It is rumored that Huawei will enter the TV market for a long time. Recently, there is a clear news that Huawei will test the TV market with the glory brand, and will benchmark the millet TV with price/performance ratio. This will be a little for Xiaomi, which has just improved in the TV market. bad news.
Glory brand's strong competitiveness towards Xiaomi
In 2011, Xiaomi quickly rose to Internet marketing. Huawei quickly recognized the advantages of this model and established the glory brand at the end of 2013. Since then, the glory brand has been putting tremendous pressure on Xiaomi and becoming a nightmare for Xiaomi.
In 2014, glory of mobile phone shipments reached 20 million, reaching 40 million in 2015. By the first half of 2017, according to the data of GFK and Sino, the market has shown that online market has surpassed Xiaomi to become the largest brand. Online market suppresses millet.
Xiaomi began to revive in the second quarter of last year, but its growth rate in the domestic market is far lower than the international market. In 2017, its shipments in the domestic market increased by 32.6% year-on-year, and its shipments in the international market during the same period. The year-on-year growth doubled, and its growth rate in the domestic market fell to zero in the second quarter of this year. Huawei's mobile phone shipments in the domestic market last year increased by 18.6% year-on-year. In the second quarter of this year, the growth rate in the domestic market reached 22%, showing an accelerating growth. The driving force behind the growth of Huawei's mobile phone shipments is Glory brand, glory accounted for 55% of Huawei's mobile phone shipments from 55% in the same period last year, which undoubtedly shows that Xiaomi's competitiveness in the domestic market is not as good as glory.
In the international market, the glory brand seems to be becoming the nemesis of Xiaomi. In 2017, Xiaomi developed rapidly in overseas emerging markets. In the same year, it ranked third in the Russian market with a market share of 11.1%. Huawei lags behind Xiaomi with a market share of 8.1%. By this year, Huawei began to give glory to expand. In the first half of this year, the market has given the data to show that the market share of Huawei and glory in the Russian market has surpassed Xiaomi’s market share and Xiaomi has slipped to fourth place. The same is true in the Russian online market. Suppress millet.
Glory may beat millet in the TV market
As can be seen from the above, the glory brand has shown strong competitiveness against Xiaomi in both domestic and foreign markets. As long as the glory brand Huawei can successfully suppress Xiaomi, Xiaomi has not successfully countered the suppression of the glory brand.
The glory brand can have such strong competitiveness. Huawei's support is strong. Huawei is the most powerful technology research and development enterprise among domestic mobile phone companies. Its research and development of Hess Kirin chips has caught up with Qualcomm in terms of technology level. Supporting the glory brand to compete with Xiaomi with a stronger price/performance ratio, it quickly gained the competitive advantage over the millet.
In the television industry, the glory brand is likely to continue this strategy. According to data released by the marketpoint agencypoint, in the second quarter of this year, domestic mobile phone brands such as Huawei, OPPO, vivo, and Xiaomi accounted for 8%, 5%, 4%, and 3% of the global smartphone market, respectively. The profit of the business is much higher than that of Xiaomi, which gives Huawei more funds to support the development of the glory TV business, and gives glory TV the suppression of Xiaomi TV with a stronger price/performance ratio.
In fact, in addition to the mobile phone business, Huawei is also better than Xiaomi in the notebook market. Both companies launched notebook products in 2016. By June 2017, the notebook shipments of the two notebooks were 700,000 and 500,000 respectively. At the beginning, the industry expected their notebook shipments to be 1 million and 2 million respectively. Obviously Huawei is closer to its target shipments.
Xiaomi has always been tepid in the TV market. The best Internet TV brand in the TV market was LeTV. It was not until the end of 2016 that LeTV was affected by the decline of LeTV funds. It also claims that it has achieved the first place in online and offline shipments in the domestic TV market this year. Now Huawei is entering the TV market with glory brand and is likely to successfully attack Xiaomi TV, let Xiaomi repeat the mistakes of glory in the mobile phone business.