Zhou after customs the biggest action: joint cool betting on mobile phone entrance

cloud network hunting note: after the strategy for machine failure, Zhou Hongyi chose to retreat, in the process of which no one really knows what he’s thinking, but for now, phone entry strategy must be within the rethinking. In 360 began to plan earlier this year after customs, in a new way to access mobile phone chain, filtered negotiations finally chose the cool, and set up a joint venture with them. The following articles for sina science and technology, the author: nan He Jin.

phone Zhou Hongyi didn’t give up, he is back.

qihoo 360 announced yesterday, with cool form strategic alliances, to cool a joint venture invested $409.05 million in cash, qihoo 360 will hold 45% stake in the joint venture.

the next step, the new company will use the Internet as the main distribution channels. Cool will mainly provide smart phone design, manufacture, supply chain management and after-sales service, such as qihoo 360 will provide mobile application development and online marketing ability. Smart phones will be “god” of the joint venture brand sales.

sina science and technology, after 360 to cool to make strategic investment, Zhou Hongyi, will become the new chairman of the board of directors of the company. 360 will be responsible for all the details related to the user experience. Cool in product manufacturing, process flow, function in supply chain management. This is after 360, two years ago for the machine, 360 for the second time into the mobile phone market.

this is after 360, two years ago for the machine, 360 for the second time into the mobile phone market.

wanting more, for machine

2 years ago, at that time, lei jun is not today, lei jun, millet millet is not today. Suddenly one day, zhou announced for mobile phones, to do is make lei jun nervous. At the time, especially for machine operation method is, first choose a traditional mobile phone manufacturer, mobile phone manufacturing ability, through the marketing channels 360, specific outsourced sales behavior of e-commerce sites, after-sales service is completed through mobile phone manufacturer of channels.

when Zhou Hongyi idea is to bring 360 strategic value for function: one is to please the user to use 360 products of mobile phone will receive a large number of loyal users; 2 it is to cultivate the mobile Internet market, “the user only to use screen, the high-end phones to play games, watch video, can have a business model.”

but not so unfortunately 360 for machine can’t achieve all expectations. At that time, sina science and technology communication with Zhou Hongyi many times, the core issue is only one: why don’t you do your own cell phone? Zhou’s answer was, “Internet companies without the phone maker gene, the procurement of raw materials, design, supply management and after sales, is a hard work hard, not aimed at anything. Apple did not do your own accessories and electric business.”

he said, the Internet company not to desire, must give up the idea of making money from the hardware, the market determines the hardware must be a small profits of the business. “We don’t have the ability to become a full mobile phone industry chain of the company, only for a single point of breakthrough, find an advantage place, put it perfectly.”

LeiJunZe “loyal” practice Zhou Hongyi words. After he first low-key do m UI, has issued a “looks very high cost performance” millet mobile phone, followed by millet, millet, millet, TV box router. Although faced with the risk of brand dilution, but millet surrounding mobile phone form the industry layout of related diversification.

2 years later, look back again, millet’s valuation has risen from $4 billion to $40 billion, while qihoo 360 just in the search business will rise from $3.5 billion to $7 billion, driven by growing much faster than the former.

this year, zhou constant contact with mobile phone manufacturers, with multiple vendors, including the meizu, one plus, contacts, sources, for meizu, zhou failed to persuade jack to accept its investment, and a mobile phone, no independent design and manufacturing capabilities, not zhou “food”.

cool great god prequel

in fact, cool great god is an unusually young brand, from the brand set up so far less than a year. In January, yulong cool brand for the first time a great god, the difference between other cool products rely on social channels and operators, a great god are mainly composed of online sales model.

at the same time, the brand’s first terminal products are synchronous, the product difference obviously: directly with the brand name of cool great god USES the 7 inch screen, is a regular tablet phone, price 1888 yuan, and another is a market one thousand yuan of cool great god F1, use 5 inches 720 p screens and mediatek eight core processor, priced at 888 yuan.

