Under the general trend of economic globalization, it has become an inevitable choice for Chinese technology companies to expand overseas markets.

For domestic mobile phone companies, promoting the expansion of the global business landscape has enormous business potential, and overseas markets are the key growth engine for the future.

At present, Chinese mobile phone manufacturers have both gains and setbacks in overseas markets. Faced with a complex and diverse market environment, the smart phone industry faces new opportunities and challenges when going overseas - as the global mobile phone market warms up, the high-end market will usher in a new round of growth, and the market needs new high-end players.

The globalization of Chinese mobile phone companies has progressed from pursuing scale to pursuing high value. And in the wave of going overseas, a benchmark is needed to bring successful experience and inspiration to the industry.

OPPO has been going overseas for 15 years and can compete with Samsung and Apple in many countries and regions. Observing its overseas development trajectory may provide a new sample for Chinese enterprises to go overseas.

Chinese enterprises going overseas have embarked on a new journey of opening up markets with high-end products.

The globalization proving ground

Chinese technology companies have never lacked ambition to enter the global market.

Around 2010, after Chinese mobile phone brands dominated the domestic market, they sparked the first wave of going overseas. The main strategy at the time was to use cost-effectiveness to open up market scale. However, while competing for sales volume, Chinese mobile phone brands did not occupy high value-added areas of the industrial chain.

With the significant improvement of Chinese technology companies' innovation capabilities, some new changes are taking place.

In the current context of "high intragroup competition" in the domestic market, overseas markets have become a key growth engine for domestic mobile phone brands and a huge opportunity for domestic mobile phone brands to stand at the top of the global industrial chain. After all, being able to gain a foothold in the most competitive Chinese market means having considerable competitiveness in the international market.

As the famous German management scholar Hermann Simon once said, "Ambition, expertise, and globalization are the three pillars combined with a long-term strategy, which is the secret to the success of 'hidden champions'."

Globalization is the inevitable path for Chinese technology companies to forge ahead, and OPPO, which has struggled in overseas markets, is currently a highly potential "hidden champion."

Observing OPPO's globalization trajectory, it can be said that every step is well-planned, with a clear strategic route, following a path of "Southeast Asia - Europe - Latin America." The method lies in first replicating successful experiences in the Southeast Asian market, which is similar to the domestic market, then entering high-potential markets to enhance the brand's global influence, and finally exploring potential markets to tap into growth space.

OPPO has been established for 20 years and has been going overseas for 15 years, achieving remarkable results through long-term stable operations both domestically and overseas. In the second quarter of this year, while occupying the second place in the domestic market, its overseas ranking is also steadily improving.

In the basic Southeast Asian market, OPPO ranks first in Vietnam, Thailand, and Cambodia, and second in Indonesia; in the mature European market, it temporarily ranks fifth, and ranks second in Portugal and Finland; in the emerging Latin American market, it temporarily ranks fourth in Mexico and is rapidly expanding in Argentina and Brazil this year.

The global market is a proving ground for mobile phone companies and a touchstone for flagship phones. Only flagship phones with excellent quality can be widely welcomed in different global markets, demonstrating the highest gold content. According to Canalys, OPPO ranks in the top three in the high-price segment above US$500 in 14 markets, including India, Thailand, Vietnam, New Zealand, Belgium, and Portugal.

The slab flagship OPPO Find X8 series will soon be officially released globally and will soon be available in more countries and regions such as Asia-Pacific, Europe, and Latin America, marking a new stage in OPPO's overseas journey.

Touching people with high-quality products and services without engaging in price wars means that OPPO has taken the lead in becoming a benchmark for Chinese mobile phone companies going overseas.

A new journey of high-end overseas expansion

Gary Hamel, a management guru, put forward the theory of "industry foresight" - determining a company's long-term competitiveness lies in formulating a future-oriented competitive strategy. This, first and foremost, requires the company to have insights into future industry trends.

All companies that have taken the lead have forward-looking insights and adhere to a long-term strategic determination.

Chinese technology companies going overseas need to formulate corresponding competitive strategies based on the new global market situation. For domestic mobile phone brands, to truly win the "trial" in the global market, they must abandon the previous price wars and truly provide high-quality, high value-added products and services.

This is closely related to the current development trend of the global smart phone market.

Market research institutions such as Counterpoint and Canalys have unanimously predicted that global smart phone shipments will exceed 1.2 billion units in 2024, an increase of 5% year-on-year, ending two consecutive years of decline.

Among them, the growth momentum in the high-end market is particularly evident. From 2018 to 2023, the market for price segments above US$600 saw a compound annual growth rate of 6%, far exceeding the overall market level.

