Shenzhen Huaqiang North, once known as the global mobile phone procurement center and the largest distribution center for mobile phone handsets in China, experienced a large number of mobile phone merchants evacuating since the beginning of this year.
"First Financial Daily" reporter on-site survey found that in addition to Mingtong Digital City, there are a considerable number of businesses sticking to, Yuanwang Digital City, Zhenhua Mobile Phone City, Longsheng Mobile Phone City, Gaokede Communications City, etc., most shops vocal Fall, vacancy rate of nearly 70%.
“Including the Chinese market, global mobile phone users have experienced a period of rapid growth.†A senior Shenzhen mobile phone manufacturer told the “First Financial Daily†yesterday that several people form a company and rented a counter in Huaqiangbei. The era is gone forever.
However, the opposite sign is that some stores, smart phones, 3G mobile phones and their extended value-added services are starting to pick up. The market turned and the 6-year-old cottage mobile phone began to ebb.
Business Escape
At 11 o'clock on the 4th of July, in Zhenhua Mobile Phone City, Longsheng Mobile Phone City, and Gaokede Communication City, the bustling people in the past seemed to have disappeared overnight.
The reporter observed at the scene that in addition to some businesses on the first floor, the vacancy rate of the second floor and the third floor was nearly 90%, and the “counter transfer†signs could be seen everywhere. In order to recruit merchants, the management staff of Zhenhua Mobile Phone City and Longsheng Mobile Phone City would not hesitate to set up a leasing counter in the entry port of the mobile phone city.
In contrast, the traffic of Mingtong Digital City has maintained the glory of Shenzhen Huaqiangbei mobile phone business district, and the flow of people is still intensive. However, the 4th floor pavilion that specifically targets the overseas mobile phone market is basically vacant. The third generation of Yuanwang Digital City, the earliest birthplace of Shanzhai mobile phones, has become an accessory market for Apple and HTC mobile phones.
“The evacuation of merchants has some relationship with the 'doubles' launched at the end of last year, but the fundamental reason is the shift of the mobile phone market.†Liu Jiang, who once worked as a mobile phone battery supplier in Longsheng Mobile Phone City’s rent shop, said that mainland dealers who purchase mobile phones have come The less business, the more difficult it is to do business. The government has once again ruled it. "We all have withdrawn."
Liu Jiang's "doubles" refers to the special campaign against the infringement of intellectual property rights and the manufacture and sale of fake and shoddy goods launched nationwide at the end of last year. Huaqiangbei's mobile phone shops have become one of the objects of strict investigation and rectification. He said that now the cottage mobile phone business is difficult to do, many small battery manufacturers under the cottage orders, there is no credit at all, or the order is not based on the amount of delivery, or will not receive payment, and now he only does business with the brand mobile phone manufacturers , but "income is down nearly 30% year-on-year."
“Not only did the shops of Gaokede and Longsheng Mobile Phone City rent, but even the office buildings of the SEG Plaza were evacuated, and a large number of mobile phone merchants withdrew. The office rents were all dropped by nearly RMB 100 (per square meter). Rent.†Liu Jiang said. The newspaper saw in the lobby of the SEG Plaza that the signboard of the “rental†was placed in the most prominent position in the lobby.
Where did the huge buyer go? Why does the soil on which the cell phone survives disappear overnight?
The newspaper learned from more than a dozen Shenzhen mobile phone manufacturers and mainland mobile phone retail terminal merchants that there are two main reasons. First, due to fierce competition, a considerable number of cottage mobile phone manufacturers have changed the operation mode that used to rely on Huaqiangbei mobile phone counters and national distributors in the past, and turned to self-built channels for brand management. Turning to the cottage manufacturers to use their own advantages in the domestic regional market channels, can be distributed throughout the country's three or four levels of mobile phone retail outlets, local mobile phone dealers do not have to re-stocking south Shenzhen, direct purchase can, and mobile phone products are perfect After-sales service; Second, the domestic mobile phone market has rapidly turned to smart phones and 3G mobile phones this year, and the share of traditional feature phones has been eroded. As the cottage mobile phone manufacturers do not basically do 3G mobile phones, the pressure of survival suddenly appears.
