Since then, Honor and Xiaomi have forged an indissoluble bond. On March 17, 2014, Xiaomi launched Redmi Note with the slogan “Always believe that beautiful things are about to happen”. Two days later, Honor also launched new products with the slogan “Better things have happened”; April 8 , Xiaomi hosted the rice noodle festival, on the same day, glory hosted the carnival; Xiaomi’s “Theme Design Contest” slogan is “This time, we are the whole point”, and then the “Huawei EMUI Global Mobile Theme Design Contest” held by Huawei, the slogan is ” This time, we are even bigger.”
At the end of the seven years when Huawei used Honor to fight, the Honor brand is also growing. In 2016, Honor surpassed Xiaomi in terms of shipments; in 2017, it approached Xiaomi (Xiaomi and Redmi totaled 91.41 million units) with more than 90 million sales. In that year, it earned more than 10 billion U.S. dollars in revenue. After that, Honor upgraded its brand and strategy. The vision was upgraded from lowercase honor to uppercase HONOR, and the brand slogan became “HONOR MY WORLD”. This is in sync with Honor’s internationalization strategy.
In its own product line, Honor not only has the low-end X series and Note series, but also the high-end Magic series. It not only competes with Xiaomi, but also competes with Huawei P and Mate series.
In terms of channels, as early as 2015, Honor began to expand offline channels due to the ceiling of online channels. Now, it is not satisfied to be an Internet brand Honor. After five years of quiet penetration, it overtook online channels in the first half of this year. . And offline stores and Huawei are independent.
In terms of mobile phone sales, Honor also accounts for a considerable share of Huawei’s mobile phone sales. Statistics from Canalys show that in the Chinese market, in the second quarter of this year, Huawei surpassed Samsung and Apple in shipments of 55.8 million units, of which Honor accounted for 26% and shipped 14.6 million units; the third quarter of this year Glory also accounted for 26% of the 34.2 million smartphones shipped by Huawei.
In the past seven years, Honor has not only gained its own user base in the fierce competition with Xiaomi, and fulfilled its task as a sub-brand of Huawei, but also strengthened itself and laid the foundation for the next independence. The question is, what will the relationship between Honor and Xiaomi become without the support of Huawei?
Can the eagle leaving the nest find its own glory?
After the joint acquisition statement was issued, Huawei also issued a statement on its official website to formally respond to the sale of Honor. Huawei said that at a difficult time when industrial technology elements are unsustainable and consumer businesses are under tremendous pressure, in order to allow the continuation of Honor channels and suppliers, Huawei Investment Holding Co., Ltd. has decided to sell Honor business assets as a whole. For this acquisition, Huawei defines it as a self-help behavior initiated by the glory-related industry chain.
According to the analysis of relevant sources, Huawei is experiencing a chip supply cutoff due to the ban, and the divestiture of Honor can alleviate the dilemma of no “core” available for its smartphone business in the next two years. For Honor, the deeply imprinted Huawei sub-brand label undoubtedly limits its ceiling. As a result, Honor has also been trying to de-Huawei in recent years. Independence is a good thing.
article links： Can the eagle leaving the nest find its own glory?
Reprint indicated source：Spark Global Limited information