High-end progress slow: domestic handset manufacturers deep in the low-end fight

Compared to the previous years of low-priced fighting, in 2015, the eyes of domestic handset manufacturers focused on the middle and high-end market.

After 5 years of rapid development, China's mobile phone market has entered the smart phone stock replacement period, the stock users tend to more high-end product iteration; Therefore, for domestic handset manufacturers, the opportunity to the high-end market, this is a dafanshenzhang good opportunity, but also from "Live" to "Live better" a cross-phased moment.

As a result, domestic handset manufacturers have advanced to the middle and high-end market. However, from the first half of 2015 's performance report, although the domestic handset manufacturers in the high-end market share is rising, but more concentrated in the mid-market, more than 3500 yuan of high-end market accounted for is still only single-digit.

How to counter-trend climbing, with brand premium is placed in the domestic handset manufacturers a problem.

Change the tide: domestic mobile phone coveted in the high-end

Market Analysis agency GfK research shows that China's mobile phone market after 5 years of rapid growth into the smart machine stock replacement period, the stock changer users tend to more high-end product iteration. 2015 years of high-end market size will continue to expand, more than 1500 yuan in the price segment of the smart machine in the smartphone market will increase from 2014 34% to 42%. Therefore, for domestic handset manufacturers, the opportunity to the high-end market came.

Domestic mobile phone manufacturers no longer around the collocation, cost-effective, sales of the low-end market circles, but began to consciously layout the high-end market.

In 2014, Huawei reduced the number of 80% models, focused on handset brands and profits, abandoned ultra-low-end products and released Mate7 successfully into the high-end market segment. And on this year's relay the P8 and P8 Max. It is reported that Huawei will also release a higher-priced differentiated product at the IFA exhibition in Germany this year. Huawei's 2015 first-half performance data showed that in the first half of 2015, Huawei's consumer business grew by 70% in mid-and high-end smartphone shipments, representing a 31% increase in the total number of mobile phone shipments.

In addition, "China cool United" in the ZTE also abandoned the machine sea tactics, the first half of this year launched a price of 2999 Yuan 3, its independent brand Nubian is also positioning the high-end market, the issue of borderless mobile phone Z9, pricing 3999 yuan. ZTE said it expects 2015 years of high-end smartphone shipments to reach 45%, more than 35% in 2014.

Cool faction to create a series of platinum, the main business positioning, security as the name into the high-end market in China, the price of more than 4000 yuan.

Lenovo wants to use sub-brand vibe and Mote X to enter the high-end market. For example, the sale of Moto X PRO,32GB this year is priced at $4299, and 64GB is priced at $4699.

and has been the main cost-effective millet in the early this year released the note top with version, priced 3299 yuan, the first breakthrough of 3000 yuan, water test high-end market (then on the official sale of the price to 2999 yuan).

Domestic mobile phone market in the high-end market has begun to bear fruit. GfK National retail monitoring data show that in December 2014, at 2500-3500, China's domestic brand share exceeded 50%, in June this year, China's domestic brands in this price segment share has reached 66.3%.

"In addition, we can provide a more interesting data: The total sales of Chinese-made brands fell 8.7% in the first half of 2015, but sales rose 15.8%. "The Chinese brands are moving from quantitative to qualitative," said Wu Xiaofeng, a GfK analyst. ”

Frustration: high-end climbing slow

Although the domestic mobile phone brand in the high-end market has been seen, but in more than 3500 yuan in the high-end market performance is still not satisfactory. Even in front of Huawei, there is still a big gap between Apple and Samsung in the high-end market.

According to the data disclosed by Huawei in the first half of 2015, consumer BG sales revenue of $9.09 billion, smartphone sales of 48.2 million units, of which the medium and high-end model sales accounted for 31%, accounting for consumer BG total revenue 42.9%. This means that the average middle-and high-end model is about $260.9 per unit of about 1620.4 yuan.