"3G mobile phones are easy to access to the Internet. After more than two years of marketing, consumers in the third and fourth-tier markets have already accepted 3G mobile phones." Cheng Wei, a mobile phone distributor in Shiyan, Hubei, pointed out that 3G mobile phone selection by consumers has become the mainstream of the market, and based on profits For space reasons, mobile phone retail stores will also tend to push 3G mobile phones.
Crazy 3G phone?
Not only Shenzhen Huaqiang North cottage mobile phone manufacturers, even the well-known brand of mobile phone manufacturers also feel the 2G mobile phone market shrinking chill.
A senior mobile phone manufacturer in Shenzhen revealed that in April of last year, it was the peak sales season of domestic mobile phones, but after the Spring Festival this year, the market did not seem to have bounced back. From April to May, domestic mobile phone sales also fell by 40% year-on-year. The company was very ambitious at the end of last year to increase its brand promotion efforts in the domestic mobile phone market and has now basically cancelled this plan. However, due to the successful development of the Indian market last year, the monthly sales of mobile phones rose to 300,000 or so, which has resisted the impact of local contraction.
The senior executive pointed out that domestic telecommunication operators’ subsidies for customized 3G mobile phones have increased, which is also the reason for the decline of the traditional 2G mobile phone market. For example, gross margin for domestic mobile phones to retail terminals is generally 100 to 200 yuan, while gross profit for China Mobile and other 3G mobile phones may exceed 200 yuan, and individual promotion plans may even reach 400 yuan or more. Retail terminals naturally prefer to promote 3G mobile phones.
The newspaper learned from mobile phone dealers in Chongqing, Wuhan and Shiyan in Hubei that mobile phone retail terminals in the 3rd and 4th tier markets are generally service outlets of telecom operators, and retail stores sell 3G mobile phones with subsidized phone bills. About 30%, but also can enjoy the consumer's call charges, divided into a proportion of about 15%, a series of policies so that these mobile phone dealers and telecommunications operators have formed a community of interests. Since it is a community of interests, telecom operators will naturally have a 3G mobile phone sales target for each retail terminal.
"The rebates of telecom operators have become one of the very stable revenue sources for mobile phone retail stores, which account for more than 20% of our total store revenue." Cheng Wei said that since the beginning of this year, 3G mobile phone sales have accounted for about the total sales of its own stores. 30%, if you can complete the mission indicators of telecom operators, the proportion of sales will reach 50%.
Zhou Yong of Wuhan also stated that the main revenues of mobile phone retail terminals in the surrounding towns and villages in Wuhan basically came from operator rebates. In order to complete the sales of 3G mobile phones issued by operators, the proportion of 3G mobile phone sales of these retail stores has also reached 50%.
Telecom operators also have momentum. The Ministry of Industry and Information Technology previously proposed that 3G users should reach 150 million in 2011. In January this year, the number of domestic 3G users was only 51 million. In the five months this year, the new mobile subscriber numbers of China Mobile, China Telecom and China Unicom's three major operators may better explain the reasons for the shrinking of domestic 2G mobile phones.
As of May 31, China Mobile has developed 11.296 million 3G subscribers this year, with an average monthly new 3G subscribers of 2.26 million, accounting for 42% of the monthly new average, up 57% year-on-year; of these, 31.6 million new subscribers were added in May. Households accounted for 52% of the new increase, a record high. China Telecom added 7.38 million 3G subscribers this year, with an average monthly increase of 1.476 million, an increase of 115.5% year-on-year; of these, an additional 1.83 million 3G subscribers accounted for 70% of new subscribers in May. Unicom has added 3.03 million 3G subscribers this year, with an average monthly increase of 1.6 million, an increase of 70% year-on-year, of which 3.74 million new 3G subscribers were added in May, accounting for 75% of new subscribers.
However, the above-mentioned executives of the Shenzhen mobile phone company stated that sales of 3G mobile phones are not completely socialized. Operators have high requirements for customized mobile phones, and strict price control. Except that individual manufacturers can make money from customized machines, most of them are paying compensation.
The problem is that the pattern of the domestic mobile phone market has completely changed. According to data from Ai Ma, China’s mobile phone production in the first quarter of this year was 257 million units, of which 66.4% were exported, 171 million were domestic and 86 million were domestic sales. Among them, 3G customized mobile phones for domestic operators were 30 million, which accounted for domestic mobile phone production. 34.88%.
