At a time when the global smartphone market is changing, vivo, as a leading Chinese mobile phone brand, is accelerating its global expansion with a rapid momentum. According to a Bloomberg report, vivo has set an ambitious goal of achieving 70% of overseas sales by 2027. China Exportsemi will interpret one or two for you today.
Ⅰ Excellence in the domestic market: a solid backing for expansion
In 2024, vivo's smartphone shipments in the Chinese market increased by more than 10%, and according to research institute IDC, vivo managed to overtake Apple and local rivals Huawei and Xiaomi to take the top spot in the domestic market. This achievement is due to vivo's accurate grasp of the needs of domestic consumers, as well as continuous investment in product innovation and quality. Gaining a firm foothold in the domestic market has provided vivo with solid financial and technical support for its overseas expansion, giving it the ability to compete with global brands on the international stage.
Ⅱ Elaborate layout of overseas markets: from Southeast Asia to the world
1. Key markets: India, Indonesia and Malaysia performed well
In terms of the layout of overseas markets, vivo focuses on emerging markets such as Southeast Asia. In India, vivo's largest overseas market, the company has adopted a premiumization strategy, focusing on selling high-end devices above $600 to meet the demand of local consumers for high-quality mobile phones and enhance the brand's image in the local market. In markets such as the Philippines and Indonesia, vivo is committed to further expanding its market share. According to Canalys, vivo has the largest market share in Indonesia and also in Malaysia. These achievements are due to vivo's in-depth research on the local market and targeted product strategies, as well as continuous investment in channel construction and service network.
Picture: Accelerate to the sea! vivo sprints 70% of overseas revenue for global expansion
2. Market expansion strategy: flexibly respond to different market characteristics
vivo does not set specific growth targets in overseas markets, but regards growth as the top priority of the overseas team, and this flexible strategy enables vivo to adjust its market expansion strategy in a timely manner according to the actual situation of each market and quickly respond to market changes. In some markets, vivo has expanded its sales channels by partnering with local operators; In other markets, offline experiential events are held to increase brand awareness and user stickiness. This market strategy tailored to local conditions provides a strong guarantee for vivo's continuous growth in overseas markets.
Ⅲ Technological innovation and brand building: the building of core competitiveness
1. Investments in AI, VR, and robotics: a new engine for future growth
In the era of AI, technological innovation is the key to brand competitiveness. vivo's investment in AI, VR and other fields will help it gain an advantage in future market competition. At the Boao Forum for Asia, vivo showcased its latest flagship smartphone, the vivo X200 Ultra, and virtual reality headsets, and revealed that it has set up a robotics lab to focus on the research and development of consumer-grade robot products. The investment in these new technologies can not only enhance the competitiveness of vivo products, but also bring users a new intelligent experience, and win more users and market share for vivo in overseas markets.
2. Brand image building: all-round improvement from products to services
In addition to technological innovation, vivo also pays attention to the shaping of brand image. By participating in international event sponsorship and cooperating with internationally renowned designers, vivo continues to enhance the international influence of the brand. At the same time, in terms of after-sales service, vivo has established a complete after-sales network in overseas markets to provide users with timely and efficient services and enhance users' trust and loyalty to the brand.
Ⅳ Prudent Exploration in Developed Markets: Timing and Strategy Considerations
Despite its success in emerging markets such as Southeast Asia, vivo is still cautious about developed markets, including the United States and Western Europe. These markets are dominated by high-end equipment and the model of sales through telecom operators, which is highly competitive and has a high barrier to entry. However, vivo plans to explore opportunities to enter these markets in the next three to five years with new products such as VR glasses. Before the time is ripe, vivo will continue to improve its technical strength and brand influence through the accumulation of experience in emerging markets, and be fully prepared to enter developed markets in the future.
Ⅴ Data-backed insights: the inevitability and challenges of vivo's expansion
1. Realistic considerations of market saturation and room for growth
With the gradual saturation of the Chinese market, vivo needs to find new growth space, and the expansion of overseas markets has become an inevitable choice. At present, vivo has ranked first in the share of domestic mobile phones in the Chinese market for four consecutive years, and has served more than 500 million users in more than 60 countries and regions around the world. However, in the global smartphone market, vivo still has a lot of room for growth. According to IDC's 2024 market performance report of the world's top five smartphone manufacturers, vivo failed to enter the top five. This not only shows the huge potential of vivo in the global market, but also means that it faces fierce competition from other international brands.
2. The challenge of balancing market share with growth targets
Vivo has set a target of 70% of its sales in overseas markets by 2027, and achieving this goal requires finding a balance between market share and growth rate. In some markets, vivo needs to further consolidate its leading position; In other markets, market share needs to be increased quickly. At the same time, vivo also needs to deal with the differences in the competitive environment, consumer demand, policies and regulations in different markets, which puts forward higher requirements for the company's market insight and operational capabilities.
Ⅵ Conclusion: vivo's global expansion: opportunities and challenges coexist
vivo's plan to accelerate its global expansion and target 70% of its sales to come from overseas markets in 2027 is not only a positive response to the current market environment, but also a strategic layout for future development. In this process, vivo has accumulated rich experience and resources with its excellent performance in the domestic market; Through the careful layout in overseas markets, it has gradually expanded its brand influence and market share; Relying on continuous investment in technological innovation and brand building, we have built our core competitiveness. However, vivo also faces challenges from developed markets, competitive pressures from different markets, and balancing the need to achieve growth targets.
In the future, vivo needs to give full play to its own advantages, flexibly respond to various challenges, and continuously promote technological innovation and brand building to achieve sustainable global development. In the fierce competition in the global smartphone market, it is worth continuing to pay attention to whether vivo can successfully achieve its overseas expansion goals.
