According to foreign media reports, LG Electronics recently announced that due to fierce competition in China's smart phone market, the company's related departments have been at a loss for a long time and will officially withdraw from the Chinese market. However, other departments will remain in China without any change. Also from the "China Business" reported that a representative of LG Beijing Office frankly "mobile phone business out of China."
In this regard, the Beijing Business Daily reporter contacted the relevant parties close to LG Electronics China, the other revealed that LG officials did not announce the news, but LG mobile phones really have long been out of the Chinese market.
At present, the LG mobile phone in the e-commerce platform has rarely been able to see. Among the eight products in the LG flagship store owned by LG Electronics, only one is a cell phone, the last cell phone LG Electronics offers to the Chinese market - the G5 SE. The other products are cell phone covers and earphones, etc. Models of mobile phones show no goods in Beijing area; but in the LG Lynx official flagship store and the United States Online Mall even the only cell phone did not, the main product categories are washing machines, TVs and refrigerators.
Although Suning Tesco has 4 branded handsets on the platform, including LG Q6 +, LG G6 +, LG V30 + and LG V10, these products are all sourced from a store called "Hong Kong BP Digital Small Overseas Store" Belonging to Suning Tesco's "overseas purchase" business. However, you can see that these products are only a single-digit user rating.
In physical stores, Beijing Commercial Daily reporter found through visits, basically can not see the LG mobile phone counters and products. In a cell phone store, a shopping guide told the Beijing Daily News reporter: "At least two or three years have not seen the LG mobile phone, and rarely heard the news of this brand, almost no consumers will take the initiative to ask "There is also a consumer bluntly:" Now that foreign brands only know Apple and Samsung, the domestic mobile phone brands do know more, LG is already history. "
Data show that in the global mobile phone sales decline in 2017 LG mobile phone sales of 55.9 million, with basically the same in 2016, Apple, Samsung is the world's third largest sales of foreign brands. Although there is no 2017 sales data for the Chinese market officially provided by LG, it is estimated that the sales volume of LG mobile phones will only be 160,000 in 2016, compared with 480 million smartphones sold in that year. The most important flagship LG mobile phone in 2017 has not been launched in China, including the LG G6 in the first half of 2017 and the V30 in the second half of the year.
"In fact, LG mobile phone is not the first time out of the Chinese market." Operators World Network editor-in-chief Kang Zhao said that as early as the 3G era in 2012, LG mobile phone China laid off sharply, said waiting for the arrival of the 4G era. According to the reports at that time, LG merged the Beijing mobile phone R & D department with its mobile phone production factories located in Qingdao and Yantai in 2011, and the original Beijing mobile phone R & D department was canceled. The employees whose contracts expired in this department have successively received the " "announcement of. In addition, LG mobile phone business in several offices in China have received notice of layoffs, mainly related to sales and management.
Missed the opportunity
Lead LG mobile phone out of the Chinese market, the most direct factor is undoubtedly a chilling report on the number.
According to LG Electronics latest fourth-quarter fiscal 2017 earnings, LG Electronics fourth quarter 2017 revenue of 17 trillion won (about 101.65 billion yuan), an increase of 15%, operating profit of 366.9 billion won (about 21.94 100 million yuan), turnaround year on year profit. But this time LG can rely on a strong profitability is mainly due to the OLED TV and other home appliances business, LG mobile phone business slump. It is understood that LG Mobile's fourth quarter of 2017 loss of about 192 million US dollars.
The industry believes that the reason why LG mobile phones poor performance in the Chinese market, the fundamental reason is that complacent, not with the market trend to make changes, resulting in the final out.
