ZTE USA plans to build brand
Updated: 2016-01-11 10:47
By Amy He in Las Vegas(China Daily USA)
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Cheng Lixin, ZTE USA CEO, uses an Axon mobile phone on display at CES 2016 in Las Vegas. The Axon devices are ZTE's high-end smartphones for the American market. Cheng told China Daily that ZTE USA is aiming to solidify its market share in 2016 for entry- and mid-level smartphone users and create a sense of brand loyalty among customers. Amy He / China Daily |
ZTE USA's 2016 resolutions are to strengthen its position in the entry- to mid-level smartphone segment and provide more value to customers for its high-end products, all while continuing to build a brand true to its roots, the company's CEO said.
On the entry-level front, the smart-device manufacturer unveiled two new smartphones at CES 2016 in Las Vegas last week - the Grand X3 and Avid Plus - that its US CEO Cheng Lixin said continues the company's strategy of releasing "affordable premium" products.
Cheng defines that phrase as affordable devices that offer premium experiences, and said that ZTE aims to produce the devices for every segment of the smart-device market.
"We are solidifying our market position in this area," Cheng said in an interview with China Daily on the sidelines of CES. "Affordable premium is not only for entry level. It's for entry, middle and the high tiers. Consumers always have different definitions of what are considered premium features, premium experiences.
"Affordability for different segments - high, middle, entry - is also different, and so ZTE is having affordable premium for each segment," he said.
The company currently has 22.5 million active US users in the 18-34-year-old demographic, and ZTE is the fourth-largest smartphone supplier in the US.
But many American consumers do not know about the company or its smartphone products.
ZTE has been embarking on a brand-awareness campaign through partnership with the National Basketball Association (NBA) as an official sponsor of five NBA teams: the Houston Rockets, the Golden State Warriors, the New York Knicks, the Cleveland Cavaliers and the Chicago Bulls.
"We're always looking for teams that share the same aspirations and also the same commitment to the communities. We have the same aspirations to be the winner in the mobile industry or on the basketball court," Cheng said.
There are more than 23 million fans for those five teams in the United States. In China, there are roughly 240 million NBA fans, and another 350 million fans worldwide, "so we expect this year we would be able to get much broader reach to our customer base worldwide," said Cheng.
The brand-awareness campaign has been successful so far, he said. In 2013, there was only about 1 percent brand awareness among smartphone users, meaning that for every 100 smartphone users, only one person knew what ZTE was, according to company statistics.
By 2014, that number went up to 16 percent, and then more than doubled to 34 percent in 2015. The company expects that number to double in 2016, and that's a "conservative estimate", Cheng said.
At CES, ZTE received four awards by the International Data Group (IDG), one of the leading tech and media research companies. It received awards for Global Smart Connected Devices Top 10, Global Smart Phones Top 10, Global Top 50 CE Brands, and Top 10 Brands from China.
The company's marketing endeavors are part of its strategy to understand the local market and to stay true to its brand values, he said.
"Our founder also said that ZTE's global success comes from local wisdom," he said. "You have to achieve this through localization. We can talk with the US community and US consumers in a way they can understand.
"Many companies try to come here and try to appear as American companies, but that's not being true to yourself," Cheng said. "You have to be true to yourself, to the inside beauty of your brand."
This year, the company also will focus on building brand loyalty among customers by providing more services to users of its Axon high-end phone. In addition, it's rolling out a community platform that will allow better communication engagement with fans and users and it will be a community led by ZTE customers, Cheng said.
amyhe@chinadailyusa.com
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