vivo Liu Hong: Consumers choose 5G version over 70% of the same model

Is there still a spring for mobile phone manufacturers in 2020?

"Although the epidemic has affected sales in February, our sales volume has increased by more than 10% year-on-year in the first week of March," said Liu Hong, vice president of vivo and president of the Chinese market, in an interview with the media. At the same time, he also said that the current channel of vivo has recovered 80%, and the overall market performance is good.

Facing the uncontrollable epidemic "black swan", vivo responded positively with data and stated the reasons for its ability to achieve contrarian growth.

Liu Hong said that consumer demand for 5G mobile phones exceeded expectations, and 70% of consumers were more willing to choose 5G products. For the 4G version and the 5G version at the same time, even if 5G mobile phones cost hundreds of dollars, consumers are willing to buy 5G mobile phones in one step.

Channel restoration has exceeded 80%

The outbreak of the "black swan" epidemic hit the industry by surprise.

The pace of new product releases was disrupted, the factory resumption time has been repeatedly pushed back, the commercial body has been stopped, offline stores have been closed, and the offline system of the mobile phone industry has been greatly impacted.

Analysts also continue to lower their smartphone shipment forecasts. IDC expects that the overall Chinese market from January to February will face a sharp decline of about 40% year-on-year. Throughout the first quarter, the domestic market is expected to experience a year-on-year decline of more than 30%.

Strategy Analytics also lowered China and global mobile phone sales again, saying that global smartphone shipments in 2020 will be 10% lower than expected (pre-epidemic forecast), and China's smartphone shipments will be 15% lower than expected, all regions Smartphone shipments will all decline year-on-year.

"I hope that everyone will not have too much influence in the epidemic situation and let the industry develop healthily. In fact, we have experienced various difficulties and challenges in the past on these pessimistic data. We are confident and capable of dealing with the epidemic situation. Accidents and challenges. "

According to Liu Hong, the current return rate of employees in the front line of vivo has reached more than 80% (except Hubei), and the return rate of production lines has also exceeded 90%.

Unlike the pessimistic forecasts of third-party agencies, market data for March also conveyed a more positive signal. "Since the outbreak of the Spring Festival outbreak, the entire market has indeed experienced a serious decline. However, since March, the entire industry has been growing at a faster rate. Vivo is growing faster, with an increase of more than 10% over the same period last year."

The reason why vivo can achieve the contrarian growth is inseparable from the planning rhythm of 5G products.

Consumers have no reason to fall in love with 4G phones

According to Liu Hong, the current 5G products of vivo, including the vivo NEX3S, X30 series, Z6 and iQOO3, are selling much higher than expected.

"The Z6 has already begun to sell, and the feedback is very good. The channel ordering phone has been exploded, and the operator is also very supportive. At the same time, we converted quickly and the product was sold as soon as it arrived in the store." Liu Hong said.

At present, the entire industry is experiencing the transition from 4G to 5G. For each manufacturer, each such switch is an opportunity and a challenge. It is understood that vivo is completely free of 4G mobile phone inventory pressure above 2000 yuan (USD $286) , you can let go of 5G.

As early as last year (2019), vivo launched three 5G mobile phones very “radically”, achieving coverage from mid-range to high-end 5G models. In the third quarter of 2019, vivo occupied 54.3% of the domestic 5G mobile phone market.

As soon as this year started, vivo has launched three 5G products: iQOO Pro 5G, vivo NEX 3S and vivo Z6. "Z6 is about 2500 yuan (USD $357) . This year's new series of 5G has achieved full coverage from the price range of 2000-6000 yuan (USD $286) ." Liu Hong revealed.

The reason why there is such a rapid pace of 5G product release is that vivo hopes to provide consumers with better products and services. "At present, vivo's 5G products have matured. In terms of cost control, manufacturing, and functional experience, 5G products have reached 4G maturity, and consumers have no reason to fall in love with 4G mobile phones." Liu Hong said.

In fact, consumers have already voted with their feet. According to Liu Hong: "Even if the 4G and 5G versions coexist, even if 5G mobile phones are seven or eight hundred expensive, many consumers are willing to buy them in one step. The proportion of consumers who choose the 5G version exceeds 70%."

Therefore, vivo's 5G mobile phones in the second quarter of this year will be an accelerated state, and will achieve rapid coverage on products in the price range of more than 2,000 yuan (USD $286) .

According to Liu Hong, the daily production capacity of vivo's 5G mobile phones will climb to the order of 100,000 units in late March.