How Chinese brands disrupt smart phone market with e-commerce strategy?

The 3 models of smart phone retailing

Internet Only Hybrid Traditional

Internet Companymi stands for “Mobile Internet”

Internet TraditionalManufacturerBrand Owner

Hunger MarketingValue for Money

Traditional DistributionRetail Stores

Why Internet play works for Xiaomi & Huawei?

Reach consumers via e-commerceby “skipping” traditional marketing & distribution

Traditional Marketing

Traditional Distribution

Consumers

X

X

X

X

For consumers, it is “value-for-money” or “no-brainer”

Reach consumers via e-commerce

Traditional Marketing

Traditional Distribution

Consumers

Lower Cost

Lower Cost

30% to 50% cost saving pass to consumers

What is Hunger Marketing?

Control Supply

Create Demand

Word-of-Mouth

However, it does not apply to everyone…

The Strength of Xiaomi – Internet ecosystem

MI Credit

MIUI

MI Fans

The Strength of Huawei – Stronger control

Best of Both Worlds

Local Fulfillment

Manufacturing Line

Xiaomi vs Huawei – The celebrity-ness

Xiaomi vs Huawei – The speed and service

Market Entrance Speed Fulfillment Speed

Xiaomi vs Huawei – The after-sales service

6 Service Centers in MY

16 Service Centers in MY

inclusive of 12 collection points

Xiaomi vs Huawei – The business approach

Sprint Marathon

This presentation is brought to you by…

http://www.360ecommerce.myE-Commerce trends & articles (in Chinese language)

Compiled & prepared by:

In collaboration with:

http://www.ecommercemilo.comE-Commerce insights in Malaysia and Southeast Asia