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As the wave of mobile and Internet trends sweep across the globe, it seems that no smartphone brand will choose to back down at this point.
Accenture research found that due to increased security, new features, performance improvements and equipment upgrades and other factors, smartphone sales are expected to rebound in 2017. Chinese consumers will be the main driver of the demand rebound. Smartphone performance improvements and falling prices are key reasons to stimulate the desire to buy.
What do consumers value in the future mobile phone competition? What are the advantages (brand, price, and function differentiation) that will be decisive? We believe that what really matters is the consumer centric experience and the search for value in the ecosystem, from R & D to seamless sales, to customer service, throughout the value chain.
Enlightenment from China market
In the past ten years, the leading brand manufacturers have led the technological progress of smart phones. Not only do they build competitive advantages with innovative features and capabilities, but they also achieve profit growth by selling high priced smartphones. However, with the advent of high-end intelligent mobile phone market growth slowed and the overall solution, brands are faced with two or three line brand - including many manufacturers Chinese - rising competition threat.
First, the sales model: now in the mobile ecosystem, domestic consumers buy mobile phones has changed significantly, direct sales to consumers mobile phone proportion is continuing to expand. In China, more than 60% of mobile phones are sold through public channels. For example, some of the typical domestic mobile phone brands can penetrate the small cities and towns in China's offline stores, quickly win users. At the same time support agents to develop the market, let the manufacturers hold shares, launch rebates and other preferential measures to help the rapid penetration of various brands.
Second, IoT and ecosystem: the smart phone industry, the operating system has built a highly effective ecosystem, but also to be followed by the object. The previous model is more focused on the development of the mobile phone itself, and now needs to develop more IoT products, as well as opportunities to create ecosystems with external partners. It also explains why some tech giants invest / cooperate with traditional mobile phone makers to make their existing IoT or ecosystem play a bigger role.
Third, supply chain management: there is a less mentioned, but can not be ignored, that is, the upstream suppliers of control. Now more and more smart phones, shipments more and more, but the material on the hardware is generally similar. However, there are very few suppliers who can provide high level and stable output, and the product out of stock is very frequent.
For foreign brands, in addition to consumer insight and supply chain management, more attention needs to be paid to market entry and pricing strategies. Increasing investment in China and integrating local markets (such as building data centers) often produce results, which then become key to policy.
Find the next air outlet? Focus on the ecosystem
Larger screens, or better flash, and some other features like improved ascension are just part of the evolution iteration of mobile phones. For the development of mobile phones, the real important needs from the past "hardware + software" model transformation to the ecosystem model development.
We found that the investigation, if the firm can capture by strengthening the core user base, such as battery life, support for Internet access, to achieve interoperability across operators, will improve the products more attractive to users and operators. This is particularly true in highly fragmented markets such as China, which is expected to boost sales and average selling prices simultaneously.
But, from the hardware alone, to strengthen some mobile phone function, manufacturers will also be easily replaced. Mobile phone manufacturers should learn from other platform enterprises and construct an ecosystem supported by software applications. For example, Amazon launched AmazonEcho, designed to build an important entrance to the smart home platform. Through voice interaction, smart devices can be linked to the user through the Echo control in the home: light and temperature, mediation television, monitoring equipment, can according to consumer records, for consumers in the Amazon website automatically order. At the same time, Echo is a development platform that allows developers to be familiar with and use Echo's systems to develop intelligent hardware or products.
Also, for example, Apple's latest model, in fact, the main breakthrough is not smart phones, but AirPods. This is another consumer habit of promoting "Hands-Free" after AppleWatch. If the future is to sound control, assistant and visual control based, smart phones may be from the main consumer products into an auxiliary product.
Of course, now the market leader in enterprises, its ecosystem is very diverse, and take more open innovation strategy. Instead of just building their own IoT products and ecosystems, these vendors have opened up their own ecosystem to allow all software developers to help expand the ecosystem