folding

“Spain is an open and very good country for foreign brands, but also very challenging due to competition and focus on low prices.” With those words he responds Laurence Li, new Honorary Country Manager for Spain and Portugalto the answer of how he sees the new market ahead. Until about four months ago, Laurence oversaw Honor’s operations in the Gulf regions from Dubai and previously led Huawei’s Consumer Business Group in Latin America. Today you have a huge challenge ahead of you. Honor has been operating for four years in our borders as an independent brand and the executive is clear about how far he wants to take it. Because Laurence Li is firm in his position: “Honor should be one of the top three consumer brands in Spain, not just a mobile brand.” Competing at the top starting with Spain Honor Magic V5 | Image: Xataka At the beginning of the year We had the opportunity to speak with Tony RanCEO of Honor in Europe, who already told us two things. The first, that Europe is going to be the second most important market for the company. The second, that it is not going to descend into the mud of the entry range and low prices, where there are hardly any margins. The company knows that the juicy segment is the high-endthe premium product, and that is where they are going to focus. All this starts in Spain, “a really good market for all Chinese and foreign brands” due to its openness. All Chinese brands have had a very good acceptance in our countryand if not, tell Xiaomi, Huawei, Omoda, Jaecoo, MG or BYD. These companies destroyed their respective markets by offering low prices and competent products, only to later make the leap to premium products once they had established themselves. The case of Xiaomi is the most obvious. Honor is going to save that step by being fully aware of it. “If you are looking for an entry-level phone with the lowest price, other brands would be a better option, to be honest. Now, if you want to buy something of quality, with innovation, that is, a good product, a product with AI, Honor will be the best alternative,” says Laurence. The firm is aware that right now its market share is what it is. The latest data They claim that Apple (27%), Samsung (26.5%) and Xiaomi (23.7%) lead the Spanish market. The fourth brand is Oppo with 5.7% and the fifth position is occupied by Motorola with 2.2%. Honor, for its part, reaches 1.3%. It would help to achieve a better position by launching cheaper products, attacking the already saturated entry range, but the firm’s strategy does not go there. Honor does not want to be a brand linked to low price, but to quality. Honor Magic V5 | Image: Xataka “Right now, people don’t change their cell phones that often. They do it every three or four years, maybe even every five. If you are going to use your cell phone for five years, you would prefer a better product and you would even pay more,” explains Li, who believes that the financing options offered by companies and retailers can help cover the expense. While the low-end market is being pushed by operators with the aim of increasing the number of 5G devices, Li says, the market for “high-end and premium” products is increasing because more and more people want good quality phones and are willing to pay more because it will last three or four years. The logic is clear. Honor’s logic is evident: the customer will be willing to pay more if they know that the product will last longer One might wonder if Laurence Li, coming from the Dubai offices and managing Honor’s operations in the Gulf; and having previously worked in Latin America, he has noticed some difference in consumer behavior. “I don’t think there’s a big difference,” he explains. Quite the contrary, he believes that there is an important similarity between the three cultures. The executive makes the comparison with cars. “In Dubai, and even here, more and more people are buying Chinese electric cars made in China.” In his own words, “more and more people want to buy innovative products and accept Chinese products (…) People want to try Chinese products, and that is a good trend.” What Laurence Li is telling us between the lines is that The perception of ‘made in China’ is changing. What was once synonymous with a cheap and regular product, today is pivoting to a premium, solvent and capable of standing up to the most established brands from South Korea, Japan or the United States. We are seeing it in all segments: white goods, televisions, sound, automotive, mobile phones and, soon, we will see it in household appliances. Lead the market based on folding and artificial intelligence This is Honor’s humanoid robot, developed entirely by them and visible in their store | Image: Xataka If competing in the low range is getting down in the mud and getting dirty, doing so in the premium range means playing in the same league as devices from Samsung and Apple, two names that are not easy to overshadow. One of Honor’s plans to achieve this is to conquer foldables. “We will be leaders in foldable devices, we will be there, we will be the strongest,” says Laurence while pointing out the Honor Magic V5 which I use as a personal phone. In just four years, Honor has gone from being born to launching the thinnest folding terminal on the market. It is a device that breaks with all the conventions that a novice user of a terminal like this could have: the battery lasts, it feels resistant, it is light, thin, it is comfortable to use, it has a good camera and, when folded, it is attached to a conventional mobile phone. Looking at it with perspective, improving a product like this seems complicated. Folding and … Read more