Huawei Wants To Be No 2, And Doesn’t Care If It Competes With Itself

Thursday, August 9 2018

Huawei Wants To Be No 2, And Doesn’t Care If It Competes With Itself

Sony wants Filipinos to Show Off their Karaoke… The high level of autonomy that Honor business unit enjoys within Huawei CBG is in a way giving the brand a lot of energy to fight for its survival. Now ‘Honor’ brand has finally surpassed ‘Huawei’ brand in China, with unit shipments already overtaking Xiaomi. https://t.co/arN1xsFXeT
— Nicole Peng (@N_Peng) July 25, 2018
Market cannibalization was previously Huawei’s concern when Honor silently pulled out of the country two years ago, but apparently, Honor managed to sell so many phones in China that they now enjoy a large degree of autonomy and independence from Huawei that that’s no longer an issue. This is evident even in China, where Huawei is currently the number one player ahead of OPPO, vivo, and Xiaomi. According to a recent Canalys report, the brand accounts for 55 percent of all Huawei shipments in their home country, up from 33 percent a year ago. If market cannibalization was an issue for Huawei, they would have adjusted their strategy in China even before the sub-brand’s expansion in other territories.
Huawei is in for a fight if it really is serious about taking the number 2 spot, but they are in a unique position compared to their competitors. Huawei’s brand equity is almost up there alongside Samsung and Apple, and their Honor sub-brand can start chipping away at their mid-range competitors without eroding their positioning as a premium brand.
Even if Honor overtakes Huawei as the company’s main sales driver, it’s all going in the same pocket anyway. Like the saying goes – out the left pocket into the right – it really doesn’t matter anyway, as long as Huawei gets what they want TAGS