Kang Zhao pointed out that LG mobile phones first exit in the Chinese market, it is because the introduction of lag in China's smart phones, did not catch up with China's smart phone explosion, the biggest turning point is that in 2010. According to LG Electronics' headquarters research and development forecast for the Chinese market, LG Mobile's decision-making power of research and development at the time of planning for the 2010 product in 2009 was judged to be dominant in China, so missed the gold development Later, LG entered the 4G era, the LG cell phone really did come back, but the company's investment is very small, usually basically can not see the LG cell phone sales staff and products, mostly for the e-commerce channels, and did not run in China The best product, which is destined to the company's defeat. "
Liu Qicheng, editor-in-chief of Communication World Network, analyzed that LG, as a veteran Korean company, has been suffering from acclimatization in the Chinese market. Whether it is personnel management or production, LG has not done its place. "Although the quality of LG mobile phones is good, but the technology and functionality has not keep up with the market trend, regardless of dual camera, large screen, full screen or AI function, LG have not really focused on the introduction, still stick to their own year However, the domestic mobile phone manufacturers, including Huawei, OPPO, vivo and Xiaomi, have not slowed down one step in the trend-setting key technologies. Even mobile phone giants such as Apple and Samsung are always grappling with the pulse of the market. "
In his view, mobile phones as electronic FMCG, the annual technical point and focus are not the same, the rate of change is fast, LG apparently did not make great efforts in this regard, both the Chinese market channels or brand influence, the Brand has done unsatisfactory.
In addition, Liu Qicheng said that many brands of domestic mobile phones cover the high and low end of the mobile phone market, and all the markets have their own strengths. Even Apple and Samsung are not willing to slacken their efforts. However, LG mobile phones have not had much development in the Chinese market Rise, and stick to their own high-end market, it will inevitably be abandoned by the market.
"From the appearance of design, LG mobile phones can not find the kind of feeling consumers really like, the system is not easy to use." There are industry comment Road, "LG mobile phones in recent years, no major technological innovations, especially without their own chips , At the same time as the production, sales is not big enough, it is difficult to build the advantages of the industrial chain, therefore, its high-end machine gradually lost its competitiveness. "
In fact, LG is not only completely withdraw from the Chinese market, according to Korean media news, LG will gradually cancel the high-end mobile phone business, which means that the future V series and G series phones will cease to exist. However, giving up the development of high-end mobile phones means that the determination of the Warriors off the wrist, from LG and the high-end mobile phone image missed.
As LG mobile phone will once again return to the Chinese market, Liu Qicheng has a skeptical attitude. In his opinion, LG mobile phone is unlikely to return to the Chinese market, in the Chinese mobile phone market, in addition to Apple and Samsung, a large number of market share is occupied by domestic brands, and these companies respond to the market's winds are fast, very competitive fierce.
Kangzhao speculated: "In the future, LG mobile phone small-scale return to the Chinese market the possibility of existence at any time, but not much way out, because the company is not willing to invest in the mobile business, while the mobile phone is the need for large-scale capital investment So it's hard to get rewarded. "
In the context of the rise of domestic mobile phone manufacturers, LG wants to come back to win one side of the world harder, in fact, the brand was forced to withdraw from the Chinese market, but also because the domestic mobile phone manufacturers have squeezed out its market space . Domestically, Apple, Samsung and Huawei firmly occupy the high-end mobile phone market. At the same time, domestic brands such as OPPO and vivo seized a 3,000 yuan price segment. In addition, Internet brands such as Xiaomi and Jiaxing won the enthusiast market.
Not only in the domestic market, domestic mobile phone brands in the past two years in overseas markets also "mixed." As of the end of March 2017 fiscal 2016-2017, China smartphone brand Xiaomi, OPPO, vivo sales in India increased sharply to 2252.7 crore (about 22.6 billion yuan). Among them, vivo than the previous fiscal year sales growth of about 6 times, millet and OPPO growth nearly 8 times. In Southeast Asia, the Chinese handset brand that went out to sea also handed over a beautiful "report card". In the third quarter of 2017, OPPO ranked second in Southeast Asia with a market share of 17.2% and followed by vivo with a market share of 4.6%.
Fortunately, LG is still the top ten smart phone manufacturers in the world and still has a good market share in North America, Latin America and other places. But in 2017, several of LG's cell phones fell into a reboot and were sued by U.S. users for class actions. Although not long ago, LG has reached a settlement with users, and given a compensation package, but to a large extent affected the high-end LG brand image.
Also insiders pointed out that the LG cell phone defeat is like the past Nokia, Motorola and other brands, although experienced glory, once thrown by the times, it is difficult to make a comeback. Not only LG, Apple and other foreign brands is also today than ever before, although 2017 is still the growth of the mobile phone market, but Apple's lowest growth among mainstream brands. "Domestic mobile phone brands are like an endless stream of spring water, flowing through every country and region, leaving less and less space for other brands, and these brands are always vigilant and submerged."