Editor’s Note: This article is from the WeChat public account “investment in the net” (ID: China-Venture), author Yu Xiangqing. 36氪 authorized to reprint. After India, China’s mobile phones have occupied half of the Russian market. According to the latest news from the “News” in Russia, according to the statistics of the first five months of 2019, Chinese brand mobile phones accounted for more than 45% of the Russian mobile phone market, and this is only a conservative estimate. If the smaller Chinese companies are also included, the Russian market Half of the mobile phones sold are Chinese brands. Yan Zhanmeng, research director of market research company Counterpoint, told the investment network that “the Russian market has a lot of space to expand, and it is richer than India and Russia. Most of them are changing markets. Chinese manufacturers can put the battle for changing machines in China. Re-harvesting the Russian market.” For the “Hua Mi OV” that formed the four-legged situation, the official entry of the millet into the Russian market in June 2016 can be seen as a sign event that they began to compete in the Russian market. Prior to this, just like China six years ago, Chinese mobile phones in the Russian market were mainly dominated by the “China Cool Alliance”. At present, Lenovo and ZTE have gradually declined in the Russian market. Huawei has become Russia’s largest Chinese mobile phone supplier. Even in October 2018, 31% of the market share briefly surpassed Samsung and became the first. However, Samsung has surpassed Huawei again this year. As of the first five months of 2019, Huawei’s share in the Russian market was 28.5%, Samsung’s was 34.2%, and Xiaomi ranked third with 10.7%, leaving less than 30%. The market share is divided by OPPO, vivo and other mobile phone manufacturers. From India to Russia, the Huami OV has gradually spread the war to Europe, and the Russian market is a crucial stop for them to capture the European market and move to the global market. Why the Russian market is crucial The Russian market is of great significance for Chinese mobile phones. The global mobile phone market has entered a state of shrinkage, and the Chinese market is even more cold. According to market research firm Canalys, in 2018, China’s smartphone market shipments fell below the 400 million mark, down 14% year-on-year to 396 million units. This is the second consecutive year that China’s smartphone market has experienced negative growth. At this time, seeking overseas markets has become an important strategy for Chinese mobile phone manufacturers. The first thing to overcome is the Indian market. At present, the market share of Chinese mobile phones in India is already high enough. Counterpoint data shows that in the first quarter of this year, the Chinese smartphone brand scored 66% in the Indian market, setting a record high. Obviously, the Indian region will gradually be unable to meet the new growth demand of Chinese mobile phone manufacturers. Moreover, compared to the Indian market with an average price of 1,000 yuan, the profit of the Nuggets in Europe will definitely be more impressive. Invariably, the move to Europe and the search for new growth points and profit points became the same choice for Huami OV, and Russia became the first stop for Chinese mobile phone manufacturers to attack the European market. Compared to India, Russia is richer, has higher per capita disposable income, and is more willing to pay higher prices for premium brands and services. These characteristics have much in common with other European countries and can be said to be a microcosm of the entire European market. . At the same time, it is easier for Chinese manufacturers to enter the Russian market than other European markets. Wu Maolin, a veteran of the communications industry, told the China Investment Network that in terms of market access, Russia has an inherent advantage over the United States or other European countries. “Russia’s many testing standards and China should have the same tradition, so Chinese companies have entered a relatively smooth transition; in addition, ideologically, we are at least theoretically the same camp with Russia. In many ways, they will not be like Europe and the United States. As with some ambiguities, the uncertainty of the policy is relatively small,” he said. Therefore, it is the first stop for Chinese mobile phone manufacturers to enter the European market. “Finance” has quoted a Huawei person as saying, “If Russia can’t get it, let alone talk about Europe and the United States.” For the Huami OV eager to deploy overseas, the Russian market is a microcosm of the European market, in the Russian market. Stand firm and win as much market share as possible to truly break into Europe. This will be a stop they must win.How to attack the Chinese mobile phone manufacturers in the overseas layout, the Indian market is like the extension of the Chinese market, Chinese mobile phones to India is more like a boat, but now, the same method can not be copied to Russia. Unlike the Indian market, Russian e-commerce is extremely underdeveloped, and 90% of the channels are monopolized by offline giants, and 80-90% of consumers prefer to buy mobile phones offline. It is understood that M.video, Russia’s largest offline retailer, and the other three offline giants have divided Russia’s nearly 90% of the retail market. For Huawei and Xiaomi, working with channels is something they have to do. According to Caijing, Xiaomi is going to visit M.video and other giants every once in a while. M.video has proposed a high profit share ratio, which means that Xiaomi sacrifices the price/performance ratio, allows the price in Russia to be much higher than the cross-border price, or put it down, does not make a profit, and several negotiations have no result. The foresight of the car is Huawei and Lenovo. In the second half of 2012, Lenovo entered Russia for half a year later, but in a year and a half, it quickly squeezed out the other side. This is precisely because of the sales network around Russia to support Lenovo. In addition to working with retailers, it is also an important way for Chinese mobile phones to compete for the Russian market. OPPO and vivo, which are good at offline channels, copy the tactics of promotion in China and India to Russia. Xiaomi and Huawei are not disconnecting the store. In 2017, Xiaomi’s important offline channel, Xiaomi Home, has been stationed in Moscow, Russia. Huawei also entered the first store in Moscow in April 2018. They are still expanding into offline stores. At present, Huawei has 6 stores and a multi-functional experience center in Russia. Xiaomi has 30 stores and 29 shopping malls in Russia. According to the Russian “Kommersant” report, Xiaomi plans to open about 100 in Russia in 2019. In the store, Huawei plans to open up to 30 stores. Different from the Indian market, Xiaomi dominates. In Russia, Huawei is the leader of Chinese mobile phones. Counterpoint research director Yan Zhanmeng believes that the Indian market is biased towards low-end products, while Huawei’s mid-range and high-end products are more suitable for the Russian market, so Huawei is better at the Russian market, while the Indian market, Xiaomi is better. In addition, India has some special circumstances. “For example, the import of the whole machine will have several times of tariffs, and the zero import tariff will be very low. Xiaomi has its own foundry in India, which is called the assembly machine factory. So, Xiaomi is in India. Production and marketing capabilities may be stronger than Huawei. “Wu Maolin further analyzed. Compared with India, the attack on Russia will be a more difficult battle for Chinese mobile phone manufacturers represented by “Hua Mi OV”, but it is also a key battle related to whether it can win the European market. .