Production| Sohu Technology
Author| Zhang Yating
Edit | Yang Jin
"Huawei shines its sword on China, and the lion roars over the river." In 2019, under the Atlantic storm, Huawei turned around from overseas and stormed the domestic market. In order to rapidly expand domestically, Huawei has proposed the "War of Crossing the River", requiring that 50% of the sales of distributors be Huawei products. This has caused the domestic market shares of Xiaomi and OV to shrink sharply. Some people in the industry use the term "fear" to describe their feelings about Huawei.
The pressure of friendly businessmen and its own product/marketing strategy problems have caused OPPO to suffer a serious impact in the domestic market. According to Canalys data, in the domestic mobile phone market in the second quarter of 2019, Huawei's mobile phone shipments increased by 31% year-on-year, making it the only manufacturer with positive growth in the domestic mobile phone market. OPPO ranked second, with shipments down 18% year-on-year. By the second quarter of 2020, OPPO's shipment growth continued to drop by 19% year-on-year, ranking third and being overtaken by vivo.
The market situation has changed abruptly, and the "three brothers" of the same origin-OPPO, realme, and OnePlus move frequently. Realme returned from overseas at the beginning of 2019, focusing on cost performance and online markets. OPPO has frequently changed its executives and adjusted its product line, cutting off the R series and focusing on the Reno series and Ace series. OnePlus CEO Liu Zuohu returned to Oga Holdings as chief product experience officer, and his position as CEO of OnePlus remains unchanged.
In order to consolidate the domestic market share, Ouga also increased the cooperation of the three sub-brands, and began to gradually open up online sales channels and offline after-sales channels.
In this regard, Yang Bo, a veteran of the communications industry, said in an interview with Sohu Technology: “At present, Huawei is the dominant player in the domestic market, and OPPO is in a downward trend. The group of the “three brothers" of Oga can expand brand influence. , To consolidate market share and reduce operating costs."
So, can Oga’s "three brothers" collectively fight back the "cake" that was eaten by others?
Oga’s "three brothers" have joined forces to open up sales channels
OPPO, realme, and OnePlus are originally from the same root. From the perspective of equity, the three brands of OPPO, realme, and OnePlus all have a common controlling shareholder-Ouga Holdings Limited. Realme was originally created as a brand split by OPPO in order to develop overseas markets, taking the online cost-effective route and benchmarking Redmi. And Liu Zuohu previously resigned from OPPO and founded OnePlus.
Nowadays, the "three brothers" cooperate more closely. On July 24, some users discovered that OPPO Mall was quietly renamed Ouga Mall. One week later, on July 31st, OPPO Mall was renamed again and upgraded to Huantai Mall, and said that the three brands of OPPO, OnePlus (OnePlus) and realme will enter together in the future, and emphasized the entry of IoT products. Some insiders said, "'Oujia' embodies OPPO and OnePlus, while'Huantai' abandons the names of the three brands, and it appears to be flat."
Currently, Sohu Technology understands that realme V5 has become the first realme phone sold in Huantai Mall. Starting from August 3, users can book realme V5 in full at Huantai Mall.
At the realme V5 press conference, realme announced that it will cover 300 prefecture-level city stores across the country. In terms of after-sales service, realme will provide 900 after-sales service outlets covering nearly 300 cities.
A staff member of a realme store told Sohu Technology: "Consumers who purchase realme V5 can go to the OPPO customer service center for repairs, but the previous models cannot enjoy OPPO after-sales for the time being, because realme and OPPO’s cooperation has just begun."
"We have not settled in yet, but we will definitely settle in in the future." Said that Huantai Mall will become the official online mall for OnePlus to enter China.
And a staff member of an offline repair outlet of OPPO Beijing said: "Currently, the store has not received a notification that realme and OnePlus mobile phone repairs are available." The relevant staff of OnePlus also said that it is temporarily I have not received a notification that I can go to OPPO for after-sales service.
It can be seen that in terms of official after-sales channels, the cooperation of the "three brothers" of Oga is still in the initial exploration stage.
But in terms of offline dealers, an insider told Sohu Technology: "Realme's domestic after-sales channels are the same as OPPO, and are attached to OPPO."
"Although OPPO Brand differentiation separates realme, but in order to save money, realme spends almost no money to build channels in the after-sales area, and they all use OPPO's after-sales points." The person said.
Sohu Technology has learned that realme has started to do offline channels through agents in the middle and late last year. However, realme’s offline display and exposure materials are different from OPPO. “The two brands are now completely separated from the offline management channels."
In fact, both realme and OnePlus have previously It focuses on overseas online markets and has certain disadvantages in terms of after-sales and channels. Therefore, by opening up the sales channels of the three sub-brands and sharing after-sales services, Ouga can make up for this shortcoming to a certain extent, and can still maintain the differentiation of the three sub-brands. This is of great significance for Ouga to consolidate its domestic market share.
In this regard, Yang Bo told Sohu Technology: “At present, Huawei is the only one in the domestic market, and OPPO is in a downward trend. The group of Oga’s "three brothers" can expand brand influence, stabilize market share, and reduce Operating cost."
Fighting with Huawei, trying to regain the lost ground of offline channels
Due to the US ban, Huawei’s mobile phone overseas market has fallen, so the "beast" returned to China and attacked the country. market. At present, according to Canalys data, Huawei's domestic market share has reached 44.3%, while Nokia's market share in the country's peak period is only about 40%.
