- About GODROPSHIPPINGViews: 94 May 20, 2021 at 11:53:22 AMGODROPSHIPPING-EasyDropShipping provides safe one-stop intelligent trusteeship for Shopify, WooCommerce, eBay, Lazada, Shopee sellers, which helps you improve efficiency of your stores’ operation. Just one click of the button, you can batch process orders and publish products with pictures, descriptions and prices to your stores. GODROPSHIPPING-EasyDropShipping offers quality and bountiful supplier recourse, fast shipment and exclusive 24h/7d quality customer services.
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- 6 free marketing tactics you can start todayViews: 71 May 13, 2021 at 9:49:43 AM
Marketing by definition is the action or business of promoting and selling products or services, including market research and advertising. In basic terms, it's connecting with your customers. And it's an essential part of e-commerce. In this article, we'll cover six easy ways you can mark yourself authentically and for free.
A blog is a great place to share your expertise.
If you're the writer, it's essentially free and it can bring in organic traffic. While you won't see massive results on day one, starting a blog establishes your brand as a trustworthy source of relevant information and helps your business climb Google search results. Yeah, it takes time. But if you stick with it and create content that is always relevant like a recipe, for example, it can be a powerful source of traffic long term.
How about adding a social channel, maybe Twitter, Instagram, or Facebook, these are natural spots to connect with your community. But don't just stick with what's familiar. Consider TikTok, Snapchat, LinkedIn, and Pinterest, go where your customers already hang out. No need to start an account on every platform, just choose the one where your customers are and start there. Discounts, this is a tried and true way to draw in your customers.
Think seasonal offers, special deals when items are purchased together, or bundles on products that complement each other, like rain boots with an umbrella. For ideas, check your store's data to see what your customers purchase together more often. Did you know to make this easier, some Shopify themes include a product recommendation tool? Or you can use a product recommendation app from the Shopify app store.
Upsell your products. Persuade your customers to choose this year's model versus last year's. That might mean getting the fancier version or the larger option. Just make sure your upsells are related to the original products and be sensitive to your customers price range. Email campaigns don't have to be intimidating. To make it easier, they're built into Shopify. By default, your store will automatically send abandoned cart emails, receipts, and shipping conformation, all of which you can customize to your liking. It's a built in email marketing tool. Technically not free but very affordable when you consider the sales it can earn you. If you decide to send emails, keep them at a regular cadence, don't overwhelm your customer. And always think about the value that specific email is providing to the recipient.
Returns aren't great for you but they are important to customers. A return policy eases your customer's purchase decision making and builds trust with your brand. To tie-in tip 5 with 6, remind your customers of your return policy in one of your monthly emails. In fact, many of these tips shared today can be combined. The more you focus on the value you're delivering to your customers, the more effective your marketing will be.
For more marketing tactics, check out other articles on our websites!
- The Five Core Pillars of Social Media MarketingViews: 56 May 12, 2021 at 10:32:43 AM
A Quick Overview of Social Media Marketing
Social media marketing first started with publishing. Businesses were sharing their content on social media to generate traffic to their websites and, hopefully, sales. But social media has matured far beyond being just a place to broadcast content.
Nowadays, businesses use social media in a myriad of different ways. For example, a business that is concerned about what people are saying about its brand would monitor social media conversations and response to relevant mentions (social media listening and engagement). A business that wants to understand how it’s performing on social media would analyze its reach, engagement, and sales on social media with an analytics tool (social media analytics). A business that wants to reach a specific set of audience at scale would run highly-targeted social media ads (social media advertising).
As a whole, these are often also known as social media management.
The Five Core Pillars of Social Media Marketing
Before you dive right in and publish something on social media, let’s take a step back and look at the bigger picture. The first step is to think about your social media strategy.
What are your goals? How can social media help you achieve your business goals? Some businesses use social media for increasing their brand awareness, others use it for driving website traffic and sales. Social media can also help you generate engagement around your brand, create a community, and serve as a customer support channel for your customers.
