China’s mobile phone manufacturers’ battle to the sea has focused on a new battleground. Despite being only one sea apart from China, Chinese brands in Japan, like Japanese brands in China, have little sense of existence. These are two completely different markets. But now, as overseas markets begin to mature, manufacturers are looking to Japan, albeit with uncertain prospects.
Entering the Japanese market
On December 9, 2019, Xiaomi held a press conference in Tokyo, Japan, where he made his first shot into the Japanese market. In fact, in November, Wang Xiang, head of Xiaomi’s international operations, told the Japan Economic News: “We should be able to enter the Japanese market by 2020, the sooner the better.” “At the moment, Xiaomi’s plan is a little bit earlier.
This first shot, Xiaomi released several products. Mobile phone product Xiaomi Note10, in fact, is the domestic previously released Xiaomi CC9Pro, the main image function, equipped with 100 million pixels of master camera, a total of five cameras.
Xiaomi is still the main price-performance, the Note10 sold for 52,800 yen (about 3428 yuan), Xiaomi IH rice cooker, sold for 9999 yen (about 649 yuan), in addition to Xiaomi bracelet 4, mobile power supply, lever box and other products.
Mobile phone prices, horizontal comparison is obviously still cost-effective, although the need to add a variety of taxes. Reporters at the scene also said that when the price was released, they heard the familiar cheers. There are also “genuine” Japanese netizens in the message son son on Twitter.
Japan’s small home appliances can be said to be world-famous, recognized the highest quality. Xiaomi’s rice cooker, sold to Japan, has also been described as a “counter-attack”, similar to Salia’s drive to Italy and the sale of left Zongyu chicken to China.
In fact, xiaomi rice cooker behind such a story, 2016 when the product was originally released, Xiaomi expressed pressure IH rice cooker inventor, former Sanyo rice cooker business development minister Naito Yi, was also invited to participate in the design of the product, Mr. Naito also said “I want to do the best rice cooker, and then sell to Japan”, Now Xiaomi has fulfilled that promise.
In Japan to choose the specifications close to the 3LIH heated products, the price is almost at this level below, the price of millet has a certain advantage.
In addition to Xiaomi, Meizu has also launched Meizu Japan’s official Twitter account, suspected of entering the Japanese market:
In fact, Chinese manufacturers have long been linked to the Japanese market.
In January 2018, OPPO announced its entry into the Japanese market, where OPPO R11s was launched for 60,000 yen (at the time, the exchange rate was about 3,486 yuan), and went on sale at bic Camera and Youdus Yaxi appliances stores.
Huawei, but also has been in the Japanese market layout for many years, operator channels have also entered, the main sales of Mate, P series flagship machine, and even, in today’s some Japanese literary works, can also see the presence of Huawei mobile phones.
Japanese drama “Still A Man Who Can’t Get Married”
What is the situation in the Japanese market?
Because of purchasing power, culture, industrial structure and many other factors, Japan’s mobile phone market and domestic differences are very large. Japan’s GDP per capita in 2018 was $39,185, while China’s was less than $10,000 in the same period, and the fact that local manufacturers were not very strong on mobile phones has led the iPhone to dominate Japan.
According to StrategyAnalytics, Q3 Japan’s handsets in 2019 are 63%, Samsung 6.7%, Sharp 5.3%, Sony 4% and Huawei 1.9%, with the rest being. Japan has the highest share of the iPhone in the world, even higher than Apple’s home base in the United States.
Since entering the U.S. market in 2012, Apple has been a standout in the Japanese handset market, and the best-selling handset list is also the iPhone 11 old and new models, with out of every other brand.
Japan’s best-selling models list
The iPhone has many advantages, such as product power and brand power, and even in the mid-market, young people tend to opt for older iPhones over new, cheaper models from other brands.
The Japanese market is a very special presence. In some industries, they have a proud sense of innovation, but the overall market atmosphere is slightly closed, rarely to cater to the international mainstream trends.
In Japan, the mobile phone market is mainly dominated by several major Japanese operators (NTTDoCoMo, KDDI, SoftBank, etc.), channel sales can account for more than 90%, mobile phone manufacturers according to the operator’s ideas to customize the mobile phone, and then by the operator procurement.
As a result, Japanese mobile phone companies lack the incentive to innovate and are insensitive to new trends.
This is a completely different market, the domestic manufacturers are good at playing, here can not be completely copied. Huawei, although through a variety of push, preferential activities (P30 is cheaper than domestic), access to a certain amount of brand voice, but the share is still not high;
OPPO has not yet large-scale access to operator channels, and the list is still in the position of others, according to Statcounter data, as of October this year, OPPO’s market share in Japan was 0.71%.
Where’s the chance?
Chinese handset makers have been at sea for years. According to the general logic, it must be the first to choose a sure market, play the scale and confidence, and then gradually attack the difficult market.
Southeast Asia, nature is the best first stop choice. Low consumption power, suitable for domestic play, no forming of local enterprises, low competition threshold. Up to now, southeast Asian markets have become the back garden of China’s large factories.
The U.S. market is in a particularly special situation and has been strategically abandoned. Western Europe, South America, Russia and other markets, have begun to have the presence of Chinese manufacturers, market share is also rising.
Despite Japan and China, cultural, economic and other factors determine that this will still be a hard bone to chew. But with the site almost finished, manufacturers realized it was time to invest more in new markets.
“OPPO’s increased shipments to Japan in the third quarter of 2019 is a testament to its ambitions in Japan,” said Akira Sugawara, senior market analyst at IDC in Tokyo. With the news, Xiaomi may also decide to enter the market. “
“The gap between market demand and suppliers can be an opportunity for Xiaomi, and even in the 4G market, consumers are looking for value for money models … The price range of $250 to $400 may be a chance for xiaomi. “
For Xiaomi, the reason for the trade friction, resulting in Huawei temporarily unable to carry Google services, so that its japanese market has been affected, NTTDoCoMo and other major operators, have temporarily postponed the release of Huawei’s new model. Although this is a bit of a dangerous point, but as things stand, Xiaomi does miss Huawei overseas as a strong opponent.
And Samsung, as we all know, Japan and South Korea are fighting a trade war. As a result of this factor, Samsung encountered bottlenecks in the Japanese market, while Q3 compared q2 showed a year-on-year decline, from 9.8% to 6.7%, and there were some problems with the trademark.
As for Sony, Sharp, Kyocera, these japanese local manufacturers, the overall performance of the product also has some short board.
In addition to mobile phone products, Xiaomi’s AIoT home appliances are also looking for opportunities. Chinese brand Anker has achieved good reputation and sales in Japan. In the Charger category on the Japanese website, long in the first place, Xiaomi obviously also saw the market vacancy. As mentioned above, the rice cooker, Xiaomi small appliances itself is Japanese-style products, Japanese consumers are also more receptive.
But out to sea in Japan, is still a dangerous battle, Japan’s smartphone market volume is not large, and there are Apple such an opponent, input-output ratio may not be too high, for domestic manufacturers, this is an overseas market test water, but also the team’s ability to exercise.
Today, AIoT, eco-linkage has become the future of all China’s big factories to bet together, mobile phones can not get in, you can also try other categories.
Milk tea, short video, chicken and other products from China, have taken root in Japan, then the domestic mobile phone will be the next?