In contrast to Apple's third-quarter results in 2015, revenue from the iphone was $31.368 billion, with a total of 45.734 million iphones sold. This means that the average iphone is priced at $685.8, or about 4258.6 yuan each. (two brands are calculated without regard to contract machines and taxes, etc.)

"Huawei's average retail price is still low compared to Apple. But Huawei's high-end models have become the domestic handset brand accounted for the higher, other brands can imagine, will be lower. "A domestic handset maker said.

According to the price division, below 1000 yuan belongs to the low-end market, 1000-1500 yuan belongs to the Thousand Yuan machine market, 1500-2500 yuan belongs to the mid-market, while 2500-3500 yuan belongs to the middle and high-end market, 3500 yuan belongs to high-end market, Apple belongs to the ultra high-end market of 5000 yuan.

"Domestic mobile phone brands more or in the low-end market to fight, but also to solve the problem of survival, rather than to solve the problem of good and bad live." Shizeng, a senior analyst at TMT, describes the current situation.

In contrast, the domestic mobile phone market in the first half of 2015 is the most lively "price war", the charm of blue, red rice, the great God, Glory are involved in, once the price of smart phones killed to 399 yuan.

On the one hand, domestic handset manufacturers deep in the "price war", on the other hand high-end market can not foothold. According to the data from this year's June GfK, the market share of Chinese brands, which is more than 3500 yuan, is only 8%, still in single digits.

"More than 3500 yuan of mobile phones carry more dimensions, such as product quality, product experience, brand premium and brand to consumers bring a sense of belonging." and brand premium and brand sense of belonging is the current domestic handset manufacturers lack. Domestic handset manufacturers in more than 3500 yuan in the market still need a period of time, the need for brand accumulation. "Wu Xiaofeng thought.

How to achieve the trend of climbing?

Huawei has chosen to adapt to the changing market. As early as 2011, Huawei consumer Business abandoned the white card, low-end custom business model, embarked on the high-end of Huawei's own Brand Road, 2012, the implementation of quality strategy, the introduction of the D, P series flagship mobile phone. "To do fine products, reduce the model, this thing said easy to do, it is difficult." It took a few years for Huawei to step up the transition. 4 years we have been adhering to the quality strategy, brand awareness all the way up, product experience, consumer recognition has been improved. This is when many manufacturers turn their heads to follow us in this direction. "Yu Chengdong, CEO of Huawei Consumer BG, said.

For the middle and high-end market how to layout, ZTE Terminal CEO Zeng Xuzhong to NetEase technology, ZTE product line is very clear, adhere to three series: Axon secret flagship series, Star series and thousands of Yuan series. And hope that each series based on 18 months out of the new, not to launch products and launch products, control the rhythm, reduce the model, the introduction of fine.

Liu, a CEO, believes that the key is to "be willing to upgrade the experience a little, to provide differentiated value." ”

"How does the domestic handset brand climb up in the high-end market?" Everyone is groping about the problem. On a personal point of view, domestic brands need to be innovative in flagship products, have control and innovation-led roles in the entire supply chain, need omni-Channel market layout, continuous brand value investment and global value chain layout. "Wu Xiaofeng thought.

In this regard, Zeng that the first is the product itself well-configured, second, the design, product experience to meet the needs of consumers. In terms of brand premium, he believes that the power of consumers to buy products comes from two dimensions: one is the product itself, belongs to the rational part, and one is the perceptual brand image. Brand image requires the company to continue to invest a lot, and it takes time, cost and patience.

In short, the competition of smart phones has been from the product function, ease of use, the appearance of the development to the product sense of ownership, product spirit incentive value, such as comprehensive experience competition. Mobile phone products have become a symbol of user ownership. Therefore, the simple rough disposition competition has been obsolete, the domestic handset manufacturer brand value shaping time arrives.

High-end progress slow: domestic handset manufacturers deep in the low-end fight