Why is glory separated from Huawei?

Hello, former Huawei employees come to answer questions.

On April Fool's Day (1), some netizens found that Glory established its own company, Glory Terminal Co., Ltd., with a registered capital of 300 million yuan, with Yu Chengdong as the chairman and Zhao Ming as the director. Since then, glory has completely broken away from Huawei's wings and flew to a more distant sea of stars. But in the eyes of the industry, the separation of glory from Huawei is doomed, and the difference is only sooner or later. The reason for the separation is mainly related to Huawei's own development model and the current situation of the electronic product industry.

(1) Huawei's "red and blue army" thinking

Friends who know Huawei may know that although Huawei has 194000 people, it is actually scattered in different business teams and is in a "fragmented" state. Huawei has an independent internal competition mechanism, which is called "Red Army" and "Blue Army" in Huawei's own words. The "Red Army" is responsible for attacking the city, and the "Blue Army" is responsible for finding faults and catching loopholes for the "Red Army". Just like military exercises in TV dramas, the ultimate role of the "Blue Army" is to make the "Red Army" an impeccable team. Therefore, the idea of glory to set up a separate company stems from Huawei's "red and blue army" sense of urgency.

(2) Huawei's "Wolf Raising Plan"

If the "Red and Blue Army" is picky about management and process, then Huawei's "wolf-raising plan" is a real knife and a real gun. The so-called wolf-guarding is to temper the enterprising spirit of the team and train a wolf pack to compete with you. Glory brand was founded on 20 13, which is one of the dual brands of Huawei mobile phones. At that time, Huawei's mobile phone was still unknown in the industry. Mate7, the first phenomenal product, was not released until a year later, let alone gain a foothold at the high-end price. Therefore, Huawei chose to set up the Glory Division on 20 13 in order to create a "wolf pack" opponent for Huawei mobile phones and stimulate Huawei mobile phones to accelerate the pace of innovation and research and development. Looking back afterwards, after 20 13, Huawei's mobile phones really advanced by leaps and bounds, and two trump cards, Mate series and P series, were continuously killed, both of which were high-end flagships, and each series sold tens of millions, which was partly attributed to honor.

It was not until Mate8 was released in 20 15 that Yu Chengdong realized that Huawei could really gain a foothold at the price of 3500+, which strengthened his determination to compete with Huawei and glory. In the high-end machine series, Yu Chengdong has used the most abundant materials for Huawei P series and Mate series, such as Lycra camera, Kirin 970/980/990, SuperCharge fast charging, reverse charging, IP68 waterproof and dustproof, chip-level information security protection, AI assistant and so on. Thereby promoting the cumulative sales of black technology crushing to hundreds of millions.

The glory series focuses on game entertainment and the ultimate cost performance, and has started hand-to-hand combat with Xiaomi OV, such as game enhancement (GPU Turbo), big battery, high-definition camera, mid-range chips (including chips from Qualcomm and MediaTek), etc., to meet the demand of mainstream consumers for mobile phones. In the end, Huawei mobile phone and HONOR helped Huawei win the first mobile phone share in China and the third mobile phone share in the world.

2065438+May 2009 is a watershed. Prior to this, Huawei was confident that it would soon win the second market share in the world. With an "entity list" in the United States restricting the pre-installation of GMS in Huawei mobile phones, Huawei's mobile phone sales, especially overseas sales, have turned sharply. In order to survive the attack, fix the aircraft loopholes and finally return safely, Huawei must optimize its internal processes and reconstruct its supply chain. The purpose of establishing Glory Terminal Co., Ltd. is to optimize the business structure, and then Glory can settle accounts with the supply chain in its own name. A clear architecture can also help companies better manage people and technology and reduce R&D costs.

In short, Glory Terminal Co., Ltd. was established by Glory alone, mainly for the convenience of business development, which does not mean that it will launch an impact on the 4000+ price of Huawei Mate series and P series in the future. However, the low price does not mean that the materials are insufficient. Take the newly released Glory 30S as an example, and Huawei's mid-range chip Glory 820 is built in. Although positioning the mid-range chip, the computing power of CPU, GPU and AI has surpassed the high-end chip Kirin 980 of Huawei last year, which really gives people a feeling that glory has begun to "hang" Huawei.

On this issue, the author inquired about the relevant information on 20 17, because I hesitated to buy Huawei or HONOR at that time, so I take this opportunity to tell you today:

"If you want to understand the relationship between glory and Huawei, you can't do without Xiaomi mobile phone." In the early days of the development of smart phones, no matter Huawei or Xiaomi, everyone has only one brand at present. In order to make the brand bigger and stronger, the new model of each update iteration is better than the previous generation (configuration and materials), but at this time, the problem comes out, the cost of configuration and materials goes up, and the price of mobile phones must also go up. After all, no enterprise can lose money.