Which social media platforms do you want to focus on? The major social media platforms, mentioned above, are Facebook, Instagram, Twitter, LinkedIn, Pinterest, YouTube, and Snapchat. There are also smaller and up-and-coming platforms, such as Tumblr, Tik Tok, and Anchor, and social messaging platforms, such as Messenger, WhatsApp, and WeChat. When starting out, it is better to pick a few platforms that you think your target audience is on than to be on all platforms.
What type of content do you want to share? What type of content will attract your target audience best? Is it images, videos, or links? Is it educational or entertaining content? A good place to start is to create a marketing persona, which will help you answer these questions. And this doesn’t have to be fixed forever; you can always change your strategy according to how your social media posts perform.
To help you create a great social media strategy, here are our long-form, step-by-step guides on creating a social media strategy and social media marketing plan.
2. Planning and Publishing
Social media marketing for small business usually starts with having a consistent presence on social media. Close to three billion people (3,000,000,000!) use social media. By being present on social media platforms, you give your brand an opportunity to be discovered by your future customers.
Publishing to social media is as simple as sharing a blog post, an image, or a video on a social media platform. It’s just like how you would share on your personal Facebook profile. But you will want to plan your content ahead of time instead of creating and publishing content spontaneously. Also, to ensure that you are maximizing your reach on social media, you need to publish great content that your audience likes, at the right timing and frequency.
There are now a variety of social media scheduling tools, such as Buffer Publish, that can help you publish your content automatically at your preferred time. This saves you time and allows you to reach your audience when they are most likely to engage with your content.
3. Listening and Engagement
As your business and social media following grow, conversations about your brand will also increase. People will comment on your social media posts, tag you in their social media posts, or message you directly.
People might even talk about your brand on social media without letting you know. So you will want to monitor social media conversations about your brand. If it’s a positive comment, you get a chance to surprise and delight them. Otherwise, you can offer support and correct a situation before it gets worse.
You can manually check all your notifications across all the social media platforms but this isn’t efficient and you won’t see posts that didn’t tag your business’s social media profile. You can instead use a social media listening and engagement that aggregates all your social media mentions and messages, including posts that didn’t tag your business’s social media profile.
Along the way, whether you are publishing content or engaging on social media, you will want to know how your social media marketing is performing. Are you reaching more people on social media than last month? How many positive mentions do you get a month? How many people used your brand’s hashtag on their social media posts?
The social media platforms themselves provide a basic level of such information. To get more in-depth analytics information or to easily compare across social media platforms, you can use the wide range of social media analytics tools available, such as Buffer Analyze.
When you have more funds to grow your social media marketing, an area that you can consider is social media advertising. Social media ads allow you to reach a wider audience than those who are following you.
Social media advertising platforms are so powerful nowadays that you can specify exactly who to display your ads to. You can create target audience based on their demographics, interests, behaviors, and more.
When you are running many social media advertising campaigns at once, you can consider using a social media advertising tool to make bulk changes, automate processes, and optimize your ads.
- 4.27 Shopify's April Top Products newsletterViews: 56 Apr 29, 2021 at 11:23:52 AM
On April 27, Shopify released its top picks for April trends bulletin. More people are joining the campers this year, with searches for related merchandise sleeping bags reaching an all-time high in March, Shopify said, In the first three months of this year, consumer search interest in sleeping bags has remained above the level seen in May last year.
Other items listed by Shopify in its April trending list include golf shoes and other golf-related products, raw dog food, mesh shorts, see-through heels, platform shoes, mullers, sandals, and bike shorts.
- What are the Trending Products to Sell Online?Views: 52 Apr 28, 2021 at 8:12:05 PM
To succeed in ecommerce, you need three things: in-demand products to sell, the skills to market them, and the drive to succeed. These trending products so far towards the end of 2020 are also seemed to be trending products in 2021 including new products.
The trending products can be used to build new online businesses or, great products to add to an already running business. Since each trending product is meant for a distinct audience, we’re also sharing niche-specific tips for reaching new customers.
Consumers have been affected by the COVID-19 pandemic, changing their consumer behavior to buy products online, now, more than ever.
Another great advantage of selling trending products is that you can setup your ecommerce store fast and start selling in days.
We have invested our resources and did our best to conduct an in-depth market research to create this comprehensive list of trending products to sell.
