Made in China #72: virtual shopping, the secret of success of Chinese and other news
Under the heading “Made in China” collected news from China over the week, which was not included in the main ribbon 4PDA. Announcements, rumors and interesting events in the life of the main supplier of electronic goods in the world. In the new issue you will learn about the secret of success of Chinese smartphone makers; the new form of public transport and how Chinese users prefer to make purchases.
Chinese smartphones every year are becoming increasingly popular, and local giants such as Huawei, Oppo and Vivo, are gradually strengthening their positions and catch up with world leaders in the face of Samsung and Apple. Last year for the first time since 2012 was the top selling smartphone in China was not iPhone, and Oppo R9. CEO of Oppo and BBK founder Duan Yongping previously statedthat Apple is losing its share because of their stubbornness and unwillingness to adapt to the market, producing more affordable smartphones with top-end features. According to research IDC, in the first quarter of 2017, Chinese manufacturers were able to capture over 40% of the global smartphone market, which is twice more in comparison with what it was 5 years ago. While the share of Samsung and Apple in the world market fell by 3.5% compared to last year.
As the graph shows, the Chinese company last 5 years rapidly increased their share. The largest Chinese manufacturers are now Huawei, Oppo and Vivo. It is interesting that Xiaomi, which in 2015 was a leader in the supply of smartphones among Chinese manufacturers last year finished only in fifth position, indicating the instability of the local market due to tough competition.
“The impression that Chinese companies are not very well versed in innovation three years ago, but now it is not so,” said Lee Dongchen, Chairman of TCL, one of the top five largest smartphone manufacturers in the United States.
Oppo, the largest manufacturer of smartphones in China in market share last year, began to produce phones eight years ago. They stand out simple design decisions, like the camera in the form of a smile. Oppo smartphones are very popular due to the Beautify function, which smoothes the skin and makes the people in the photo prettier, and proprietary fast-charging technology. In 2016, the Oppo was sold in China for more than three phones for every two iPhones, and last year everything changed with the exact opposite.
“We are studying the channels of customers and information from our largest sellers to find out what consumers want from their phones, and trying to implement these innovations,” – said Alain, Vice President and Director of marketing for Oppo.
Similarly, received and Huawei. It simplified the lineup and started to pay more attention to the cameras in its smartphones, including the possibility of the depth of field effect, offering such capabilities in the device for a third the price iPhone 7 Plus.
“In the field of smartphones, we catch up with our competitors through innovation. In the next step we hope to take the initiative, offering a better user interface and better products for our users,” he told reporters at a briefing this year, Shao Yang, President of strategic marketing, Huawei consumer group.
Another Chinese company Transsion which is the largest manufacturer of smartphones in emerging markets of Africa, says user demand for devices with two SIM-cards. It therefore offers the users the option. As a result, last year the company took 38% of the African smartphone market.
It would seem that Chinese companies capture emerging markets only through prices, but even in the US the share of Chinese smartphones has increased from 13% in 2012 to 19% in the last.
In China invented a new form of public transport
The Chinese company, the CRRC has developed a completely new form of public transport – Autonomous Rail Rapid Transit. It is a hybrid bus and tram. While he doesn’t need rails, wire top or something else. He is able to navigate the roads like a normal bus, but goes only with a special marking on the pavement. The special design allows, if necessary to hook or unhook the cars depending on the traffic route. One carriage can accommodate up to 100 passengers.
One of the main features of Autonomous Rail Rapid Transit is that it is able to move completely autonomously without a driver. For this purpose it is equipped with numerous cameras and sensors. The maximum speed is 70 km/h. Running this type of transport from built-in batteries, and only 10 minutes of charging is enough for 25 km.
In the Chinese city of Zhuzhou have already started the equipment of the first line for Autonomous Rail Rapid Transit, and the launch is scheduled for next year.
The Chinese prefer to shop with virtual and augmented realities
For many virtual and augmented virtuality are still something extravagant and unknown, but in China, as it turned out, people are ready to use these technologies for shopping. The company Worldpay has conducted a survey and found that 95% of respondents from China said that technology has been used VR or AR for the last three months, more than three times exceeds the propagation velocity VR at the international level.
“Chinese consumers are using these technologies not only in video games and entertainment, but also in new areas such as stores,” – said General Director of Worldpay China Tang Kok San.
The researchers found that almost all Chinese consumers are willing to purchase in a virtual environment, while 36% stated that security for them is in charge of everything. About 84% of respondents believe that the technology of VR and AR are the key trend in the future for purchases. And only 1% of consumers have never made a purchase in VR. Moreover, 49% of Chinese respondents said that products or trading tips, are shown in a virtual environment will encourage them to buy. The survey also found that 92% of consumers would like to see more retail apps have used the technology of VR or AR.
The report States that 96% of the users surveyed were interested in the use of VR or AR technology to improve the shopping experience, and 78% believe that the use of VR devices is interesting way of shopping on the Internet.
Despite some security issues when it comes to shopping via virtual reality, 60% of Chinese users said that their payment information was safe in virtual reality.
“Merchants who are looking forward to release at the crowded retail market of China should consider how to integrate the technology AR or VR with its service, as this may increase sales,” said Tang Kok San.
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