Huawei's growth: a diversified manufacturer of consumer goods market transformation

In the "Huawei Basic Law" established in 1996, the first article of the first chapter makes it clear that: in order to make Huawei a world-class equipment supplier, we will never enter the information service industry. Now Huawei's new strategy based on "cloud-tube-end", which extends from Web services to cloud computing and Terminal Services, is actually a new framework for providing information services.　　All this means not only that the Basic law was broken 15 years ago, but also that the world of Huawei was broken. After 23 years of efforts in the telecommunications equipment market, Huawei has only one Ericsson in front, and the gap is very small, Huawei Summit is just around the corner.　　But as rivals are overtaken, the confusion of example-lost will haunt Huawei for years to come. The telecommunications industry is undergoing subversive changes, and business models are changing rapidly. Future industry competition, will no longer be Ericsson, NSN, Huawei, ZTE, rung and other equipment business between the "Life-and-death" competition, it will introduce more interests chain, forming "Operators + Apple, Google + equipment manufacturers ..." competition.　　And Huawei is making the transition to be able to lead the next 10 years, looking for new growth space. At the start of the second 10-year period in 21st century, Huawei will extend its network business to cloud computing and Terminal Services. Cloud strategy, terminal strategy and system equipment constitute the new "cloud tube end" strategy of Huawei. The terminal first sounded the change of Huawei "Bugle". In the advent of the mobile internet era, the Apple iphone strong rise, the new rules are subverting the entire industry, Apple will not only pull down the horse, even the strong operators have to avoid three points. When the telecom industry "carrier-centric" business model gradually into a "consumer-centric" model, the closest to users of mobile terminals are most likely to become the core link in the value chain.　　Therefore, "end strategy" will become the key to determine the future fate of Huawei. Huawei, though unbreakable in its operator relationships, is a real recruit in the consumer-goods market, and the challenge for Huawei's terminals is far greater than expected. Unlike in the past, Huawei's biggest obstacle this time is not to surpass its rivals but to surpass itself. Huawei, which grew up in the telecom market, will encounter the ceiling in its corporate genes, its own resources and endowments, and how to change from the face of Ericsson and rung to the opposite of Apple and Samsung. How to get into the consumer market from the operator market? How to transform from "single manufacturer" to "multi-Manufacturer"?　　Huawei needs a new growth process. 2011, destined to be a transition year, Huawei went down the altar, into the public, towards transparency.　　Initial visits in such areas as terminals will be an important opening for the entire transition.　　Huawei, the fierce end of Huawei, the president of the terminal business has three clear instructions: First, there is no doubt that the terminal will be Huawei "cloud tube End" the important part of the strategy, second, Huawei Terminal to become an important player in this field, third, by 2012, sales to more than 10 billion U.S. dollars. Xidan, a fashionable place in BeijingOne of the standard, whether it is high Dan big, or just get started fashion rookie, Xidan are they locked one of the places. So every inch of this place is a battleground for all kinds of consumer goods businesses. Recently, a brand that should not have appeared here has aroused people's concern. Huawei, which has never before appeared in the public eye, has begun to appear frequently in the city's trendy landmarks and core business districts. Before the Spring Festival, Huawei Terminal Experience shop in the Xidan Grand Hyatt, and the industry's most powerful two brands of Apple and BlackBerry neighbors. In addition to Beijing, the Huawei Experience shop in Shanghai and Shenzhen was launched at the same time, and this is just the beginning of the global opening of the Huawei Terminal Experience Shop, which will set up similar experience shops in many cities in the country and around the world in the future. In addition, Huawei Terminal ads began to appear in the subway, outdoor signs, airports and the Internet.　　This is to focus on operator customers, has always adhered to the low-key brand strategy of Huawei, the terminal business of all kinds of performance can be regarded as a strong signal of Huawei's opening to the outside world, is its first attempt to enter the mass consumers. In 2003, Huawei stumbled into the terminal industry, in line with the telecommunications system supporting terminal products, what operators need to do what the simple business, but inadvertently slowly grow, become Huawei's first "subsidiary" form of operation of the main businesses. Huawei's end has been widely watched for its 2008-year equity-Private Placement program, which was expected to end abruptly.　　Huawei's decision to leave the terminal business at the end of the day is doomed to change today.　　2010, Huawei Terminal shipments of 120 million units, global sales revenue breakthrough 4.5 billion U.S. dollars, shipments and income year-on-year growth of more than 30%, in the overall sales revenue of Huawei accounted for 17%, and at the end of 2010, explicitly launched the terminal "remit Wisdom • Yuet" mobile internet strategy. More important than income contribution is that the terminal is responsible for the Huawei "cloud tube End" of the new strategy to undertake the network side of the key link. In the coming mobile internet age, users can actively choose the business through the choice of terminals, such changes will completely break the balance of the existing value chain, the terminal will certainly become the mobile internet era, one of the leading forces.　　Huawei is fortunate to have this important force, and the future is to do is how to make this strength, and then grow.　　