But at that time, people's demand for smart phones was not very urgent, and people's consumption/salary was not enough for them to spend thousands of dollars on a smart phone. So at this time, the market of 100-yuan mobile phones and 1000-yuan mobile phones was in a blank period, and the first person to smell this business opportunity was Xiaomi CEO-Lei Jun. So in July 2065438+2003, Lei Jun developed a batch of 100-yuan mobile phones in order to enter the low-end mobile phone market by reducing the cost of mobile phones.

But this time, the problem came again. The price standard of 100 yuan mobile phone does not meet the brand positioning of Xiaomi. So Lei Jun changed the subject and launched the "Redmi Brand", which designated these 100-yuan mobile phones as red rice mobile phones, and achieved very good sales.

After discovering this situation, Huawei also began to follow Lei Jun's example, intending to share a piece of the low-end mobile phone market. So in February of 20 13, 13, "Glory Brand" went on the market (about 5 months later than Redmi brand), and it also made mobile phones with 100 yuan and 1000 yuan by means of reducing the cost of mobile phones.

So it's not that glory and Huawei are separated, but that the two brands have never been together. Glory is a sub-brand bred by Huawei, and its positioning is the low-end mobile phone market, so the quality of glory is equal to that of Huawei mobile phones, and it is also operated separately and independently.

A mobile phone brand can't cover all models, that is, a brand can't completely cover all channels (online and offline), all price points (1000~ 10000 yuan) and all target groups (young people, middle-aged and elderly people, men and women).

Separate glory will help Huawei seize the cost-effective market, while low prices will not damage Huawei's high-end mobile phone image.

(The picture shows Huawei official website)

Glory focuses on cost performance, young users and online groups, with digital and V series as its flagship, occupying a price of 3,000 ~ 4,000 yuan. On the one hand, it prevents other domestic manufacturers from entering the price above 5,000 yuan, threatening Huawei's market share of high-end mobile phones, on the other hand, it occupies this golden price.

(The picture shows the glory JD.COM self-operated store)

China local brands are business and flagship, supported by two flagships, P and Mate. Mate is business-oriented, and its user group is business men over 30 years old (Mate has been playing down the business atmosphere in recent years, and its flagship configuration has attracted many digital enthusiasts). P series focuses on taking photos, and its excellent appearance ID design and color attract female users.

Full coverage of online and offline sales channels.

(The price of P and Mate currently covers 5000 ~ 8000 yuan)

(The picture shows Huawei's self-operated store in JD.COM)

In the past, glory largely relied on Huawei's brand image and offline channels. However, a few days ago, Glory established Glory Terminal Company, apparently to further cut Huawei's brand image and channels to increase its independence.

I hope the above answers can help you. Welcome to pay attention and discuss mobile phone knowledge with you.

No brand can meet the needs of consumers. The refined transportation of users means meeting the needs of consumers at different times, but the needs of consumers are changing, which explains why the market is segmented and mobile phones have certain characteristics to meet certain consumers. At the beginning, the high-end market share of domestic mobile phones was basically zero, and the premium in the high-end market made every domestic manufacturer salivate. Therefore, Huawei mobile phones are based on the high-end market, and glory is based on the low-end market. Achieve a situation in which three markets, high school and low school, take all the food. Of course, this is one aspect. The second is definitely the Internet shock in previous years. Basically, you can do the same sales as offline. The huge flow catalyzes the millet. How can Huawei not see the online outlet in the market, so it separates glory from Xiaomi and fights with each other. Now, Huawei and Glory have basically achieved differentiated marketing. Of course, this is exactly the same as Huawei's knife cutting and castration on glory products, which led to the decline of glory products in the past two years. I hope glory will not forget your initiative and make products that benefit consumers. This is far away. I am not the spiritual shareholder of Huawei. I paid for the research and development of Huawei. Especially this year is the most difficult year for the chrysanthemum factory. Although what mobile phones consumers buy is beyond my control, I can support the chrysanthemum factory in special periods. Even if I can't support it, don't belittle it. After all, there are only a handful of enterprises in our country that can do this.

Glory is Huawei's glory series, a brand of Huawei. Huawei nova series Huawei Maimang series Huawei Imagination series high-end series mate series P series. Just say it. Huawei mate. P series

Eggs should be packaged separately, and civilian and military patriotic Huawei.

Brand strategy! Glory focuses on low-end and Huawei focuses on high-end! In order to seize market share!

Huawei focuses on high-end and offline, and glory focuses on low-end and online, taking a cost-effective route to maintain its competitiveness with the brand, which also means some internal competition.

Glory in order to focus on low-end machines

Huawei wants to enter the high-end by itself.

One focuses on the internet, and the other focuses on top-notch equipment.