Huawei’s success is a further indication that Chinese companies have successfully moved away from their traditional approach of producing cheaper products in order to attack the lower end of the market.
Digital services are now being provided in the world of smartphones and tablets, connected smartwatches, and other devices that make up the Internet of Things. Huawei quickly established itself as a major player in the digital services market. Last year’s success was based on a marketing, branding, and customer service strategy in which Western rivals excelled.
Race to engage
Huawei has surpassed existing brands like Blackberry and Sony in terms of market share. They are already competing in product marketing and customer engagement in order to gain a slice of this large but finite customer base. Huawei’s global smartphone market share increased from 6.8% to 9%, a 50% increase . This is compared with Apple’s 27% growth.
There’s no shortage of Android apps. TechStage CC-BY-ND
Huawei has a better grasp of the smartphone market. The new organizational and workforce strategy is based on a customer-first mindset that is driven by local market needs. This is important in a highly competitive Android market where brand awareness and choice are crucial.
When “smart,” the connected consumer, and instant feedback via social media are a part of your product, it is no longer enough to compete on brand name and functionality. Huawei knows that mobile is no longer just about telecoms but also the experience of the consumer. It is important to grab the attention of consumers and offer them a digital experience that suits their lifestyle and needs.
Huawei is an example of the modern commercial mindset that has emerged from Chinese industries. Huawei’s marketing is geared towards local markets, and the company aggressively targets consumers through sponsorship deals with a number of major football clubs in Europe, including AC Milan, Paris Saint-Germain, and Arsenal. Their product range includes everything from hardware to software.
Huawei and Apple are going head-to-head. Karlis Dambrans, CC BY
Three ways to achieve success
In this competitive market, customers cannot be taken for granted. History shows that consumers are not loyal to a single brand. They are more loyal to the ecosystem, community, and experience that meets their needs. There are so many choices available that it’s more important to listen and engage socially with customers.
Three key strategies are emerging for the growth of telecoms in the new mobile services, wearables, and the connected Internet of Things.
The CEO should be a strong advocate of the “customer-first” philosophy throughout the entire organization in order to manage customer experience effectively 24/7.
Third parties can be used to market your product and service, which adds value and allows you to expand into new markets. Huawei’s Partner Programme drives sales for its entire portfolio. The recent awards in Asia in 2015 follow the expansions in Australia in 2011, as well as similar regional strategies in Latin America and Europe. The federated model of supply chain allows companies to expand their workforce. It has also accounted for over 55% of Huawei’s growth in third-party sales. It is becoming increasingly important for scaling up regional sales.
Adopting international standards will help you achieve thought leadership. Huawei, for example, can define initiatives in connected customer and product design by joining The Open Group and its Digital Business and Customer Experience (DBCX), a major software standard consortium. By participating in such groups, firms can improve their performance and gain influence in new markets. This can be translated to improve working practices across the board – from supply chain management to service delivery.
Huawei is a company that has realized the importance of consumers always being connected. The companies that take advantage of this will gain ground in the fight to own the digital market. This requires more than just specific strategies. It also calls for a holistic approach to the transformation to a digital model of operation in this new connected world.