The trending production this list are the best products to sell online and based on the past 12months from data collected from Amazon, Shopify, Google Trends, Google Shopping & eBay platforms.
While some may say that you should not sell trending products, or whatever everyone else is selling right now. But the fact is that the best products to sell online are the trending products.
These trending products on are also available to sell in dropshipping on your ecommerce store.
Trending Products to Sell in 2021
Browse the list of trending products to sell in 2020 and 2021 you can use to start your online business or ecommerce store:
3) Peel-off Face Mask
4) Nail Polish
6) Dog Bed
7) Exercise Bands
8) Wearable Devices
9) Water Bottles
10) Posture Corrector
12) Yoga & Pilates Mats
13) Kayak Accessories
14) Jigsaw Puzzles
15) Kitchen & Dining Chairs
16) Beard Oil
18) Board Games
19) Laptop Skins
20) Ring Lights
21) Chess Board
22) Led Tree
23) Dog Jacket
24) Lift Leggings
25) Massage Gun
26) Air Fryer
27) Dogs Supplements
28) Sleep Gummies
- How to build your brand?Views: 42 Apr 29, 2021 at 10:39:12 AM
The importance of branding can’t be overstated. Good branding will set you apart from your competition and keep customers coming back.
But how do you go about branding your business? What does that even mean?
Instead of explaining branding with vague terms like “visual identity” and “sans serif font family,” we’re going to go over how to build a brand step by step.
By the end of this post you’ll know how to:
l Identify brand buzzwords on Instagram
l Find a click-worthy business name
l Create a memorable logo
l Communicate your brand to customers
Ready to get started? Let’s build a branding strategy!
Why Branding Matters
Branding your business is super important, and that’s especially true if you’re dropshipping with Shopify.
That’s because there’s typically more than one dropshipper selling a given product. Good branding sets those sellers apart from one another and big-box competitionlike Amazon.
By the way, if you’re new here, dropshipping is one of the easiest ways to start an online business. Instead of buying tons of inventory for your Shopify store, you only order products when you get sales. Your supplier ships your orders for you, so you can sell all over the world! But being a successful dropshipper requires constant learning.
Which is why we’re here today: Let’s look at what building a brand looks like. We’ll take men’s jackets as an example. I want to sell jackets like this one:
This street style should play well with customers, plus the order count data inside GoDropshipping confirms that its a popular item. However, this jacket is about$40 with shipping. I want to sell it for at least $59.99 to make a profit.
To get sales at such a high price point, we need to build a brand. That brand should convey that my products are high-quality and worth the high prices charge for them.
But let’s stop for a second. What is a brand?
What is a Brand
A brand is the impression a store has on its customers. Online stores make these impressions through a combination of store design, copywriting, color palettes, and imagery.
In other words, imagine your store was a person you met on the street. What would your store look like? How would they walk? How would they talk? What would they say?
There’s actually a correct answer here.
Your store should look like, walk like, and talk like… your customers.
We’re attracted to what we already recognize, and that goes for online stores as well as people. So if you build a brand that feels familiar to your customers, you’ll get more sales.
But wait. We’ve only just chosen what I want to sell. We don’t have any customers. How we are supposed to know what they look, walk, and talk like?
Enter the first step of branding your business. Head straight to Instagram.
Step 1: Research Relevant Instagrammers
First I’ll find out who our customers are. Not like their full names, but their personalities. I want to know what they wear, what vibes they give off.
Todo that, I’m going to find people who are already using my product or something like it. I searched for hashtags relevant to my niche – men’s fashion – and to this particular product – denim jackets, shearling jackets, and men’s jackets. Then I scrolled through the top posts, looking for captions that really said something.
Step 2: Create a Business Name
A lot of entrepreneurs spend hours stressing over their business name. It doesn’t have to be like that. When it comes to branding your business, there are three criteria for a good business name.
First, your business name should make it fairly obvious what you’re selling. Lots of brands break this rule and do just fine. But if you’re just starting out, don’t make your customers guess what you sell. In my case, I want words related to jackets, outerwear, or menswear in my business name.
The second rule of a good business name is that the name is somehow connected to my brand buzzwords.
And the third rule is that the business name has to be available as a dot com. Ideally, the name is available on social media channels too.
