New Glory Market Share Rises, How To Break Through The High-End Market?

The mobile phone market has always been surging, and the experience store in the core business circle is the profile. In mid August, in the shopping center of Nanshan District Center in Shenzhen, glory stores moved from the fourth floor to the first floor. Huawei, Xiaomi and apple channel stores are on the same side of the new stores, as well as vivo, which has just settled in recent two months.

At a glance, the latest flagship phones are all located in the conspicuous places of each entrance, so the focus of mobile phone manufacturers is to create a medium and high-end brand image; The row by line shop shows the current changing competitive situation. The competition and ups and downs of the top three mobile phone markets in China imply new competition.

Since the third quarter, the mobile phone market pattern has been continuously updated. According to a recent report by counterpoint, glory is gradually regaining its share of China's smartphone market after its independence from Huawei. At the same time, like oppo, vivo and Xiaomi, glory is actively exploring the high-end market and expanding its development space. Counterpoint predicts that OEM market share competition will be more intense in the segment markets with prices of RMB 2000-4000 (US $300-600) and above, and the overall competition pattern will be reshuffled in the second half of 2021.

Recently, Zhao Ming, CEO of glory, said in an interview with the media including the 21st century economic report that "the market share of glory has recovered by 14.6% by the end of July. In the whole July, our brand has returned to the top three. I believe this is just the beginning."

At the same time, the information of glory backdoor listing is endless. Before that, bird stock announced that the company has not discussed with glory mobile phone, there is no listing of glory mobile phone backdoor waveguide stock, and the company has not OEM production of glory mobile phone.

As for the listing issue, Zhao Ming told the 21st century economic report: "glory financing channels will be diversified, and we will not exclude listing at the right opportunity in the future. Listing is an option for us. As for the listing of domestic and overseas portfolio, it has not been put on the agenda. First of all, we should manage the company well. Our cash flow is positive and our business is developing at a high speed, The overall operating cash flow is very healthy. "

The glory of leaving Huawei is gradually regaining its share of China's smartphone market. Visual China

"Climbing game" is a false proposition

Many people in the industry believe that it is very important for new glory to truly renew itself and establish a new brand power. Judging from the recent data, glory is gradually growing.

"Glory's share of the Chinese market rebounded from 5.1% in January to 8.4% in June," according to counterpoint's monthly market pulse. Although glory's sales in June were only about half of its 4.55 million units in August last year, the current growth momentum is strong. In terms of month on month growth, glory increased by 39% and 27% in May and June respectively

As a result, counterpoint points out that from the perspective of market share and sales volume, glory smartphone sales have hit the bottom and rebounded. Judging from the preliminary data in July, glory market share still maintained the growth momentum. Among them, the sales performance of glory 50 series is of great help to the recovery of glory's overall market share.

In the past six months, glory has experienced a dark moment, but the growth of market share does not mean a "safe landing". In Zhao Ming's view, "for mobile phone companies, there will never be a stable safety line. At that time, the market share of the top few companies once accounted for 20% and 30% of the world's market share. They collapsed faster than anyone else at the peak, and they could not even drag them back. Therefore, for us, there is no game of climbing the top in the mobile phone industry. The game of climbing the top is a pseudo proposition. It is a long march of scientific and technological innovation competition with no end point. "

While the domestic data is rising, the glorious overseas market is still in the process of recovery“ This year, the focus of overseas markets is to restore local operations, channels and retail capacity, which is equivalent to the process that China has gone through at the beginning of this year. " Zhao Ming said, "overseas has been out of stock for a longer time than at home. Almost now, the overseas market share has fallen to 0, but it is never a problem for glory. Around October this year, glory 50 series and glory X20 can be shipped overseas, and they are based on GMS. "

Zhao Ming also said that the current business demand and development speed is too fast, the transformation of the system and the transformation of thinking mode are both challenges and pressures, "from online brand to Omni channel brand, this process should be considered and grown. The continuous growth and consolidation of the whole system is our challenge to honor today. "

In terms of important offline channels, Sano predicts that in the future, the online market will still maintain about 30% of the total channel share, and there will still be 70% offline space. In terms of offline channel construction, glory has the advantage of shareholder structure. Glory's shareholders include the major distributors of electronic products in the Chinese market, which ensures that glory products can be distributed to offline channels and enter China's largest market segment. In the most difficult moment of glory, more than 2500 experience stores and zones have been added to the offline channel.

Fight for high end market

According to the global market monitoring data of GfK, the average price of global mobile phones reached 410 US dollars in the first half of this year. It is estimated that the global retail sales of smart phones will reach 1.32 billion in 2021, with a year-on-year growth of 4.4%.

Among them, the high-end market has become the place of contention for the current manufacturers. In 2020, Huawei and apple share equally in the domestic high-end market. After Huawei's chip supply was blocked, Apple's market share increased significantly. Now glory, OV, Xiaomi and other manufacturers are launching an attack.

Take glory Magic 3 series as an example. The first generation of magic series was released in December 2016, which carries the ambition of glory to the high end“ In the future, glory will continue to iterate the series every year and will not rule out other forms such as folding. " Zhao Ming said. According to reports, the number of employees of glory has reached 10000. After using the manpower budget of next year in advance, glory will maintain more than 50% and even 55% - 60% of them are R & D personnel.

It is not easy to compete with apple. For new glory, it takes time to break away from Huawei's glory label, build its own brand characteristics, form high-end tone, and further consolidate channels. Zhao Ming said: "in the future, glory should go out of its own way. At first, we have the same technology platform or some technical capabilities, but now we can see that it has begun to drift away, including the transplantation of the film industry to mobile phones. This development direction is defined by us. Our high-end road starts from glory Magic 3. Give us time. First of all, we don't (focus on) market share and sales volume, but on product experience. "

Zhao Ming further concluded: "the most important thing to honor today is to continuously invest in the future, to invest in our core capabilities for future research and development, market core capabilities, and the layout of overseas core capabilities for the next step toward global markets. It includes OS turbo, GPU turbo and several of our core engines in the R & D field. "

GfK pointed out in the report "where is the boundary" of the new global mobile phone pattern that the global top mobile phone brands are gradually forming a competitive advantage camp to further expand their own advantages; At the same time, while making up for their relative weaknesses, each company has opened a competition between the old and the new hegemony, forming a delicate dynamic competition situation of top brands in the market under the overall balance.

The report also said that in the future, if Chinese brands want to become global technology companies, high-end breakthrough will be a tough battle for Chinese brands to face. In the first half of 2021, in the global high-end market of more than $600, China and Western Europe accounted for 67% of the market share, but Samsung and apple accounted for 94% of the high-end market share in Western Europe, so the Chinese market will be the top priority for the high-end breakthrough of Chinese brands.

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