First of all, if Chinese companies want to go global, they must pay attention to technological innovation and establish their own brands. Taking ZTE as an example, it invests 10% of its revenue in research and development every year. It has submitted more than 13,000 patent applications in developed and emerging developing countries such as the United Kingdom, France, Germany and the United States, and more than 53,000 patents worldwide. In 2014 In 2017, ZTE ranked among the top three in international patent applications worldwide with 2,179 patents. The "Xingxing 2" mobile phone built with ZTE's "smart voice" technology can achieve full voice control, and the Tianji mobile phone built with the "Ten Defense Concept" has achieved the strongest security. It is precisely because of ZTE's continuous investment in research and development that Be among the top four in the demanding US market.
The same is true for Haier. When it first entered the European market in 2000, the unit price of its products was less than 100 euros and could only be placed in the corners of shopping malls. However, due to continuous investment in R&D and adhering to the mid-to-high-end development route, Haier has achieved breakthroughs in the European market. For example, Haier's French-style one-meter-wide refrigerator has many technologies such as induction drawers, sterilization and preservation, energy saving and environmental protection, and the price is as high as 2,990 euros. Since October last year, more than 2,000 units have been sold in France alone. Haier's Casarte brand has become the first choice for high-end home appliances at home and abroad.
Secondly, the key to successful internationalization is localization. You must do as the locals do and communicate in a way that the locals can understand. Situations vary widely around the world. If you want to truly succeed in internationalization, you cannot just copy the practices of the Chinese market, but take the localization route in the local country. This manifests itself in the localization of resource allocation, localization of market conditions, localization of marketing methods, etc.
In terms of localization of resource allocation, it is necessary to maximize the use of resources in different countries to maximize benefits. Taking Haier as an example, it has 5 major R&D centers on various continents to achieve localized R&D; it has established 21 industrial parks in the United States, Europe, the Middle East and other places to achieve localized manufacturing; and it has established 66 trading centers around the world. The company has achieved localized marketing. The same is true for ZTE. It has established 19 R&D centers in France, Sweden, Canada and China, 6 brand image design centers in India, Shanghai and Hong Kong, and 18 ZTE in France, Sweden, Canada and other countries as well as China. R&D center, 6 ID design centers have been set up in India, Shanghai, Hong Kong and other countries and regions.
In terms of localizing market conditions, we need to do as the locals do, study the characteristics of the local market, and take a differentiated development route. When ZTE expanded into the U.S. market, it found that it had to gain the trust and support of operators, so it had to go all out even if the operators were demanding. Also, ZTE found that the prepaid market in the United States has great potential, so when many other mobile phone manufacturers put good phones in contract phones and put bad phones in the prepaid market, they did the opposite. The layout on prepaid mobile phones allows it to capture the US smartphone replacement market. Haier has built a platform to interact with local users. Through in-depth interaction with users, it can obtain product creative ideas and develop localized products such as India's Jhukna Mat refrigerator, Pakistan's 100-hour power outage insulation freezer, and Japan's handheld washing machine Coton. products.
In the localization of marketing methods, it is necessary to study the habits of local users and communicate in a way that they can understand and perceive. For example, in order to enhance brand awareness in the U.S. market, ZTE chose the NBA, the most popular franchise in the U.S., for marketing cooperation. In October last year, ZTE cooperated with the New York Knicks, Golden State Warriors, and Houston Rockets, the three major NBA teams, becoming Its official smartphone sponsor for the 2014-2015 season. The cooperation with the Houston Rockets alone has increased ZTE's brand awareness in the Houston area from 0 to 16%.
Thirdly, Chinese brands must be fully mentally prepared for the difficulties of internationalization. They must be patient and persistent when expanding into the international market, and must have the spirit to survive for ten years. , fight a protracted war. ZTE has gone through a long expansion process in the North American market. It started investing in 1998 and did not start to have results until 2010. It took 12 years. Haier entered the European market in 2000, and the real turning point only began in 2008, during which it also experienced eight years of hard work.
A negative example is the expansion of "Kivu" in India. In 2008, Kivu mobile phones entered India. In just two years, Kivu became the champion of the Indian mobile phone market with the help of feature phones, with an even higher market share. 8 percentage points higher than Nokia. But later, Nokia and Ericsson jointly sued Kivu for infringement of intellectual property rights. Kivu mobile phones were banned and suffered heavy losses in the Indian market. Their success was short-lived. This example shows that it is almost impossible to achieve quick success in the international market. Only by working hard and relying on technological innovation and research on the local market can we truly occupy the international market.
The national strategy of “One Belt, One Road” has given Chinese enterprises a rare historical opportunity to go global and realize their own rapid development. However, if workers want to do their job well, they must first sharpen their tools. Chinese brands Going global requires adhering to the path of technological innovation, adhering to the path of localization, and fighting a protracted war.