508 [Chain Reaction]

Regardless of the field, foreign brands have been very slow to respond in China.

The rush to buy mobile phones in chain malls such as Gome and Suning did not wake up to foreign mobile phone manufacturers until the fifth day of the Lunar New Year, and the first to react was Motorola.

Motorola is now the runner-up in China's mobile phone sales, and it has three magic weapons: rapid launch of new products, accurate market positioning, and localization in China.

Among them, "localization" is the most commendable, Motorola not only builds factories in China, but also continues to promote upstream manufacturers to build factories in China, which leads to the "Chineseization" of its spare parts is becoming more and more obvious. Even in the first two or three years of the 21st century, Motorola was even more "Chinese" than many domestic mobile phones, and finally realized that most of the mobile phone parts were produced or purchased in China.

However, although Motorola was the first to react, the first foreign brand to cooperate with Suning and Gome was Nokia.

Because Motorola has a national general agent and a regional general agent in China, for example, the sales of mobile phones in Beijing are all thrown to the general agent in Beijing. Gome wants to bypass the general agent in Beijing and directly get the goods from Motorola at a low price, which is simply impossible, and Motorola must communicate and negotiate with the agent first.

Why did Nokia catch up with China and become the champion of mobile phone sales in just a few years? There are also three magic weapons: price war, low-end route, and channel construction.

Nokia is constantly shortening the supply chain, and after learning that Gome and Suning also sell mobile phones, they quickly reached cooperation with these chain malls. So on the eve of the Lantern Festival, Nokia suddenly entered the major chain malls, and also set up a special counter in the most conspicuous position, instantly comparing a number of domestic mobile phones.

At this moment, Motorola is still communicating with dealers. Until the Spring Festival has passed a month, the national general agent and the general agent have signed an agreement one after another, by these agents directly to the chain mall supply, and give the chain mall the maximum price concessions.

As for Ericsson, which has the third largest market share in China, its positioning, publicity and channels are in chaos, and it is not until the summer that it has entered major shopping malls. By the way, Ericsson has almost fallen out of the top three, since 2000 there has been a large amount of inventory backlog, in 2001, when domestic and foreign manufacturers made a lot of money, Ericsson mobile phones actually continued to lose money, and finally could only merge with Sony to reorganize into "Sony".

Some friends may say that at that time, people were superstitious about foreign brands and would rather spend more money to buy foreign mobile phones.

This statement is true, but it is also wrong.

From the perspective of the market share of domestic mobile phones over the years, 1997 (0%), 1998 (5%), 1999 (6.4%), 2000 (12.3%), 2001 (19.8%), 2002 (33%)......

The previous set of data, not including a large number of copycat mobile phones, if you count copycat machines, the domestic mobile phone market in 2002 accounted for at least 50%.

Two words: cheap!

At that time, the consumption level of Chinese was not high, and mobile phones could make calls, and there was no difference between a 1,000 yuan mobile phone and a 3,000 yuan mobile phone. Therefore, when domestic mobile phones make huge profit margins for channel providers, channel providers and retail stores are more willing to sell domestic phones to customers, because they earn more by selling a domestic phone.

Such a rough and barbaric marketing method directly defeated foreign brands, so much so that Nokia took the lead in shouting slogans in 2002: learn from Chinese mobile phone brands!

As a result, Nokia has also begun to develop savagely, constantly shortening the supply chain, increasing the profit margins of channel providers, and constantly launching a variety of low-end models. Although this product is a foreign brand, its marketing is completely "Chinese" and has always maintained a dominant position in China.

In fact, the quality of domestic mobile phones is very poor. For several years in a row, only Kejian mobile phones have passed the ISO9001 certification, which shows how bad the quality control of other domestic mobile phones is, and the repair rate is generally twice as high as that of foreign brands!

Even so, with the increase of mobile phone supporting factories in Chinese mainland, domestic mobile phones are getting cheaper and cheaper, and the market share is getting higher and higher - consumers are willing to buy domestic low-end machines. This can also explain why Nokia is popular, the price is cheap and the quality is excellent, it is simply tailor-made for the Chinese.

To sum up, let's take a look at Shenzhou mobile phones again.

Although Shenzhou's slide mobile phone is eye-catching, the sales volume during the Spring Festival is only one-twelfth of Shenzhou's low-end mobile phones.

