On October 28th, IDC released a report showing that in the third quarter of this year, OPPO surpassed Huawei to become the new sales champion in the domestic mobile phone market. The OPPO was pushed to the spotlight.

The competition among domestic mobile phone manufacturers such as Huawei, OPPO, vivo and Xiaomi tends to become hot, and even the sales data of different organizations are “fighting”. The data of the other two research institutions, SA and Trendforce, show that Huawei still maintains its number one, but the share of OPPO and vivo has also been pressing.

However, with a long lens, sales at a certain stage are not as important. From the former Xiaomi to the Huawei that climbed to the top last year, and now to the OPPO, the fast-changing mobile phone market has not given any manufacturer a bit of a breather.

On November 2nd, the Secretary-General of the Mobile China Alliance, Laojiao, analyzed the 21st Century Business Herald reporters that the pattern of the domestic market “Hua Mi Ouwei” was basically confirmed. Among them, Huawei’s advantage in first- and second-tier cities, Xiaomi’s advantage lies in e-commerce. The advantages of OPPO and vivo are offline, they have their own advantages and are constantly infiltrating each other, and the future big pattern variables will be concentrated in overseas markets.

OV catches up with Huawei and competes for spread to overseas markets

OV catches up with Huawei

When OPPO entered the MP3 market in 2005, it was precisely when the product cottage homogenization was serious and the industry was shuffled. OPPO relied on successful brand positioning and strong communication to create a bloody road in the domestic MP3 market and successfully established a boutique MP3. The image even made many people mistakenly think that this is a brand from South Korea.

In the mobile phone market, OPPO once again replicated the success of the MP3 market. In the domestic market in the third quarter, according to data released by IDC, OPPO shipments reached 2010 million units, a year-on-year increase of 106%, and vivo also grew at a faster rate, with shipments of 19.2 million units. Huawei shipped 18 million units, a year-on-year growth rate of 5.1%, a slight decline from the previous month.

Laojiao believes that the outstanding performance of OPPO and vivo this year is firstly because the market increase this year mainly comes from the third- and fourth-tier cities. OPPO and vivo have solid offline channels; secondly, the brand operation effect is obvious.

“Current users are increasingly valued brands, and the price/performance ratio has been difficult to attract consumers. Not OPPO and vivo have changed, but their long-term brand operation experience has enabled them to adapt to this era.” Laojiao said that Huawei gives people Impression is mostly business, Xiaomi's impression is cost-effective, and OPPO, vivo has always mastered the initiative, based on the high-end, established its own young, beautiful, cool image, to meet some consumer demand.

Behind the brand image must be supported by products. In fact, OPPO is not a company that only advertises. OPPO hardware director Bai Jian introduced that as of May 2016, the number of OPPO patent applications was 7413, including 6,370 invention patents and 721 invention patents. The patents were concentrated in the field of VOOC flash charging, video and 5G communication. OPPO has established its own technical barriers for low-voltage charging in the fast charging technology referred to as “five minutes of charging and two hours of conversation”. Bai Jian also pointed out that OPPO is currently investing heavily in the future technical standard 5G.

Another advantage of OPPO is channel construction. At present, OPPO and vivo have more than 200,000 sales outlets online, which establish a trust relationship with agents, and management ability is difficult to copy in a short time. Especially in the process of crushing the market stock, the channel is very important.

It is also worth noting that the data of the Aurora Data Institute shows that OPPO and vivo users are concentrated in the age group of 25-29 in the age distribution of users, while the age distribution of Huawei and Xiaomi users is close to the age distribution of users in the whole network. As the main group of smartphone consumption in the next five years, OPPO and vivo account for users under the age of 20 are also above average, and the value of this group should not be underestimated.

Fight for spread to overseas markets

The mobile phone manufacturers in the Red Sea are fully fired. On October 14th, Huawei launched the Nova brand for the young people market to fill the product line, compete for young people, and start the title of entertainment program. At the same time, the “Thousand County Plan” is also constantly extending to the end of the channel, and this series of measures will inevitably confront OPPO and vivo.

Xiaomi, who is in a state of fatigue, has continued to pass the "Millet House" layout line this year. Recently, the business flagship Xiaomi Note2, which is a forward-looking product for high-end mobile phones, has been thrown out to get rid of the "price-performance" label.

Laojiao believes that the "routines" of mobile phone brands are constantly integrating. It is worth noting that in order to win the market, mobile phone manufacturers have placed large-scale offline channels on OPPO and vivo. It can be seen that from the rise of operators' channels to the rise of Internet channels to the recovery of offline channels, the changes in channels have profoundly affected the pattern of the mobile phone market.

The top executives of mobile phone manufacturers are aware that high channel density will greatly enhance sales capacity, but if the density is too high, it may cause excessive competition and affect channel capacity. In the long run, the offline market will be affected by the growth of the online market in the future four- and fifth-tier cities, as well as the thin profit and homogenization model.

Future core competition may shift to incremental markets, emerging overseas markets. Taking the Indian market as an example, Huawei launched “Made in India” in October and announced that it will take 10% market share in India next year; Apple’s latest earnings report revealed that iPhone sales in the Indian market in fiscal year 2016 increased by more than 50% year-on-year. Xiaomi recently announced that it has sold 1 million mobile phones in the Indian market in 18 days, ranking third in the market, and plans to reach market share in the next three to five years.

Wu Qian, vice president of OPPO, said that OPPO ranked first among Chinese brands in the Indian market in August. At present, the market share in Vietnam is about 30%, and it can reach the second place in Vietnam, Indonesia and the Philippines. It can also rank in the top four in Thailand and Malaysia. According to him, the selection criteria for OPPO's overseas market is that the market format is similar to that of the domestic market and is mainly based on the open market. Currently, it is concentrated in the Indian market and Southeast Asia.

According to IDC data, Huawei, OPPO and Vivo entered the top five global smartphone manufacturers in the third quarter with market share of 9.3%, 7% and 5.8% respectively. The growth rate of the three is 23%, 121.6% and 102.5. %, while the market share of the top two Samsung and Apple fell by 13.5% and 5.3%.

Laojiao pointed out that the overall situation of overseas markets has not yet formed. Huawei's current advantage is mainly in Europe, and OPPO is making efforts in Southeast Asia and India. In addition to India, Russia and Brazil are the countries and markets that domestic mobile phone manufacturers have exerted. How to deploy overseas markets is a problem that every mobile phone manufacturer must consider.

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