Written by Wu Di and Zheng Yahong
Edited by Zhang Ze
Honor and Huawei are difficult to deliver
Some Huawei employees put on new uniforms with a tragic feeling of "surviving after being cut off." They bet their futures and decided to create "new glory" together.
However, the external war has not yet started, and the complex delivery issues between New Honor and Huawei emerged first.
Nervousness began to spread internally from the moment the sale of Honor was officially announced. "As soon as the company's red-headed documents came out, Huawei made a call to discuss how to allocate resources after independence." An insider told AI Finance.
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Although Honor has always been developed as an independent brand, it is actually tied to Huawei's large platform close. Technology, operations, ecology, including systems, derivative services, and even fan systems are all intertwined. The public's recognition of the Honor brand is also closely related to Huawei. Nowadays, the glory has been stripped away. What should be kept and which can be taken away are the most critical issues.
Throughout the entire interest chain, optimistic mobile phone dealers downstream have hopes for Honor’s independence. "The team has not changed, R&D has not changed, and the channels have not changed." A dealer in the Northeast region is full of confidence. "In cooperation with Honor, the channel feelings are there and the depth is also there. If we operate well after independence, Honor will be better than before." OK. ”
Many dealers, including the dealer in the Northeast region, told AI Finance that they always believed that Huawei would retain its high-end position and then move into the mid- to low-end market. All the research and development capabilities of the product line will be handed over to Honor, which will become the ultimate weapon to enhance "Honor's product power and market competitiveness."
But the facts may not be as they currently judge. According to AI Finance News, the division of resources between the two parties is still changing. "At least not all the things that were originally planned to be packed and taken away will be handed over to Honor." A person familiar with the matter told AI Finance.
At the same time, Huawei employees who transferred to Honor logged into the Xinsheng community. Some of the posting topics focused on the company's compensation plan. The Voice Forum has opened a special area for this purpose.
There are two compensation plans that have been circulated externally before: one is for employees who transfer to Honor, the stock will be repurchased by Huawei at its original price; the second is to directly give 1.7 times of 2019 income compensation. These rumors were "temporarily refuted" in discussions on internal forums.
“We haven’t seen the final compensation version yet.” An employee told AI Finance and Economics that internal rumors said the final plan would be announced in the near future.
A few days ago, employees who transferred to Honor held an internal communication meeting to discuss issues such as stock-holding compensation, but there was no final plan. "If the interests are not handled properly, employees on both sides will not be satisfied."
Huawei's wolf culture helped create the background of Huawei and the "New Honor People". But now, the wolf culture is also fully reflected in the delivery of resources between the two parties. Although it is ultimately determined by the overall situation, the front line of the business will definitely not give in on the delivery and allocation of resources, which makes Honor people feel uneasy and panic-stricken.
The internal game between Honor and Huawei has been going on for a long time. At the end of 2015, Honor operated independently. At that time, Honor's internal attitude was that "if it is independent, then it is truly independent, not dependent, and not a supporting role."
After independence, Honor lost the Huawei channel and struggled to explore and build online and offline channels. But its independence within the system at that time did not allow it to escape the shackles of Huawei.
According to Zhao Ming’s recollection in a Huawei publication, the Honor V8, which was originally planned to be launched in December 2015, was postponed to May of the following year. The earliest name of the product was not V8 but 7Plus. The original intention of the Honor team was to continue the success of the dual-camera strategy of Honor 6Plus, but this design "conflicted with other products of the company." The pressure from the company is that if they want this product to be released as scheduled, it cannot use dual cameras. They refused to give up their existing product definition and had to stay put. "We've been waiting for half a year."
Honor has truly achieved independence, but the feeling of helplessness still lingers in the hearts of Honor employees today.
"Unlike what the outside world imagines, there is already discussion on whether Honor can rise." An employee lamented to AI Finance and Economics, "The delivery issue has not yet been resolved. ”
Xiaomi OPPO is making a big splash
Huawei’s crisis is unresolved, Honor’s independent prospects are confusing, and the Chinese mobile phone market is in turmoil again.