This is the first domestic mobile phone below 1000 yuan, the performance is not to mention for the time being, the appearance design can throw the foreign brands of the same price out of a few streets! Because these foreign brands that sell less than 1000 yuan are all old models two or three years ago, and the whole looks outdated and clumsy, and there is no even SMS function!

Therefore, Shenzhou D210 has become the only mobile phone in China with SMS sending and receiving function below 1000 yuan!

This is called a price war, and it is simply flipping the table.

Shenzhou D210, a low-end machine, is purely launched by Shenzhou Technology when it has just entered the field of mobile phones in order to increase market share and industry popularity. Every time a Shenzhou D210 is sold, the net profit brought is less than 60 yuan, and Shenzhou Technology does not make much money as those agents and retailers!

For mobile phones of the same grade, domestic brands are priced at least 1,300 yuan, and foreign brands are priced at least 1,100 yuan.

As a result, it sold like crazy, not only Suning, Gome and other chain malls are selling, but also channel dealers around the country are competing to purchase. In just one month before and after the Spring Festival, the sales of Shenzhou D210 reached 60,000 units, and the sales of a single model directly pulled Kejian off the horse and became the leader of domestic models during the Spring Festival.

The domestic mobile phone industry is changing rapidly, Kejian mobile phone is still the first, Shenzhou mobile phone jumped to the second, Bird mobile phone ranked third, TCL mobile phone ranked fourth, Dongxin mobile phone fell directly from second to fifth, and may be overtaken by Haier mobile phone at any time.

However, it is very embarrassing that although the low-end machine in Shenzhou is popular and the high-end machine with a slide cover is also famous, the mid-range model in Shenzhou that sells for more than 1,000 yuan has mediocre sales. Because this mid-range model has no bright spots, the quality and performance are better than those of domestic machines at the same price, but the quality and performance cannot be seen in a short period of time.

Of the three mobile phones launched by Shenzhou, two were successful and one was a complete failure!

It's a pity that those chain malls have milk is a mother, and after reaching cooperation with foreign brands such as Nokia, they immediately treat domestic mobile phones as girls. Casually walk into the mobile phone area of Gome and Suning, the Nokia counter will always be in the prime position, followed by Motorola, and the low-end machine in China can only be sold behind.

Fortunately, Shenzhou has made an impact through slide products and low-end models, and is rapidly building its own sales channels - many partners who used to represent Shenzhou repeaters and USB flash drives have transformed and sold Shenzhou mobile phones, so that the channels of Shenzhou mobile phones have caught up, and in just a few months, they are on par with Kejian, Bird and TCL.

In the first quarter of 2001, the market share of domestic mobile phones soared to 7.9%, an increase of 0.5 percentage points over the same period of the original time and space.

The media even exclaimed: The era of domestic mobile phones is coming!

After the market statistics for the first quarter were released, Motorola was the first to cut prices sharply - Nokia's price war was over a wide range of low-end models, while Motorola was crazy to launch new phones, and most of them were mid-to-high-end products. So Motorola also likes to fight price wars, because it has a very large room for price reduction!

After the price of several mobile phones of Motorola was reduced, Nokia also followed, directly reducing the two mobile phones to below 1000 yuan, and their offensive target was directly aimed at the Shenzhou D210. It was only at this time that the soaring sales of Shenzhou D210 were curbed, and under the premise of the same price and performance, consumers still preferred foreign big brands.

This has led to a chain reaction in the market, and many mobile phone brands have reduced prices, among which TCL9980 has become the second domestic machine with a price of less than 1000 yuan.

Ericsson is the most awesome, directly reducing the price of the new machine launched half a year ago to 760 yuan, which is quite a sign of self-abandonment, and of course it may be dealing with the inventory backlog. This price is equivalent to not making money, and it is good to be able to return to the capital, and people with a discerning eye know that Ericsson can no longer hold on.

However, Ericsson's smashing of the table has caused embarrassment for other brands, and the sales of low-end models have dropped significantly, and Shenzhou is also the most affected brand.

However, the more the price of mobile phones is reduced, the better the business of Shenzhou Electronics.

The three big brands of TCL, Haier and Konka, as well as many miscellaneous brands, have successively chosen to purchase Shenzhou's mobile phone motherboards and RF chips in order to reduce production costs to fight a price war.

The butterfly effect brought about by Song Weiyang's mobile phone has led to a decrease of about 100 yuan in China's mobile phone market compared with the overall history - the culprit is the low-end machine Shenzhou D210.