Xiaomi and the sound will eventually meet the narrow road

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Xiaomi and the sound will eventually meet the narrow road

2022-01-15 18:02:00 16 ℃

Five years ago, the Lei Jun was booming in India, achieving half; however, it could not achieve the other half, and made a big question mark by a paper ticket from the Indian government.

In the early spring of 2017, Xiaomi's CEO Lei Jun flew to New Delhi, and visited Indian Prime Minister Modi with the head of Xiaomi India business.

Moti warmly received the Lei Jun and others, asked Xiaomi's progress and difficulties in India, and can be pre-installed the APP of the Indian government. He also sunacked photos of the second Indian factory in the social media called "important assistance in India manufacturing".

The government's strength is very exciting. He then said to the Indian media that Xiaomi's short-term goal is to seize the share of half of the mobile phone market on the Indian online.

Five years later, Xiaomi sits on the head of the Indian smartphone market, although the share is less than half, but stable is around 25%, it is also proud. However, a piece of paper on the New Year's Day in 2022, let Xiaomi have a shadow in the prospect of the Indian market.

On January 5, the Ministry of Finance in India issued an announcement that Xiaomi India was suspected of tax evasion, and he had to pay 6.53 billion rupees (about RMB 550 million). Xiaomi responded that the company complies with business laws and regulations will continue to communicate with India-related departments.

For last year, the camp was received nearly 250 billion yuan, and the five or six billions of fines in the district did not cause substance. However, behind this ticket is behind a very dangerous attitude turning.

After the Mo Di government came to the stage in 2014, in order to pull the economic development, the Moddy government has a welcome attitude towards China's technology enterprises. Xiaomi Turning Tao Punner, support Modi's "Indian manufacturing" strategy, and opened 6 sets of factory in succession, raising localization production points to 95%; Near the distance from Indian consumers.

However, in the past two years, with the changes in the geopolitical pattern, the Indian government began to adjust the policy, and Chinese companies have actually ended in India's golden development.

Indians first point the spear head to China Internet Corporation. In June 2020, 59 China APPs such as WeChat, Tiktok, Baidu, etc., and will be banned after half a year.

List of 59 apps that India announced the ban

At the same time, the Indian government is in contact with Apple, Samsung and other companies. It is hoped to attract them through loan subsidies and other preferential policies to attract them to build a plant, let India have become a global mobile phone manufacturing center. Chinese manufacturers have not entered the field of vision, apparently there is a consideration of "China Manufacturing" ingredients in the Indian economy.

At the end of 2021, India assault taxes for two Chinese mobile phone manufacturers millet and OPPO, and issued a large number of tickets. Byte beating has also been frozen from the bank account due to tax evasion.

This does not mean that Xiaomi, OPPO, etc. China Mobile phone company will be forced to leave India. Robin (should be named in my request) for a long time, he believes that Xiaomi has a factory in India, and the benefits of technology and supply chain have also brought the benefits of technology and supply chain. "The research and development of the apps in China, the income is also left in China; Xiaomi is different, it is a factory, providing a job opportunity, Indians collect taxes are also normal."

However, India is the largest overseas market in Xiaomi, and the sales volume in last year is approximately 1/4. In the face of mountain rain, Xiaomi needs to prepare for the rain.

Throughout the global mobile phone market, the European and American markets have saturated, the shipments are declining annual year; the Middle East, the Latin American market is extremely fierce. Only Africa with low population, smartphone penetration rate is still on the rise.

Previously, Xiaomi tried to the African market at 2015 and 2019, but due to various reasons, the market share was only about 4%. Today, Xiaomi is increasingly necessary for the third time to enter Africa.

However, another Chinese company's voice holding in Africa has been laid out in fifteen years, and even the establishment of millet is still long, and the first year is first in the African mobile phone market. Xiaomi will choose in Africa in Africa in the sea.

The voice and the Chinese Internet industry have always been more alienated, but it is not long ago, the voice will be accelerated to the Hailong, and try to accelerate the development of software business outside the income hardware business. In this regard, the millet from the Internet is a teacher that can be used as a teacher.

A

Africa is a huge market. It has a population close to 1.3 billion, comparable to China or India; the population has an annual growth rate of about 2.3%, far exceeding 1% of Asia.

At the same time, limited to economic development levels, the function machine still occupies the mainstream of the African market. Market Research Company IDC data shows that 2018 African mobile phone shipments are 215 million units, including 1.27 billion function machines, accounting for 59%.

The intelligent machine gradually replaces the function machine is a general trend. The Global Mobile Communications System Association predicts that in 2025, the intelligent penetration rate of Sahara south Africa will increase significantly from 39% in 2018 to 67%. This provides a large enough space for the Chinese mobile phone manufacturers to fight African continents.