"First Financial Daily" reporter on-site survey found that in addition to Mingtong Digital City, there are a considerable number of businesses sticking to, Yuanwang Digital City, Zhenhua Mobile Phone City, Longsheng Mobile Phone City, Gaokede Communications City, etc., most shops vocal Fall, vacancy rate of nearly 70%.
“Including the Chinese market, global mobile phone users have experienced a period of rapid growth.†A senior Shenzhen mobile phone manufacturer told the “First Financial Daily†yesterday that several people form a company and rented a counter in Huaqiangbei. The era is gone forever.
However, the opposite sign is that some stores, smart phones, 3G mobile phones and their extended value-added services are starting to pick up. The market turned and the 6-year-old cottage mobile phone began to ebb.
Business Escape
At 11 o'clock on the 4th of July, in Zhenhua Mobile Phone City, Longsheng Mobile Phone City, and Gaokede Communication City, the bustling people in the past seemed to have disappeared overnight.
The reporter observed at the scene that in addition to some businesses on the first floor, the vacancy rate of the second floor and the third floor was nearly 90%, and the “counter transfer†signs could be seen everywhere. In order to recruit merchants, the management staff of Zhenhua Mobile Phone City and Longsheng Mobile Phone City would not hesitate to set up a leasing counter in the entry port of the mobile phone city.
In contrast, the traffic of Mingtong Digital City has maintained the glory of Shenzhen Huaqiangbei mobile phone business district, and the flow of people is still intensive. However, the 4th floor pavilion that specifically targets the overseas mobile phone market is basically vacant. The third generation of Yuanwang Digital City, the earliest birthplace of Shanzhai mobile phones, has become an accessory market for Apple and HTC mobile phones.
“The evacuation of merchants has some relationship with the 'doubles' launched at the end of last year, but the fundamental reason is the shift of the mobile phone market.†Liu Jiang, who once worked as a mobile phone battery supplier in Longsheng Mobile Phone City’s rent shop, said that mainland dealers who purchase mobile phones have come The less business, the more difficult it is to do business. The government has once again ruled it. "We all have withdrawn."
Liu Jiang's "doubles" refers to the special campaign against the infringement of intellectual property rights and the manufacture and sale of fake and shoddy goods launched nationwide at the end of last year. Huaqiangbei's mobile phone shops have become one of the objects of strict investigation and rectification. He said that now the cottage mobile phone business is difficult to do, many small battery manufacturers under the cottage orders, there is no credit at all, or the order is not based on the amount of delivery, or will not receive payment, and now he only does business with the brand mobile phone manufacturers , but "income is down nearly 30% year-on-year."
“Not only did the shops of Gaokede and Longsheng Mobile Phone City rent, but even the office buildings of the SEG Plaza were evacuated, and a large number of mobile phone merchants withdrew. The office rents were all dropped by nearly RMB 100 (per square meter). Rent.†Liu Jiang said. The newspaper saw in the lobby of the SEG Plaza that the signboard of the “rental†was placed in the most prominent position in the lobby.
Where did the huge buyer go? Why does the soil on which the cell phone survives disappear overnight?
The newspaper learned from more than a dozen Shenzhen mobile phone manufacturers and mainland mobile phone retail terminal merchants that there are two main reasons. First, due to fierce competition, a considerable number of cottage mobile phone manufacturers have changed the operation mode that used to rely on Huaqiangbei mobile phone counters and national distributors in the past, and turned to self-built channels for brand management. Turning to the cottage manufacturers to use their own advantages in the domestic regional market channels, can be distributed throughout the country's three or four levels of mobile phone retail outlets, local mobile phone dealers do not have to re-stocking south Shenzhen, direct purchase can, and mobile phone products are perfect After-sales service; Second, the domestic mobile phone market has rapidly turned to smart phones and 3G mobile phones this year, and the share of traditional feature phones has been eroded. As the cottage mobile phone manufacturers do not basically do 3G mobile phones, the pressure of survival suddenly appears.
