Left: Zhao Ming, President of Rongyao Right: Wang Feng, the initiator of Mars Finance
Tencent "first line" author Wang Pan
On the evening of June 8, "Wang Feng asked ten questions" to continue. Wang Feng, the founder of Mars Financial and the founder of Langang Interactive Group, had a dialogue with President Zhao Ming of Glory.
In the dialogue, Zhao Ming said that glory must learn from Xiaomi and Lei Jun in marketing. "On the current market, there may not be any one brand of Internet marketing stronger than Xiaomi. Internet marketing is the strongest part of Xiaomi. However, the strongest glory is the product itself, which is the quality, quality, performance, experience, etc. of the product. The market competition is mainly to see who has a longer board, and marketing we do our best. ”
Zhao Ming revealed that in the first half of this year, Glory's overseas business growth was 100%, and glory now overseas is healthy and high-speed. Glory is based on the flagship machine. The honorable brand is Glory 8, Glory 9, Glory 10. This year's glory 10 is more than 90% of Glory's 9 overseas sales.
Zhao Ming also stated that many of the commonly used means for Chinese brands to go overseas are to occupy the market at a low price, but this gives the impression that your brand will never rise.
The following are the main contents of the two dialogues:
Wang Feng: Also a frequent visitor to the press conference. Whether it is Xiaomi Lei Jun, Luo Yonghao, or your colleague Yu Chengdong, you are more familiar to the public than you are. Is Huawei asking the officers not to be too high-profile or is your personality?
Zhao Ming: This aspect of the company's culture is relatively low-key, but also related to my personality. On the other hand, I believe that brands and products are actually more important than individuals. They are more worthy of publicity. They also deserve to attract public attention and arouse public concern. Huawei's executives, including Lao Yu, are all backgrounds of the men and women who are engineers. They focus on polishing their products and brands. They use products and brands to influence users. Like the glory play released this time, they are actually products and technologies. Comes with traffic. From the company’s entire development concept, we can also see that we do not rely on grandstanding to win. In 2017, our R&D investment amounted to 10.4 billion euros, accounting for 14.9% of revenue, which surpassed Apple and ranked sixth in global R&D investment. We are better at talking with products.
Wang Feng: You have released a "scarce technology" this week. Although the performance of live demonstrations is really amazing, we soon discovered that there is such a point of view on the Internet. "GPU Turbo is only for a few games." Special optimization is just a marketing gimmick. Do you want to respond to this sarcasm?
Zhao Ming: R&D partners need to know this statement to be very angry. GPU Turbo is a revolutionary graphics processing enhancement technology. It is based on hardware and software collaboration and integrated design, to achieve the ultimate hardware and software system. Equivalent to the micro-code inside the GPU to adjust, integrated with the operating system designed. This technology is based on our own software and hardware development. For the time being, other chip platforms cannot support it.
At the current stage, the six games we have optimized involve various fields and directions and are very representative. For example, “The Glory of the King” and the game of eating chicken, both of these large-scale games are able to compete for games that consume a lot of resources. , then we can imagine that similar other such games are certainly no problem.
Therefore, as the outside world has said, it is only optimized for individual games. In addition, I would like to emphasize that similar to the PKs displayed by friends and businessmen at the press conference, multithreading was defeated by a single thread. Only Huawei and Glory could do this difficult action. If everyone is on a single thread, then we are not only throwing opponents a street, do not know will dump a few streets.
Wang Feng: I checked a lot of information and I did not find the proportion of sales of glory in the entire Huawei mobile phone business. Is it convenient to disclose relevant data? And I found that the data published by various domestic smart phone market are different.
Zhao Ming: I said in mid-year last year that we will no longer publish our sales data within two years. This is to focus more on doing their own thing, but also to avoid talking to others. At present, we have done it. Many of the data reports it implements can be used as a reference. In China, we believe that Sinon's data is relatively accurate, and overseas can refer to GFK data.
Wang Feng: At the beginning, Glory was positioned as an Internet mobile phone. I would like to know what the initial positioning is based on. I saw Ren Zhengfei inside Huawei at the end of last year saying that glory sales are no longer rigidly adhered to forms, and do not emphasize online or offline too much. Does this mean that the historical mission of the "Internet mobile phone" positioning has been completed?
Zhao Ming: The Internet mobile phone is accompanied by the rapid development of the mobile Internet. It has brought about a comprehensive innovation in user communication, brand experience, product development, and marketing efficiency. Until now, Internet mobile phones are light assets, fast communication, and easy to purchase. The advantages of high efficiency still exist.
