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In spite of the decline of the old mobile phone giants such as Nokia and Motorola, the Chinese mobile phone brand has risen rapidly and has successfully "backed off." However, in the smart phone market, 2,000 yuan was once regarded as the "life and death line" of domestic goods, and the "overwhelming victory" in its share did not wash away the label of low-end and "cheap". However, Huawei has gradually begun to break. In December 2015, Huawei’s 100 millionth mobile phone, which was off the assembly line at Dongguan’s production base in Dongguan, was just listed on the high-end mobile phone MATE8. The price was between 3,000 yuan and 5,000 yuan, and it was close to Apple’s and Samsung’s flagship Galaxy series.
Lan Tongming, president of Huawei's consumer business integration and delivery department, said in an interview that the two-week sales of this product have been 10 times that of the previous generation MATE7, while MATE7 is the best-selling domestic branded single-model mobile phone. First, its shipments exceeded 7 million units. Although there is still a big gap between the 50 million units sold by Apple's single model, He Gang, president of Huawei's mobile phone product line, is confident that there will be more "explosive models" in the future: "One high-end single model exceeded 10 million units. The goal of reality." 
Not only in the smart phone market, but also in the traditional strong home appliances, domestic goods are changing. Gree focused on the air-conditioning industry for 20 years. Its products have been sold to more than 200 countries and regions, occupying 30% of the global air-conditioning market share, and rewriting the global air-conditioning industry structure for the past 100 years. In the first half of 2015, the air conditioner market sales decreased by 4.1% year-on-year. Under this market condition, Gree is still sitting first in the industry with net profit of 2.775 billion. This is also related to the positioning of Gree air-conditioning, not a price war. The reporter learned from the market channels that at present, the price of Gree air conditioners is similar to that of Daikin, New Carrier and other international brands, and some products are even higher.
Technical School: The Road to Hardworking
The new "new domestic product" lies in innovation.
While providing cost-effective mobile phones, Xiaomi invests in more than 100 upstream and downstream companies and transplants Xiaomi's core concepts to these enterprises, thereby creating a complete ecological chain. In addition to mobile phones, TVs, and routers, Xiaomi’s “new domestic product†product line has covered a wider range of areas—such as air purifiers and water purifiers. Xiaomi’s head of overseas markets said that Xiaomi hopes to help the development and advancement of China’s industry, like Sony in Japan in the 1970s and Samsung in Korea in the 1980s, and change the world’s perception of Chinese manufacturing through the Internet model.
The counterpart of Huawei, Gree and other "new domestic" brands in the market is their breakthrough in technological innovation. According to the data released by the UN agency World Intellectual Property Organization, Huawei was the company that applied for the most international patents in 2014. Up to now, Huawei has applied for a total of 76,687 patent applications, including as many as 18,000 patents related to terminals, and has served in more than 180 key positions in more than 170 standard organizations around the world.
The key reason for Huawei to stand out in the smart phone field in a short period of time lies in its more than 20 years of technology accumulation in the field of communications, especially in some core technologies, such as chips, Huawei is the only domestic chip to achieve its own chip - " China Core" manufacturer.
As the operating system is the core of the software, the chip is considered to be the core of the smartphone hardware. As early as 2006, Huawei began the development of mobile phone chips. In 2008, it released the first mobile phone chip K3V1. In 2012, the improved K3V2 chip was used on Huawei's new D2 mobile phone. Since then, from the 40-nm process to the 28-nm process, the 910, named after the Chinese traditional mythical beastly unicorn, came out; the release of Huawei's Kirin 920 has narrowed the gap with industry leader Qualcomm, allowing the Chinese semiconductor industry to see The new dawn, some people therefore also shouted that "China Core" has risen; to Kirin 930 - China's first independent 64-bit 8-core processor was born, its application on Huawei's high-end P8 phone once again won the market sales success : 5 million units.
Nowadays, from chasers to parallelists, even to some of them, Huawei's newest Kirin 950 chip has already reached the 16-nanometer process, which is at least two months earlier than foreign rivals. Yu Chengdong, president of Huawei's consumer business, said that for Huawei's new flagship Mate8, the strength of technological innovation is still considered a key factor in "re-breakthrough." In this high-end product, Huawei uses a new generation of super-retina negative LCD screens, an independent research and development of the new framework Kirin 950 ultra-eight nuclear chips, 4000 mAh high-density batteries and fast charging "unique technology", making it " The world's largest support for dual-card mobile phones".
Successful "new domestic products" have some common ground on the road to technology. Gree's success is also inseparable from technological breakthroughs. "Mastering core technologies" has become Gree's most widely known slogan.
Gree executive vice president and chief engineer Huang Hui said in an interview that Gree has applied for a total of 19,000 patent applications worldwide, including nearly 7,000 patent applications for inventions. In the first 10 months of the year, companies applied for nearly 5,900 patents, and an average of 17 patents were published each day. He said that Gree Electric has 12 international leading technology products such as ultra-low temperature digital multi-connection group, high-efficiency centrifugal chiller, permanent magnet synchronous frequency conversion centrifugal chiller, and photovoltaic direct drive frequency conversion centrifuge system, which not only fills the gap in the domestic industry, but also Authorizes the production of patent licenses from US and Japanese companies, refreshing the international industrial structure in related fields. Among them, the photovoltaic direct-drive frequency conversion centrifuge system is the first in the world. This unit can be combined with photovoltaic power generation to achieve the maximum “zero cost†for unit operation, which has a direct effect on reducing total electricity consumption and reducing haze. Last September, this technology won the British RAC refrigeration industry's annual international achievement award. This is the first time that Chinese companies have won this honor.
Behind the technological breakthrough is continuous R&D investment. Huawei insists that at least 10% of its operating income be spent on R&D each year, and cumulative R&D investment exceeds 200 billion yuan in 10 years. According to Tan Jianming, assistant general manager and deputy chief engineer of Gree Electric, in recent years, Gree has invested more than 4 billion yuan in scientific research every year and has become the highest research enterprise in the home appliance industry in China.
The Chinese brands represented by Huawei, Gree, Lenovo, Haier, and Xiaomi promoted the rise of “new domestic products†and the impression that domestic products are “bad quality and cheap†is changing. (Source: Xinhuanet)
The Great Transformation of China's Domestic Goods: Will Re-define "Made in China"
The Great Transformation of China's Domestic Goods: Will Re-define "Made in China"
Undoubtedly, Huawei and Xiaomi are changing the image of domestic products. Xiao Jun, chairman of mine, said that the “new domestic product†is to change people's impression of Chinese manufacturing, and strive to let everyone put up their thumbs on domestic goods and like to praise domestic products. Prev Article
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