The development of smart cars is not smooth, but the construction of retail stores is still accelerating. Can Huawei gain a foothold in the automotive industry?

Data disclosed by the media pointed out that Huawei is accelerating the construction of retail stores for the auto business. In September, Beijing alone increased nearly 90% of the stores, showing that it hopes to promote the development of the auto business by rapidly increasing the number of retail stores.

Huawei started to develop its automotive business in April this year, and the Celis SF5, developed in cooperation with Chongqing Xiaokang, was the first to go on sale in May. Relying on Huawei’s strong domestic influence, the Celis SF5 received extensive media attention, and consumers Also looking forward to this car, it is said that 6,000 orders have been obtained in the first month.

However, Huawei’s halo failed to effectively drive the sales of the Celis SF5. According to the data from the Passenger Federation, the sales of the Celis SF5 from May to August were 204, 1,097, 507, and 715, respectively. There is clearly a big gap between Huawei’s expectations.

In order to support the development of Celis SF5, Huawei can be said to be doing its best. It provided three electric technology, and promoted the sales of Celis SF5 in Huawei’s retail stores. However, due to the rush of time, in fact, it did not participate in the sales of Celis SF5 until August. The number of retail stores is still quite small, and it has not brought much help to the sales of the Celis SF5.

Industry insiders also pointed out that due to the support of Huawei, the Seris SF5 has made major changes on the basis of the original Chongqing Xiaokang, which has also resulted in the failure of the production capacity of this model to expand rapidly, resulting in delayed delivery, which has affected this model. model sales.

Judging from Huawei’s aggressive expansion of its auto retail stores, it is clear that it has not been discouraged by the poor initial sales performance.

Huawei has a lot of experience in this. In 2016, Huawei mobile phones recognized the importance of offline retail channels and launched the Thousand Counties Plan, covering retail stores to all counties across the country in one year. It surpassed OPPO and vivo, and then its share in the domestic mobile phone market increased steadily, and finally achieved nearly 50% of the market share.

As a high-value commodity, automobiles are highly dependent on offline retail channels. Of course, Huawei hopes to replicate the offline retail channel model of the mobile phone business, and promote the expansion of the automobile business by covering more markets. In fact, with Huawei’s support, the sales of the Celis SF5 have doubled compared to last year, showing that Huawei’s support has boosted the sales of this model.

What prompted Huawei to devote more resources to developing its auto business was the rapid decline of its mobile phone business. Previously, the mobile phone business accounted for more than 50% of Huawei’s revenue. However, in the first half of this year, the revenue of this business fell by more than 40% year-on-year. Huawei continued to develop the automobile business to make up for the loss of the mobile phone business. Store construction to further promote the driving force for the development of the automotive business.

Industry insiders believe that Huawei’s previously entered businesses such as mobile phones, PCs, servers, and wearable devices have quickly become the latecomers in the domestic market, giving people the impression of being invincible and invincible. Gain a foothold in the automotive industry.

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