Huawei President Ren has three clear instructions to the terminal business: First, there is no doubt that the terminal will be Huawei "cloud tube End" strategy of an important part; second, Huawei Terminal to become an important player in this field; third, by 2012, sales will be more than 10 billion dollars.　　Huawei is moving towards that goal. Accidentally into the terminal Huawei first to do terminals, from 2003 in the United Arab Emirates to obtain the first wireless 3G system base Station project, that is Huawei obtained the first 3G contract, need a part of mobile phone accessory products. When Huawei was looking for a handset supplier, it found that all of Huawei's suppliers were systematic, leaving Huawei passive and prompting Huawei's end company's birth.　　It can be said that when Huawei began to do terminals, there is no clear strategy, but is entirely for the system and raw. Huawei Terminal Family Integration Solutions Minister Hao recalls: "The earliest Huawei terminal is to do a fixed platform, that is, wireless fixed-line products (fixed Wireless Terminal), such as CDMA450 handheld machine." Later, it started to make access products, like fixed-access ADSL cats and a subset of wireless access products. "Huawei began to choose the OEM other manufacturers of products, but not all manufacturers have the ability to service the carrier customers, Huawei found that the way the OEM has a lot of drawbacks, one is not quick response speed, the other is not good adaptability."　　So from 2005 onwards, Huawei Terminal officially began its own research and development products. From this point of view, it is not Huawei's active choice of terminal products, but operators require Huawei to provide terminals, is a helpless choice.　　But it is this seemingly customer-centric helpless choice for Huawei opened a completely different broad world. Fusion Terminal is Huawei's terminal products, not only in the global market share in the lead, technology has gradually become a leader. For example, more mature access products, in the world occupies 25% of the market share, in the first position. 2010, has broken through the BT, Germany Telecom, Vodafone three European first-class operators, become the mainstream supplier of Europe. In the United States began to provide telecommunications operators Verizon Wireless fixed-table products.　　At present, Huawei's total of 1.4 billion U.S. dollars in the integration of the end of the revenue, 900 million of dollars from the access products. But like Hao said: "These are just our start, access to the end of the product is more worthy of expectation." "Hao Introduction:" We now push the solution called ' Connected Home ', that is, the family connection plan, divided into three centers, is the Access center, mainly the previous access products; Media Center, currently the main push is set-top box products, control center, which is the future may involve the most product shape of the field. such as the current tablet and digital photo frame, can be summed up in this category. "It can be understood that the core of the future Huawei Fusion terminals will be the family." Huawei believes that home connection is the real blue sea in the future, but also the major players in the industry battleground. Indeed, in the family area, you can see from it, communications, the Internet and other forces of the undercurrent. Apple's ITV, Google's Google TV, Samsung's media gateway, and Motorola's set-top boxes are major manufacturers in the family area of the important layout.　　Fusion terminals have a very large market imagination space, but Huawei will face the younger, energetic and spirit of the "peer"-Apple, Samsung, LG and so on. Mobile Broadband Products (MBB), previously mainly data card products, so that Huawei in the terminal area to establish its own position. Since 2007, Huawei has been a leading enterprise in the data card market for 4 consecutive years, and its market share is superOver 55%. No one thought, data card this humble "small business", became Huawei to improve the terminal shipments, establish a global brand image, and even overseas markets in the "Big Hero". Huawei Mobile Broadband terminals have exceeded 100 million worldwide shipments by the end of May 2010, according to a market research report released by the consultancy ABI study. Huawei Mobile Broadband terminals are applied to more than 470 operators in more than 130 countries worldwide and serve all the top 50 operators globally, and 7 of every 10 mobile broadband subscribers in high-end markets such as Europe and Japan have chosen Huawei.　　European and American manufacturers have watched the chicken market become a big market has been impotent, they have not been able to have the Chinese manufacturers have the size and price. After the rapid growth stage, the data card market began to enter a stable growth stage, the price drop faster, so for Huawei's MBB product line, also face the challenge of finding new growth points. Huawei Terminal Mobile Broadband product director Suger said: "2010 should be a turning point, the first 5 years focused on the data card market, and the next 5 years, in addition to the LTE data cards, industry-oriented products will become new opportunities, such as automobiles, electricity meters, tax, medical and so on." "China has nearly 100 million car ownership and is still growing at a high rate every year; More than 300 million of the meter calls for intelligence; 1.3 billion people need real-time health monitoring ... Dozens of industries of all colors of applications, are left to Huawei and other mobile communications industry unlimited reverie space.　　Huawei's goal in the MBB field is to divide the big cakes in small plates. In the future, Huawei's terminal and Huawei Group's more mission is the smartphone market. "Huawei will be committed to smart-phone solutions in the next 2-3 years," said Wan Yu, the new president of Huawei, at the recently concluded 2011 Barcelona Mobile World Conference. Huawei will unveil more new smartphones this year. Huawei Terminal CMO Xu in an interview also clearly said: "Huawei Terminal is constantly increasing the pace of consumer-oriented, 2011 Huawei smartphone will do a key input, a full range of layout, in addition to join hands with operators and industry chain partners, will also try to open channels of expansion." Huawei has rewritten the concept of "terminal is a mobile phone" the current terminal products have mobile phones, MBB (mobile broadband products), fusion terminals, video four product line, in addition to video, the other three product lines accounted for the total income of about 1/3, which has become Huawei terminals and other terminal manufacturers the biggest difference lies.　　