Tcl China CEO Wang: Mobile phone competition in the year of restructuring

Facing the FDD test network licensing, three major operators to cut the huge marketing costs, reduce terminal subsidies, domestic handset manufacturers are actively adjusting to meet the market reshuffle and change the bureau.

TCL Communications China President Wang in an interview with the author said, operators to adjust the market and terminal subsidy policy, the operator subsidies rely on large mobile phone manufacturers will form a bigger impact. And for the open social channels and more perfect channels of electricity business, is a change in the market status of the opportunity, within two years of domestic mobile phone brands and market share will certainly be rewritten.

TCL China Mobile phone business completed three major adjustments

Tcl phones announced a "return" to the Chinese market at the end of 2011, but the initial period was not smooth. As a local handset manufacturer, how to adapt to the domestic market complex competitive environment, become TCL mobile phone needs to face the first realistic problem.

2013, as the youngest vice president of Tcl Group, Wang Yong "stepped" began to take full charge of TCL Mobile China business. After nearly two years of actual operation, Wang said, TCL mobile phone China Business has completed three major adjustments:

1. Balanced distribution of channels. TCL mobile phone business back to the Chinese market at the beginning, had hoped to first through the social open channel to open sales channels. But at this time operators through the mobile phone customization and subsidies, the channel control is growing rapidly.

Wang, after the new post, readjust TCL mobile phone China business channel layout, and fully strengthen cooperation with operators, the effect is obvious, such as China Mobile customized TD mobile phone is expected to ship more than 400,000 units this July.

Electric Business channel, this March, Tcl and Suning, China Mobile online business three-party cooperation launched the "Mody" of the new thousand-core smartphone, sales of more than 300,000 units. It is reported that the "Mody" mobile phone eight nuclear 4G version will be launched in July.

Open channels, Tcl on the one hand to strengthen cooperation with suning in the national chain stores, on the other hand constantly improve the layout of TCL Communications in the provincial branch of the layout, strengthen cooperation with regional chains and stores stationed.

2, Brand promotion. TCL mobile Phone product design and manufacturing has made significant progress in the past two years. Wang said that the product is the most fundamental driving force of the brand. In addition, domestic mobile phone enterprises generally pursue all-inclusive channel development policy, but the birth of the market "disorderly price" often on the sale and brand damage, this is the domestic mobile phone enterprises in the brand building process needs attention.

3. Increase the volume of shipments. Tcl is expected to ship more than 40 million smartphones throughout the year. Although an established domestic handset maker, returning to the Chinese market means it has to start from scratch. Wang will be 4G as a TCL mobile phone shipments of an important opportunity to increase the expected year in China to reach 8 million of the target shipments.

The King thought, Tcl Mobile phone in the Chinese market to take the road of both brands and profits, relying on low profits or even losses, to gain market share of the behavior and can not be sustained, but in the long term is diluted domestic mobile phone brand itself on the value, this is the domestic mobile phone companies in the last two years, the product configuration But the underlying reason for the lower prices.

The domestic mobile phone competition pattern reorganization in the year

According to media reports, SASAC has recently issued a notice to the three major operators, clearly requesting that in the next three years, a continuous annual reduction of 20% of the marketing costs. China Mobile is expected to reduce the marketing costs of 24 billion yuan in 3 years, while the three major operators in 3 years total need to reduce marketing costs more than 40 billion yuan. Operators have slashed marketing costs for three consecutive years and are expected to have a significant impact on carriers ' mobile-phone subsidies, advocacy strategies and the domestic handset market.

Wang in this said, operators to reduce terminal subsidies, the past few years really do products and brands of mobile phone companies is a good, for the social open market and electric business channel layout earlier mobile phone brand is a positive. But for too much reliance on operator channel sales and subsidies, and most small and medium-sized brands, I am afraid the next two years will be more difficult.

For operators to reduce their own channel sales accounted for the practice, Wang said, operators, social open market, electric platform of the three major sales channels can not be extinct, only in the competition share more balanced and reasonable. For operator-owned terminals, the company may increase its own channel to the end of the subsidy efforts. At the same time, market competition will tend to be more finely differentiated, the same price models will be reduced, single sales will be significantly improved.

Wang-Fan believes that many domestic brands are now shouting shipments of more than 600.08 billion, but the reality is the global smartphone sales and touch to the "ceiling", China also from the user new market to the stock market, users of the mobile phone to buy will be more rational. From this point of view, the market capacity simply can not meet the current domestic mobile phone brands "Great Leap Forward" type of comprehensive expansion, there will be some people in this competition lag behind, the domestic smartphone market in the traditional rankings will change significantly in the year.