We should make it clear here that the Internet mobile phone model is not only a channel model, but also a mode of thinking and a business model. Simply using channels to define or measure whether a brand is an Internet mobile phone brand is obviously too one-sided. In my opinion, the omni-channel model of online and offline integration is a manifestation of the continuous evolution of Internet mobile phones. The core of Internet mobile phone is to capture the needs of consumers faster, then respond and meet more quickly, and use online and offline integration to maximize efficiency.
Glory currently has less than 600 full-team members worldwide, and we can say that we are the most efficient mobile phone brand. In addition, our marketing expenses are also the lowest in the industry. The annual marketing expenses are less than 3% of the total revenue. Less than 600 marketing and sales staff worldwide may not find a more efficient team than Glory. This is the glory of glorifying Internet mobile phones.
Wang Feng: For Huawei and the glory of the two brands, the difference and how to cover the target market in the end is how to define? What are the strategic values for Huawei at the same time as two independent brands? How do you evaluate the brothers and sisters of Glory Mobile——this competitor directly named by Huawei brand?
Zhao Ming: Feeling is a pit, but it's not a problem in us. We learn from each other and promote each other. We learn from Huawei how to build a brand and build a product. Huawei learns from glory how to use the Internet to do marketing and get closer to young people. In the dual-brand operation, we are more likely to see the advantages of fully satisfying consumers. In the past seven years, Huawei and Glory dual-brand sales have increased 51-fold.
Huawei and Glory meet the requirements of different consumers and use the different groups they face to position our two brands. Of course, some users may overlap, and some products may overlap in price and configuration. Because dual-brands are market-oriented, it is normal that each has its own complete product sequence.
The positioning of glory is extremely clear. It is to create a wave of technology for young people. From the perspective of the market and consumers, brand differentiation and brand differentiation between Huawei brand and glory brand are increasingly evident. At present, the increase in market share brought about by dual-brand operation is obvious. Feel glorious product tonality.
Wang Feng: The glory of the mobile phone's voice on the Internet does not seem to be as big as Xiaomi's mobile phone, but we can see that the announced sales volume is not bad. So talk about your cheats?
Zhao Ming: I think that in the current market, there may not be any brand of Internet marketing stronger than Xiaomi. Internet marketing is the strongest part of Xiaomi. However, the strongest glory is the product itself, which is the quality, quality, performance, experience, etc. of the product. The market competition is mainly to see who has a longer board, and marketing we do our best.
In fact, Glory has always been a long-distance runner. You will see that every year we are improving ourselves. Our communication with consumers is also improving because people who have used our products say that our products are good and our products are NPS. (Net recommendation) has always been in the leading position. In the Chinese market, Huawei, Glory, and Apple are tied for first place, with NPS reaching 47%. In terms of long-term competition, our advantages are reflected. Of course, we also have to learn from Xiaomi and Lei.
Wang Feng: You recently started to emphasize that AI is the core strategy of Glory Mobile. Many people believe that mobile phone makers mention AI only for the purpose of adding new concepts in the homogenous competition. How do you respond to this?
Zhao Ming: Now every overseas conference, the media also asked me how magic is not released overseas.
The AI is divided into three layers. The first is the AI calculations of the bottom layer of AI. The NPUs that honor Play, Glory 10, and Glory V10 are the strongest in artificial intelligence. The second level of artificial intelligence is the wisdom of the operating system. In Magic, we introduced the artificial intelligence operating system Magic Live for the first time. The third layer is the application layer. At this level, we can empower AI's computing power, processing power and experience to improve the application and optimize the experience.
We can see today that from the glory of Magic, we have begun to make efforts at three levels of AI, and we are the mobile phone brands that are working on three levels at the same time. After Glory Magic and Glory V10, almost all the brands on the market are blaming the concept of our AI, but now glory AI has come to the era of AI 2.0. In this respect, we are at least ahead of other brands for six months to a year.
I think artificial intelligence is an opportunity for the mobile phone industry to leapfrog development. In the future, it is the most technological direction that can greatly change the mobile phone application experience.
In fact, I said when the glory Magic was released that in the era of artificial intelligence, China may lead, but the premise is that we must first create an open and cooperative ecological relationship. Glory has always insisted that "There are friends and have a future." From the current point of view, we and the Internet companies and service providers are not a conflicting relationship, but a cooperative relationship.
Glory has never dreamed of creating a closed ecology. It is impossible to do anything on its own. Whether it is the ability to share artificial intelligence and interfaces, or to build artificial intelligence ecosystems, this requires everyone to contribute their respective capabilities. Glory hopes that more partners and Internet companies will realize that AI is a huge opportunity for various industries and for the whole industry chain. Everyone should join in this cooperation alliance.