With these rules in mind, let’s find a business name for my jacket startup.
Now I’ll type the word jackets. That checks off my first rule of finding a good business name, since the word jackets relates to what I’m selling.
Step 3: Create a Logo
I’ve got to create a logo. For this step, I'll head on over to free logo creator tool. I'll choose my niche and visual style, them it will present me a tone of logo options.
Step 4: Keep it Going!
There are lots more tips to how to brand an online store. The images on your website should fit the brand, and so should the font. So for my store, I’m going for courage and masculinity. Therefore, I wouldn’t want a playful font. I’d want something strong. The same philosophy should dictate the images you choose, the product descriptions, and everything else that people will connect to your store.
- How to market to millennials: 10 pro tipsViews: 36 Apr 29, 2021 at 4:01:58 PM
By now, it should be clear that millennials have huge spending power in this year and in the future. They are very clear about what they want. So, how do we really attract their attention?
1. Tell a story with your brand
Millennials do not trust traditional marketing, but want to hear relevant and inspiring stories or missions of brands. What drives you to start your own business? What demand do you see in the market and how to achieve it? These questions must be answered when marketing to millennials. Tell your story on your website and through engaging content on social media channels.
2. Make participation real
As a generation that values brand connections, millennials are more inclined to favor brands that speak to them. For example, if you see a question about goods or services on Twitter or Instagram, please reply! Thank customers for their comments and feedback. Show that you are sensitive and alert will earn points.
3. Let customers become your word of mouth
Comments and recommendations are important. In fact, 97% of millennials read reviews before shopping, and 89% believe in what they read. Again, this is not surprising, because millennials have a high value for brand authenticity. If you have an online business, make sure to add a customer reviews section on your website-if you are not sure where to start, we will provide you with excellent additional features.
4. Socially cool
As we mentioned earlier, millennials are all online on social media, so setting up an account is definitely a good idea so you can post content to tell your brand story, believe in, and sell your products.
Use interactive features such as Instagram Stories and polls on Instagram and Twitter to attract millennials and get feedback from them. Launch a product? Show some behind-the-scenes stories in a story. Is your product development stuck between the 3 colors of the product? Ask your audience what they like best.
5. Look for influencers
In the age of social media and related needs, millennials look for people like themselves as sources of authority (not celebrities). Therefore, please do not hire A-list actresses-contact influencers to sell products for the campaign. Ask him or her to tell a true and interesting story that millennials can connect with.
6. Beyond the classic paid advertising
Millennials spend a lot of time online, which makes them almost immune to traditional advertising. If your store’s products are suitable for shouting out or launching giveaways, go for it! Working with influencers in your business environment, you will be able to create memorable, natural-looking posts that don’t look like annoying direct ads and are therefore more likely to trigger the desired action.
7. Use memes
If you regularly browse social media or follow pop culture accounts, then you definitely know what memes are. Memes are defined as humorous images, videos or texts spread by social media users, which are popular because of relevant and interesting news. They represent a relevant community, which is vital to millennials.
Memes are a powerful marketing strategy, if you can incorporate some memes into the brand voice and personality. And, if you succeed, memes can increase engagement because people often share memes on platforms such as Twitter and Instagram, helping you follow along the way.
8. Make the content visual
Whether you are preparing a Facebook post or writing a draft for an in-store blog post, make sure that your input ideas are immediately clear and clear. Generally, millennials tend to "scan" the content they encounter. Therefore, when creating text, use shorter sentences and paragraphs, bulleted or numbered lists, and subheadings that explain the purpose of these parts of the text. Moreover, no matter what type of content you use, you need high-quality infographics, GIFs, non-stock photos and other branded visual effects, which can be explained faster and better than words.
9. Create a successful user experience
What happens after a person likes your ad and decides to check out your offer? That's right: this Internet user visits your store and expects it to be easy to use and navigate.
Given that millennials usually use mobile devices for web surfing, your goal is to create a shopping destination that does not require mobile and does not confuse visitors about the next on-site steps.
10. Show your company culture and values
As we pointed out, millennials love companies that present relevant and inspiring stories. Keeping pace with it is the company’s culture and its values. Do you work leisurely and have a relaxed working environment? Are you making continuous sustainability efforts? Do you give back to the community and organize socially responsible activities?