ZhuFangHao cool Internet electromechanical contractor’s then President, said the sales of cool will hit 60 million in 2014, while the electricity part wants to be able to realize the target of 10 billion yuan.

a thorough transformation of cool great god like millet, began to make an appointment for products, and in cooperation with jingdong, cool great god also placed in jingdong first page position, booking number more than 500000 easily. At a time when in competition with the millet and learning, cool great god brought by the transformation result good enough, so to speak.

in May this year, the great god during the carnival held in cool, a great god sold 1 million units, 1 billion sales, is a cool great spirit power and a successful business strategy. Cool, as it were, always hope the great god will be another millet, whether from product positioning, publicity, sales channels, fan operation, and other aspects, you can see both the height of the overlap, and now the great spirit of the mall’s official website is echoes the millet’s official website, almost completely copy design and layout.

as a result, in the middle of last month, cool simply determination, directly to the great god independent brand, management, directly by the ZhuFangHao and released from the brand LOGO “Dazen”. Completely separate the great spirit of the brand will be out of the cool system, from product design, research and development, channel and so on various aspects are fully independent.

just days after the great spirit independent brand, cool again announced new brand strategy, rumors have long ivvi officially released. At this point, all cool three big system is clear: the original cool brand main operators custom channels; Great god Dazen brands main electrical business channels; While the ivvi led by guang-qiang zhang for open channels.

so great god brand completely with electricity, also can see that cool yearning and longing for Internet marketing, is also precisely because of this, a great god and the 360 reached a strategic cooperation, which can help the great god provide more purely online marketing concept and mode.

how to recover two years time?

Why did you do to

360 mobile phone? Writes a word, “said the industry analysis is the most close to the product, there are a lot of time is the users interact with the mobile phone, therefore the mobile phone is one of the best Internet service platform, is also the core of the mobile Internet.”

“as early as in 2012, at the time of the smartphone market has just started, we will realize the intelligent hardware development trend towards the direction of the free, put forward the intelligent hardware is the first stage of free hardware zero profits, hardware is just a window, is the carrier of Internet enterprise to provide customers with services. On this understanding, we have never changed.” 360 a senior personage explains.

recall the special supply machine business, he said: “we hope to build a platform, so we cooperate with several manufacturers. After a period of running in, we found that this model is not suitable. Selected for a partner, in such aspects as capital, product design, pricing depth cooperation is a better model.”

“by 360, found that as the Internet company for machine, only more deeply involved in the process, the design, application, system, the cloud, and not only just marketing platform and software cooperation. After more than 360 for smartphone manufacturers, after repeated, finally decided to strategic investment cool group.” He said.

the executives said that the current market conditions, price competition is fierce, but there is quite a big profit space, this is because the hardware still follows the Moore’s law, exponential performance increase, the cost per unit exponential decline. Free will of hardware, mobile Internet is the end, 360 hope one pace reachs the designated position, free smartphone directly implement zero profit.

“as for what is the impact to the industry, we think you have done, what impact is expected, expectations are unreliable, so not the impact on the industry. But obviously, 360 with a capital of cool cooperation, on the mobile phone product is open, for 360 competing goods don’t set any obstacles. In the mobile phone industry is now divided territory, do anything, we hope it can bring the smartphone industry a good start.” The senior said.

investment view

we prefer is:

1. Cool is a mature brand, with mature quality control and supply chain management capabilities, it can ensure that the new company can launch quality and reliable products in a short time.

2. Cool has nearly thousands of patents, also has a number of patents, exclusive technology with foreign company patent cross-licensing. The smartphone market is not only a price war, but also a patent battle.

3.360, routers on TV, smart home and other fields have a layout, mobile phone after the release make its opportunity to separate product string into ecosystem, copying the millet pattern.

we don’t look good is:

1. Can have a decent phone Mr Luo, zhou should have the courage to yourself, finally completed through investing in a company, a disappointment. Although Zhou Hongyi will serve as chairman of the board, but the 360 is the new company has a controlling stake, this could set a dangerous precedent for the future.

2. Cool foreign confirmation will use the brand “great spirit”, but a great god brand is more like a low-end brand of targeting lower-tier cities lack of extension force and the connotation of the Internet, need to invest heavily.

3.360 admission do mobile phones will bring many manufacturers from partners to rivals, the competitive environment will be worse.

4.360 will be in a safe, intelligent hardware, search and mobile phone four fronts are high investment, will run into many fronts, will further reduce the profit margin of 360 to the capital chain is a severe test.

summary: short term bearish, the long-term bullish.

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