In the global mobile phone market with more than 300 million sales per year, foreign brands such as Nokia, Motorola, and Apple have taken turns to take the lead in the consumer market. At the moment, the aura of these giants is gradually fading, and behind them, the Chinese brands that are whistling on the stage are welcoming the age of passion.

China Mobile’s “Big Data Report of China Mobile Terminal” released at the 2016 World Mobile Conference shows that in the first five months of this year, the ranking of new user share of smartphones has undergone a subversive change, and the decline in Apple’s growth share is more obvious. The growth rate of % is among the best.

The company, which is known for its offline retail sales, has seen its product shipments in the e-commerce channel increase several times in the first half of the year. Consumers have begun to accept the same price as retail stores to purchase vivo, and to filter out a wide variety of thousands of yuan. This company, which was not originally a mountain, is making a big push on the platform of a strong hand.

Emphasizing the corporate style of the division, efficient advertising, and soaring market rankings, the company's operation under the leadership of Shen Wei is enough to be studied as a successful business operation case.

How to explain the "vivo phenomenon"? Is it an opportunity in a special market environment or is it accumulating? Can vivo maintain the top four rankings in the stock market? Will there be greater ambitions for market share in the future?

Demystifying how VIVO mobile phones maintain the top four in the stock market

"Three indicators" of enterprise medical examination

Domestic brands are in the stage of excitement, while foreign brands are gradually declining. At the same time, domestic mobile phones have a fast pace of release, and they have grabbed many markets around the world.

Market research firm COUNTER POINT May data shows that Apple's share in the Chinese market fell from the top three in January to the fifth, and its market share fell to 11%. According to the agency's statistics, Huawei ranked 17% of Huawei's, 13% of vivo, and OPPO and Xiaomi.

After releasing the first curved screen mobile phone Xplay5 in China, on June 30th, the new flagship model of vivo X7 was unveiled. The core function was positioned in the soft light self-timer. With the precise positioning, the product was popular in the market and refreshed the first day of the vivo brand. Sales record.

However, the essence of business is not the temporary sales data. Whether it can continue the consumer's goodwill and trust in the brand and products is more important, and this is the concept that vivo repeatedly communicates to the outside world.

When the reporter asked if vivo had greater ambitions in terms of shipments and market share, Feng Lei replied: "We are thinking about doing healthy and long-term enterprises. To be a century-old enterprise is not to make quick money. For vivo Words, sales are only the result, we will pay more attention to whether consumers recognize products and brands, whether we have continuous research and development technology, and whether the company's operations are healthy, these are more important than sales." vivo has repeatedly mentioned that The "result" is the logic of the KPI. A more convincing point is that the vivo board of directors has only three indicators for management inspection: annual brand investment ratio, R&D investment ratio, inventory turnover and cash flow cycle, and never evaluate mobile phone sales. ”

Behind the sales volume, on June 29, China Mobile’s “China Mobile Terminal Big Data Report” released at the 2016 World Mobile Conference showed that the proportion of users with the same brand repeat purchase rate was 33%. Ranked second only to Apple (45%), this ratio is 23 times that of other domestic brands.

Entering the exchange market, consumer loyalty represents to some extent the rise of the brand image.

In Feng Lei's words, vivo pays more attention to consumers' perception of products. “We have a judgment that each consumer has a mental drawer, and reserves up to three to five of the same category of consumer goods. We are now trying to make our brand enter the consumer's mind if the product itself can satisfy the consumer. Expectation of experience, the transaction is a very natural thing, we are very clear about the relationship between this cause and effect."

Demand and innovation "hand in hand"

The greatest fortune of a company is to stick to the right value in a vast market. Feng Lei said, "The current mobile phone market is basically a stock market, and the penetration rate has reached 90%. Who can understand consumers and accurately meet the needs of consumers? There is room for survival in the future. vivo is a clear consumer demand orientation. the company."