In addition to the differentiated product layout, Huawei's terminal strategy is an important factor to realize the curve surpassing. The big opportunity in the niche market the opportunities for new industries brought about by technology turnover are not always in those hot areas. Some of the small opportunities hidden in the cracks can also become a big business of envy.　In the past few years, Huawei has captured the new opportunities in the MBB domain and the fusion terminals with a keen sense of smell, which makes Huawei quickly establish its position in the terminal industry.　3G just started, no one knows what the 3G killer application is? Basic call 2G network can be solved, then 3G network for what? Operators who spend huge sums of money to build 3G networks face huge operating pressures. A data card that connects laptops to wireless networks is a lifeline for operators. The data card was not invented by Huawei, and it was a "low-tech" gadget in the technology-led industry. When many European and American terminal and equipment manufacturers do not have a small data card in the eye.　　But Huawei sees the opportunity behind it to turn data cards into a universal product through continuous innovation. Previous data cards used PCMCIA slots, large size, and the need for CD-ROM installation, with the popularity of USB interface, Huawei in the exchange with European operators found this opportunity. 2006 years, Huawei's first USB interface data card E220 officially shipped to an Austrian operator, and caused the industry's great concern, set a single sales breakthrough 10 million of the impressive record. Suger said: "E220 the reasons for the success of the main three points, one is to meet the user experience, the second is the applicability of the USB interface more widely, the third is Plug and play, easy to carry." "2009, Huawei will ease of use again, launched a wireless network card, borrow power ipad best-selling, by the vast number of users" nickname "for" ipad Perfect Match ", in Japan, Europe, Asia-Pacific, Africa and other place after the popular hot. Sales in Japan in 2010 exceeded 1 million, with more than 3 million units worldwide.　　This is not a revolutionary invention, but it is the best balance between innovation, cost and ease of use, the key elements of mobile terminals. The digital photo frame is another typical case for Huawei to play a differentiated competitive advantage. Huawei began to do frame, the industry has a lot of products, Sony, Samsung, LG are bullish on this area, and a large offensive, launched a variety of products. However, these frame is the SD card inserted to read the photos of consumer products. Obviously, if the same type of products, Huawei has no resources and experience, let alone the advantages. But this time, Huawei found that telecoms operators have a new demand. After the development of 3G, some high-end operators have encountered a big problem: the development of data services to 3G Network load capacity has brought great pressure. Therefore, the most needed data service for telecom operators is to improve the ARPU value and the impact on the network is relatively small. The digital photo frame with 3G module meets both the operators ' requirements.　　This digital photo frame is to receive information in the way of MMS, it is instantaneous, the impact on the data business network is very small, but also to the operators to bring considerable income. In 2007, Huawei and Vodafone and Deutsche Telekom were experimenting with digital photo frames. But the real success is in Japan. At present, Japan's main three operators docoMo, KDDI and SoftBank all carried out the digital photo frame business, Huawei is the only supplier. Last January-October, Huawei's digital photo frame shipments reached 1 million units. The success of digital photo frame is in fact nothing more than two reasons, one is Huawei to maximize its own advantages, built-in 3G module, rather than head-on and those pure consumer goods manufacturers recklessly. The other is that it does meet some of the requirements of the operator during a period of special competition.　　Japanese carrier SoftBank ranked after DoCoMo, KDDI, after the introduction of high-end mobile phone bundled digital photo frame package, 10 consecutive months in the Japanese market to develop high-end users number one. The same idea was used to develop a tablet computer. The ipad has ignited the tablet war, and almost all the companies that have been touched have launched tablet products. And Huawei has to make a difference. 2010, Huawei Tablet Computer orders volume of 200,000 units, shipments reached 150,000 units. Although the digital photo frame and tablet computer are two completely different products, but Huawei's operating ideas are in line. Compared with other manufacturers in the industry, Huawei's tablet has two main features, one is to greatly enhance the communication functions, such as video communications, VoIP, built-in Skype and so on. The second is to help operators build their own garden, connecting the operator's application.　　Last year, Huawei's tablet computer products successfully broke through the Australian operator Telstra in only one months, but the most impressive thing is that Huawei's tablet can host different businesses on its different networks. Huawei is able to find opportunities in these markets, inseparable from Huawei's long-term adherence to the "flower in cow dung" strategy, never leave the tradition to blindly innovate, but based on the existing to open, to innovate. But the market can become big, but not the mainstream market, to achieve real success, to become the industry's real big players, Huawei terminals must be in the mainstream market baptism and test.