These are things to be considered and displayed on social media channels to attract millennials and professional platforms such as LinkedIn to take advantage of the company’s image and attract potential hires.
- What is a social media marketing strategy?Views: 17 Apr 29, 2021 at 4:27:16 PM
For the sake of making it easy to get started, there are five essential pillars to consider when creating your social media strategy:
Goals: Define the outcomes of your efforts and how you’ll measure them.
Target Audiences: Research and profile your ideal customer.
Content Mix: Create social media programming based on recurring content archetypes.
Channels: Choose the best of the available social networks you want to dedicate your time to and what you’ll use them for.
Process: Set up the infrastructure and tools to execute your stretagy efficiently.
This isn’t a prescription for social media success, only a framework to lay the foundation. By the end of this guide, you’ll hopefully be better equipped to understand how all of these considerations are connected and inform each other to make smarter decisions and revise your social media strategy over time.
Setting goals for your social media marketing plan
Everything you post or do should be tied back to one of your goals as a business owner. To start, define what these goals are and think about how you’ll measure the success of your efforts.
Social media marketing requires a lot of testing and trying things out; you can’t improve any particular aspect of it without knowing what signals to pay attention to. You can even use these signals (which will vary from channel to channel) to define targets for your social media efforts to help you stay motivated and on track.
Here are just some of the goals you should consider for your social media marketing, which you can add to your strategy over time:
Drive brand awareness: Reach more people to increase the likelihood of your brand getting seen by the right people. You can measure this using impressions/reach, likes, shares, mentions, or any other signal that shows a real person has seen your post(s).
Create demand for your products: Get people interested in your products with relevant inspiration or education, which you can gauge by clicks to your site, products added to a shopping cart, or comments/messages from interested customers.
Acquire leads: Get your audience to convert into email subscribers, which you can then nurture into sales off of social media for free. This can also mean building an audience of interested shoppers you can retarget with ads.
Get sales: These are paying customers that come from your social media efforts and can be measured by number of orders or revenue.
Drive offline traffic: If you’re a retail business or are hosting events, one of your goals might be drive people to a specific location in real life.
Network to form partnerships: Engage with influencers or like-minded brands for influencer marketing or co-marketing campaigns.
Build a loyal following: Grow an engaged audience that wants to hear from you; don’t inflate your follower count with fake or bought followers. You want to build an authentic community of people who are interested in your products, and who will promote your content or products to others. You can measure this by followers you’ve added or lost in a certain time frame, or your engagement rate (total engagement divided by number of followers).
Establish Social-proof: Source positive testimonials or content generated by customers/influencers that casts your brand in a positive light and can potentially be used in other marketing strategy.
Provide customer service: A social media presence opens you up to customer questions, complaints, and inquiries. So one of your goals will be to provide this support to customers or direct it to another preferred, private channel. One way to measure this is through your response time for direct messages (This is displayed as a badge on your Facebook page, for example).
Become a thought leader in your target market: Social media gives you a voice that you can use to not only participate in conversations, but shift them in the direction you think they should go in and build credibility around your products or services.
All of your choices should aim to tick one or more of these boxes, and any ideas and new tactics you plan to test out should be evaluated on their potential to achieve these goals. Some of them may be long-term investments while others are more immediate. Keep these objectives in mind as we get in to the next step: figuring out who you’ll be trying to reach.
Identifying your target audiences
Marketing, on and off social media, starts with understanding your ideal customer. Building a rich context about your target audience takes time, but there are steps you can take immediately that will put you in a better position at the start.
Spend some time researching your target audience, looking for demographic and psychographic data or observable patterns that help you form a mental image of who is likely to buy from you. This exercise won’t just inform your initial strategy but also help you develop a voice and tone for your brand that resonates with them.
If your business naturally focuses on a specific niche (like cat owners, for example), your job will be easier than if you’re trying to appeal to a more general audience (like a telecommunications or airline brands). I recommend lurking in the places your intended customers often hang out, on Reddit or blog comments for example, to see what they’re interested in.