Huawei’s mobile phones have been stuck in a complete shortage of goods for a long time. If the situation does not improve substantially, Huawei's mobile phone "outstanding" situation in the country will be broken and replaced by another situation of competition among the best.
Yuan Kai, who works for a leading domestic mobile phone company, told AI Finance News that Xiaomi OV has a window period of at least one year. “Next year is going to be exciting.”
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Can Huawei achieve "Nirvana"? Will glory rise again? Who among Xiaomi OV can seize the opportunity to become the first in China’s mobile phone shipments? "It is estimated that the reshuffle process will not be visible until the first quarter of next year at the earliest." A northern mobile phone dealer said.
"It cannot be said to be chaos now, but a state of chaos, full of uncertainty." Yuan Kai has been in the industry for 10 years and has rekindled his excitement. Uncertainty brings challenges, but also opportunities.
The "fire" in Lei Jun's heart has already burst into even greater flames. Xiaomi has been in business for 10 years, and it is meaningful for Lei Jun to mention "re-starting a business" this year. Lei Jun's most famous theory is "If you stand in the wind, a pig can fly." This time Xiaomi has hit an excellent opportunity again.
"Sometimes I quite agree with what Mr. Lei said, you have to be in the spotlight." Wang Jian, a former employee of Xiaomi, told AI Finance News that he didn't believe in fate. , but Lei Jun’s “good luck” changed his ideas. "Sometimes you have to rely on noble people or good opportunities arise."
"Xiaomi has already tasted the dividends of Huawei's declining share." Wang Jian told AI Financial News, There may be many internal conclusions about the reasons for the increase in sales within Xiaomi, but in fact the core reason is "the growth of the European market." Most of what it eats up is the share that Huawei has no choice but to lose. Online, Xiaomi is “grabbing Honor’s share.” In the first half of this year, despite Huawei's overall chip blockade by the United States, Honor still maintained the first place in online sales for several consecutive months.
By the third quarter of this year, Xiaomi has returned to the top three in the world. According to AI Finance News, Xiaomi has now put forward a "new plan to return to the first place in the Chinese market". Yuan Kai’s evaluation of Xiaomi’s recent actions is “vigorous”.
Xiaomi is increasing production. A Xiaomi employee told AI Finance that the company is increasing production internally. Although the exact number is not clear, it is "at least deployed based on Huawei's failure."
Market research firm Strategy Analytics previously predicted that if Huawei's chip blockage continues until next year, it is expected to release market space of about 100 million units.
Xiaomi is also competing for offline channels. AI Finance News learned that Xiaomi started “lobbying” through offline channels at least a few months ago. A Huawei dealer in the south revealed to AI Finance that people from Xiaomi came to him many times and offered to give him subsidies and encourage him to switch to Xiaomi and "don't hang yourself on a tree."
"My store was transferred over, and Xiaomi promised to give money and give people." The dealer said that in the past, the cost of opening a Xiaomi store was the highest; On the contrary, the cost is relatively low.
Many dealers complained about Xiaomi’s high cost of opening stores in the past. A boss who runs a number of digital stores in the north once said that many customers wanted to buy Xiaomi mobile phones based on feedback from store employees. He contacted the local person in charge of Xiaomi and planned to open a Xiaomi area. But the other party told him that Xiaomi only produced designs and "you have to bear the cost of building the zone yourself."
This directly gave up his idea. "In the investment area, have you ever heard of dealers taking money?" The boss still complains to AI Financial News, "I can do whatever I want, but I won't do it anyway." In contrast, OV pays more attention to offline channels and invests heavily. He "didn't get a penny" during the construction of the multiple OV areas he ran.
According to market research data, offline still accounts for the absolute majority of mobile phone sales, accounting for about 70%. Increasing the emphasis on offline, increasing offline investment, and cultivating channel relationships are major changes Xiaomi has made towards the goal of "returning to the number one position in the Chinese market".
"Originally, Xiaomi was not responsible for the decoration, but now it is fully borne. Furthermore, it used to not send salesmen, but now it will definitely send one to you." Said the above-mentioned southern Huawei dealer.
