At a time marked by massive layoffs in large technology companies, the Chinese Honor, which has just completed its second year as an independent company, leaving behind its membership of Huawei, wants to consolidate itself and grow locally in the long term in all the markets in which it operates. they operate through alliances with other companies and their own teams, with Spain as “the highest priority” for the company.
The CEO of the company, George Zhao, stated this in an interview with EFE on the occasion of his visit to Spain, a country that he has visited to be present at the Mobile World Congress (MWC) that was held between Monday, February 27 and on Thursday March 2 in Barcelona.
After completing its second year as an independent company, the technology firm currently aims to “become a local operator, with a local strategy” and alliances with other companies that will allow it to consolidate itself in the markets in which it operates in the long term. .
In the case of Spain, Honor began operating in the country in August 2021 as an independent brand from Huawei, which sold it at the end of 2020 to a consortium of Chinese investors “to save the industrial chain” of its mobile division, as the technology explained then, after the commercial veto of the United States.
A return to the Spanish market as an independent company in which they have not encountered “special difficulties” and have focused on “a real team”, which they expect to grow soon.
Spain as a showcase for Europe and Latin America
In fact, Spain is “the highest priority” for the company, since it is a showcase “not only in Europe, but also in Latin America”, so they are “really committed to long-term operations” in the country. Although he has not offered data on the investment that the company makes in Spain and Europe, Zhao has confirmed that they are allocating resources at the European level for the design of devices, advertising or training of young talent.
In the case of sales of mobile devices, the CEO of Honor has assured that they are not “in such a rush to grow spectacularly” in Spain to be among one of the five best-selling brands in the country, although he considers that if they manage to put the consumer “in the center”, the market will give them “a good return”.
In fact, the company has launched its first folding device in the Spanish market, the Honor Magic Vs model, within the framework of the MWC in Barcelona, with the aim of putting “one every year” of this type on sale from now on. In addition, they have also introduced the Honor Magic5 series.
Price gouging “within reason”
11% in 2022 compared to 2021, which places the sector at 2013 levels, according to data from the IDC consultancy.
In the first case, George Zhao has assured that the company will try to do “the best to avoid this situation”, which “so far” has not occurred, and work to not only protect its employees, but also to its partners, since the industry “needs collaboration and mutual support”.
Regarding the market pullback, Zhao believes that the industry has become “a bit conservative”, so one should think about “what kind of innovative products can be brought to the market” in order to bring consumers back to the stores. . Otherwise, he warns, “a negative cycle” occurs.
Regarding the possible price increases, the manager considers that, in the case of Honor, they are “increases within reason” and has defended that, if their products are compared with those of their competitors, it could be said that “In no case” are they making increases in the price, but in the value of the device.
The Latin American market, in focus
On a global level, Zhao has confirmed that the company also has Latin America in focus, where it already has local teams in Mexico, Peru, Chile, Colombia and Central America. “All these markets have developed more than we expected, so we have seen great potential,” the manager told EFE.
Of course, for the moment Zhao rules out the company’s entry into the US market, since “they need more preparation for it” as it is a “high-end” market. For this reason, the company plans to demand at first in key markets, although it warns: “If we can do our job very well in Europe, the next step will be the United States.”