As the boss of Oga's "three brothers", OPPO has been particularly affected. In the Q1 quarter of 2020, OPPO was once reduced to others in the ranking of global mobile phone shipments.
In the domestic market, according to Canalys data, OPPO ranked second in the second quarter of 2019, with shipments decreasing by 18% year-on-year. By the second quarter of 2020, OPPO's shipment growth continued to drop by 19% year-on-year, ranking third and being overtaken by vivo.
With Huawei's deepening of offline, the offline channels that OPPO once proud of have also been eroded and even ushered in a tide of closures . According to media reports, channel dealers in third-tier cities said that 70% of local integrated stores have been changed to Huawei gates and Huawei specialty stores.
In the process of strategic adjustment in the past two years, OPPO has also made many mistakes. For example, the confusion of the product line, the OPPO Reno series, which is positioned as the mid-to-high-end flagship, has been iterated three times a year, while its low-end A series and K series have weak sound volume. The performance of the main Ace series and Reno series was mediocre, and OPPO's performance in the high-end market was not recognized by the market. An insider revealed to Sohu Technology: "This year OPPO has slashed orders for high-end models in the supply chain."
IDC China Research Manager Wang Xi said that from a brand perspective, users accept brands gradually It takes time to change, and brands need to maintain strategic patience. From a product perspective, transformation and upward exploration need to avoid the loss of existing user groups.
Oppo reacted quickly after the offline channel regarded as the "foundation" was hit, and increased investment in an attempt to regain lost ground. This year, OPPO announced that Liu Bo will be the president of China, strengthening the strategic position of China. At the same time, we will further optimize offline channels and manage retail terminals in a hierarchical and hierarchical manner. During the special period of the epidemic, OPPO also used subsidies and price controls to overcome difficulties with downstream channel vendors.
"In 2020, OPPO district and county city channel investment will be doubled to further improve channel efficiency and scale." OPPO President of China, Liu Bo said, "Next we will continue to consolidate the in-depth advantages of OPPO channels, hierarchically . And the first-tier and provincial capital cities as the primary goal, follow the changes in consumption habits and lifestyles, enter key and core shopping centers, and gradually cover third-tier and lower cities."
Prepare for 5G and IoT
Faced with a sudden change in the market environment, Oga will retreat if it does not advance. In order to make up for the vacancy in the online cost-effective market, the realme benchmarking Redmi returned from India last year. It is understood that realme has performed well since its listing. In the global smartphone market in the second quarter of this year, realme is the only domestic brand that has achieved positive annual growth. In the third quarter of 2019, realme's shipments in the Indian market increased by more than 400% year-on-year.
At the product level, Liu Zuohu, who had resigned from OPPO, returned to Oga Holdings as the chief product experience officer, and said that he would contribute his own ability to Oga’s product planning and development. OnePlus CEO The position remains unchanged.
In addition to strengthening the connection with realme and OnePlus, OPPO has also opened a new chapter in personnel structure and product strategy.
In terms of personnel structure, OPPO has changed coaches. Liu Lie, president of global marketing, and Liu Bo, president of China, formed a "double first-class" team and became the new high-level core. The former OPPO global marketing president Shen Yiren stepped down due to personal health reasons. His most classic marketing case is "5 minutes of charging and 2 hours of talk."
A veteran in the mobile phone industry commented on OPPO’s personnel changes: “The return of veteran Liu Lie and his partner Liu Bo. The purpose is to upgrade the OPPO brand, upgrade channels, and regain Chinese territory."
In the context of increasing uncertainty in international relations, OPPO also pays more attention to the development of self-developed technologies. Not long ago, Taiwan media said that Li Zonglin, general manager of MediaTek’s wireless communications division, joined OPPO to take command of the mobile phone chip department. As a wholly-owned subsidiary of OPPO's core plan, at the end of July, Zheku Technology's registered capital increased to 100 million, an increase of 100%.
IoT and 5G are the two major directions that OPPO has focused on in the past two years. At the beginning of 2019, OPPO announced that the company officially established the "Emerging Mobile Terminal Business Unit", focusing on 5G and IoT, and appointed Liu Bo as the President of the Emerging Mobile Terminal Business Unit.
At the OPPO Future Technology Conference at the end of 2019, OPPO founder Chen Mingyong, who has not appeared in public for the past six years, announced the corporate strategy of integrating everything, and also said that OPPO will continue to invest 50 billion in the next three years RMB yuan is used for research and development of cutting-edge technologies such as 5G/6G, artificial intelligence, big data, and cloud computing.
However, OPPO’s response seems to have been half a beat slow. Some people questioned that OPPO’s layout in IoT and 5G is too slow and its current market share is relatively low. The key to whether OPPO can regain its declining trend and post-production is whether it can seize the new opportunities brought by the 5G replacement wave and the popularity of IoT devices.
In the long run, OPPO's cooperation with realme and OnePlus will help the three brands to expand their influence, reduce operating costs, and stabilize market share, but it does not allow Ouga to maintain products and technologies. Core competitiveness. At the same time, the cooperation between Oga’s sub-brands is still in the exploratory stage. For example, OPPO’s after-sales support measures for realme and OnePlus have not been fully implemented. Whether 1 1 1 is greater than 3 remains to be tested by the market.