Wednesday, October 28, 2015

Luo Yonghao high end strategy failed hammer into the thousands the Red Sea marketing

  On August 25, the hammer new brand nut mobile technology released in Shanghai, announced this price 899/999 of cell phone primarily for students and groups of young people.

  Is already a "Red Sea" thousands of markets, agglomeration, including red rice and its glory, ZTE Nubian, Meizu charm blue, Le lemon, cool, Lenovo, a series of strong rivals from the great God. For nuts phone of launched, IT comments people Sun Yongjie in accept China business reported reporter interview Shi said: "while, hammer in phone positioning Shang of change support has phone industry of development trend, that in two of high-end phone and low-end phone by general consumers of favored; on the, hammer launched a new of nuts brand, is indirect admitted has in high-end market Shang of failed. "

  High end of the market failure?

  Hammer technology since its inception in 2012 for two mobile phones, a Smartisan T1 was released on May 20, 2014, another is the nut of the recently launched mobile phone.

  It is understood that the hammer first phone Smartisan T1, as nuts phone press conference the same day, shipped 255,626 Smartisan T1, and the average is 2600/(initial 3000 Yuan/section). Smartisan T1 is published to the nut mobile release, almost 1 year and 3 month product cycles, Smartisan T1 shipments and earlier Luo Yonghao in their 12-month life cycle, compared to sales of 500,000 units, equivalent to KS.

  IT rated Sun Yongjie, even encountered bounced, cut Smartisan T1 sales will achieve expected 500,000 sales, would not be a satisfactory number description Smartisan T1 is definitely going to lose money. 250,000 phone sales for a manufacturer, regardless of its brand, revenues, profits and so on related factors, hardly had any value and meaning.

  Germany 2015 Q2 data released by the market research firm GFK showed that two major smartphone market in China and North America, consumers seem to be priced at $ 500 or more for high-end smart phones are most interested in. In the Chinese market, according to the GFK survey, Smartphone sales in the Chinese market in the second quarter sharply lower case, the increase in sales from a year earlier, 17%, fully demonstrates that Chinese consumers buy a high-end cell phone number on the rise.

  In the continued growth of the high-end smartphone market, Samsung price adjustments to the S6 series, all cut to 800 Yuan. "In the smart phone market, even Samsung is so difficult, other manufacturers take smaller, Luo Yonghao at this point it is clear that he should be clearly aware of the high-end brands do a hammer doesn't make sense. "Sun Yong-Jie said.

  In fact, since Apple launched the iPhone last fall after the 6/6 Plus, Android phones, including Samsung big-screen attraction no longer has an absolute advantage. Statistics show that in the first quarter of this year, users of Apple's iPhone about 6 near 50% from the Android cell phone. With large screen phones and iPhone release time lag of 6/6 Plus friends, Samsung Android mobile phone brand in the high-end phone market still faced Apple continued to pound, analysts believe that without Apple's strong brand effect.

  Meanwhile, studies show that current Smartphone landscape, but rarely changes, consumers like high-end phones, low-end mobile phone appeal. "The large-scale entry of mobile phones continue to promote a large number of civilian shipments to key markets. "

  Now, Hammer technology seems to recognize situation and obey whole industry development trend, high-end route doesn't work on go low-end market, temporarily gave up 3000 Yuan of Smartisan T1, instead with nuts phone into to already is "Red Sea" of thousand Yuan machine market, "with everyone in high-end compete for revenue and profit, also than in low-end race market Rob share, Hammer technology in low-end market also has may go part volume, but high-end market no any hope, this is nuts phone launched of core purpose. "A used Smartisan T1 hammers fans said.

  It is understood that Huawei glory low-end line leaders have expressed, in this market, shipments of 5 million is profit and loss line. Sun Yongjie believes that even smart phones since last year have been late, now thousands in the fiercely contested market, only reach a break-even point in sales will not lose money, it hopes for the hammers.

  Nuts mobile phone launch, "on the one hand, Hammer technology shift in cell phones supporting the mobile industry trends, that is, both high-end and low-end mobile phones by consumers of all ages, on the hammer launched a new brand of nuts, indirectly admitting its failures in the high end of the market. "

  How to avoid thousands of market of the Red Sea?

