Introduction: Vivo and OPPO are two well-known companies in China, but the names of their founders are rarely known to the public.

Lishi | Author Lishi Business Review | Produced

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The smartphone industry has always been one of the most closely watched industries by the public. In this industry, there are two extremely successful Chinese companies, Vivo and OPPO, both spun off from BBK Electronics, which was founded by Duan Yongping, China's only entrepreneur, investor, and philanthropist. According to the latest sales data for the second quarter of 2024 released by a third-party agency, Vivo and OPPO rank first and third in China's smartphone sales, and fourth and fifth globally, respectively.

Two other Chinese companies that are on par with Vivo and OPPO are Huawei and Xiaomi. Due to their absolute dominance in China's smartphone market, they are collectively referred to as "Huawei-Xiaomi-OPPO-Vivo" (or "HMOV"). However, there is a significant difference among them: the public is familiar with Yu Chengdong and Lei Jun, the key executives of Huawei and Xiaomi, respectively, but most people do not know the names of the founders of Vivo and OPPO.

This is because in the smartphone marketing arena, Yu Chengdong and Lei Jun have been quite high-profile and often create controversial marketing topics, earning them the title of "internet celebrity entrepreneurs" in the Chinese business world. In contrast, Vivo's founder Shen Wei and OPPO's founder Chen Mingyong deliberately maintain a low profile. They rarely appear in public and never make comments about competitors, focusing instead on the company's internal operations, resulting in little public awareness of them outside the industry.

Currently, as Yu Chengdong, Lei Jun, and Zhou Hongyi, among others, have gained popularity on the internet as "internet celebrity entrepreneurs," many entrepreneurs have begun to follow their lead by posting on Weibo, making videos, and live streaming. However, I disagree with this approach, as it is not the right path for all entrepreneurs and may do more harm than good for most.

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Every business is an organization composed of many individuals, and the collective wisdom of these individuals shapes the company's products. These products gradually evolve into the company's brand through word-of-mouth recommendations from users. Therefore, a corporate brand is the crystallization of the collective wisdom of an organization, far exceeding any individual within it.

While corporate founders play a crucial role in the development of a company, they are imperfect individuals and cannot be compared to the collective wisdom of the organization. Some companies have good products and services, but their founders may not have a good image, eloquence, or cultivation. When corporate founders are overly exposed to the public, it not only fails to enhance the company's brand image but can also lead to a negative association between the founder and the brand, damaging the brand and undermining the fruits of the organization's collective wisdom.

For example, some entrepreneurs in the new energy vehicle industry have recently become typical cases. Nezha Auto, a new energy vehicle company with certain technical and product capabilities, has managed to survive among the many new entrants to the auto industry. However, under the encouragement of Zhou Hongyi, Nezha Auto's founder Zhang Yong, who is not adept at public appearances, was forced to frequently show up in public. His often outrageous statements and actions have significantly reduced Nezha's brand reputation in the eyes of the public and raised doubts about whether someone of his caliber could lead Nezha Auto successfully.

NIO was once a relatively successful brand in China's new energy vehicle industry, positioning itself as a premium brand. Its founder, Li Bin, has recently begun frequently recording short videos and conducting live streams. While these activities have generated some traffic, they have not added any value to NIO's brand and may even detract from it. NIO's premium image stems from its strategic positioning, brand strategy, and the collective efforts of employees across various systems, including R&D, manufacturing, marketing, and distribution. Li Bin's personal behavior on the internet may negatively impact NIO's premium brand image in the long run.

Other entrepreneurs in the automotive industry, such as Zhu Huarong, Chairman of Changan Automobile, and Wei Jianjun, Founder of Great Wall Motor, were once known for their low-key and down-to-earth demeanor, which contributed to their early successes and earned them respect in the industry. However, under the influence of the internet celebrity mindset, they have also opened their social media accounts and frequently post short videos aimed at attracting traffic.

However, those familiar with the automotive industry understand that such videos have little impact on car sales. Car buyers are highly rational, and most of their choices are based on the true value of the product. Only a small percentage of buyers may make irrational decisions due to information asymmetry caused by excessive marketing by internet celebrity entrepreneurs.

Furthermore, these internet celebrity entrepreneurs' excessive self-promotion and online performances can seriously damage the company's brand image in the eyes of the public and create an exaggerated and dishonest culture within the company, leading to mismanagement and distorted business practices, ultimately resulting in the loss of long-term development momentum.

Some may argue that Lei Jun and Xiaomi are examples of the power of the internet celebrity entrepreneur model. However, there are several misconceptions behind this argument.

First, Lei Jun's unique background makes it difficult for other entrepreneurs to emulate him. Lei Jun has built a strong personal brand through his involvement in Xiaomi's smartphone development and is known for his proficiency in internet marketing. Before combining his personal brand with Xiaomi Auto, he had already made sufficient preparations to showcase his best side to the public. In contrast, other entrepreneurs who appear in public without proper preparation often present a less favorable image.

Second, Lei Jun's personal brand has not played as significant a role in Xiaomi Auto's development as outsiders might think. Xiaomi Auto's initial success stems from its precise product positioning and the development of a solid product, which reflects Xiaomi's systematic capabilities in design, R&D, supply chain, and quality control. In addition to product strength, Xiaomi's early-stage brand and channel strengths contributed to the success of its first vehicle. Even if Lei Jun had not aggressively marketed himself as an internet celebrity, Xiaomi Auto's sales would likely have been similar with a more structured marketing approach.

