Why Jiucheng domestic mobile phone brand will die

Huang Mingquan, chairman of LePhone mobile phone, told the media recently that 500-600 domestic mobile phone brands are currently expected to shrink to around 50 by the end of 2015 and that over 90% of domestic mobile phone brands will disappear. Judgment, the industry uproar. Praise those who append there, those who have doubts, there are misinterpretation, there are those who surprise, there are awakened, those who panic. Applause appeasers, often the industry, plumage duck prophet, feel empathy; question misinterpret, are often concerned about the mobile phone industry, but the lack of practical experience, simple analogy, paradoxical talk; surprise awakened panic, but it is the most in need Judgment, by the trend of the largest small and medium-sized brand mobile phone manufacturers.

Despite the different responses, it is recognized by all parties that unsustainable small and medium-sized brands under the traditional model will continue. In fact, the core of the controversy is two points: First, the small and medium-sized branded mobile phone manufacturers in this knockout race with their own small boat U-turn features quickly find suitable for their own soil for growth? Second, even if small and medium-sized brand mobile phone manufacturers are dead now, will there be more small and medium-sized enterprises influx of gold in this area?

The answer is no.

I have to Zhang Hui, vice president of Lenovo has made the point of view "3G is not a clean-up inventory, in the four or five markets still have a lot of vacancies," to refute, it is guilty of the most simple logic error: Lenovo must kill four or five Level market, as small and medium brands do not hurry to clear inventory that really only die.

But what really terrible is hundred abundance. When Blocklifter will allow users to make money, directional traffic and other strategies to upgrade to the height of the core strategy, he has already declared war on the entire mobile phone industry. These strategies are the Internet free strategy landing in the mobile phone industry, in essence, is a price war, but also the ultimate price war: free, and even to the user money! The real opponent is naturally millet and China UnionPay and other major domestic manufacturers, but not in the short term they will have a fatal blow. With strong technology and capital accumulation, the domestic major brand mobile phone manufacturers are still possible to retreat border fronts, but it has always been a fairy fight people suffer when the first echelon Rush price war, when the original rely on low-cost, to the channel Make more profits to gain the living space of small and medium brands, will be unsustainable, corpses over and over again is inevitable. This is no longer a contest of production costs and channel costs, but a contest of ecological systems. 100 abundance has established its own ecosystem, once lephone 4 production capacity to keep up, compete for the largest market share is a small and medium-sized brand of the original market, and millet and China cool joint in the share of nibbling , Will also increase the loopholes in the original small and medium brands market. Of course, making small and medium-sized brands is not only pushing up the barriers of R & D and upstream capacity acquisition, but also the growth of new business models in the 4G era. Small and medium-sized brands can not build huge ecological systems to support Its competitive requirements, even if 3D printing, modular cell phones and other technology really successful, but also reduce the threshold of research and development, production, and can not change the big picture. When competition enters the stage of competition in the ecological system, it means that the new forces that need to enter this field must have enough energy, which will prevent the mass production of new small and medium-sized brands; of course, it means that there is a large user base Of Internet companies will get the best chance of entry, small and medium brands if you want to survive in this knockout, the alliance they may be a way out, but access to such opportunities for small and medium brands, after all, is a minority.