In this cold winter of mobile phone consumption, how can Chinese mobile phone manufacturers help themselves?
In this era of mobile Internet, if you ask anything you can’t leave for a day, the mobile phone as a human digital organ is undoubtedly one of the most important things. Since the birth of the smart phone, the status of the mobile phone in human life has been rising sharply. And China has become the world's most important mobile phone producer and consumer country by virtue of its strong mobile phone manufacturing capabilities. However, starting this year, the once star of today has also begun to have a difficult time. Many people call it the cold winter of mobile phones. How can we save the mobile phone industry in this cold winter of mobile phones with degraded consumption?
1. The cold winter of mobile phones in the world of ice and fire
Recently, it has been bittersweet for the major mobile phone manufacturers in China. Speaking of music, the first report card after Xiaomi’s listing was officially announced. The first financial report after Xiaomi’s listing on August 22 was announced. According to the financial report data It is shown that Xiaomi's revenue in the second quarter of 2018 was RMB 45.2 billion, a year-on-year increase of 68.3%. Adjusted profit increased by 25.1% year-on-year to RMB 2.1 billion. In the first half of the year, Xiaomi’s revenue was 79.6 billion yuan, a year-on-year increase of 75.4%, operating profit was a loss of 4.228 billion yuan, and an adjusted profit was 3.816 billion yuan.
In the second quarter of 2018, Xiaomi's mobile phone sales reached 32 million units, a year-on-year increase of 43.9%. The average selling price of Xiaomi's smartphones in mainland China increased by more than 25% year-on-year in the second quarter of 2018. The financial report shows that the increase in the average selling price of mobile phones is mainly due to the sales of mid-to-high-end flagship models such as Mi MIX2S and Mi 8 series in the Chinese market.
On the other hand, Samsung, the world's number one mobile phone giant, looked very unhappy. According to news on August 21, Samsung Electronics' stock price has continued to fall recently. As of August 20, Samsung Electronics’ stock price closed at 43,850 won on the South Korean Stock Exchange, down 0.57% from the previous trading day. In intraday trading, the stock once fell to 43,500 won, a 52-week low. Compared with the record high of 57,519 won on November 3 last year, Samsung Electronics’ stock price has fallen by 24% in less than a year. In August of this year, Strategy Analytics data showed that Samsung’s domestic mobile phones accounted for only 0.8% in the second quarter, which was the same as the fourth quarter of last year. Such poor sales performance has forced Samsung to choose to close its Tianjin factory. On August 13, according to the South Korean "Electronic Times" report, Samsung Electronics will close its Tianjin mobile phone factory this year because of "the sharp decline in sales in the Chinese market. And production costs continue to increase". It seems that Samsung is going to abandon the Chinese mobile phone market and earnestly make money for its own components.
Behind the dual ice and fire of Xiaomi and Samsung is an unexpected cold winter of mobile phones in China. In 2018, Q1 sales fell by 29.73%, reaching a historical low in the past two years. Although Q2 shipments rebounded in 2018, they were still declining compared to the same period in 2016 and 2017.
Therefore, compared with the booming mobile phone market in the past few years, the cold winter of mobile phones can be said to be too sudden, making many mobile phone manufacturers caught off guard. In the face of the sudden cold winter of mobile phones, how can mobile phone manufacturers help themselves?
2. Where does the cold winter of mobile phones come from? How to save yourself?
This time, the sudden drop in mobile phone consumption is actually a bit inexplicable for most companies? In fact, the data is already explaining the problem. In June 2018, the total retail sales of consumer goods grew by 9%; in May, the total retail sales of consumer goods grew by 8.5%, the lowest since SARS in 2003.
Housing prices have risen all the way, and the residents' leverage ratio (resident sector debt balance/GDP) has also risen all the way: Statistics show that the residents' leverage ratio has climbed from 18% in 2008 to 50% in the first quarter of 2018. It has doubled in just ten years.