  Industry experts generally agreed that the Millennium marketing campaign, leading thousands of markets in the red rice, a famous failure was launched in December last year is magic blue missed the air waves of thousands, nut the launch of mobile speak from time is of no advantage at all.

  In the market, gather glory red rice, Huawei and ZTE, Nubian, Meizu charm blue, Association Le lemon, cool great God and a series of strong opponents, they have their own advantages. Red rice MIUI, glory backed by Huawei, charm Blue high value, cost-effective God, are the nuts as a later opportunity?

  In terms of configuration, all kinds of thousand yuan basically will not be much difference. Sun Yongjie believes that in thousands machine this document, product brand is very low, for stimulating sales is very low, there is no brand loyalty at all. Thousands are to a large extent the price competition, and competition for the industry chain of control and cost control.

  Neither price nor the brand influence, nut just a new player. In first-tier cities such as Beijing, Shanghai, Hammer technology with the personal influence of Luo Yonghao calls or "feelings" or, in the media and the Internet may be momentarily attract the eye, but 234 cities, thousands of competitive market, I do not know how many people heard the hammer, know nuts are mobile phones?

  Hammer technology called a big selling point for Smartisan OS, MIUI relative to the feature-rich and simple Flyme, OS native oxygen their competitiveness and how many? Sun Yongjie believes that the core functions in the hands of Google Android, domestic mobile phone manufacturers without their own operating system, can only be called optimal. Difference is that different levels of optimization, qualitative difference does not result in experience, especially in the thousands.

  In addition, the core underlying thing that people, even optimized well, from experience, there is no qualitative difference. Domestic mobile phone manufacturers at this time cannot be used as the main selling point, or the core of the mobile phone industry selling point. One industry expert said, compared with Android, Apple, by contrast, iOS is Apple's closed system, experience certainly is not the same as Android. "First of all, Apple is not open source, in their own development system allows developers to develop hardware, optimized, meaning, even Apple is now pointing to the iPhone money, hammer what software and system, including applications and services to make money?"

  In fact, mobile phone manufacturers, is inseparable from the innovation, research and development, marketing, and economic strength to large-scale investment. Public data show that in 2014, research and development spending was 40.8 billion yuan, research and development accounted for more than 14.2%, and Samsung mobile marketing the high input costs is well known.

  Of course, the hammer as an enterprise was founded just 3 years, with the phone giant did not seem to be too much of comparability, wants to achieve what ideal and also enterprises concerned.

  Insiders, who asked not to be named, said: "If the target is 2 million or 3 million units of mobile phone manufacturers a year, that would have figured out if I can make money. If the money-losing situation, investors still believe that the mobile phone manufacturer's future development, and then put more money, manufacturers can continue to do it anyway, this is their thing. Mobile phone sales in 2 million or 3 million or even hundreds of thousands of the level, there is no winning or losing had, and hundreds of thousands of sales, indeed, did not reach the pass line. "

  Smart phones industries reach this stage, Sun Yongjie agreed that the scale must not be ignored. Apple is not only profitable, sales are low, which is why China's mobile phone firms to compete and Apple.

  Earlier Luo Yonghao has said 2015 sold investors want a hammer all of the hardware products don't make money, is how much money how much money do you sell, as long as the quantity sold on the line. In fact, the "thousand-Yuan profit machine itself is very thin, which is to win, if not enough market share in sales, will lose money. If sales in almost negligible when the whole market share, there was no voice to speak of, and costs will not come down. "

  Public information, hammer technologies in May 2012 and 9 million angel investment May 2013 to raise 70 million Yuan to 470 million Yuan valuation; April 2014 valuations to raise 200 million to 1 billion yuan RMB; valuations to raise 500 million Yuan this year to 2.5 billion yuan. Latest investments include listed companies Shun travel network, Su Ningyun and whale capital and so on. Liu the wind came the pigs die faster

  Get new financing to get the hammer in the price war of thousands of science and technology increases the capital of competition, said Sun Yongjie, "just before they reach the breakeven line, has sufficient funds to support the early loss, hammer continued to live. In the meantime, if the capital chain rupture, hammer, I'm afraid to die. "

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