If there is a mobile phone, which is a Korean, Chinese, and Indian brand, the configuration, shape, and quality are the same, they are all from the same product of the same ODM manufacturer. Which country's brand do you buy as a consumer? Or how much premium do you are willing to pay for a national brand that represents quality products?
Obviously, the Korean wind has influence, and Samsung is famous in the world. Most consumers will think that the Korean brand is more valuable. The price of Chinese mobile phones is lower, and the price of Indian mobile phones is extremely low.
Such experiments have really been done. In the 1980s, Japanese quartz watches became a climate, Swiss watches were severely impacted, and the Swiss watch industry was sorrowful. It was considered that Swiss watches with high wages and high costs could not compete with Japan. But Nicholas Hayek (1928~2010) didn't think so. On the one hand, he carefully analyzed the cost structure of the watch and found that the labor cost only accounted for 20% of it. On the other hand, he thought that the Swiss word was He can sell a higher price. To this end, he did an experiment. He labeled two identical watches, labeled "Swiss Made", "Made in Japan", "Made in Hong Kong", and then priced at $110, 100. US dollars, $90, placed in stores in Europe, the United States and Japan, and observed consumer reactions. The results show that in Italy, 99% of consumers choose “Swiss Made†watches; in Switzerland, this ratio is 97%; in the eastern United States, 65% of those who choose “Swiss Made†products; only in Japan The "Made in Japan" market share is 5l%, and "Made in Switzerland" is 42%. Market tests have shown that Swiss watch companies have won the geographical advantage of their products without even having to work hard. Swiss watches are undisputed leaders in the market.
Faced with thousands of commodities, it is difficult for consumers to know the true quality of a product, and only a rough country can distinguish the grade of the product. Such as the quality of German products, Korean fashion, Japanese exquisite, the United States is full of technology, and the Chinese word is cheap.
What if you are a Chinese manufacturer? Start a foreign name! In fact, many companies do this. Hiroyuki Jelly, Matsumoto Electric is a native Chinese brand, and most of the “foreign brands†displayed in department stores are authentic Chinese products. Chinese mobile phones have three brands that can be sold at a price. Huawei, OPPO, and VIVO have two Chinese names. They usually invite Korean stars to advertise.
The writers said that China’s price wars are all painful, hate them, and they can’t. The parties are always more anxious than the onlookers. It is easier to say, can't sell the price? No one bought it? A country from the backward to the advanced will encounter the problem of climbing from cheap. Germany's early years of products used to be synonymous with low quality and low price; Japanese cars encountered the opportunity of oil prices for many years to rise to save the sky with a fuel-saving; Samsung started as a foundry in the early years, only the cottage Japanese appliances, selling lower prices . China is a big country and competitors. The "civil war" is more full and pulls each other. It is more difficult and longer to climb from low prices to high prices.
Chinese companies, even a large enterprise, have to bear the negative premium of “China†in the process of climbing. Many years ago, Lenovo complained about the heavy burden of carrying the Chinese word. They said that they should not only be Lenovo's brand, but also be a Chinese brand. Small businesses can start with a foreign name, and large companies can take a shortcut to acquire a foreign brand. Lenovo's acquisition of IBM, MOTO, India's Tata acquisition of Land Rover is mainly to acquire a brand.
The reluctant Huawei did not encounter the stone and bent around, avoiding these obstacles, but holding the Chinese brand directly to the top. In comparing Huawei and Lenovo, Liu Chuanzhi said that Huawei’s road is even harder. They climbed from the north slope of Mount Everest. Through years of tenacious competition, Huawei has finally taken the first place in the telecom equipment industry. It has also been defeated in the mobile phone industry. In 2014, it finally saw the cloud and saw the moon. Its high-end product Mate 7 continued to sell one. In the year, there was no price cut and it was still hot. It stood on the platform of 3,000 yuan, which is difficult to climb. In the first five months of this year, Huawei's mobile phone shipments have reached 48.5 million units. After April, monthly shipments exceeded 10 million units. At the beginning of the year, although China's top three mobile phone manufacturers all claimed to have shipped 100 million units a year, it seems that only Huawei can really take this step.
Huawei's real feature is reluctance, and now he has a stubborn capital. The foundations of its overseas market for many years, the representative offices around the world have become the base for overseas expansion. Although Huawei only does business in the closed telecom operator industry and has no visibility in the consumer market, strong R&D, continuous investment, and confidence to overcome difficulties are similar in any type of market. Now Huawei's domestic and overseas development is balanced, and overseas sales have already accounted for half of the country. In some countries, it has become a dominant brand.
Huawei's e-commerce brand "Glory" has been advancing by leaps and bounds. The brand that has adapted to the Internet sales model has been on the line since 2013. In 14 years, it sold more than 2 billion US dollars, and in the first half of the year it reached 2.6 billion US dollars.
In the past two years, "Glory" has become a well-known brand. When the glory mobile phone is turned on, it will display the English "HONOR" of glory, and the English logo is also printed on the mobile phone case. In fact, you can go further and use Chinese Pinyin directly. For example, use "RONG" plus a "Rong" word, maybe lead the trend, double-edged. Foreigners often tattoo Chinese on their arms or wear a T-shirt that lures Chinese characters.
Many years ago, Toyota's "Jiamei" and "Lingzhi" have been changed into the English transliteration names "Camry" and "Lexus". IKEA also changed the Chinese name of the furniture sold in China to the transliteration of Swedish. But the advantage of this is that the recognition is high, it is difficult to take root in the user's mind, and once it is rooted, it is stronger.
Years ago, I once said that Foxconn's contribution to Huawei is the most underestimated. Although it does not pay a lot of taxes, it has created a lot of externalities in addition to solving more employment. Foxconn opened branches. The loose leaves form the electronics manufacturing industry in the Pearl River Delta. Now, with the rise of Huawei mobile phones overseas, Huawei has also begun to create huge external benefits for Chinese companies. The low price of Chinese products is not good enough to sell, and the preaching and pains are useless. The total price of the people who sell first, the value of the national brand can be improved in one industry. A manufacturing industry like China ranks first in the world, and it needs a lot of industries to become a leading bird in order to gradually remove cheap hats.
There are many domestic mobile phone manufacturers and the competition is fierce. If Huawei can truly erect a banner of mobile phones in the world, other mobile phone manufacturers will also benefit from the "China" brand when they open up the international market, which will form China's mobile phone ecosystem. As the German proverb says: "Bees steal flowers, but make flowers flourish."
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