How Xiaomi & Huawei disrupt smartphone market with e-commerce?

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How Chinese brands disrupt smart phone market with e-commerce strategy?

description

Discover the strategy involved in the successful disruption of the smartphone market by Chinese brands through e-commerce. We compare the differences between 3 different models of smartphone retailing: - Pure e-commerce (Xiaomi) - Hybrid (Huawei) - Traditional (Samsung) We take a closer look at the retailing model being used by Xiaomi and Huawei - see their strength and weaknesses.

Transcript of How Xiaomi & Huawei disrupt smartphone market with e-commerce?

Page 1: How Xiaomi & Huawei disrupt smartphone market with e-commerce?

How Chinese brands disrupt smart phone market with e-commerce strategy?

Page 2: How Xiaomi & Huawei disrupt smartphone market with e-commerce?

The 3 models of smart phone retailing

Internet Only Hybrid Traditional

Internet Companymi stands for “Mobile Internet”

Internet TraditionalManufacturerBrand Owner

Hunger MarketingValue for Money

Traditional DistributionRetail Stores

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Why Internet play works for Xiaomi & Huawei?

Reach consumers via e-commerceby “skipping” traditional marketing & distribution

Traditional Marketing

Traditional Distribution

Consumers

X

X

X

X

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For consumers, it is “value-for-money” or “no-brainer”

Reach consumers via e-commerce

Traditional Marketing

Traditional Distribution

Consumers

Lower Cost

Lower Cost

30% to 50% cost saving pass to consumers

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What is Hunger Marketing?

Control Supply

Create Demand

Word-of-Mouth

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However, it does not apply to everyone…

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The Strength of Xiaomi – Internet ecosystem

MI Credit

MIUI

MI Fans

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The Strength of Huawei – Stronger control

Best of Both Worlds

Local Fulfillment

Manufacturing Line

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Xiaomi vs Huawei – The celebrity-ness

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Xiaomi vs Huawei – The speed and service

Market Entrance Speed Fulfillment Speed

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Xiaomi vs Huawei – The after-sales service

6 Service Centers in MY

16 Service Centers in MY

inclusive of 12 collection points

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Xiaomi vs Huawei – The business approach

Sprint Marathon

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This presentation is brought to you by…

http://www.360ecommerce.myE-Commerce trends & articles (in Chinese language)

Compiled & prepared by:

In collaboration with:

http://www.ecommercemilo.comE-Commerce insights in Malaysia and Southeast Asia