Analysis of Smart Watch industry
(temperately not including customized items and Smart Band; analyzing conventional products)
- Thinking of Samsung and Apple actions, these Giants and brands are preferredin smart wear industry. If they would like to play system, platform and big data, they should collect individual data through smart wear. It is the demand of Giants for establishing their own big database.
- What’s more interesting is the action of Samsung. Gear 2 is changed from the normal of using Android wear OS into using Tizen OS that is developed by Samsung Let’s leave aside the topic that how much time and energy Samsung has spent in developing Tizen OS. At least, it tells the world that Samsung is no more the one who is only able to make hardware. It plans to surpass Apple, to get independent from Google and to develop its own software as well as system.
- Facing with Samsung’s desire to “establish its own”, Google appears unexpectedly It does not aggressively enter the market and siege Samsung to its advantage of Android wear preconception. Instead, it stops. On the one hand, there are only 10 brands authorized by Android wear in the world, including LG, MOTO, HUAWEI, SAMSUNG, PEPBLE and ASUS. On the other hand, Google repeatedly refuse the application for Android wear authorization from MTK. It is said that the peaceful market carries the prelude of waiting for the time and then fighting back. We will wait and see what actions Google will take.
- Due to the “inaction”of Giants and big brands, some following supple chains have to find a way out. In fact, during two years long from 2014 to 2015, smart wear market is undoubtedly led by the Giants and then promoted by copycatting supply chains in Shenzhen.
- The leader of supply chains in Shenzhen definitely should be MTK. Even so, it is in a dilemma at present, besieged by Qualcomm and Spreadtrum. However, it still has the power to deadly strike others.
IQI TECH: WHO IS IT?
- Copywriting: a good copywriting
The Steel Travel of MIUI
The breakout of channels
Strategy: promoting and exposing online channel and then affecting offline voice
The analysis on the whole situation of channel: online channel is 30% and offline is 70%, which is the data in the peak time of E-commerce.
How about the offline? What influences does the negotiation between the price of online and that of offline bring? How to differentiate our online price from that of the counterparts?
Online is controlled by the competition between the mainland local cross-border E-commerce and counterparts. Facing that, how to break out?
On account of the online situation, what strategy for negotiation should we take against the mainland local cross-border E-commerce or foreign E-commerce?
On account of online price system, how to deal with the negotiation when faced with offline customers?
Analysis on IQI sales channels
Traditional foreign trade channels:
Alibaba international website
Global market platform
Hongkong Airport Exhibition
Up to 2 Feb., 2016, the number of Alibaba enquiry has reached 662 according to incomplete statistics. Meanwhile, it has 169 from North-American market, 26 from South-American market, 8 from Latin-American market, 111 from West-European market, 31 from Middle-European market, 26 from South-European market, 18 from East-European market and 16 from North-European market, 405 in total.
According to the analysis of Alibaba backstage buyers’ behaviors such as event rank, country, city, address, enquiry amount, product searching range, etc.
Most of buyers are valid, but the majority consists of small buyers, E-commerce buyers, local shops or small wholesalers.
According to the degree of being familiar with industry and products, buyers can be divided into groups ranging from knowing both industry and product to completely not knowing both industry and products.
Theoretically, customers of IQI should and must be the ones who know both industry and products well. Reasons are various as followed:
- As a professional company, IQI products, the new blood in 2016, are always advanced than the counterparts. Aprofessional customer are supposed to expand his own market with new products. Moreover, he should be able to catch the market trend and product orientation before his competitor and to win consumers’ hearts more easily.
- As IQI uses private mold, IQI are more willing to occupy market as well as to search market together with customers, and to establish a long-term strategic cooperation relationship with customers.
- IQI are more willing to share benefits with customers and to support customers with policies and benefits. Ibelieve, it is easy to successfully cooperate with customers by using the negotiation logic and showing our sincerity.
Next, customers who completely do not know industry and products are easier to be led to the market with sincere instructions. Reasons are various as followed:
The inquiry results of smart wear customers show that some of them have seen, heard and known the market more or less, and some are just interested in or watching this market.
I believe, customers are willing to choose us, as long as we clearly, actively tease out history of smart wear development, status quo of products and trend of industry, motivate and instruct them with successful cases, and sincerely invite them to try this market.
All above mentioned is the analysis of customers who sent us enquiry. And then as for exhibition customers, the analysis method are the same. But the strength and scale they have are not too small. They are shrewder and need our sincerity and willingness to lose for them more. This is because they prefer to take advantage of their seniority and high cooperation degree.
At the same time, exhibition customers are more easily and more likely to proactively present their strength, and to set out their channels. They generally tell us the state of their countries, cities, consumers’ habits, channels either online or offline, and promotion actions and plans. In this way, all we need to do are that we talk with them about overall situation, product layout, promotion plans, brands, etc. and then tell them how we are able to cooperate with them and help to open and occupy market. Besides, they are more likely to bring up strategic cooperation as long as we are full of sincerity.
All above mentioned is my analysis of traditional B2B channels and exhibition customers.
