Every reporter:Wang Jing, every editor:Wei Guanhong

On January 22, the honorafter independence > The first new product launch conference was held, which heralded the official restart of various businesses of Honor.

“In the past five months (from August 17, 2020), we have had an extremely difficult and meaningful time. Honor’s market share once hovered between TOP2 and TOP3. If there is no supply problem , Maybe we will become the second in the market in 2020.” Honor CEO Zhao Ming recalled.

According to Zhao Ming, almost all supply chains have fully restored the supply of glory.”From the perspective of production and supply, Honor has no restrictions and can go all out to face the market. Among them, AMD, Intel, Micron, Samsung Qualcomm, Qualcomm, Microsoft, MTK, etc. have all resumed. Qualcomm, MediaTek and other supply chain partners have responded to the needs of the new company after its independence, and signed a cooperation agreement with New Honor. Qualcomm’s chip products are already on the development list. Use Qualcomm’s various series of chips (the specific time to market for new products is to be determined).”

However, outside the supply chain, what makes the outside world curious is that the independent glory and friends use the same chip and operating system , How to maintain innovation and differentiation? In this regard, Zhao Ming said that glory does not start from scratch, but stands on the shoulders of Huawei.”Nearly half of the nearly 10,000 employees of New Glory are R&D personnel. At the same time, Huawei’s top image development and technical personnel have also come to New Glory.”

Restore the supply chain and compete for 5G high-end market

On the morning of January 22, the much-watched Honor V40 series products were officially unveiled. Honor’s first new 5G phone after independence. According to Zhao Ming, “Honor V40 has made special optimizations on chip performance and adaptability based on the basic capabilities of Dimensity 1000+ chips, greatly improving chip capabilities. At the same time, in terms of underlying core technology, GPU Turbo is introduced into V40. X graphics acceleration engine enhances graphics computing power, thereby enhancing game performance.”

In terms of chip supply, except for MediaTek Glory also solved the problem of Qualcomm’s chip acquisition. Zhao Ming said that Honor 5G mobile phones using Qualcomm chips are already on the development list.

He also revealed, “In Honor’s system, it covers a very powerful supply chain system, including procurement, production, and delivery. From the perspective of the company’s future development, there is no longer a large supply chain. The restraint and restriction of the company belong to the state of going all-out to develop the business.”

With the gradual recovery of the supply chain, Honor’s new journey is about to begin, but Honor’s growth process also needs to overcome several difficulties.

On the one hand, when Honor is making adjustments, OV, Xiaomi and other mobile phone manufacturers are seizing the time window to compete Grab the high-end market. On the evening of December 28, 2020, Xiaomi released a new generation of flagship models of Xiaomi 11 series mobile phones two months ahead of previous years; the next day, vivoTogether with optical giant Zeiss to release the flagship professional imaging X60 series, it is quite a benchmark for Huawei and Leica; and earlier this month, OPPO founder and CEO Chen Mingyong announced that it will release the Find X3 series in the first quarter of 2021, and will try to use this product to break the brand and become the first camp of high-end flagships in the world.

On the other hand, without the support of HiSilicon chip processors, how does Honor create differentiation compared with OV, Xiaomi and other manufacturers?

The high-end mobile phone market is fiercely fighting. In order to cope with changes in the internal and external environment, Honor has adjusted its slogan, team members, and product lines.”In the past, the glory of slogan was’be brave to be yourself’, and it said that it needs to be based on the Huawei system to break out of the fierce market; now it is changed to’striving for the future’ to focus on the polishing of core capabilities and improve consumers step by step. Experience.” Zhao Ming said.

In fact, although Honor has performed well in the mid-end price segment of smartphones in the past, it lacks product creation and layout in the high-end price segment. Now Honor may gain more room for development after independence. During the press conference, the reporter noticed that Zhao Ming has repeatedly stated clearly and firmly that the future development of Honor will move to the high-end market.

Zhao Ming’s confidence comes from the technology research and development system accumulated from Huawei.”The new glory originated from Huawei, and it took over Huawei. It gave glory an opportunity to stand on Huawei’s shoulders, including support for communications, systems, algorithms, etc. At present, nearly half of the nearly 10,000 employees of the new glory are in research and development. People, including experts and engineers from Beijing, Xi’an, Shenzhen and other places.”

In addition, the experts who built Huawei’s top camera solutions in the past have also joined the new glory. Zhao Ming said that Honor will launch a super flagship in the future, and Honor will also have its own ‘Mate’ and ‘P’ series.

The retail volume of offline channels exceeds that of online

To compete for the high-end market, the layout of offline channels is also quite critical. In fact, offline channels have a natural stickiness for customers, and they play an irreplaceable role in brand image building and shopping experience enhancement, which cannot be achieved by simply online.

The deployment of Honor offline channels is progressing rapidly. Public information shows that since September last year, Honor has opened stores in multiple cities.”In the past, many high-end flagship store retail partners have started the location and construction of high-end flagship stores in the process of Glory’s gradual recovery, to help Glory improve its ability to serve consumers in cities at all levels in the future.” Zhao Ming said, Glory In the past few years, it has been the number one online Internet brand, but consolidating offline strength will accelerate the transformation of Honor from the existing Honor brand to the new Honor high-end brand.

It is worth noting that this manufacturer, born under the label of Internet mobile phone, will have more retail sales in offline channels than online in 2020.”Our online and offline ratio last year was 4:6, which means Honor is already an omni-channel brand.” Zhao Ming pointed out that Honor will balance the relationship between online and offline while strengthening these two channels.”To consolidate Honor’s position as No. 1 online, while offline is to cooperate with channel vendors and retail partners to build more offline systems.”

For the future brand positioning, Zhao Ming said, The new positioning is to become a global iconic technology brand. It is understood that Honor will have a complete sales and marketing system overseas after its independence. Specific to the software system of overseas products, Zhao Ming said,”We will choose among open source operating systems, choose the best solution, and talk about Hongmeng also depends on Hongmeng’s open source progress. We are independent from Huawei and will follow the business rules of the industry.”

In terms of product strategy, the new glory will continue to be”1+8+ N” development on the road.”This year’s goal is to fully surpass the original market share.” Zhao Ming said. According to Canalys analyst Jia Mo, if Honor wants to achieve its goals, it needs to solve the following problems:“How can the new Honor combine Huawei’s R&D capabilities to launch more radical products and innovations that will affect its future development. At the same time, how can it be In the initial stage of the shortage of original parts, it is also very important to develop channels.”

The reporter noticed that due to news related to the restoration of the supply chain of Honor, Xiaomi’s share price fell 3.72%on January 22 and closed. HKD 29.80 per share.

Daily Economic News