Vivo established a dedicated consumer research department at the beginning of the brand's creation in 2011. Vivo spends 10 million yuan on the normal research of consumer research every year. The average annual output of the product department is 500 key scenarios, and at least 5 key scenarios are promoted. In 2015, 146 research projects were completed, 234 qualitative visits were completed, more than 1,000 user samples were in-depth study, and 3,000 hours of face-to-face interviews were completed; 272,740 quantitative questionnaires were completed.

It is based on the insight of consumers that promotes the development of benefits and innovative functions of vivo in Hi-Fi, camera, rapid fingerprint, smart engine, split screen operation. The X7 added a soft light to the front camera, also because of the discovery by the vivo consumer research department in the big data research report.

In these reports, vivo concluded that mobile phone users' photo taking behavior mainly occurred between 10 am and 10 pm, but in an environment with insufficient light, the photos taken were always unsatisfactory. In addition, from the consumer demand trend, the importance of the front lens is similar to the rear lens. In the industry, there is a general lack of response. In view of this trend, vivo's new flagship is equipped with a high-quality front camera.

Feng Lei said, "Sharing and self-expression are two aspects of mobile phone's most influential consumer habits. Based on consumer observation, vivo decided to start the transformation, focusing on improving the level of product photography and making the most beautiful mobile phone. Users can easily take exquisite and delicate portraits in any environment. The front 16 megapixel camera and moonlight soft light are an important step for us to take photos with mobile phones. In the future, we will develop with upstream partners. , innovation, and better matching of components and products, this is our strategic planning or future expectations based on consumer demand observations."

In addition, based on the big data survey of the consumer research department, vivo's independent research and development will unlock the fingerprint of the screen to break through 0.2 seconds, and the bright screen is as fast as 0.15 seconds, becoming the fastest fingerprint unlocking speed in the industry. In order to improve the security of fingerprint flash payment, vivo implants a high-level key in the production process of the product factory. Each mobile phone uses different keys; these levels of secret keys make the mobile phone payment security level comparable to Apple.

“In addition, in order to provide consumers with a comprehensive product experience, vivo will test every function operation done by consumers. All products of vivo are self-developed and self-produced. Many of our requirements in quality management are nitpicking beyond For the industry standard and national standard requirements, for example, during the development of X7 products, the whole machine test consumes at least 30,000 personal working hours (that is, 100 people fully invest in non-stop testing, at least 300 hours), and proposes nearly 1000 revision opinions." Feng Lei said .

Vivo believes that it is based on the self-developed and self-production system based on the strict demand of consumers, and consumers are always fresh and brand loyal to the vivo products.

Finishing sales is just the beginning of the service

As the brand enters the first-tier cities, the experience shops and retail outlets of vivo can be seen in the streets of cities in many countries and regions.

Feng Lei said that as of now, the number of retail stores under the vivo line has reached 250,000, the number of after-sales centers has reached more than 430, the experience center has more than 1,000, and the implementation of the "full-channel after-sales service coverage" of online and offline.

When talking about offline channels, Feng Lei said that the market's interpretation of the retail layout of the vivo line is somewhat extreme. vivo is not a company that only grows by sales advantage. If you look at it rationally, any company is unlikely to By selling, you can win the trust of consumers.

“Complete sales is just a part of the comprehensive experience we provide to our users. The online and offline channels can provide users with consistent services, including pre-sales information reference, product experience and after-sales service. Compared with the outsourcing model, Vivo's after-sales service is self-built and self-operated, and the service center is based on user satisfaction as KPI. There is no assessment on profitability. When consumers use mobile phones, there are problems in sales, experience stores, customer service centers, and networks. Get echoed, 95% of the repair service was completed on the same day." Feng Lei said.

How to explain the "vivo phenomenon"? “Let the consumer demand navigation” may be the key to the vivo phenomenon, and the so-called marketing and channel advantages are only the result of consumer orientation, which is a way to achieve corporate health, which is the internal logic of vivo development. It is also a projection of its culture and values.

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