Not only do I need to systematically train salesmen to have a complete conception of sales recognition, negotiation logic and customer analysis ability, but also I need the cooperation from supply chains.
One thing to note is that IQI is still a small company. At the earlier stage, we accumulate customers under the case that we are not totally sure the amount of customers at the later stage. Thus, after we generally judge our customers not fooling us and under the precondition that our company core technology is kept confidential and secret, we would rather bear loss, difficulties from supply chain and pressure than have no thought to figure out the way to coordinate with customers, do our best to convince them, and sign contracts to accumulate experience and types of customers.
Undoubtedly, wholesalers, channel customers, individual customers, customized customers and more are the cornerstone of the stable development of IQI. But due to lacking of experience, products at the earlier stage, time and competent salesmen, IQI has less cornerstone customers at present.
Fortunately, IQI has two core products now, which is the best time to develop cornerstone customers. However, time is limited and I only have domestic sales experience without real operation of foreign trade. So I need a foreign trade executive to combine my experience and hers to systematically teach foreign trade salesmen.
In 2016, I will heavily focus on B2C E-commerce. Here are my market strategies:
- First, we should gain cooperation with all domestic E-commerce such as Amazon, eBay and AliExpress.
- We should carry on Google SEO and Baidu SEO to optimize our official website to reach the aim of promotion and leading the trend.
- We should establish and maintain Facebook, Twitter, Youtobe and more social homepage for promotion and leading the trend. So we should analyze industry, technology and products and discuss new products, and then edit articles adding pictures to make our website more appealing and attractive.
- We should capitalize on Web platform such Tencent, Sina and NetEase to gain free evaluation to make us known to the public online.
The Present Results:
Shenzhen Globalegrow E-Commerce Co.,Ltd. (GearBest)
Lemfo Electronic Trading CO., Ltd.
Juebao Energy Technology Co., Ltd.
Skywolf Technology Co., Ltd.
Tomtop Technology Co., Ltd.
Youkeshu Technology Co., Ltd.
Otra Technology Co., Ltd.
Guangzhou Banggood NetWork Technology Co., Ltd.
Topstor Technology Co., Ltd.
Jixiangfa Technology Co., Ltd.
Chinavesion Technology Co., Ltd.
All above E-commerce aggressively do online business. Alibaba international station has over 40 professional smart wear trade company. They all know there are 5 to 6 E-commerce online promoting IQI.
My next plans are as followed:
- With typically successful cases, we are going to find out other sellers or shops on Amazon and then defeat them respectively.
- We are going to develop from domestic E-commerce to cover well-known brands and foreign local E-commerce, such as CUBOT, Anker, etc.
With domestic E-commerce, domestic open market (trade company), enquiry and conservative estimate, it is possible to sale 1k.
Meanwhile, as we know, it needs time to build, promote and expose online brand. Besides, the proportion of sales amount of online to offline always remains 20% to 80%.
So we understand that online promotion is to influence offline channels and for survival at the earlier stage. Real development is belong to offline. In this way, we are keepingin conform with the principle as well as striving to win every offline customer. That is the development orientation of IQI in future.
About reasons for continually layout new products fast.
First, we should focus on situation.
In the beginning, we should analyze what the Giant Samsung want to do. Samsung are always good at developing hardware and its own chips. And its system is of Google. To our surprise, Samsung spent much labor, capital, time and sources to develop smart wear system Tizen. We don’t need to consider how difficult is it to develop system. All we need to know is Samsung see a great prosperity of smart wear and an intention to expand its own trade circle in the smart wear area.
Secondly, about brand situation
Almost all brands are using Android system. And Android wear system is developed based on original ecology of Android. It is no doubt that more brands will appear between Android and Android wear in future. the situation of smart wear is pretty similar with cellphone. They both develop from feature to smart.
Therefore, unless Giants can bring other transforming technology, smart wear industry will inevitably adopt the same development mode with cellphone from copycatting to brand.
So except hardware, software, different system, craft and price, what left can be competitive is speed.
The worst situation is that those who make copycatting cellphone will directly compete with you by price. There are already Zinc alloy, plastic and square 6580.
If we IQI decide to make Zinc alloy, plastic and square smart watch at the later stage, we will take actions first and further consolidate the leading position of IQI, instead of falling behind.
However, what is worth for us to be proud of is only that we optimize better than the counterparts. As for copycatting company, the optimization is common. Besides, the layout of Zinc alloy, plastic and square ones are belong to hardware.
We have not begun to touch and layout establishment of software, calculation and backstage APK yet. So what should we do at the later stage?
Of course, developing new products is not prime purpose. We can combine E-commerce customers with different consumption habits from different countries to conduct an incomplete survey. But in any case, we must follow copywriting company and more supply chain. At the earlier stage, lacking of brand and customer accumulation won’t allow us to consider too much. What only to do is to compete with the counterparts.
New products bring more chips to our market and sales to contact more different customers. Also they offer more room for negotiation rather than nothing. That is possible but increasingly difficult. Moreover, even though not all new products can be successful, they provide us more opportunities to motivate our regular customers.