However, for a vast number of overseas users, there are limited options for high-end flagships. Samsung and Apple, the top two in market share, appear complacent, with iterative models still following a "squeezing toothpaste" upgrade strategy from product design to core configuration. For example, in September this year, Apple brought the "most boring" press conference ever, with the lack of innovation in the iPhone 16 series drawing criticism from countless users both at home and abroad.

What is a better option? According to data, shipments of OPPO's slab flagship Find X series increased by 98% year-on-year in the first half of 2024. The high recognition of OPPO flagship models by overseas users directly validates the gold content of OPPO's high-end phones in terms of functionality and experience.

The upcoming OPPO Find X8 series, which will soon enter the global market, is expected to reach new heights, equipped with functions such as quick capture buttons and system-level AI, which can bring users a brand-new experience.

In terms of photography, the OPPO Find X8 series features breakthrough shadowless capture and integrates a series of new OPPO SuperVision features such as AI telephoto, super clear live photos, film style, and soft light portraits, continuing to lead the aesthetic progress of mobile imaging. Users can easily capture stunning moments filled with atmosphere with just a lift of their hands.

△OPPO Find X8 series shadowless capture function

AI is an important development direction for current smart phones. A phone cannot be considered a flagship without AI.

The OPPO Find X8 series brings a new generation of system-level AI, equipped with a highly efficient one-click screen inquiry function that is applicable in a wide range of scenarios. With just one click, OPPO AI can be activated and conduct intelligent interactions based on the current screen information. It can not only engage in continuous, multi-round natural conversations with users but also seamlessly operate across applications, providing users with services such as object recognition, question and answer, and navigation, bringing users a relaxed and convenient intelligent experience.

With its powerful configuration and capabilities, the OPPO Find X8 offers an alternative to Apple users. OPPO's struggles on its overseas journey have once again proven that the pursuit of Ultimate productism will ultimately triumph.

The best model of globalization

Going overseas is not easy. Over the years, many Chinese companies have laid out overseas operations, but most have encountered setbacks, not only failing to gain local recognition but also suffering considerable losses.

OPPO's outstanding overseas performance has made it an excellent model for Chinese technology companies to learn from. Analyzing its secrets to success can provide valuable experience for other Chinese companies going overseas.

'Going overseas requires deep diving,' as OPPO Chief Product Officer Liu Zuohu once said. The best globalization is localization. When entering vastly different overseas markets, past operational experience cannot be a "one-size-fits-all" solution, and it is necessary to respond flexibly and adapt to local conditions.

△Liu Zuohu speaking about going overseas at a media roundtable

OPPO's approach is to customize high-quality products after insights into local user needs, combined with "capillary-like" services that respect and protect local culture and bring humanistic care to local employees.

By practicing this philosophy, OPPO has achieved the highest level of localization - in the perception of overseas market users, OPPO is a local brand, not a foreign one.

Specifically, OPPO attaches great importance to the actual experience of overseas users and customizes product solutions according to different market demands, striving to provide the most suitable products for local users.

At the same time, OPPO's retail and service network has built an unassailable moat for its global business, with over 300,000 retail stores worldwide and more than 3,300 self-operated offline after-sales service stores globally, ensuring that products reach a wider range of users and providing timely and comprehensive pre- and post-sales services.

If a company's value is divided into three dimensions: user value, commercial value, and social value. Most companies going overseas consider user value and commercial value, which are closest to money, while neglecting social value.

It is not difficult to sell products, but to truly create long-term value, one must answer the core question of "what can be brought to the local area."

Therefore, in addition to directly providing products and services, OPPO adopts an "integrated vendor" entry model to continuously empower local partners such as retailers. This brings more far-reaching benefits to the local area, creating local jobs and cultivating local talent. Today, more than 95% of the management personnel in the Indonesian factory are locals.

In addition, it can generate long-term value in areas such as cultural preservation, environmental protection, and digital inclusion, achieving a sustainable and win-win cooperation model for all parties.

From this perspective, OPPO's overseas expansion has not only paved the way for its own globalization but also showcased a new image of Chinese technology companies in the global market.

Conclusion

In the wave of globalization, companies going overseas are destined to encounter setbacks, and navigating through various uncertainties is indeed a formidable challenge.

Only by bidding farewell to the competitive approach of winning by scale and instead engaging in high-quality competition in overseas markets with excellent products and services can Chinese technology companies sail far and break waves.

OPPO has become an important force in the global market and set an example for Chinese technology companies with its excellent product and service capabilities and increasing brand influence.

With the improvement of innovation technology, the recognition and acceptance of Chinese technology brands in overseas markets are gradually increasing. It is believed that the story of Chinese technology companies going overseas will be much more exciting than this.