market.
Although Xiaomi has not been able to continue to occupy the first position in India, it has already opened up overseas markets outside India, among which Europe has played a role of rescue.
According to canalys statistics, in the third quarter of 2020, Xiaomi's global smartphone shipment exceeded Apple's, ranking the third in the world after Samsung and Huawei, with a market share of 13.5%, ranking first among the top five manufacturers in terms of year-on-year growth.
Much of this comes from the contribution of the European market. Europe has become Millet's second largest overseas market and maintained a high growth rate. In the third quarter of 2020, the shipment volume of Xiaomi mobile phones in Western Europe increased by 107.3% year on year, accounting for 13.3% of the market, and the market share of central and Eastern European market in the third quarter reached 26.9%.
Europe was originally the dominant market for Huawei, but coincidentally, when Huawei was in a dangerous situation, oppo and vivo had not yet had time to deeply explore this market, while Xiaomi quickly filled the position.
In 2017, Xiaomi mobile phone made an important turn, opening up the second battlefield in Europe on the basis of Indian market.
When entering the Spanish market, Xiaomi launched in Carrefour, MediaMarkt (Europe's largest consumer electronics retailer) and phone house (European head operator) at the same time. Xiaomi has made great efforts in the development of channels in the local market, including online e-commerce, offline supermarket, physical stores and operators, which has helped the competition of Xiaomi's mobile phones.
Xiaomiyuan, official website of Xiaomi store
However, Europe is the representative high-end mobile phone market in the world, but the sense of existence of high-end product line of Xiaomi mobile phone was not high at that time. Ten years ago, when the company was founded, Xiaomi was determined to be the best mobile phone in the world, selling for half the price. This concept has also extended to the European market.
For a long time, Xiaomi mainly focuses on the low-end market in Europe. In the early stage, Hongmi mobile phones were used to stimulate some European consumers who were price sensitive and pursuing cost performance.
However, in recent years, Xiaomi is also conquering the high-end market, and the average price of its mobile phone overseas has been rising.
Xiaomi 9 in the domestic starting price of 2999 yuan, And six versions GB 128GB the same configuration, Overseas need 499 euros (about 3800 yuan). Xiaomi 10 domestic starting price reached 3999 yuan, Eight versions GB 128GB the same configuration, The starting price abroad is 799 euros (about 6251 yuan).
To stabilize the market share of medium and low-end products, impact the high-end market and create high-end brand image are the most important tasks of Xiaomi in overseas.
The trajectories of vivo and oppo are very similar to millet.
However, in the Indian market, vivo and oppo focus on offline channels and publicity strategies, which are different from Xiaomi's main focus on cost performance and online strategy.
In the offline channel, vivo introduced the successful domestic agent system into India. After that, vivo mobile phones quickly appeared in stores in hundreds of cities in India. In addition, India also introduced a distributor cooperation system, including incentive mechanism including high rebate, which made more distributors start to cooperate with vivo.
Oppo's playing method is very similar to vivo, and its offline channel is also good at it, and it does not forget to give high rebate points. According to shenzhen.com, some industry insiders close to oppo said that in order to expand the market in India, oppo has become a temptation to bring some domestic channel operators to the Indian market with high scores. The share of oppo's offline distributors was as high as 23%.
Vivo and oppo have always been good at advertising. They used to gain popularity in China, and this strategy was also used in the Indian market.
Cricket has a huge influence in India, and vivo won the sponsorship qualification of Indian Cricket Super League with about $330 million in 2017, which is 5.5 times higher than the previous amount. Oppo was awarded the right to name India's national cricket team for five years at a bid price of 1.145 billion yuan.
The advertising in exchange for a large amount of money has greatly increased the brand awareness of oppo and vivo, as well as the sales volume. India, which pays more attention to offline channels, has also given two players opportunities to perform. The mobile phone shipments of the two companies in India have been rising all the way, once surpassing Huawei and Xiaomi.
Source vivo official website
However, oppo and vivo compressed the profits of offline channel operators in order to obtain more revenue in 2018. According to the economic times, the Indian media reported that the reduction amount was as high as 40%, which aroused the dissatisfaction of Indian retailers. About 10000 retail stores stopped selling the products of the two companies.
At the same time, the early ov has always emphasized focusing on medium and high-end models, and has not deployed low-end and cost-effective models in India, which has also affected the growth of OV.
This eventually led to the negative impact of the decline in market share. According to IDC's report, oppo's mobile phone sales in India in the fourth quarter of 2018 fell by half compared with the third quarter. Vivo fell 41% month on month.