OPPO has also increased its orders, raising its mobile phone production in the second half of this year to 110 million units. Including the more than 60 million units in the first half of the year, OPPO's full-year production volume this year may reach 170 million units. This number is a significant increase from its shipments of 114 million units in 2019.
OPPO’s sub-brand Realme has also increased its domestic market development. The brand initially targeted overseas markets, especially India and Southeast Asia, with mid-to-low-end technology trends focusing on cost-effectiveness. Brand positioning, quickly entered the top five in many markets. But it lacks a relatively strong presence in the country. A person close to the company told AI Finance that Realme has made significant efforts in China and “may establish a branch in Beijing next year.”
Xu Qi, President of Realme China, recently announced publicly that the target for the domestic market next year is to reach tens of millions of sales. According to AI Finance’s internal understanding, the person in charge of Realme India will also lead the European division because “it can bring its successful experience in India to the European market.”
Who can carry the banner of national brand?
There are different opinions on the direction of Huawei and Honor’s mobile phone business in the market.
Some Huawei dealers believe that after spinning off Honor, Huawei will only retain its high-end mobile phone product line. "In the future, we will only make two high-end brands, two flagships a year. There will not be many products, but some will be sold."
A person close to Huawei is even more pessimistic. "If the United States continues to suppress it, Huawei may give up its mobile phone business." The person said that the historical mission of Huawei's mobile phones has been completed. It has become the world's number one and was once Huawei's cash cow. "But Huawei is a very wolf-like company. If this one doesn't work, I will start the next one. The strategy is progressive.
Yu Chengdong is making cars. Not long ago, Huawei’s automotive business has been relegated to the consumer business. ”
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And Glory is considered a bit tragic. Some people think that Glory was born to fight against Xiaomi was developing very well, and there were always voices saying that it would go public independently. However, due to the US suppression of Huawei, it had to cut off its arms to survive and start over. But Xiaomi OV is not weak at all.
Huawei’s provincial agent Qiao Sen said that Xiaomi and OV’s channels are now ahead of Honor. Currently, only four domestic mobile phone brands have established their own retail channels, followed by Huawei. Xiaomi, vivo and OPPO. And Honor has separated from Huawei. If Huawei continues to exist, it will be very difficult for Honor to break through. Time is building a lot of stores. Regarding this rumor, Qiao Sen corrected: It is mainly those agents who participated in the acquisition of Honor. They have the goal of building stores. If shareholders are put aside, there are almost no new stores. "For me, it is more. There is no need to do this. If Huawei fails, my Huawei store will be a Honor store. There is no need to build a store specifically for Honor. ”
Another disadvantage of Honor is the chip. In the past, when it competed with Xiaomi, it would highlight its Kirin chip, but now it has to It uses MediaTek chips. "It competes with Xiaomi and can't get Qualcomm chips for the first time." Yuan Kai added, "It turns out that it doesn't use Qualcomm chips. Qualcomm chips are basically bought out by Xiaomi OV. This is a problem." Big question. ”
Who after Huawei can carry the banner of a high-end national brand? In Yuan Kai’s view, even Xiaomi OV and New Honor are unable to assume this role.
Tonight, Xiaomi just had a better-than-expected financial report. In the third quarter of 2020, Xiaomi said that as many as 15 performance indicators such as revenue and net profit hit a single-quarter record high. , Xiaomi has also reached a high point in its stock price.
It can be said that Xiaomi may not have been as recognized by the stock market as it is today. Lei Jun also clarified everyone again in his speech recently. One of the three misunderstandings about Xiaomi is that "Xiaomi cannot be high-end."
This year is also the beginning of Xiaomi's clear statement that it will be high-end. Today, Wang Xiang, president of Xiaomi Group. After the financial report was released, he once again stated that Xiaomi is very determined to go high-end. “Breaking through in the flagship market is an extremely important incremental market for Xiaomi. "
In order to express his position, Lei Jun revealed that Xiaomi has established 9 major R&D centers around the world, with a team of over 10,000 R&D personnel. It will also recruit 5,000 more engineers next year.
