Will millet become the fuse of Samsung's decline?

The wood shows in the forest, the wind will destroy it. The worst thing about being ignored by your opponents is that you haven't been able to stand on a high level with your opponents. Once your opponent starts to sneer at you, it can be comforting-your opponents have recognized your ability to match and begin to fear. Samsung, which has been stranded in 2014 with declining smartphone sales and underperforming performance, challenged the international competitiveness of Chinese smartphone maker Millet in New York's "2014 Samsung Investor Forum".

Li Mingzhen, a Samsung Electronics director, said in the forum that Millet has performed relatively well in the Chinese market, but it is unclear whether its strategy will make it more successful outside of China's home market. This indirect recognition of Samsung in the mainland market performance is not lost to millet, it is true, in 2014 three quarters of domestic mobile phone sales, Millet has surpassed Samsung, leaped first. Meanwhile, on November 24, the Wall Street Journal reported that Samsung Electronics is brewing management restructuring, the current mobile business of Samsung Electronics Joint chief executive Shenzong may no longer be responsible for mobile and lost the CEO position, and the home appliance business Yunfergen will replace him to manage the mobile business. It's certainly releasing a signal that Samsung is starting to get nervous. Today, Samsung is only wary of whether Millet will replicate similar successes in the global marketplace. For millet, once accepted by the global market, may become one of the factors of Samsung's decline.

Innovation model means road rebels ambition

Millet's ambition is expanding in one step, perhaps at present can occupy the domestic market smartphone handset sales top is the original millet also cannot anticipate. But since come to this step, if millet no longer give their own planning a big blueprint, it is not justified. One of the ultimate goals of this blueprint is to become the largest mobile phone manufacturer in the world. Recently, the first Zhejiang Wu Town held in order to "interconnection, sharing and governance" as the theme of the World Internet Conference, many big boss challege globalization background of the Internet development and future trends.

And Lei in the General Assembly entitled "Smart home leading the future world" speech and pointed out that millet now the entire platform has 70 million active users, a year later there will be more than 200 million users. The global market has just begun, in the past year Millet has opened up 6 markets, including Hong Kong, Taiwan, Singapore, Malaysia, India, Indonesia and so on. And with the innovative mode of millet, after 5-10 years, Millet Organic will become the world's first smartphone company.

Lei's so-called innovative model, refers to the use of hardware close to the cost of sales, through the intelligent terminal architecture of a huge mobile internet platform, and then to do value-added services. In other words, now Millet is also walking in the initial stage of their own innovation model-the establishment of a perfect intelligent hardware ecological chain. Once the intelligent hardware cluster is completed, millet can combine the hardware, software and the Internet, and use such a model to come out a new path.

As a result, smart hardware and value-added services will complement each other and become an apple-like closed-loop ecosystem. Samsung is still relying on hardware sales to obtain profits, although its innovative features more, but the user stickiness is not high, which gave millet opportunity to swoop in. Once millet is expanded from the current 6 major markets, it will undoubtedly have a huge impact on Samsung's smartphone and even the overall smart hardware market. To be realistic, Samsung's products are always excellent. But in the face of Millet and other Up-and-comer in the price, configuration, innovative mode of confrontation, appears muscle. If Samsung really declines, it is not its own incompetence, but the "enemy is too strong."

Marketing war can not be taken into focus on brand chain reaction

In the internationalization of millet on the road, need to pay attention to many aspects. Many people are not optimistic about millet in the overseas market to make a difference, but is that millet can not copy domestic success of the marketing model. However, with Samsung, Nokia, BlackBerry, such as the failure of the lesson, there are winners such as Apple, millet in the internationalization process if can learn more experience, may not be successful.

Since the domestic marketing means can not be replicated, it can be used to learn from the marketing of Samsung's experience. Samsung in the past to become the largest volume of mobile phone manufacturers, by virtue of the endless marketing input. But the so-called Chengye Xiao, Samsung also in the marketing. The huge cost makes its cost rises unceasingly, but the brand value and the image which uses the advertisement accumulates is a castle in the castles, fragile.

Millet can be chaff in marketing, do not engage in a huge propaganda war blindly. Even if money cannot be squandered on marketing, Samsung's lesson is bloody. As long as consciously for their own products in the biggest highlight of the publicity, the selling point to the user, and is widely accepted. And in the means, still can not rely on television, newspapers and other traditional media, can be in the Internet, APP, Twitter/facebook and other channels on the big fuss, anyway, millet play is also very adept. Of course, do not forget, and the domestic environment is different, in the internationalization process, remember not to be marketing as an absolute "killer".

At the moment, Millet's overseas trip only stays in 6 markets. Other than India, it is a small market. This is the best battlefield for millet to accumulate overseas experience. At present, millet to pay attention to is the brand chain reaction. Do more in this area. In larger North America, Europe, in markets such as South-East Asia, where market conditions are similar (for example, because of the large and interconnected European market, which can radiate to multiple influences in one country), Millet can take the "point and face" approach, focusing on one or more of the market names, Then naturally there is a ripple effect. In addition, localization is imperative, millet should be familiar with local laws and regulations, market environment, consumer preferences and so on.

Once in the marketing and brand building with Samsung, and even beyond, millet nature can be in the global market and Samsung World War. If Samsung remains on the rebound for the next two or three years, it is not impossible to decline.

Rich product portfolio Price range rationalization

Millet must not think of the overseas market in the sea tactics, which has been proved unworkable. The Samsung senior vice president, Robert Yi, said Samsung would reduce the number of smartphones produced by 25% to 30% in 2015. This means Samsung has decided to abandon its existing multiple-model hybrid strategy, concentrating its decentralized development capacity to increase its yield. This gave Millet a new hint, many not necessarily combat power strong, it is likely to lead to rising costs and models of complex, resulting in a low user recognition.

Realistically speaking, the current millet product mix is not reasonable. With millet, red rice in the domestic "combination boxing" can meet the needs of users, which is determined by the level of domestic consumption. But in foreign countries, the level of consumption varies. such as the European and American market consumption level is high, the Indian market consumption level is low, this requires millet must be consciously in the product of differential treatment, and make price range rationalization. Of course not like Samsung, must be in the price and Apple break off wrist ...

Millet in high-end terminal also has a lack of, alone millet 4 and other products, is not enough and Samsung flag ship model confrontation. If Millet can launch the model of about 2500-3000 yuan, in all respects and Samsung flag ship comparable, will be good. Millet 4 and Millet 3 and other products can be used as midrange models exist-similar to the charm of MX4 Pro and MX4 positioning. At the low end, the red rice actually exists the value is not big. Nothing more than to become a PR selling point, stable rice noodle enthusiasm and maintain a good relationship with the offline channel, but can not add to the ecological circle of millet added much value. In overseas markets, millet to reconsider the Red Meter series models of positioning, according to different market conditions to make adjustments.

No baggage, let go.

As a fast growing enterprise, in the road to overseas markets, millet really do not need to give themselves too much pressure. If you can succeed, you will be the most competitive, even if you fail, and the foundation of the domestic market, will give Millet a chance to make a comeback. In addition to Apple, the other international mobile phone giants are now in decline, it is millet to build their own power at the moment, can follow their own thinking, model to make rules-all attempts and innovations are worthy of encouragement.

In the international road of Millet, Samsung is to avoid the enemy, is also the best test of millet innovation model. If, as Lei says, after 5-10 years, Millet became the world's number one smartphone company, that would mean that Samsung had already declined. As the industry observer, we can only slowly watch the situation further development. Whether it is bragging or confident, next year will be the key node, let us wait and see.