As early as the end of 2015, Xiaomi has tried the water African market, and the three countries in South Africa, Nigeria and Kenya issued two products.

Unlike domestic online sales, Xiaomi chooses to cooperate with a dealer named Mobile In Africa, which is responsible for importing, logistics, marketing, and after-sales, etc., only provides supply. But this cooperation has not aroused too big waves. In 2019, Xiaomi faced more and more competitive pressure in the domestic market, and began to put more resources overseas, and the African market was again valued.

In January of this year, Xiaomi announced its establishment of the African Region, and the vice president Wang Lingming is responsible for reporting to the senior vice president of Xiaomi. Unexplane

This unexpected event clearly has adversely affects Xiaomi to expand the African market. But even if there is no such thing as a smile, the performance of Xiaomijin Africa is not satisfactory.

According to the data of the market research firm Counterpoint, Xiaomi has increased from 2% to 4% in the market share of Africa; at the same time, the share of TECNO, ITEL and Infinix is ​​increased from 34% to 37%. . Taking into account the local huge functional market, the existence of millet in Africa is actually lower.

Xiaomi spent three years, still difficult to overcome the African market, the terminal price is the most direct hindrance.

According to millet 2020 earnings, the average price of Xiaomi smartphones during the reporting period is 1040 yuan. For domestic and European and American users, this price is not high; but in Africa with a very low per capita income, it is still a quite extravagant consumption.

However, Xiaomi does not seem to pay attention to price problems, directly selling the main products of domestic or European and American markets to Africa.

Take Nigeria as an example, the country has more than 200 million people, and is relatively developed, and is one of the most important single country markets in Africa. At present, the flagship model of the official website of Xiaomi Nigeria is MI 10T, priced at 30,000 Nigerianera (about RMB 4,600). The cheapest is REDMI 9A, priced at 4.1 million nara (about RMB 630).

In contrast, the prices of the mobile phone should be more people.

According to the emotional presentation, the average price of its smart machine is only 454 yuan in 2018, in which high-end Infinix is ​​located for the public Tecno and young people brand ITEL located at 600 yuan, 500 yuan and 300 yuan.

The price of the function machine is more cheap. The average price of the Tecno function machine is 77 yuan, and the ITEL function machine is further pulled down to 60 yuan. In less than $ 10, I can buy a mobile phone, which is more attractive to African users.

However, in recent years, the voice is also increased sales of smartphones, and enhance the price range of the entire mobile phone business. After all, if the price is only one tenth of other manufacturers, sales must be ten times the other party to smooth the gap; and in a fiercely competitive mobile phone market, the sound cannot always maintain this absolute advantage.

This also means that you want to truly occupy a place in the African market, Xiaomi needs to launch a cheap product line that is different from other markets, but then broaden the product line, improves added value.

B

In addition to the price, Xiaomi is also facing the challenges of products, channels and marketing in Africa. The sound just gave millet, the latter can be saved.

The emotion entered Africa in 2007. After three years, Xiaomi was formally established, and it was only five years to start selling mobile phones in Africa. In this eight years, the voice has already explored a development path that adapts to the needs of the local market in Africa.

In terms of product, the emotion has made a large number of localization improvements in the African market in addition to the specialty of the African market in addition to the specialty of the African market.

One of them is to solve the problem of poor local infrastructure. Among Africa is unstable, mobile phone charging, mobile phones support long standby, up to 28 days, basically realize one charge in January; Africa large and small operators, cross-network communication tariff If you are too expensive, the voice launches dual card dual standby, even four cards to help users reduce tariffs.

There are also some unique needs to be aimed at African users. For example, the voice has developed a non-bodies such as hesalectics; the volume of the mobile phone is huge, and some models have a headset; also developed a "black" photo algorithm for the dark skin color. These optimized technical difficulties are not high, but it is very flat with the pain points of African consumers.

In the channel selection, the voice has gradually found the third road in the traditional e-commerce, operator and retailer channel, which can be roughly summarized as roadside stalls, couple shops and brush walls.

The business of most parts of Africa is still unhappy, and the couples in the road are very popular in the scenes of the roadside. The sales team visited these files one by one, putting the phone on the booth at very low cost. The voice also moved the colorful eggs, gifts, live performances such as domestic shopping malls to the streets of Africa, so that local consumers were refreshed.

In addition, the voice also develops some sellers into agents, let them build teams and penetrate to more region. This further opens the more market that is difficult to touch.