Facebook, being one of the largest social networks and thus a database of 2.3 billion monthly active users is also a great place to do some audience research. Check out your competitors’ pages, clicking through on the profiles of some of their engaged followers to get a better sense of who they are and what they like.
Once you’ve done some digging, you can put it all together to create an ideal customer, or "buyer persona", who is likely to buy from you.
You don’t have to fill out every trait, but describe what you can to paint an image of this person as it is relevant to your business.
Location: Where do your ideal customers physically live? Even knowing just the country can help, but if you’re a local business or only want to serve a specific area then you should isolate those places.
Age: What is the age range of your customer? Keep this as broad as possible, unless you know for sure your target customer is at a certain point in their life.
Gender: What gender do they identify as? This might unimportant or essential, depending on your brand.
Interests: What are their interests/hobbies/passions? These help with potential content ideas and audience targeting. (e.g. cooking, hip hop dance, yoga).
Career/Industry: What industry do they work in and what job titles have they held? Again, this might not be as relevant, depending on your brand.
Income Level: What is the income range of this buyer persona? Are they price-sensitive or are they willing to spend more money for premium products?
Relationship Status: Are they single, actively dating, or already married? This may be relevant if you’re in the wedding industry, for example.
Favorite sites/apps: What type of websites do they keep bookmarked? Do they browse Instagram or Pinterest daily? Are there specific apps they couldn't live without?
Motivation to Buy: What reasons would this person have for buying your product? Do they want to sport a status symbol or make time to work out despite a busy schedule?
Buying Concerns: Why might they choose not to buy your product? Are they worried about the quality?
Other info: Anything else that isn’t covered but would be worth mentioning, such as education, stage in life (parents with newborn kids), events they attend, etc.
- Marketing Analytics for Absolute BeginnersViews: 18 Apr 29, 2021 at 4:41:05 PM
Retail store owners can get a sense of their business’s health—beyond looking at their financials—by observing foot traffic and talking to customers. Owners of online stores, however, don’t have the same opportunities to observe customer reactions to what they do. That’s where analytics come in.
Information gathered from analytics isn’t the same as the information gathered from people’s words and facial expressions. Instead of hearing your customers’ stories directly, analytics let you “visualize” them based on specific sets of numbers.
Ecommerce experts refer to hundreds of data points on a regular basis. This guide will help you understand and become comfortable with the language of analytics. It is designed specifically for analytics beginners, identifying the terms you need to know and the numbers you should be looking at. With a deeper understanding of your customers’ actions, you can better serve and engage them, and ultimately increase your sales. Once you’re equipped with the basics, you’ll have what it takes to make the right decisions as you get your business off the ground.
How data can illustrate stories
Analytics is as much about art as it is about science. That’s because a good data analyst can tell you a story from the thousands of clicks, visits, bounces, seconds, and conversions they observe. We’ll look at each of these terms later in this guide, but for now we’ll collectively call them “data points.”
Data points can tell you a story about the total number of visitors to your site in a given week. For example, maybe only 50% enjoyed your website enough to even spend more than a few seconds on it. And maybe only half of those who stayed actually made a purchase, while another 10% got stuck at the checkout page, became frustrated, and left.
That’s the story of a group of individuals who took very different actions on your online store. This type of knowledge—and we’ll look at how to find these numbers below—can help put you ahead of your competition. But it also can leave you with new questions. Is 50% good or bad? How many seconds (or minutes) is considered a good amount of time for a customer to spend on a site? How many of the people who do stay should I expect to buy sometime? How do I find out why the others aren’t buying?
Until you know the whole story, you can’t change the ending. Once you understand why visitors to your site behave the way they do, you can do something about it. But the answers to the above questions depend on context and will differ vastly depending on the type, size, industry, and stage of your company.
For example, in the context of a social network such as Facebook, the average time spent by users on the site needs to be much higher than on an ecommerce site. Social networks need users to stick around as long as possible so they’ll be exposed to, and hopefully click on, ads. By contrast, it’s just as valuable to an online store if a customer stays for only a few seconds but makes a purchase during that time.
Ideal visit times can vary, even among ecommerce stores. Customers purchasing complex and expensive products, for example, need time to examine and research those items. So it’s often a good sign if they spend several minutes on that product’s site. But if a customer spends a lot of time on a site selling simple, inexpensive products, it might be because they’re confused by the purchasing process.