According to counterpoint data, oppo ranked fifth in India's rankings with 10% market share in the third quarter of 2020, while vivo ranked third with 16%. Samsung and Xiaomi ranked in the top two with 24% and 23% respectively.
It is worth mentioning that the market share of realme in India in the third quarter of 2020 reached 15%, which is only 1% lower than that of vivo.
Realme is a sub brand of oppo. On May 1, 2018, oppo announced the launch of realme for the Indian market. Only half a month later, realme 1 was sold exclusively on Amazon India.
The price of realme 1 ranges from 8990 rupees to 13990 rupees (about 841 yuan to 1310 yuan), which is mainly aimed at the low and medium-end mobile phone market in India, and its biggest rival is Hongmi.
This year, the situation in India has changed, but oppo does not seem to have shifted its focus. It still adheres to the original plan, marketing new products and actively exploring the market in combination with the Diwali festival and the sales season of Indian Cricket Super League.
Figure source oppo official website
For ov, to enter Europe and promote high-end product line is also a business that can not be relaxed in recent two years.
In October 2017, vivo announced to take the Russian market as the bridgehead to enter the European market; around 2018, oppo began to focus on the medium and high-end market to improve its profit margin. At the same time, it officially announced that the first model to be introduced to the European market was find x, which was also the flagship model launched by oppo every two years.
However, the European market is not compatible with ov's original method of playing. This is a market dominated by operators, and local operators have mastered important sales channels. Maintaining operator relationships and strong subsidies are part of OV's exploration and learning.
However, 5g mobile phone will be a competition point in the future European market, oppo's 5g action is more frequent than vivo in the past two years.
Wu Qiang, vice president of oppo, mentioned at the Reno 3 conference that oppo was the first manufacturer to officially release 5g mobile phones to the Western European market, and also the first manufacturer to officially launch 5g mobile phones in the Western European market (may 2019). In the first few months of its launch, oppo Reno 5g mobile phones accounted for about 20% of the 5g segment in Switzerland.
Oppo seems to want to win in 5g, and this is really a great node.
3. After Huawei withdrew, who took the market share?
Affected by the ban, Huawei's market share has declined significantly since the second quarter of 2019. According to canalys, Huawei's market share has dropped from 22.4% in Q2 in 2018 to 18.8%. In 2019, Huawei shipped 8.5 million units, down 15.8% from 10.1 million units in the same period last year.
Among the top five mobile phone manufacturers, the market share of Huawei, apple and HMD global has declined to varying degrees.
Most of the shares vacated by competitors go to Samsung. In Q2 of 2019, Samsung's market share increased by 20% year-on-year, from 33.9% of Q2 in 2018 to 40.6% of Q2 in 2019.
Millet also ate up a small share. Over the same period, the market share of millet increased by 48%, from 6.5% in Q2 in 2018 to 9.6% in Q2 in 2019.
A year later, Huawei's market share continued to decline, but Xiaomi was the biggest beneficiary.
Huawei's European market share of Q3 will drop to 14% in 2020. Millet increased 91% year on year, and the market share increased to 19%.
Oppo also took a share. In 2020, Q3 will achieve 396% share growth in the European market and take 3% market share.
The aggressive Chinese mobile phone manufacturers have brought a lot of pressure to Samsung. According to reports from Taiwan media, Samsung requires that the mobile phone components that were originally delivered in August and September should be delivered in July and August in advance. Samsung may plan to increase its shipment volume in the third quarter of this year to take advantage of Huawei's empty overseas market.
Xiaomi ov is also speeding up the pace. This year, Lei Jun said that millet will focus on the European market in the past two years.
At the same time, since this year, oppo's pace in Europe has been significantly accelerated. It has not only set up its headquarters in Western Europe, but also reached strategic cooperation with a number of overseas operators. Oppo's brands and products are accelerating to enter the European market.
Oppo set up its Western Europe headquarters in Germany
Liu Bo, vice president of oppo and President of China, said in a letter to its partners in China in September this year that oppo raised its sales target in combination with the market situation: the overall sales volume of the company in the second half of the year is expected to increase to 100 million units on the basis of the previous ones, and the sales volume in China is expected to increase by more than 30% in the second half of this year.
The outside world has speculated that OPPO is actively layout and seize the market at the opportunity point of Huawei being banned. But later OPPO CEO Chen Mingyong responded to the media, more to overseas markets,
Vivo on the other side has also changed a lot this year. This year, vivo announced at its online conference that it will officially enter six European countries, namely Poland, Germany, France, Spain, Italy and the United Kingdom.
