The mobile phone market ushered in turmoil, and many brands chose to integrate

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Recently, 36 Krypton broke the news that vivo will integrate its own brand iQOO to start the journey of reducing costs and increasing efficiency of the vivo brand.

The iQOO mobile phone is a sub-brand of vivo. It was established in 2019 and its products are positioned as high-performance gaming phones. Although this positioning is not officially recognized, the IQOO mobile phone has its own game attributes since its release. For example, it is specially developed for games. The “Game Shoulder Key” and cooperate with a variety of games under Tencent, including but not limited to: game naming, competition-specific mobile phones, and game manufacturers’ customization and optimization of mobile phones, etc., a series of actions. And this marketing strategy of IQOO also received positive feedback from the market, and was liked by many subdivided users at that time.

Like OPPO mobile phones, Vivo mobile phones were originally positioned in the offline market. They were distributed in rural areas and surrounded by cities. Through a wide range of dealer channels, they made their fortunes in the third- and fourth-tier and sinking markets. According to data released by market research company Counterpoint, as of the second quarter of 2021, vivo’s market share is 16.5%, ranking third. In terms of product research and development, vivo continues to launch new products, including X series, Y series, S series, NEX series and so on. Vivo’s products are characterized by aesthetics, camera and sound quality, especially the selfie function and beauty effect, which are popular among young consumers. Vivo is also at the forefront of the industry in terms of product specifications, taking the lead in launching new technologies such as dual screens and non-porous screens. However, success is Xiao He, and failure is Xiao He. The two brands of vivo and OPPO are not ideal for market expansion in first- and second-tier cities. Although they are motivated, the input-output situation is not optimistic. Under such circumstances, OPPO and vivo subdivided into sub-brands such as OnePlus and iQOO respectively, intending to learn from Xiaomi and Honor’s strategy, focusing on high-end user groups.

However, with the further intensification of market competition, the multi-brand strategy of OPPO and VIVO has been impacted, and the homogeneity between the parent brand and sub-brands has become increasingly prominent. The target audiences of the two brands overlap in the market. It even formed a situation where the left hand hits the right hand. In this case, OPPO was relatively more decisive. It began to integrate its main brand with OnePlus many years ago. Independence: Integrate R&D and PR teams, cut off OnePlus’ self-developed mobile operating system, and use colorOS with OPPO to integrate two relatively independent teams into a larger whole.

　　Integration is not a purpose Integration is not synonymous with success

Perhaps seeing the success of OPPO and OnePlus, perhaps the development of vivo has really reached the “threshold”. Vivo’s integration of the iQOO brand may be a follow-up action. Although there is no major corporate culture difference between vivo and iQOO compared to OPPO and OnePlus, there are still major differences in brand positioning and market strategies. After the integration, how to balance the culture and positioning of the two brands and avoid brand conflicts and user confusion is a problem that needs attention.

　　Mobile phone brand integration may become a chain reaction

With the proliferation of vivo’s integration of iQOO, Xiaomi, another major mobile phone manufacturer in China, has also become the focus of everyone’s attention. Some industry insiders said that with the intensification of market competition, there will definitely be multiple brands integrating resources this year. Especially at present, the capital market is no longer optimistic about the mobile phone industry, and has shifted its investment focus to the chip and automobile industries. In the current severe market shrinkage,

When the capital has another new love, reducing costs, increasing efficiency, and reducing expenses may become a hot topic throughout the year in the mobile phone circle this year.

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