Wang Feng: In mid-April this year, Huawei released a blockchain white paper, emphasizing that only technology does not touch virtual currency, and there are rumors that Huawei mobile phones are installing digital currency wallets overseas. How do you understand the blockchain? The blockchain is so hot now. Will Glory consider launching a blockchain handset or hardware business?
Zhao Ming: Some rumors have already been clarified. The blockchain is a breakthrough technology, but it is still a concept relative to the application of AI on mobile phones. We are currently focusing on building AI technology, and we are more optimistic about AI's improvement in mobile phone capabilities, and blockchain technology is also attracting attention.
The rise of real blockchain mobile phones should be accompanied by the real needs of users and the popularity of real-world applications. How to make the blockchain mobile phone popular in mobile phone applications in the future and generate substantial benefits that are truly beneficial to consumers will still require more efforts and exploration by industry colleagues.
Wang Feng: Some analysts believe that the glory artificial intelligence engine has touched Internet companies such as Tencent and Baidu, and it involves a major core interest in the entry of Internet services and poses a strategic threat to them. Do you agree with this statement?
Zhao Ming: It should be over-interpreted and stressful. Huawei/Glory, as a hardware and mobile company, has a cooperative relationship with Tencent, Alibaba, today’s headlines, Baidu, and the US Mission on Internet services. We need to work together to create an AI ecosystem.
We can't be jailed, but should contribute to the ability to achieve data and logical interface, so that artificial intelligence can provide a better experience. If you are in prison, you cannot touch my things. I am not open to you. The development of artificial intelligence in the future will be greatly hindered.
Wang Feng: Will glory be faced with a situation of internal and external attacks overseas? How are you going to break? Will Huawei's existing channels be used, or will it be another way?
Zhao Ming: When glory goes into the global market, it is to build its own capabilities on its own, and to market, users, channels, and retail alone. Only by consolidating one's capabilities, the future will go further and more. On the whole, the glory of this overseas strategy should be gradually formed from the second half of 2017. The discussion will begin within the group and be fully implemented.
At the London conference on December 5 last year, I officially announced the three-year glory overseas strategy, which is to achieve the top five global sales by 2020. Domestic sales and overseas sales are 50:50. The proportion is 15% and 85% of sales come from domestic sources. In the January-May period of 2018, sales growth of overseas markets was over 100%. Currently, overseas accounts for more than 20%, and this year it can reach 25% or 30%.
Our leading overseas markets are Russia, Western Europe and other countries, and Russia is now second. In overseas markets, we are not afraid of competition, or we will strengthen the core concept of our brand and create a wave of technology that belongs to young people. Therefore, our brand positioning and approach to the market will definitely not occupy the market at low prices due to competition.
In fact, this is a common method used by many Chinese brands when they go abroad. It is to occupy the market at a low price, but this gives the impression that your brand will never rise.
In the first half of this year, our overseas business grew by 100%, and the development of glory overseas is now healthy and high-speed. You will find that glory is based on the flagship. Our honorable brand is Glory 8, Glory 9, Glory 10.
This year's glory 10 is more than 90% of Glory's 9 overseas sales. There are many countries that are not listed. So at present this sales increase is very fast. It is very clear that we establish our own brand image in overseas markets. Driven by the flagship brand, the sales volume of our thousand Yuan machine series has grown even more rapidly.
Wang Feng: How long will it take for you to judge the major turning point of the mobile phone industry?
Zhao Ming: The inflection point of the mobile phone industry and the inflection point of the glory cell phone are two concepts. We can at least see that in the next 3-5 years, Glory Mobile will still be in a stage of healthy and rapid development. I do not agree with the mobile phone industry analogous to the appliance industry or the PC industry.
Judging from the global development, mobile communication technology will be greatly upgraded every ten years. From 4G to 5G, it will surely bring about a revolutionary application experience. The computer industry is not driven by such a technological revolution.
There was no essential difference between the computer capable of ten years ago and those capable of doing it ten years later. It was nothing more than image processing and PC games. It did not change the relationship between people and machines and between people.
However, mobile phones are not the same, from 2G calls, texting; to 3G can access the Internet; 4G can watch videos, play online games; every communication technology innovation will bring new applications, new technologies, and most important It is the change of the relationship between man and machine and man. This change in relationship is the realization of convergence and connection. Virtual reality applications will become more and more popular. In the era of 5G, due to the advancement of communication technology, there will be many revolutionary applications. What changes will occur in the relationship between people and machines and between people will be worth looking forward to.
So I think the so-called inflection point is not comparable. Each technical cycle of the mobile phone will be forced to refresh again, this is universal, and it is also the reason why the mobile phone and the PC cycle and laws are not the same. A period of about 10 years of mobile communications is related to the construction cycle, maturity, and payback period.