Although so far, the competitiveness of Xiaomi ov in the high-end market is limited, and there is still a lot of room for growth in terms of the innovation level and brand awareness of high-end mobile phones, or the maintenance of the relationship with local operators, it can be predicted that the rhythm of their attacks will only be more fierce in the future.
Huawei is no longer the only Chinese rival for Samsung and apple in the world.
How to improve the anti risk ability?
Both Xiaomi and ov have to consider a question when they invest manpower and resources to occupy overseas. What should they do if they encounter similar difficulties of Huawei?
This matter should start from chip R & D and manufacturing, but at present, Xiaomi ov has only taken a small step.
For Huawei's experience, Xiaomi may be the most empathetic, in its history, there has been a similar problem of chip outage. In 2013, Xiaomi 3 was ready to be released. However, due to the supply restriction of Qualcomm, the new model was constantly delayed. Finally, another Qualcomm chip was used in the Xiaomi 3 Unicom version.
A year after the incident, Xiaomi announced the core-building plan. In 2014, Lei Jun said that to launch a low-priced mobile phone, it must have
In 2017, Xiaomi developed the surging chip officially released, Lei Jun also really recognized the chip industry, he said at the press conference, mobile phone chips are almost the planet's most integrated components, requiring huge costs and a very long R & D cycle.
Surging chip has experienced several years of research and development, but it is far from the mainstream level in the market. At that time, the mainstream technology in the mobile phone industry was 14-16 nm. The latest snapdragon 835 of Qualcomm used a 10 nm process, but the surging chip was manufactured with a 28 nm process.
Until now, Xiaomi chip has never released new products. In August, Lei Jun tweeted a response
At the same time, Xiaomi is also keen on investment layout. Xinlai technology and BYD semiconductor announced this year that they have obtained a new round of financing, and Xiaomi Changjiang industrial fund has participated in it. At present, Xiaomi's investment layout has involved MCU sensors, RF chips, display driver chips and other fields, almost covering the entire industry chain from semiconductor materials and IC Design of components.
There are many difficulties in the R & D and manufacturing of mobile phone chips. In addition to long-term technology accumulation, it also needs capital investment. Patent fees alone can be as high as 10 billion yuan. Investment may be a shortcut.
In the past two years, oppo and vivo also began to join the core making queue.
The OPPO's CEO Special Assistant published an in-house article ," Some Thoughts on Building Core Technologies ," in February 2020, which released a highly focused self-developed chip
As a matter of fact, OPPO has been quietly laying out the chip industry since 2018. In September of this year, Shanghai Jinsheng Communications Technology Co., Ltd. will
One year later, oppo promised at the future science and technology conference that it would invest 50 billion yuan in research and development of chips and other products. After that, some media revealed that oppo M1 chip had passed the trademark registration application of the European Intellectual Property Office. This is a coprocessor being developed by oppo. Coprocessor is an auxiliary chip, which is mainly used to perform specific tasks and reduce the burden of system processor.
In November this year, oppo took a 4.4% stake in Nanxin semiconductor. In the past two years, oppo core making has made great progress from self research, investment to patent purchase. More and more attention has been paid to oppo self-developed chips.
vivo is the latest player in the current Wami Ov to start core building. vivo applied for registration of two trademarks in 2019
Huawei, the only mobile phone manufacturer in China, has expanded to Xiaomi ov. Huawei has been making chips for more than ten years. At present, its chips are only used in smart screen products. Mobile phone chips still rely on TSMC and other players. In contrast, when Xiaomi ov's chip will be officially launched and put into use remains to be determined.
At present, with the rapid development of Xiaomi Ov in overseas markets, overseas income has become an important part.
In the third quarter, Xiaomi achieved more than half of its overseas revenue; oppo did not release revenue data, but according to counterpoint data, oppo's domestic sales accounted for 49% of the total sales, and overseas sales accounted for 51% of the overall sales. Shen Wei, founder of vivo, said at this year's annual meeting that overseas sales of vivo exceeded domestic sales for the first time in the last month of 2019.
However, they are still unable to get around the influence of the international environment, which also adds a sense of crisis to today's good news.
2020 is the 10th year of Xiaomi's establishment, the 11th and 16th year of vivo and oppo. Domestic mobile phones have entered the stock market. In order to find new dividends, they have worked in the foreign market for many years. They have fought price wars, subsidy wars, and also encountered many disputes and doubts.
This year, they have a fight