From 100 to 2000, Huawei learns the marketing path of millet

Introduction: Huawei has only spent a year, the Glory brand smartphone sales from 1 million to 20 million, which largely stems from the rival millet online sales strategy imitation.
Beijing time December 24 Morning news, Huawei only spent a year, the Glory brand smartphone sales from 1 million to 20 million, which largely stems from the rival millet online sales strategy imitation.

Given this initial sign, Huawei executives want to replicate the rapid growth of millet. Other Low-cost Chinese smartphone makers are unlikely to ignore this, as the latter have been among the world's top five manufacturers of intelligent machines in just a few years.

But analysts say the low-cost strategy has sparked a price war, making it the norm for the Chinese market. As this trend spreads further, the profits of all manufacturers may be affected.

Liujiang, president of the Glory brand, said the industry's shift to online sales was inevitable because of increasing price competition, which could reduce distribution costs, which accounted for 30% of the cost of mobile phones in the traditional model.

"E-commerce is dramatically changing the traditional channels of the smartphone industry, and we should take advantage of it." Liujiang said in an interview in Beijing that he had just launched the Glory 6 Plus last week.

Glory mobile Phone last December independent of the Huawei Brand Development. The product sales range has been in Belgium and Brazil and many other countries, mainly through the China Jingdong Mall and India Flipkart Online services such as E-commerce platform sales.

The brand contributed One-fourth of its shipments to Huawei in 2014. According to Gartner, the US market research firm, the third quarter also helped Huawei surpass Millet as the world's third-largest maker of intelligent experts.

Fierce competition

Huawei is not the only Chinese smartphone maker to have noticed the online marketing strategy for millet. Lenovo also said in October this year that it would sell a range of devices on a purely online basis, but did not disclose too much detail.

The strategy has been particularly strong this year. According to Gartner, Millet, valued at $45 billion trillion, sold 15.8 million smartphones from July to September this year, slightly below Huawei's 15.9 million. A year ago, only 3.6 million of millet, Huawei about 11.7 million.

"There will be a very tight race next year," he said. "Neil Shah, Counterpoint Research analyst at the US market studies company, said Nier Shaha. Huawei has been promoting the glorious brand in Europe and Latin America, while the main market for Millet is China and India.

"If Huawei can maintain a strong position in two or three markets, it will be able to compete with the outstanding performance of millet in the Chinese market." "Shah said.

A meager profit

Huawei has long started promoting its own brands overseas, but the online model of its glorious brand can help it penetrate the price-sensitive market, which it had previously tried to avoid.

In a report this October, Fitch analysts said that the continued success of millet and its aggressive pricing model could squeeze the profits of almost all firms over a period of time, with only the market leader Samsung and the high-end market overlord Apple.

According to regulatory documents, Millet's operating profit rate was only 1.8%, but the company said the data did not cover all its operations. Samsung has a 2013-year profit margin of 18.7%.

Huawei "does not make money, nor does it lose money," Liujiang said.

In an interview last week, Yu, head of consumer Department of Huawei, said that in order to expand profitability, the glory needs to boost the brand image and attract richer consumers through higher-profile products.

"If Huawei wants to survive, it must win developed markets and high-end markets like Europe." "Next year will be critical to our high-end strategy," Yu said. ”