Wen 丨 Chinese businessman Tao Strategy Ze Liang
Data from the authoritative data agency Counterpoint shows that in 2021, Vivo ranked first in China with a market share of 22%.
In addition, in the high-end market monopolized by Apple in the past, Vivo's performance is also very eye-catching. In 2021, Vivo's share in the $500-599 mid-to-high-end market rose from 10% to 20%, doubling its share in just one year.
"Burying one's head in a variety of causes" is a point that Vivo's founder, president and CEO Shen Wei has always emphasized, so even if the achievements are dazzling, Vivo has always maintained a low profile.
"Apple is the only one in the mobile phone market, so it is not the key to the problem for short-term domestic brands who have more or less shares." Hu Baishan, executive vice president of Vivo, said so.
Not entangled in temporary gains and losses, more important to who can have the ability to compete with Apple, Vivo obviously has a longer-term vision. To this end, Shen Wei announced the strategy of "building great products".
Specifically, it is to change from "making high-quality products" to "creating great products through design-driven and technological innovation", so that consumers can change from "choice" to "love", from "satisfaction" to "active recommendation".
Ultimately, build great brands that consumers love with great products.
In order to achieve this goal, Vivo has long established four major tracks of design, image, system and performance, and has been working hard for many years.
Seven R&D centers and a team of more than 1,000 people have made major breakthroughs in the fields of selfies, portraits, night scenes, image stabilization, zoom, backlighting, etc.; cooperated with ZEISS to develop glass lenses, optical technologies, coating processes, and mastered several industry-exclusive and top-notch imaging technologies; independently developed professional imaging chips V1, and created imaging capabilities that integrate software and hardware.
The design drive is written into the core values of vivo, based on the needs of users to develop the OriginOS system, and quickly upgraded to OriginOS Ocean within a year, through the underlying optimization and tuning, not only improve the fluency of the system, but also achieve the perfect balance between smoothness and power consumption.
In terms of performance, through system optimization and hardware cooperation, vivo has truly achieved full-scene smoothness in computing, storage, communication, display, etc.
Embracing users, the fully blossoming vivo climbs higher and higher, embarking on a truly strong track - supply chain capabilities.
Supply chain capability is the ability to truly open up the gap between enterprises. In the case of Apple, its strong supply chain control capabilities allow it to have many "privileges", and TSMC's famous "Apple first" policy originates from this.
As the largest customer of TSMC, Apple accounts for a quarter of its total revenue, in the case of global production capacity, even Intel, Nvidia and other giants can not shake Apple's orders, the latest chips are also given priority to Apple, iPhone mobile phones can therefore be in the lack of core tide stable supply.
Strong supply chain capability is the guarantee of shipments, in turn, vivo, which ranks first in domestic shipments, is also extremely strong in supply chain capabilities.
Shenzhen, Dongguan, Nanjing, Beijing, Hangzhou, Shanghai, Xi'an, Taipei, Tokyo, Japan and Santiago have 10 cities with VIVO R&D centers, and 5 overseas intelligent manufacturing centers in India, Bangladesh, Indonesia, Pakistan and Turkey.
Grasping the right to speak at the core technology level and developing together with other suppliers is vivo's strategy all along, and the industry's well-known "45-day principle" reflects this very well.
Vivo settles with suppliers, strictly controlled within 45 days, if the supplier has the problem of tight capital chain, Vivo will also use advance payment to help suppliers through the difficult period as much as possible.
"Temporarily go after it, the immortals can't chase it back." For supplier partners, its investment needs to be advanced, and the annual investment is decided in November of each year, and it cannot even buy equipment back when orders are temporarily increased. "For vivo, which has the first shipment, the supplier is the partner, and the result is that the supplier is more willing to give priority to the latest technology and inventory to vivo."
At this point, Vivo's perfect supply chain capabilities and domestic first shipments complement each other and become more and more powerful.
In the past, domestic mobile phones relied on strong manufacturing capabilities to gain more than half of the world's share. Nowadays, domestic mobile phones that have gained scale advantages are collectively making high-end efforts. Vivo has made great strides into the high-end market while ensuring stable supply, and the hot sales of X70 Pro+ also prove the phased results of its high-end strategy.
In the industrial drama after this, vivo is undoubtedly one of the brightest colors.
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