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According to recent statistics, it seems that Vsmart smartphone market share is growing quite fast. This is a good sign for an OEM Smartphone from Vietnam, opening up great opportunities to reach the world market.So let's go back in time a bit, let's find out why Vsmart chose the low-cost and mid-range phone from the beginning to develop.
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#first. Land cell phone segment crowded crowded?
Actually, it is not very correct in the first place.In the event of launching Vsmart brand and its first products, Vsmart's strategy is to attack all phone segments, including high-end and super-premium segments.
Ignoring 4 devices, Vsmart Active 1, Active 1+ and Joy 1, Joy 1+, were launched at the event, why haven't we seen their high-end smartphone?
After the first four devices, they added Vsmart Bee, Vsmart Bee 3, Vsmart Joy 2, Vsmart Joy 2+, Vsmart Star, Vsmart Live, Vsmart Active 3, and the common point of these devices is the price. only from 1 million to less than 5 million (Vsmart Live has an initial price of 7 million but this price is not maintained for long). This segment is really cramped in our market.
For example:
- Xiaomi has Mi 9 Lite, Redmi Note 8, Redmi Note 8 Pro, Redmi 8, Realme has Realme Q, X, X Lite, 5, etc.
- Samsung has Samsung M10, Samsung M20, Samsung M30, Samsung A10, Samsung A20, ....
Vingroup has successfully priced its cars in the luxury segment: more than 1 billion for an unprecedented vehicle, and they have been successful at this price. So why don't they do that to smartphones?
#2. Why does Vsmart choose mid-range and cheap phones?
Easy to understand: Due to the brand!Bphone went ahead, and showed one obvious thing: The hoverman has no benefit. Bphone 3 Pro with mid-range configuration but the price is more than 10 million, the high-end price, was immediately ignored.
The premium price can only be a place for old flagships to decline in price over time. For example, the Galaxy S10 is only about 12 million, the iPhone XR is about 8 million, the iPhone XS is about 12 million.
Those are the machines that can sell well in this segment. And the fact is that not many people look for brands other than Samsung and Apple in this price segment.
That is, their brand value is still too big a shadow, not only for Vietnamese OEMs, but also for all other OEMs.
Next: Not enough for a flagship. As I said in the article about the similarity of Vietnamese and Chinese smartphones, Vsmart is currently not ready for researching and developing a complete device.
Their R&D team will only focus on the VOS operating system at this time, and this is what makes Vsmart lose its competitive advantage in the high-end segment. VOS may be good, but it's not enough to make the breakout of a thousand-dollar machine.
Finally: For easy access to customers!
Most Vietnamese people like to use cheap stuff (which is probably a better financial statement), so devices under the price of less than 7 million would be reasonable to reach the most consumers.
They can build brands from this segment by creating trust for users, and then attacking the higher price segment, like the way Xiaomi or Oppo are doing.
That's all, I think that's it!
# 3. Conclude
Personally, I always expect the Vietnamese Smartphone OEM to have a flagship worthy of Samsung or Apple, and be known to the world.How about you? In your opinion, besides the reasons above, are there any other reasons? Leave your comments below this comment section!
CTV: Nam Hoang
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