On April 22, Realme officially launched the new Realme Q3 series, equipped with MediaTek’s flagship processor Dimensity 1100, positioned as the “thousand yuan machine emperor”, and its firefly and psychedelic silver color schemes have become eye-catching highlights.
So far, Realme has launched 5 new products this year, and the new frequency and pace of launching are obviously faster than usual, and its ambitions in the Chinese market have been revealed.
Not long ago, Realme announced that the network-wide sales of the Realme Q2 series exceeded 1 million units. The company’s vice president and president of China, Xu Qi, once said: “Realme will have to sprint to at least 20 million units. This year will be a national battle for Realme, focusing on sprinting into the Chinese market.”
Then, for young people, how will Realme, which focuses on the concept of “technological trend”, support tens of millions of sales?
On the whole, Realme currently has four series of GT, X, V, and Q. The Q series focuses on price and performance, the V series focuses on battery life, the X series focuses on design skips, and the GT performance flagship series focuses on ultimate performance.
Xu Qi once described to the outside world its sales target for this year: “Realme has big ambitions for market share. The goal in the Chinese market is to reach 3-5% by 2021, and at least 20 million units will be sprinted. This year, For Realme, it will be a battle for all people, focusing on sprinting into the Chinese market.”
IDC, a third-party agency, predicts that thanks to a better market environment under stable epidemic prevention and control, domestic smartphone shipments will increase by 4.6% year on year in 2021, with a market capacity of approximately 340 million units. Calculated with 340 million units, a market share of 3-5% means that the sales volume will be 10.20-17 million.
Judging from the current pricing of Realme mobile phones, it is mainly aimed at the low-end and mid-range markets and benchmarked against mobile phone brands such as Redmi and in. In 2020, Realme and Redmi have taken turns to lower the lowest price of 5G mobile phones, which has accelerated the popularity of 5G mobile phones to a certain extent.
On April 21, Realme announced that it will cooperate with JD.com in mobile phone and AIoT multi-category operations, omnichannel resource integration, etc., and set a short-term goal of 2021 for the Realme brand to increase its sales on JD.com by over 6 times year-on-year, and three The medium and long-term goal of 100% compound annual growth rate during the year.
According to data, as early as 2018, OPPO former vice president Li Bingzhong announced that he officially left OPPO and founded the technology brand Realme, becoming the company’s founder and CEO.
Li Bingzhong said: “The original intention of Realme is to create products with an all-around leapfrog experience for young people. Through the leapfrog application of smartphones and AIoT cutting-edge technology, with the brand attitude leapfrog products’ and dare to leapfrog’, we are willing to help young people around the world. People build a smart, trendy, and playful life with all things connected.”
Realme launched the new Realme Q3 series this time. Its firefly and psychedelic silver color schemes have become eye-catching highlights, which are obviously inclined to the preferences of young people.
According to the official, the new psychedelic silver version comes from the Y2K culture. It is an organic combination of metal elements and psychedelic colors. At the same time, it is supplemented by nano-level holographic illusion texture technology, so that the light strip of the back shell of the phone can be at any angle. It can emit laser light and show a futuristic style.
From a sales perspective, although Realme has not been established for a long time, it has grown rapidly. According to the global smartphone shipment statistics of Counterpoint, a market analysis agency, Realme ranks seventh in the global smartphone shipment rankings and has become the world’s fastest-growing smartphone brand for four consecutive quarters.
Specifically, Realme’s global shipments in 2020 exceeded 42.4 million, an increase of 65% year on year, and it was the only brand in the world to grow by more than 60%, and the number of global users exceeded 70 million. In Q1 of 2021, its sales volume increased by 463% year on year, which is close to the full year of last year.
Industry insiders believe that despite the rapid rise of Realme in a short period of time, it still faces problems such as insufficient visibility and niche brand positioning. At present, the domestic mobile phone industry has a serious head effect and fiercer competition. For Realme to gain a firm foothold, it needs more brand exposure online and offline.
Relevant data also shows that the post-90s generation has gradually become the main force of domestic consumption and a new breakthrough for major manufacturers. How to seize the preferences of Generation Z and stimulate consumer demand has become the main focus of manufacturers in future development.
According to reports, Realme is a trendy technology brand for young people. At the beginning of 2020, Realme released the “mobile phone + AIoT” strategy and launched the “1+4+N” product strategy. Its products take 5G mobile phones as the core and connect speakers, TVs, headphones, and watches.
With the continuous popularization of 5G networks, many domestic mobile phone manufacturers have begun to speed up the release of new phones, and prices continue to drop. For the young brand Realme, the competition will undoubtedly become more intense.
Counterpoint’s latest report shows that the share of China’s smartphone market is constantly changing. In the 11th week of 2021 (March 8-14), Vivo’s market share in China reached 24%, followed by OPPO with 21%, and Huawei with 15%.
From the perspective of the overall domestic market structure, after Huawei stripped its glory, it left a huge market space, which intensified the competition in the Chinese smartphone market.
Counterpoint analyst Yang Wang said: “Vivo and OPPO are adopting active market and product strategies, and it is expected that these two brands will continue to compete for the top spot in 2021.”
The report released by IDC also predicts that the potential changes in the smartphone market pattern have stimulated a new round of market competition and further extended to the upstream supply level. Competition across the entire supply chain, especially on the chip side, will become more intense. IDC believes that “out of stock” will become the keyword of the industry in 2021, and the unstable situation on the supply chain side will continue for about 50% of the time in 2021.
The Realme had also met out of the crisis. In March today, the Realme GT official flagship store of JD.com showed that some areas were out of stock. Many users also stated on the black cat complaint that although the Realme GT mobile phone was purchased for a limited time at the Realme JD’s self-operated flagship store, they were told that there was no order that must be canceled.
However, Xu Qi said in an interview with a reporter from the Securities Times on April 19 that at present, Realme is fully stocked and will also be flexibly stocked according to market conditions in the future.
In fact, Realme, which focuses on cost-effectiveness, does not have a high profit margin. While setting a sales target of tens of millions of dollars, it will also enter the high-end market in order to obtain higher profits. Realme announced that it expects to launch its high-end flagship new machine this year, and its performance will be worthy of attention by then.