Huawei mobile phone "reengineering": How far is it from the top three?
After 11 years of rapid development, Huawei has become the world's third largest mobile phone carrier. For Yu Chengdong and Huawei's BG executive team, 2014 will be the beginning of a “reengineering” Huawei mobile phone, and brand and profit will replace shipments as a new growth target.
Huawei's mobile phone "tangled" brand road
In July 2003, Huawei established the mobile phone business department and began to promote its own mobile phone brand. At that time, it invested about 200 million yuan to cut into the PHS market. Ren Zhengfei’s request is that he is not allowed to make high profits, nor is he allowed to lose money. He feeds himself and develops.
In 2006, the first wave of domestic mobile phone development came, and the PHS market declined rapidly. Huawei cooperated with the international market for telecom equipment sales and began to “tether” 3G function phones. This stage is basically based on operators' “branding”. Due to low sales, low profits, and no brand formation, Huawei was once rumored to sell terminal business.
Huawei's mobile phone business has really begun to have a brand prototype. In 2010, Huawei released a smartphone based on Android2.2 in Hong Kong under the "IDEOS" brand. At that time, Ren Zhengfei was supportive of this. In 2010, Ren Zhengfei said in a high-level discussion with Huawei's terminal. "I don't have a limit on this (mobile phone independent brand). Even if you don't use Huawei's two words better, a small problem will not involve the group level." However, under various interests, Huawei finally gave up "IDEOS", or insisted on "Huawei" as its own mobile phone brand.
At the beginning of 2011, Yu Chengdong was transferred to Huawei as the chairman of the board. Huawei's mobile phone brand has opened up new attempts. In addition to Huawei, the addition of the “Ascend” series is similar to the meaning of Samsung and GALAXY series.
The real independent brand began in December 2013. After many years of entanglement, under Ren Zhengfei’s personal “making a board”, Huawei finally announced that honor has become an independent brand. After the e-commerce platform, it enters the operator and social open channel market in an independent way.
Looking back at the 11 years that Huawei's mobile phone business has gone through, the hairy guys of the year have entered middle age, and people come and go. Most of the domestic mobile phone brands established with Huawei have disappeared, and it is difficult to have today.
2014: Huawei brand reengineering
In 2013, Huawei has become the world's third largest mobile phone manufacturer in terms of mobile phone shipments. However, from another perspective, Huawei’s mobile phone business has reached a point of “turning” and “reengineering”:
1. The volume is sufficient. In 2013, Huawei shipped 52 million smartphones. In 2014, the total shipment (including the glory brand) targets 80 million to 120 million units. This is the scale of over 20-30 million units in a single quarter, and the fourth place (millet, Cool or Lenovo) will open up the obvious gap. Continue to pursue low-end mobile phone shipments with the goal of pursuing scale, which will cause damage to Huawei's mobile phone brand.
2. Company strategy requirements. At the luncheon of Huawei's BG management team in mid-March this year, Ren Zhengfei clearly pointed out that Huawei's terminal business should not blindly use Samsung, Apple, and Xiaomi as benchmarking companies: "First, we can't integrate vertically in a short period of time. Apple; Secondly, we can't integrate horizontally. Samsung relies on the strength of the state to support it. We can't do Samsung." Therefore, Huawei must "make it go its own way." Consumer BG should focus on profit, "Don't let the Internet Cause fever." Huawei’s rotating CEO Xu Zhijun also publicly released “speaking words” in April this year: “Consumer BG has a tendency to be impetuous because of its success in 2013. It needs to be lowered in advance, and it is necessary to clearly understand who it is and where it will go in the future.” The continuous publicity of “calling words” from Huawei executives indicates that Huawei’s mobile phone business growth mode will undergo a significant change in 2014.
3. P6 has successfully broken the road in high-end machines. The P6 mobile phone launched by Huawei in London in June 2013 has sold 4 million units worldwide in one year, and the Chinese market is about 2.5 million units. This is the history of Huawei mobile phones. For the first time, the model number of more than 2,500 yuan exceeded 1 million units, and it was 4 million units. The upgrade of Huawei mobile phones to high-end brands and the high-end mobile phone trading capabilities in 2014 will bring significant improvements.
4. Yu Chengdong has proved himself. According to Huawei's practice, the main leaders of the general business line will rotate every three years or so. The other two major BGs of Huawei have completed the transfer in early April, while Yu Chengdong continues to be the main consumer BG, showing that he is headed by Ren Zhengfei. Huawei executives affirmed their work in the past three years. After the revenue of Huawei's consumer BG business exceeded US$9 billion in 2013 and the profit reached its best, Yu Chengdong had enough confidence to once again “moving the knife” for Huawei's mobile phone business.
What problems will you face?
"Knowledge is easy." For the Huawei terminal whose brand concept is "to practice", it must be deeply considered. In the transition to high-end brands, Huawei should also pay attention to these issues:
1. Huawei's Pinyin LOGO. This is actually a problem that has entangled Huawei for nearly 10 years. Due to the damage caused by the mobile phone in the cottage, domestic consumers are not very satisfied with the mobile phone brand with the phonetic alphabet as LOGO. Like other domestic top 10 mobile phone brands, only Huawei has put "HUAWEI" LOGO on mobile phones.
In addition, LOGO in alphabetical form, domestic consumers have higher recognition and recognition of the letters within four. Such as Xiaomi "MI", ZTE "ZTE", OPPO, VIVO, IUNI and so on. Like the famous Samsung brand, it is estimated that few ordinary consumers can quickly write their exact English names.
Of course, this is not an absolute thing. With the brand's insistence on promotion and continuous enhancement, consumers can finally recognize and accept. However, this brings up the second question.
2. Brand investment is not high. Huawei’s rotating CEO Xu Zhijun said in an interview with the media in April this year that Huawei’s mobile phone business does not make large-scale brand advertisements. The goal is to improve product reputation, quality, service, etc., “Don’t let the Internet cause fever”. In the domestic mobile phone manufacturers, the domestic brand investment of Huawei's mobile phone business does not match its shipment size, even lower than OPPO, VIVO, Lenovo and other competitors.
3. The brand operation mode of the marketing team. In the case of limited brand investment, the Huawei market and marketing team are forced to operate on low-input, high-output Internet platforms, social media, and hotspot marketing. However, compared with competitors such as Xiaomi and vivo, Huawei, which is a traditional B2B business, is obviously not ready as a whole. It will not bring overall marketing and brand breakthroughs.
In 2014, one-third of the past, for Yu Chengdong and Huawei's consumer BG team, this re-engineering Huawei mobile phone, the goal of entering the top three global brand battle, are you ready?