Discover the strategy involved in the successful disruption of the smartphone market by Chinese brands through e-commerce. We compare the differences between 3 different models of smartphone retailing: - Pure e-commerce (Xiaomi) - Hybrid (Huawei) - Traditional (Samsung) We take a closer look at the retailing model being used by Xiaomi and Huawei - see their strength and weaknesses.

1. How Chinese brands disrupt smart phone
market with e-commerce strategy?

2. The 3 models of smart phone retailing
Internet Only Hybrid Traditional
Internet Company
mi stands for “Mobile Internet”
Internet Traditional
Manufacturer
Brand Owner
Hunger Marketing
Value for Money
Traditional Distribution
Retail Stores

3. Why Internet play works for Xiaomi & Huawei?
Reach consumers via e-commerce
by “skipping” traditional marketing & distribution
Traditional Marketing
Traditional Distribution
Consumers
X
X
X
X

4. For consumers, it is “value-for-money” or “no-brainer”
Reach consumers via e-commerce
Traditional Marketing
Traditional Distribution
Consumers
Lower
Cost
Lower
Cost
30% to 50% cost saving pass to consumers

5. What is Hunger Marketing?
Control Supply
Create Demand
Word-of-Mouth

6. However, it does not apply to everyone…

7. The Strength of Xiaomi – Internet ecosystem
MI Credit
MIUI
MI Fans

8. The Strength of Huawei – Stronger control
Best of Both Worlds
Local Fulfillment
Manufacturing Line

9. Xiaomi vs Huawei – The celebrity-ness

10. Xiaomi vs Huawei – The speed and service
Market Entrance Speed Fulfillment Speed

11. Xiaomi vs Huawei – The after-sales service
6 Service Centers in MY
16 Service Centers in MY
inclusive of 12 collection points

12. Xiaomi vs Huawei – The business approach
Sprint Marathon

13. This presentation is brought to you by…
http://www.360ecommerce.my
E-Commerce trends & articles (in Chinese language)
Compiled & prepared by:
In collaboration with:
http://www.ecommercemilo.com
E-Commerce insights in Malaysia and Southeast Asia