Over time, the empty African dealer network gradually forms. According to the prospectus, African dealers who have jumped in 2019 have reached 360, of which 72 years of sales revenue exceeded 30 million yuan, and the revenue contribution rate for Africa is over 76%. The brush wall is an advertising technique that is quite Chinese. It was originally invented by the health care products. Later, it was followed by companies in all walks of life. The rumors move the brush wall to Africa, the blue-eyed Tecno logo appeared in the city and rural street alley. The rumors of the square, the big-scale brush wall of the voice even pulled the local paint sales.

However, the marketing of the voice is not a sinking. In addition to the earth, it also attaches great importance to the introduction of the bachelor's back book, and promotes the brand up and breakthrough while enhancing the intimate feelings.

For example, in 2017, a music phone named BOOM J8 was released, and the 18 star of the Nigeria music will come to the 18 star to help out the topic.

In addition, it sponsored the Manchester City team and Leicester City of the Premier League. In addition to the record of the record, the two teams also have African stars such as Ma Heres, Ishina Joe, Ed Di, and a large number of fans in Africa.

In contrast, although Samsung, Nokia and other companies have an early African market than the voice, they generally continue the global unified marketing strategy. The high-level advertising speech has caused a sense of distance. It is difficult for African users. The market share is gradually being Take the sound. Under the action of multiple factors, the status of the "King of Africa" ​​is more stunned.

C

Xiaomi's African Battle, I didn't have to play.

Africa does not have a uniform and sound market, the situation of turmoil, and the level of backward social and economic development has also restricted local consumption growth and is a difficult hard bone. Xiaomi 2015 and 2019 trial water African market, but the results are not good, and it is not related to the objective environment.

However, in recent years, Xiaomi's overseas business is getting more and more serious. Financial report shows that the third quarter of 2021, Xiaomi 52.4% of the revenue from the overseas market; according to the data of the IDC and other agencies, Xiaomi mobile phone overseas sales is close to 3/4.

At the same time, Xiaomi faces a small challenge in several major overseas markets.

In January last year, the US Trump authorities have included Xiaomi into the blacklist of securities investment. After four months, this restricted order was overthrown; the Indian government also targeted tax on Chinese mobile phone manufacturers, once again knocking the alarm.

It is worth noting that the sound is counterattacking the Indian market. It introduces India in April 2016, and established a factory in the local area, now has expanded more than 2,000 local dealers, accounting for more than 5% of the Indian intelligent market, ranking sixth.

For Xiaomi, to Africa, in the middle of the middle of the sound, it is becoming an increasingly attractive option.

Despite the slight wind in the product, channel and other dimensions, Xiaomi expands African markets without no chance. The biggest variable is that the African mobile phone market is in the stage of functional machine to migrate, and the smart machine is the main family of Xiaomi.

A development report released in July last year, the current penetration rate of African mobile phone is only 48%, of which smart machines account for only 44%. In contrast, domestic intelligent transmissions rate is as high as 97%.

The voice has been layout, launched the high-end product line infinix, configuration and price increases. However, limited to brand, price, technology, manufacturing, etc., Infinix's comprehensive competitiveness is still gap between millet and other first-line products.

Xiaomi smart machines travel to Africa and is expected to form "despiseed strikes". Of course, the premise is that Xiaomi can pull the price to a reasonable range, and this requires the localization of the supply chain and manufacturing.

On the other hand, the smartphone spells finally, fighting the software ecology behind. Xiaomi started from MIUI, which is very experienced for this set; and Miui's global active users have exceeded 500 million, helping millet quickly open the situation in Africa.

However, the voice has built a set of Internet software ecology in Africa through independent research and development, third-party cooperation, 8 APP monthly activities, including "African version of the shake" vskit, "African version Today's headline" Scooper Wait. Among them, the music app boomplay user exceeds 100 million, which is the largest streaming media music service in Africa.

This indicates that Xiaomi wants to eat from the emotion of the African market, and the challenges are even more than when they are involved in Africa than 2015.

Whether Xiaomi can occupy a place in the African market, may still return to the foundation - cost performance. Nowadays, the infrastructure and sales channels of the African mobile phone market have been significantly developed. If Xiaomi is replacing the super high configuration in the initial period, ultra low price, then with the global brand advantage, there will be a chance to quickly grab a market. After the emotion is in Africa, it will eventually usher in a new opponent from China.

Reference:

Big cat Finance, "Xiaomi 6.53 billion tickets behind: In India, it is likely to be penalized"

Observer net, "Lei Jun and Indian Prime Minister MoDo play self-portrait twice" Indian bank "release? "

Tiger sniff, "How to" conquer "Africa"

Zhimin, "Xiaomi and OPPO" invading "Africa, can the emotion continue to be called Wang? "

Yuanchuan Science and Technology Review, "Copy China: Three African Adventures"