Can China's mobile phone manufacturers enter Europe and be successful in developed countries?

On November 9, according to the “Financial Times” report, Chinese mobile phone manufacturers now have to march aggressively into the European market after gaining a large number of users in the domestic market and emerging markets. Among them, Xiaomi is prepared to ship "hundreds of thousands of Taiwan" mobile phones to Spain. Like several of its counterparts including Huawei, OPPO and vivo, Xiaomi has gained market share from the two giants Apple and Samsung by virtue of its higher price/performance ratio.

From a certain perspective, Chinese smart phone manufacturers are catching up very quickly: According to data from industry consultancy Counterpoint, in the third quarter of this year, Huawei’s global market share reached 9.8%, slightly lower than Apple’s 11.7% – although that quarter may be There are a lot of Apple fans holding money waiting to buy a new generation of iPhone not yet listed.

Compared to the third quarter of 2016, the global market share of Chinese smart phone manufacturers has increased in the third quarter of 2017

Speaking of his trip to Madrid, Spain, Wang Xiang, who will lead the international expansion of Xiaomi, said that entering the Western European market is a milestone. "Spain is our first stop in the developed markets," he said.

Vivo uses Russia as the first stop to enter Europe. Millet, vivo and OPPO have all achieved great success in India. The market is currently dominated by Chinese mobile phone manufacturers. Although Xiaomi suffered a setback in previous years because of his excessive steps, it has recently recovered.

In order to successfully enter the markets of developed countries, Chinese companies are looking for growth in patent acquisitions, online sales, and marketing strategies.

"For us, one of the benefits is that the Internet world has no borders." Wang Xiang said, "The European continent is very close, so if we can achieve good results in Spain, then for us to re-enter other Western European countries will It will be a lot easier; it's just a matter of time."

He pointed out that in the past, industry observers have always emphasized the problem of insufficient patent reserves for Xiaomi. “But in the past few years, we have made great progress in patents. We have applied for 16,000 to 18,000 patents, and we have more than 4,800 patents all over the world, including us from Intel and Nokia. Those patents acquired."

However, according to analysts, patents are one of the biggest obstacles to progress for Chinese equipment manufacturers. Counterpoint research director Peter Richardson pointed out that Ericsson, Nokia and other companies hold a lot of intellectual property rights. "Europe is a place where IP protection is very much emphasized. Those companies are waiting for Chinese companies to show flaws and then pass." Launch intellectual property lawsuits to beat them."

He added that Huawei can basically avoid this problem because it has a huge patent portfolio.

Like other market strategies, Xiaomi plans to sell products in both online and physical stores in Europe.

At the same time, vivo and Huawei used attractive sponsorships and celebrity endorsements to attract consumers in overseas markets. Huawei hired Scarlett Johansson, a well-known American actress, as spokesperson. Vivo took the sports marketing route and sponsored the 2015 Indian Super-cricket League. It will also sponsor the FIFA World Cup until 2023.

“Overseas markets are very important to us,” said Feng Lei, vice president of international operations at vivo. The company also plans to enter the African market early next year.

Huawei said that it will compete for market share in several European countries including Spain, Italy and Germany. Currently, more than half of its smart phone business revenue comes from markets outside China. According to estimates by analysts at GfK, Huawei accounted for nearly 15% of market share in Western Europe last year.

The Shenzhen company benefited from the distribution cooperation with mobile operators. Canalys analyst Ben Stanton pointed out that Xiaomi has not yet received such treatment. "So, its progress will not be as prominent as Huawei. But with Alcatel, HTC, LG Electronics and other old brands gradually fade out of the operator's With the cooperation of manufacturers, Xiaomi has the opportunity to fill the vacancies."

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