Among the residents' loans, up to 70% are medium and long-term mortgages. For young people, according to the data of the "Overall Operation of Payment System in the Second Quarter of 2018" released by the People's Bank of China, the total outstanding credit card credits overdue for six months were 75.667 billion yuan, an increase of 6.35% from the previous month, accounting for credit cards. 1.21% of the credit balance. Coincidentally, the 2018 "China Pension Prospects Survey Report" was released recently. According to the survey data, the current young generation in China saves an average of 1,339 yuan per month.
Insufficient deposits, weak consumption, rising debt, this is the current situation of consumption degradation. For mobile phone users, facing the general trend of consumption degradation, in fact, most of the time our mobile phone use is in a state of excess performance, then mobile phones When it can be exchanged or not, the original choice is to change the machine with a new model, so for now, it is better to make use of it and it can be counted as one day, but consumers can live like this, but the turnover rate can be. It is said that it is the lifeblood of mobile phone manufacturers. If the mobile phone cannot be turned around, then the mobile phone manufacturer will really fall into a crisis. However, the success shown in the Xiaomi’s financial report this time gives the mobile phone manufacturers a hope for mobile phone manufacturers in the cold winter. Maybe The road to self-help is not without:
One is the high-end flagship grabbing Apple. To be honest, if it is still the era of Steve Jobs, domestic mobile phone manufacturers might as well consider washing and sleeping. The gap between domestic mobile phones and Apple mobile phones was indeed a cloud of muddy difference in that era, but now the situation is not the same. After the death, the innovation of Apple mobile phones seems to be inferior to one generation, but the price is constantly rising. It can be said that in a sense, using Apple is more for faith, and the increasing price of Apple mobile phones, such as 8 The possible pricing of 12888, which was revealed on the 23rd, felt that it was not only as simple as harvesting faith, but also rising to the point of collecting "IQ tax". At this time, the opportunity has come. Xiaomi’s successful Mix model, Huawei’s Mate model, and even flagship phones such as Xiaomi Mi 8, Huawei P20 are all important replacements for Apple. The experience is not inferior, and the price is far lower than Apple’s. Coupled with the higher age level of the users, these users can become stable profit contributors to mobile phone manufacturers.
The second is to subdivide categories to grab vertical. In recent years, the strong rise of OPPO and VIVO has allowed the green and blue phones to eliminate most of the competitors in the China Cool League. In fact, the root cause is that in addition to the power of sinking channels, there is another right Firmly grasp the needs of subdivided groups. For example, when positioning the customer group, the needs of female users are actually relatively simple. They don’t care too much about the configuration of the mobile phone. Someone once classically concluded that for female users, There are two uses for mobile phones. The first one is good-looking (the value of the face is justice), and the second one is good-looking. OPPO and VIVO can be said to effectively seize the market of these users, gaining users and getting good results. Profit, then by seizing a certain type of user and intensively working on it, it may be surprisingly successful.
The third is that the price is the king and the volume is burst. In addition to the above two methods, there is another one is to seize the price tag. In fact, what is meant by consumption degradation is that people no longer value the brand, but value the price/performance ratio. Then for the mobile phone, it is the price or the price. Why Pinduoduo, MINISO, mustard, instant noodles can become popular when consumption is downgraded. In fact, the core key is the price advantage. At this time, if there is a mobile phone manufacturer that can be like Xiaomi's 1999-priced Xiaomi mobile phone and 999-priced Redmi mobile phone. If a super cost-effective explosive product is launched, then several large groups of people will be easily captured. This is the three groups of student parties, the elderly, and migrant workers. For them, no fancy configuration is required, as long as it is true. If done well, it might even be possible to harvest the original middle-income group led by consumption degradation.
In fact, consumption degradation may not necessarily be a crisis, it may even be an opportunity, because only when everyone's flow rate slows down, overtaking in a curve can be achieved, and perhaps it may be able to walk out of a different scenery while saving oneself. .
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