According to IDC data, OPPO accounted for the second-largest sales volume in 2016 with 13.2% market share, with shipments up 137.5% YoY. Asustek and Huawei each took third and fourth respectively, with 5.9% and 5.1% respectively. The latest figures from Strategy Analytics to 21st Century Business Herald reported that in the third quarter of 2017, OPPO was the second largest market in Southeast Asia with 17.2% market share, followed by 4.6% The other Chinese mobile phone brand Vivo.
The domestic mobile phone market is approaching saturation and the sea has become a trend
The aforementioned Gartner report, in addition to dazzling data such as millet brands, it mentioned the shrinking of China's smart phone market. The report pointed out that it is thanks to strong growth in Asia Pacific emerging markets and North American markets, global smart phone shipments in the third quarter to be able to achieve a 3% year-on-year growth in the Chinese market downturn.
Comparing the third quarter figures for 2016 and 2017, smart phone sales in Greater China dropped from 32.3% to 27.9% in the global market, while the share of emerging markets in Asia Pacific rose from 19.1% to 21.3%. The downturn in China's smart phone market and the potential of the mobile phone market in the emerging markets of the Asia-Pacific were shown separately.
In fact, the trend of China's mobile phone market has become saturated as early as two years ago has already appeared. According to a 2015 IDC report, China's smartphone shipments in the first quarter of the year dropped by 4.3% year-on-year and 8% month-on-month. At that time, Tom Kang, director of research at Counterpoint, a market research firm, said that the market penetration of smartphones in China has been as high as 90% and has changed from a new machine market to a replacement machine market.
Wang Yanhui, secretary-general of China Mobile Alliance, affirmed this judgment when interviewed by 21st Century Business Herald. He said the total handset sales this year have dropped again compared with last year. Therefore, the more dazzling growth of millet this year is mainly from overseas markets. "Going out" is definitely a trend for Chinese manufacturers.
Rajeev Nair, senior analyst at Strategy Analytics, a market research firm, told 21st Century Business Herald that his agency's analysis shows that the Southeast Asian market has made an extremely significant contribution to the growth of the smart phone market in the Asia Pacific region.
Under this trend, many Chinese manufacturers have already started to actively expand their markets in Southeast Asia. Many Chinese smartphone manufacturers have achieved rapid growth in several key markets in the region. According to Nair, the latest data from Strategy Analytics shows that sales of OPPO, Xiaomi, Vivo and Huawei have shown strong growth in the near future.
Taking Indonesia, the largest smartphone market in Southeast Asia as an example, OPPO and millet occupy the second and fourth positions respectively in the third quarter. OPPO sales increased 163% YoY and the sales volume of millet reached 233% YoY. "Nair said." And in similar markets in the Philippines, Thailand, Malaysia and Vietnam, several Chinese handset brands are among the top five. "
When the Chinese mobile phone sang all the way in Southeast Asia, some Southeast Asian mobile phone brands are declining. According to Nair, one of the key features of the once-to-be Southeast Asia handset market is the strength of local smartphone makers, notably in Indonesia, the Philippines and Thailand, most of whom in recent years have been under pressure from foreign manufacturers.
Taking Indonesia as an example, IDC figures show that in the first quarter of 2015, 2016 and 2017, the Chinese handset brands (total) accounted for 12%, 23% and 31% of the market share in Indonesia, respectively, showing an obvious growth momentum. Correspondingly, Indonesian local brands (sum) accounted for 34%, 20% and 17% respectively, showing a significant contraction trend.
In response, Wang Yanhui said: "I believe that the next two years in the Southeast Asian market will be the Chinese brand and Samsung brand PK, this situation has emerged in India," Wang Yanhui said.
Nair also affirmed this view. "We expect that Samsung and its Chinese brands, including Xiaomi, Huawei, OPPO and Vivo, will continue to steadily expand their market share in 2017 and this will continue to impact local (Southeast Asia) local manufacturers and other international players," said Nair. "But there are exceptions, such as Cherry in the Philippines and True in Thailand, but most other brands, such as Advan Digital, Evercoss and Plytron, have shifted their focus to the increasingly smart smartphone landscape Function machine. "
Opportunities and challenges co-exist, tackling tactics
When talking about the key features of the Southeast Asian market, Nair said that in recent years most 4G markets have been popularized in South East Asia and have become more receptive, making smartphones the ideal consumer devices for content consumers, with the largest beneficiaries Is a new Chinese smart phone manufacturers.
Yan-Hui Wang believes that the Southeast Asian market for Chinese mobile phone brands are also attractive in the following areas. First of all, the basic mobile phone market in Southeast Asia mainly social channels, telecom operators are not as powerful as the U.S. market, competition is relatively open. In addition, international brands like Apple are weaker in Southeast Asia, resulting in relatively equal opportunities for other vendors.
However, it is not easy for handset makers in China and elsewhere to succeed in Southeast Asia. Nair 21st Century Business Herald reporter summarized the handset manufacturers into Southeast Asia may face some difficulties.
First, the geographical distribution of South-East Asia will be a key challenge. Indonesia, for example, is an archipelago and how to stabilize logistical supplies at retail stores in the island is a challenge that needs to be overcome. In addition, some Southeast Asian markets require handset manufacturers to manufacture or procure locally, and their relatively small size in the domestic market tends to make many vendors reluctant to lay production chains locally. In addition, the Southeast Asian market is more price-sensitive, which also makes the competition among manufacturers in its market very tight.
"Southeast Asian countries, consumption levels and consumer preferences vary widely, even in the same country will have different needs, we will start from the user's point of view, the user needs the product, in all the mainstream price phase have corresponding Product configuration. "OPPO head of overseas markets in an interview with 21st Century Business Herald reporter said.
The official further said that Southeast Asia is the OPPO attaches great importance to overseas markets, for which, its product planning and promotion have done a lot of effort. OPPO long-term in various markets to carry out various types of consumer research and market visits, and adaptations to make adjustments, such as the introduction of Selfie experts, three cards independent and beauty software functions. In addition, OPPO said that it also focuses on the localization of talents, and over 99% of employees in overseas markets are well-versed in the local market.
According to the OPPO, it entered the handset market in 2008 and subsequently started to try overseas business in 2009 to enter the Thai market. In 2013, OPPO entered the markets of Indonesia and Vietnam, and in 2014 started to force overseas markets for large-scale layout.
IDC data show that in 2016, OPPO handsets in Southeast Asia to achieve 13.3 million units shipped, second only to Samsung. In the latest third-quarter 2017 data, OPPO continued to rank second in the shipments of 5.5 million units.
Wang Yanhui told 21st Century Business Herald that OPPO has adopted a strategy similar to that in the domestic market while expanding overseas. It pays attention to the combination of promotion and the local retail store model. "The pattern of each brand is different. For example, millet has Price advantage, while OPPO and Vivo phones will be relatively more expensive. "