Realme posted a brilliant report card: in the third quarter, its shipments exceeded 10 million units, ranking among the top 7 in the world, an increase of 808% year-on-year, making it the fastest growing smartphone brand in the world.
It is worth pondering that realme previously announced that from July 10 to October 8, the number of global users increased by 7 million within 90 days, which is different from the official announcement of realme’s third-quarter shipment of over 10 million units. Could it be that repurchasing users account for a certain percentage?
In any case, in the past year and a half, realme has indeed been a rookie with rapid progress in the mobile phone industry. No matter it is in the Indian market or the domestic market, its performance is remarkable. However, the more realme advertises itself as the fastest growing in the world, the more it proves that it and OPPO are a family. The reason is very simple. Realme has never raised funds for nearly a year and a half of development.
As we all know, whether in India, Southeast Asia or the domestic market, the products launched by realme are mainly cost-effective, even compared with Redmi, which focuses on the ultimate cost-effectiveness. Taking the domestic market as an example, it has launched a variety of products such as Realme X, realme X Youth Edition, realme Q, realme X2, etc., covering the price range of 1000-1800 yuan.
The thousand yuan machine market has always been a battleground for military strategists. Not only veterans such as Redmi and Honor, but also OPPO, vivo, Samsung and other major manufacturers have also joined the battle, launching K series, Z series, and A series respectively. For a while, the competition in the mid-range machine market around 1500 yuan was extremely fierce. It is worthy of recognition that realme can occupy a place, but it is essentially sacrificing profits in exchange for sales, and the profit space is very limited.
Two weeks ago, realme launched its first flagship phone, the realme X2 Pro. Although the pricing follows the usual price butcher’s character, the market competitiveness is not weak compared with the flagship 885+ of friends, but the gross profit margin is at least higher than that of the mid-range. It is expected to become its important profit support point. However, the realme X2 Pro has not contributed to considerable sales, so it cannot become a source of profit for realme for the time being.
Anyone with a discerning eye can see that for Realme, which breaks the game with high cost-effectiveness, it is a bit difficult to make profits in the short term. In other words, realme’s development model has decided to have higher requirements on the abundance of funds. Without strong financial support, it will not be able to go long-term. In fact, realme is quite similar to the early Xiaomi’s style of painting. The products are cost-effective and focus on online channels. The latter has completed three rounds of financing A, B and C in the first two years of its establishment.
On the other hand, realme, since its establishment nearly a year and a half ago, has never actively disclosed its financing progress. It is not that it cannot raise capital, but that it does not need financing at all, because it has a father with strong financial resources, OPPO, and OPPO can provide global expansion for realme. all the funds needed.
The company’s investigation shows that the main body of realme’s operation is Shenzhen Ruiermi Mobile Communication Co., Ltd., and Guangdong Ouka Communication Technology Co., Ltd. is its sole shareholder, with a shareholding ratio of 100%, while Guangdong Oujia Holding Co., Ltd. wholly owns Guangdong Oujia Communication Technology Co., Ltd., the head of OPPO, Chen Mingyong, serves as the general manager. This means that Chen Mingyong indirectly holds realme, which explains why the outside world always says that realme is an OPPO subsidiary.
In other words, realme does not need financing, and the major shareholder is OPPO. Does this scene seem familiar? Yes, this also happened to OnePlus. In the past 6 years since its establishment, when have you seen OnePlus announce financing? Opening its shareholding structure, you can also see the figure of Guangdong Ouka Holdings Co., Ltd.
Not long ago, Luo Yonghao, the head of Hammer Technology, told the truth about the rise of OnePlus: OnePlus is a wholly-owned subsidiary of OPPO. Although Liu Zuohu is more powerful in many aspects, they are not called entrepreneurship. In my opinion, Luo Yonghao’s remarks are also applicable to realme, backed by the rich and resourceful father of OPPO, no matter how eye-catching the performance is, it is not called entrepreneurship.
In addition to the real hammer revealed on Qichacha, there are three major details that can also reflect the extraordinary relationship between realme and OPPO. It is hard to believe that they are not a family.
1. Li Bingzhong has never signed a competition agreement. As we all know, the competition in the mobile phone industry is extremely fierce, and no one wants to add new opponents to themselves. According to normal logic, Li Bingzhong, who had served as an overseas executive of OPPO, chose to start a business with mobile phones, which was in conflict with the main business of his old owner. He should sign a competition agreement. He cannot make mobile phones for at least one or two years, but he is not subject to any competition agreement. , to be precise, there is no so-called non-compete agreement at all.
