Why did LG Mobile quit China? Re-reel the internet crash of traditional business thinking

"The LG mobile phone business is out of China." Recently, the nearly depressed South Korean brand LG because this news once again entered the public's view.

Results released at the end of 2008 showed that LG's mobile phone sales increased to $3.306 billion in the third quarter, with annual sales of 100 million, surpassing Motorola's "old three" as a global market.

2009, choppy, smart phones come. The LG Mobile Communications division suffered a $192 million loss in the last quarter of 2017.

For 10 years, LG phones have fallen from their peak to the bottom. And eventually led to the beginning of 2018, LG officials can only reluctantly announce its mobile phone business officially withdrew from China.

The entire rout in China, mainly in the field of mobile phones. External factor is LG received from Huawei, Xiaomi, and focus on the vertical user market oppo, the United States, such as the impact of mobile phone manufacturers, strong domestic machine innovation capabilities, as well as domestic mobile phones from the past focus on the low-end market, to gradually occupy the high-end mobile market in the big March.

In terms of internal factors, LG's brilliance is mainly in the era of functional machines, where a burst of money is maintained for a longer year, especially on high-end handsets. and into the era of smart phones, its own on the chip is subject to high-pass, in other mobile phone hardware and software on the lack of innovation, so that the iteration speed is very slow, completely do not adapt to the rapid iteration of smart phones, multi-price range competition cost-effective play.

Especially in the Huawei, Xiaomi, has begun to enter the mobile phone chip research and development, and the introduction of low-end models, LG want to from the high-end areas of the possibility of gradual low-end infiltration will no longer exist.

Perhaps, more accurately, LG's cell phone thinking, still stuck in the era of the function machine, and did not really adapt to the smart phone play. At the same time, its high-end model of the market, but also more than the general high-end crowd needs to solve, while the domestic mobile phone despite starting in the low-end, but has accumulated a wealth of vertical segmentation of the user market mobile phone "sub-crowd" strategy, and gradually applied to high-end models in the field of high-end segments of the

Therefore, LG Mobile phone is in a state of consumption upgrade of the Chinese market rout is also "logical".

Similarly, other LG product lines are facing the same problem in China. That is, the operation concept stays in the traditional business model, can not and already the internet thought deep-rooted, the rapid iteration ability appears the Chinese similar manufacturer synchronization result appears.

The future, LG in China to have a new development, the concept of iterative, will be the key to success or failure. And in the global market, if you maintain this concept of "stubborn", it will inevitably repeat the defeat.

Zhang Shule, People's Daily post, internet and gaming industry observer

Why did LG Mobile quit China? Re-reel the internet crash of traditional business thinking