Once you become fluent in ecommerce analytics, you can tell your own stories from the numbers you see and improve them. In the following sections you’ll discover which data points are important to your store, how to measure them, and how to use them to sell more online.
- Huawei once again denies that it is determined to be a solution providerViews: 8 May 25, 2021 at 11:58:17 AMGodropshipping reports that Huawei has repeatedly said that it does not know how to build cars, but people always don't believe it, and there are many rumors about Huawei building cars.
At the end of April, Reuters reported that, citing two people familiar with the matter, that Huawei was negotiating to control the electric vehicle division of a small domestic automaker, which was seen as a strategic shift for the world's largest manufacturer of telecommunications equipment. Sources said that Huawei is negotiating with Xiaokang shares to acquire the latter's controlling stake in Chongqing Jinkang New Energy Automobile. This move will enable Huawei to produce smart cars with its own brand. As part of the transaction, Huawei also plans to purchase undecided shares of unlisted Xiaokang shares.
In mid-May, Singapore’s Lianhe Zaobao reported that Huawei was trying to acquire Arcfox ARCFOX, an electric vehicle brand under BAIC Blue Valley New Energy Technology, and even said that the deal would be officially finalized in July.
Earlier, Reuters also reported that Huawei would cooperate with Changan to build cars.
For these news reports, Huawei officials denied it and stated to the outside: "Huawei does not build cars, but focuses on ICT technology. It is a supplier of incremental components for smart cars to help automakers build good cars." But because Huawei has said before. After not making mobile phones and not making TVs, everyone did not believe it, and even spent a lot of money to buy car companies that have cooperation with Huawei.
On May 24, Huawei, which has been spread rumors many times, issued the "Statement on Huawei Not Building Cars." The article stated: The company spokesperson has repeatedly clarified the false rumors about Huawei building cars, and today it is reiterated: Huawei does not build cars. This long-term strategy was clear in 2018, and nothing has changed.
At the same time, Huawei also stated that what the industry needs is not Huawei branded cars, but Huawei’s accumulated ICT technology capabilities for more than 30 years to help car companies build future-oriented cars, that is, to provide car companies with intelligent networks based on Huawei’s ICT capabilities. United auto parts. So far, Huawei has not invested in any auto companies, nor will it invest in any auto companies in the future, let alone hold or participate in shares. "In the future, all talks about Huawei's car manufacturing or equity participation in the automobile manufacturing industry are rumors and don't be credulous."
As soon as this statement came out, Changan, BAIC Blue Valley, Xiaokang, and Guangzhou Automobile Group, which have in-depth cooperation with Huawei, were miserable, and their stock prices plummeted.
Judging from Huawei’s statement, Huawei is now determined to sell cars and provide intelligent networking solutions. It also has some opinions on why Huawei does not build cars for travel.
One: The benefits of selling cars and providing intelligent network solutions are more direct and rapid, and at the same time, it can make full use of its company's advantages. Previously, the Cyrus SF5, in which Huawei sold well-off shares, can earn 10% more for a car, and the monthly sales of 4-5K also gave Huawei a taste of the sweetness. Isn't such a rapid income faster than those car companies full of R&D and manufacturing?
At the same time, Hyundai's automobiles are developing in the direction of software-defined automobiles. In the future, more revenue sources for automobiles will come from car-machine systems and software. Huawei's provision of intelligent network solutions to various car companies can occupy a huge market in the early stage. If you build your own car, you will not only need a huge amount of cash, but also time accumulation, and it will not be able to make full use of Huawei's own advantages in intelligent networking. What Huawei wants to do is Microsoft in the automotive industry and Google in the automotive industry.
Two: For a larger market. If Huawei builds its own cars, or builds cars with a holding company, will other car companies still adopt Huawei's supply plan? I believe that many car companies will have concerns and choose more independent and reliable suppliers. Just like Bosch, Bosch is the world's largest supplier of auto parts. If it builds cars, it can be said to be simple, but why not? Just to not compete with customers. I believe that Huawei does not build cars out of such thoughts and concerns.