At the end of July last year, Li Bingzhong announced on Weibo that his next stop was going to Realme. Chen Mingyong, who rarely posts Weibo, sent two Weibo to send blessings, which means that he not only does not oppose Li Bingzhong’s mobile phone, but strongly supports it. In fact, two months before Li Bingzhong officially announced his departure from OPPO, that is, in May 2018, realme had already set sail. Without Chen Mingyong’s approval, Li Bingzhong would not be able to start a business during his tenure, and no boss would be so tolerant, while Chen Mingyong The reason why they are tolerant and generous is that they are a community of interests.
2. Realme uses OPPO system and flash charging. You can see obvious OPPO elements in realme products. Take the recently launched realme X2 Pro as an example. It is equipped with ColorOS 6 and equipped with 50W super flash charge. The system is an important window for mobile phone manufacturers to interact with users, and it can also contribute a lot of Internet service revenue. It is regarded as its own assets and will not be opened. If realme is not a subsidiary of OPPO, why does OPPO let realme products carry ColorOS 6?
As for the 50W super flash charge, it is a major killer of OPPO. It is only used for Find X and R17 Pro products, and its scarcity is evident. If realme is not a subsidiary of OPPO, why does OPPO open this big killer to attract users and seize the market to realme? Still want to talk about OnePlus, its early products for the domestic market were also equipped with ColorOS, and the DASH flash charge equipped with OnePlus 3 is in the same line as OPPO VOOC. Whether it is realme or OnePlus, the real relationship with OPPO is self-evident.
3. Realme uses the OPPO supply chain. The mass production problems encountered by the Hammer T1 and T2 revealed a heart-wrenching fact: the mobile phone supply chain pays attention to scale effects, and small factories are very passive and helpless in supply chain management. In other words, the competition in the mobile phone industry is not so much a competition of product innovation as it is a competition of supply chain management capabilities. The supply chain is a time-tested weapon for large manufacturers to seize market opportunities, while small manufacturers do not take advantage of timing, cost, and supply priority. excellent.
Although realme ranked among the top 7 in the world in the third quarter, it has come step by step from a small factory, thanks to the backer of OPPO. Still taking the realme X2 Pro as an example, its hardware configuration is very powerful, equipped with Snapdragon 855+, 90Hz fluid screen, 64 million quad cameras, and the credit behind the OPPO supply chain. You know, OPPO’s own Reno Ace and K5 use Snapdragon 855+, 90Hz fluid screen, and 64-megapixel main camera 5 days earlier than realme X2 Pro. Without the assistance of OPPO, the realme X2 Pro obviously could not have such a top-level configuration in the first place.
On the whole, whether it is the real hammer of the ownership structure or the three intriguing details, they all reveal that realme and OPPO are a family, that is, realme is more like a flank of OPPO, or an Internet brand under OPPO, with a positioning similar to Redmi and iQOO. The high cost-effective online volume, and the main offline OPPO, jointly deal with the crisis of declining shipments after the market competition intensifies.
After knowing the relationship between realme and OPPO clearly and clearly, I look back at the realme executives trying to make it clear that realme is not an OPPO subsidiary. My inner OS is: you try hard to argue, I promise not to believe it.
“First of all, realme is a completely independent brand, not a subsidiary of OPPO. We only have the support of OPPO’s supply chain, procurement, and manufacturing. Currently, OPPO ColorOS is also used, but whether it will continue to be used in the future may depend on user needs. The relationship between realme and OPPO is not like Xiaomi and Redmi, Huawei and Honor.” Li Bingzhong once said.
The word “just” is used “good” and “wonderful”. Realme has the ability to stop using the OPPO supply chain from the beginning, and improve the supply chain system by itself. Only in this way can it quickly rush to the top 7 in the world. “realme is an independent brand, we share some supply chain and production with OPPO, it is more like a weapon of realme, more standing on the shoulders of giants, just a starting point, but not limited by the brand .” Realme CMO Xu Qi’s remarks barely made sense.
However, I would like to say: the two most important elements to support the development of realme – capital (money) and resources (supply chain, system) are all given by OPPO, please tell me Li Bingzhong and Xu Qi, which kind of independence is this? How can realme be able to make OPPO so dedicated? You must know that for a truly independent company, funds and resources must be firmly in its own hands in order to dominate its destiny, instead of pinning its hopes on others.
From another point of view, it is untenable to say that realme is a mobile phone brand invested by OPPO. If you look at the Black Shark mobile phone invested by Xiaomi, you will know that it is impossible for the invested object to enjoy extremely enviable preferential treatment. to be so loved. In a word, the more realme claims to be the fastest growing in the world, the more it proves that it is an OPPO subsidiary.
Author: Gong Jinhui