"3G mobile phones are easy to access to the Internet. After more than two years of marketing, consumers in the third and fourth-tier markets have already accepted 3G mobile phones." Cheng Wei, a mobile phone distributor in Shiyan, Hubei, pointed out that 3G mobile phone selection by consumers has become the mainstream of the market, and based on profits For space reasons, mobile phone retail stores will also tend to push 3G mobile phones.
Crazy 3G phone?
Not only Shenzhen Huaqiang North cottage mobile phone manufacturers, even the well-known brand of mobile phone manufacturers also feel the 2G mobile phone market shrinking chill.
A senior mobile phone manufacturer in Shenzhen revealed that in April of last year, it was the peak sales season of domestic mobile phones, but after the Spring Festival this year, the market did not seem to have bounced back. From April to May, domestic mobile phone sales also fell by 40% year-on-year. The company was very ambitious at the end of last year to increase its brand promotion efforts in the domestic mobile phone market and has now basically cancelled this plan. However, due to the successful development of the Indian market last year, the monthly sales of mobile phones rose to 300,000 or so, which has resisted the impact of local contraction.
The senior executive pointed out that domestic telecommunication operators’ subsidies for customized 3G mobile phones have increased, which is also the reason for the decline of the traditional 2G mobile phone market. For example, gross margin for domestic mobile phones to retail terminals is generally 100 to 200 yuan, while gross profit for China Mobile and other 3G mobile phones may exceed 200 yuan, and individual promotion plans may even reach 400 yuan or more. Retail terminals naturally prefer to promote 3G mobile phones.
The newspaper learned from mobile phone dealers in Chongqing, Wuhan and Shiyan in Hubei that mobile phone retail terminals in the 3rd and 4th tier markets are generally service outlets of telecom operators, and retail stores sell 3G mobile phones with subsidized phone bills. About 30%, but also can enjoy the consumer's call charges, divided into a proportion of about 15%, a series of policies so that these mobile phone dealers and telecommunications operators have formed a community of interests. Since it is a community of interests, telecom operators will naturally have a 3G mobile phone sales target for each retail terminal.
"The rebates of telecom operators have become one of the very stable revenue sources for mobile phone retail stores, which account for more than 20% of our total store revenue." Cheng Wei said that since the beginning of this year, 3G mobile phone sales have accounted for about the total sales of its own stores. 30%, if you can complete the mission indicators of telecom operators, the proportion of sales will reach 50%.
Zhou Yong of Wuhan also stated that the main revenues of mobile phone retail terminals in the surrounding towns and villages in Wuhan basically came from operator rebates. In order to complete the sales of 3G mobile phones issued by operators, the proportion of 3G mobile phone sales of these retail stores has also reached 50%.
Telecom operators also have momentum. The Ministry of Industry and Information Technology previously proposed that 3G users should reach 150 million in 2011. In January this year, the number of domestic 3G users was only 51 million. In the five months this year, the new mobile subscriber numbers of China Mobile, China Telecom and China Unicom's three major operators may better explain the reasons for the shrinking of domestic 2G mobile phones.
As of May 31, China Mobile has developed 11.296 million 3G subscribers this year, with an average monthly new 3G subscribers of 2.26 million, accounting for 42% of the monthly new average, up 57% year-on-year; of these, 31.6 million new subscribers were added in May. Households accounted for 52% of the new increase, a record high. China Telecom added 7.38 million 3G subscribers this year, with an average monthly increase of 1.476 million, an increase of 115.5% year-on-year; of these, an additional 1.83 million 3G subscribers accounted for 70% of new subscribers in May. Unicom has added 3.03 million 3G subscribers this year, with an average monthly increase of 1.6 million, an increase of 70% year-on-year, of which 3.74 million new 3G subscribers were added in May, accounting for 75% of new subscribers.
However, the above-mentioned executives of the Shenzhen mobile phone company stated that sales of 3G mobile phones are not completely socialized. Operators have high requirements for customized mobile phones, and strict price control. Except that individual manufacturers can make money from customized machines, most of them are paying compensation.
The problem is that the pattern of the domestic mobile phone market has completely changed. According to data from Ai Ma, China’s mobile phone production in the first quarter of this year was 257 million units, of which 66.4% were exported, 171 million were domestic and 86 million were domestic sales. Among them, 3G customized mobile phones for domestic operators were 30 million, which accounted for domestic mobile phone production. 34.88%.
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