Compared with Xiaomi, OPPO is not so radical, but it has also made some major adjustments one after another, and has undergone major changes in brand tone and marketing. “It turns out. OPPO is a bit of a fast-moving consumer goods brand, and now it is also determined to be a high-end technology brand. "A person familiar with OPPO told AI Finance, "It has cut off entertainment marketing before. ”
Not long ago, OPPO demonstrated an advanced scroll screen concept product at its own technology conference. Different from inward or outward folding, the scroll screen is more Like a drawer that can be pushed and pulled.
A recent report on the number of global wireless communication network technology patent inventions in 2020 showed that Huawei ranked first with 8,607 patents. It ranked third with 5,353 patents, vivo ranked ninth with 1,518 patents, and Xiaomi ranked 14th with 1,119 patents.
Xiaomi OV launches an impact on high-end products in terms of research and development and investment. But there are doubts in the industry chain about whether they can shoulder the banner of national brands.
"Currently no one can replace Huawei's position, not at the same level." A mobile phone dealer in Zhejiang told AI Finance. "If Huawei's high-end segment is cannibalized, in the short term, for example, if I change my mobile phone next year, I will definitely choose Apple."
Yuan Kai believes that Xiaomi OV attaches great importance to research and development. , is also influenced by Huawei. "Huawei has reached a very high level in some areas, especially its Kirin chip; another example is Mate20pro, Huawei's first 30x zoom. In fact, at that time, it felt like it was suddenly ahead of Xiaomi OV by more than one rank." He judged, "I think it is impossible to achieve the momentum of Huawei."
The above-mentioned southern dealer believes that Xiaomi OV has not done much to build brand value. , and there is no brand value premium on high-end phones.
Xiaomi is too mixed, and there is no very obvious difference between high-end, high-end and low-end products. "Huawei makes Porsche, what does Xiaomi have?" Moreover, the folding screen that Xiaomi has released so far has not actually been launched yet, it is just a concept phone. In his view, although Xiaomi says it is a high-end product, it is still a cost-effective company. Now it says it wants to build a brand and raise prices, which is very contradictory.
Wang Jian, who has resigned from Xiaomi, also holds conservative views on Xiaomi’s high-end strategy. "Xiaomi's business philosophy has always been Internet thinking. The core contradiction is that its business model is a bit like a barbell, with two ends thick and the middle thin. To put it bluntly, the biggest benefits go to both ends. One end is Xiaomi's senior executives and major shareholders. , The other end is the users, but those in the middle are miserable. For example, Xiaomi’s employees, supply chain, and distribution partners are all severely squeezed.”
He added, A healthy development model requires a win-win situation. Lei Jun said that Xiaomi only needs a profit margin of 5%. "It will be difficult to establish a win-win system offline if we stick to Lei Jun's 5% profit margin. Giving up on 5% will be a slap in the face."
"OPPO and vivo have similar cultures, but they are both the kind of companies that don't talk about what they want to fight for. There was an allusion before. I interviewed Duan Yongping and asked him 100 What news do you hope to hear about OPPO in 2020? "Just one thing - live," the source said. Regarding the culture of the two companies, another rumor circulating internally is that Duan Yongping held a meeting with Chen Mingyong and Shen Wei, and the decision for the two was that OPPO would occasionally take a more radical route, while vivo would take stability as its priority. host.
“If one day you ask me to recommend mobile phones, I will say that Xiaomi OV’s mobile phones are very cost-effective. The 12G 256G only costs more than 4,000 yuan, and the Huawei 12G 256G costs 7,000. Diversification. Since they are cost-effective, they have to lower their status first, "said a dealer.
According to many people, Huawei has a special altar status and identity background that is difficult to surpass. In addition, each company’s marketing and promotion methods and culture are different. "Xiaomi is too down-to-earth, and it's difficult to give people that high-end feeling. OV's culture is not too outstanding, and its brand orientation gives people the impression of fashionable fast-moving consumer goods." But in any case, can it carry the banner and compete for Huawei's blank space? The mobile phone war in the market has begun.
(At the request of the interviewees, Yuan Kai, Wang Jian and Qiao Sen are pseudonyms)