This year, the domestic market is likely to continue last year’s situation, which is still the dominant situation of Huawei.
The European market has become more important for Xiaomi and OV.
According to Bloomberg, Xiaomi Group International President Zhou Wei said that this year’s Xiaomi overseas market will promote business around countries or regions that have entered, including Western Europe, India, Southeast Asia, Latin America, Africa, etc. Among them, Spain, Italy, France, Germany and other Western European countries will be the focus.
Europe is a large developed market, and it is self-evident to the first-tier manufacturers of global expansion.
From 2019, Xiaomi has started to make Europe the focus of internationalization. Xiaomi currently ranks fourth in the European market and is growing rapidly. According to Canalys data, In the third quarter of 2019, Xiaomi’s European market share exceeded 10%. Xiaomi has made such achievements in the European market in just two or three years, and it is also an encouragement for later OPPO and vivo.
OPPO entered the European market in mid-2018. After more than a year of development, Counterpoint data shows that OPPO has entered the Top 5 in the third quarter of last year. Although the 2% share is far from the top four, it can also be seen that its development speed is fast.
This year, vivo will also enter the European market and regard it as a key overseas market. Vivo Xiang said that it will announce the strategy of expanding markets in Europe and other places during the MWC exhibition.
Xiaomi, OPPO, and vivo have similar overseas expansion routes. In the beginning, India and Southeast Asia were the key markets. Among them, India, whose overall plate exceeded 100 million units, was the most important. After the three companies consolidated their foundations in India in the past two years, they set their sights on Europe.
Data comes from IDC, mapping
In 2018, Xiaomi ranked first in India, and the next year focused on Europe.In 2019, OPPO and vivo also gained the position of head manufacturers in India. According to IDC data, vivo gained 15% of India’s share in the first three quarters of 2019, and OPPO and its brother brand realme both gained 10% of share in India. The total of the two has reached 20%. As a result, Europe became their next high ground.
At the same time, considering the unfavorable situation in the domestic market, the need for Xiaomi and OV to expand overseas is even further. Beginning in the second quarter of 2019, Huawei was damaged by the physical inventory incident in overseas markets, so it overweighted the Chinese market and formed a crushing trend in the country.
According to statistics from three authoritative research institutions, IDC, Counterpoint, and Canalys, Huawei’s domestic market share in the third quarter of last year was as high as 42%, and the year-on-year growth was as high as 60% or more. Around 20%, Xiaomi’s decline was more than 30%. In this situation, the pace of overseas expansion of the three manufacturers will be accelerated, so as to make up for the vacancy in the domestic downturn.
This year, the domestic market is likely to continue the situation of last year. It is still the dominant situation of Huawei. It is not easy for MiOV to achieve significant growth in China. Therefore, expanding overseas markets is not only a continuation of their established strategy, but also, to a certain extent, an expedient way to fill the decline of the domestic market.