For Xiaomi, the domestic market share is squeezed, and the expansion of the overseas market is inevitable. With the decrease of incremental space in markets such as India, Xiaomi will seek for new market increments, while the Japanese market, which has great market potential and is difficult to be conquered, is the next "hard bone" for Xiaomi.
Why does millet want to travel to Japan?
Relevant information shows that millet has entered more than 80 countries and regions, and has been distributed in Europe, Africa, North America, South America and many other regions. Xiaomi has made good achievements in many regions with its "cost performance" advantage, especially in the Indian market. It is reported that Xiaomi has been the first in terms of shipping volume for seven consecutive quarters in India.
However, the high volume of millet in the Indian market also means that the incremental space of the Indian market is gradually reduced. For millet that needs to continue to seek market growth, it is imperative to explore new markets and obtain new incremental space.
In addition, at this time, it is the era of 4G and 5g. The coming of 5g is about to usher in a wave of machine changes. The mobile phone market will also usher in a new round of reshuffle. As the third largest mobile phone market in Asia, Xiaomi can't give up naturally. Before the arrival of 5g, Xiaomi chose to march into Japan at this time, which is a good time.
Can millet, the new pioneer, get a share of the Japanese market?
Difficulties in entering Japanese mobile phone market
In fact, Japan has always been an island in the mobile phone market. For a long time, it has been difficult for foreign mobile phone manufacturers to open the door of Japanese mobile phone market. In the era of function machines, even Nokia in its heyday failed to win a brick and a tile in Japan, let alone Samsung, Motorola and HTC.
According to relevant reports and analysis, the reason why the Japanese mobile phone market is difficult to win is its operation mode. It is reported that the mobile phone market in Japan is basically dominated by operators, and 90% of the market share is occupied by five major operators. If foreign mobile phone manufacturers want to enter the Japanese market, they must cooperate with local operators.
Therefore, most consumers buy mobile phones through operators, and the purchased mobile phones will be bound with a specific network and cannot be replaced arbitrarily, thus forming a closed market mechanism. In this mechanism, the dominant one is operators. However, in this closed market mechanism,AppleZeng tore a hole.
In 2009, because NTT DoCoMo, Japan's largest operator, disagreed with Apple's requirements for splitting accounts, apple turned to Softbank, a weaker operator, and reached a cooperation agreement with it. Later, Softbank carried out services such as no down payment, 0 yuan purchase of the machine, and free replacement of the machine if the battery is damaged within one yearIPhoneOnce launched, it became popular and strongly impacted the Japanese mobile phone market pattern.
Then, apple took root in the Japanese market and occupied the top of the Japanese mobile phone market for a long time. According to relevant reports, in the second quarter of 2019, Japan shipped 6.933 million smartphones in total, of which Apple iPhone ranked first with a market share of 37.8%. Sharp, Samsung, Kyocera and Fuji followed closely, with market shares of 15.9%, 9.7%, 7.9% and 7.7% respectively.
In the Japanese market, apple is now the only one. Among the top 10 best-selling mobile phones in Japan in 2018, Apple's mobile phone occupies six seats, among which the iPhone 8 accounts for 25.4%. It can be seen that Japanese consumers have a high acceptance of Apple's products.
In addition, it's not hard to see from the best-selling mobile phone ranking that Japanese consumers prefer high-end models, which may seem a bit unconvinced to millet, who is the main "cost-effective". However, it's too arbitrary to sentence the death penalty for Millet's development in the Japanese market. Millet's development in Japan, in addition to focusing on the Japanese market, is inseparable from millet itself.
Xiaomi's entry into Japan is not only in the mobile phone market
At the conference on December 9, Xiaomi released six products, including Xiaomi mix alpha, Xiaomi note10, Xiaomi rechargeable treasure 3, Xiaomi Bracelet 4, Xiaomi smart rice cooker and Xiaomi travel box, covering mobile phones and aiot.
In addition, Xiaomi also stressed at the conference that he would not break the promise of "no more than 5% profit" and continue to play with high cost performance. In the previous overseas expansion, Xiaomi won the Indian market by virtue of this advantage, and for the Japanese market dominated by apple, where is Xiaomi's opportunity?
Obviously, Xiaomi mobile phone with high cost performance is not a segment competition with apple mobile phone with high-end model. However, in addition to Apple's market share, there is still nearly 60% of the space margin, which is Xiaomi's deer chasing place.
In fact, Xiaomi's move into Japan is well prepared. In 2018, Xiaomi reached a global licensing agreement with NTT DoCoMo, Japan's largest mobile operator, covering NTT's standard necessary wireless patents. Although Japan has planned to promote the separation of terminal and communication fee, but with the cooperation of NTT DoCoMo, Xiaomi can be said to have two insurances, which provides a guarantee for entering Japan.
In addition, it is not hard to see from the products released by Xiaomi that in the Japanese market, Xiaomi still continues its strategy of "double engine" driving growth. Therefore, the development of millet in the Japanese market, in addition to the mobile phone field, also includes the aiot field, and from the relevant data, Japan is showing a positive trend in this field.
According to the data of jema in March 2019, the delivery amount of Japanese civil electrical appliances was 244.4 billion yen, up 5.9% year on year. It is worth noting that this has been an 11 month increase in a row. It can be seen that there is a large development space in the field of home appliances.
From the product point of view of Xiaomi aiot, its simple design and appearance are also consistent with the design style of Japan. In addition to the advantages of technology and cost performance, Xiaomi is unlikely to open up a situation in Japan.
It is worth mentioning that Lei Jun, chairman of Xiaomi, is also very optimistic about this. On the day of the press conference, Lei Jun said on Weibo:
Xiaomi sold the rice cooker back to Japan!
Today is Xiaomi's first show in the Japanese market. Besides rice cooker, it also released Mi note 10 (Xiaomi cc9 Pro) and other products. A lot of media came and the number of people at the conference was full. I believe that the Japanese people will like the good products from China that are "moving people's hearts and have good prices"!
In general, although the road to Japan is long and blocked, Xiaomi is not bad.