Third, in the long run, Lei Jun's aggressive marketing efforts may not be beneficial to Xiaomi Auto's long-term brand image. For an industry like automobiles, which demands high standards of quality and safety, any brand's long-term success ultimately depends on the reliability of its products, not flashy marketing. As a new brand, Xiaomi Auto's first product is unlikely to be perfect, and the company should not blindly pursue sales volumes. When product quality is not guaranteed, higher sales volumes can lead to more negative word-of-mouth, which can be amplified by aggressive marketing.

Recent public opinion suggests that the novelty of Xiaomi Auto is rapidly fading, while negative word-of-mouth is on the rise. Incidents such as car breakdowns, brake failures, and paint peeling have occurred frequently. Early adopters of Xiaomi Auto had high confidence in the brand, but these issues are bound to damage their perception of it.

This negative sentiment will also spread to their relatives and friends, further eroding confidence in Xiaomi Auto. In fact, sales of Xiaomi's SU7 model have stagnated in recent weeks, according to weekly sales data for Chinese automotive brands. This indicates that Lei Jun's internet celebrity status has had little impact on Xiaomi Auto's sales.

Meanwhile, Lei Jun's focus on marketing has undoubtedly reduced the time he can devote to product quality and service. A company's ultimate performance reflects its strategic priorities. Without sufficient attention to product quality and service, these issues will inevitably surface. The various negative reviews of Xiaomi Auto since its launch can be attributed to this lack of focus. For example, Xiaomi acknowledged that the issue of unanswered 400 calls was due to a shortage of professional customer service representatives.

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Despite being in the consumer electronics industry, which directly serves end-users, Vivo's Shen Wei and OPPO's Chen Mingyong rarely appear in public like Lei Jun and Yu Chengdong. Even at the launch of their companies' flagship products, they delegate the presentations to subordinate employees.

Their low-key demeanor is one reason for this, but more importantly, it stems from the "Benfen" culture that Vivo and OPPO have inherited from BBK Electronics. "Benfen" means delving into the essence to understand what is right. For a company, success depends not on the personal influence of its founder but on its systematic capabilities in R&D, product development, supply chain, branding, distribution, and service, as well as a strong brand image and positive word-of-mouth. To strengthen these systematic capabilities and improve customer feedback, companies cannot rely solely on the influence of their founders but must cultivate capable subordinates in key business areas.

If a company's CEO frequently appears in public, overshadowing the efforts of business unit heads, it can disrupt the overall operation of the organization. Eventually, subordinates' sense of responsibility and initiative will weaken, and the CEO will become increasingly burdened. Lei Jun and Yu Chengdong are often regarded as "workaholics" in China's smartphone industry, which may be related to their overexposure. In contrast, despite appearing less diligent and remind than Lei Jun and Yu Chengdong, Shen Wei and Chen Mingyong have led Vivo and OPPO to achieve results comparable to Huawei and Xiaomi in the smartphone market.

Another example is BYD, the leader in China's new energy vehicle industry. Despite the continuous success of its popular models in recent years, its founder Wang Chuanfu remains calm and does not rely on his personal influence to market products. Instead, he has cultivated in-house leaders for each brand, such as Hu Xiaoqing, General Manager of BYD's Look up (Yangwang) brand, Xiong Tianbo, General Manager of the Fang Chengbao (Fangchengbao) brand, and Zhao Changjiang, General Manager of the Tengshi (Tengshi) brand. They lead their teams in promoting products through structured marketing efforts rather than focusing on videos, live streams, and social media battles. Notably, both Hu Xiaoqing and Xiong Tianbo are low-key female leaders.

For a truly valuable and exceptional brand, it transcends any individual. Binding the brand too closely to an individual can hinder it from establishing a unique brand tone that surpasses the individual. Although Hu Xiaoqing and Xiong Tianbo may not be widely known to consumers, they have contributed to the rise of BYD's Yangwang and Fangchengbao brands in China's automotive industry.

Recently, China's new energy vehicle industry has seen the emergence of another "dark horse" brand: Leapmotor, which sold over 30,000 vehicles in August, making it the third new energy vehicle brand (after LixiangONE and AITO) to exceed this monthly sales milestone, ahead of well-known brands like NIO and XPeng. Leapmotor's founder Zhu Jiangming, who comes from a traditional industrial background, also keeps a low profile, focusing instead on grasping market opportunities and delivering quality products. Its recent sales surge can be attributed to the success of its newly launched mid-size flagship SUV model C16.

Entrepreneurs becoming internet celebrities should be a natural result of their companies' recognition by consumers, not a means of misleading consumers' rational decisions through hype. Therefore, I advise Chinese entrepreneurs not to be swayed by the behavior of internet celebrity entrepreneurs like Lei Jun, Yu Chengdong, and Zhou Hongyi. Instead, they should return to the essence of business, learn from entrepreneurs like Shen Wei of Vivo and Chen Mingyong of OPPO, focus on building a strong core team, and deliver key work in R&D, manufacturing, branding, distribution, and service to achieve long-term strategic victory through positive word-of-mouth, rather than seeking fleeting traffic through personal hype.