In a surprising shake-up, Honor Technology Co., Ltdannounced a significant leadership change on January 17. The company revealed in an internal announcement that MrZhao Ming stepped down from his roles as a board member and the CEO due to personal reasonsThe board has appointed MrLi Jian as Zhao's successor, marking a new era for the company.

The resignation of Zhao Ming, who has been widely regarded as the soul of Honor, raised eyebrows throughout the industryUnder his leadership, Honor successfully established itself as an independent brand following its split from Huawei, showing a robust presence and high visibility in the marketNow, with Li Jian taking the helm, the implications of this transition invite deeper reflection.

Li Jian is a formidable figure, known in the industry as a "Huawei warrior." His academic background includes a degree from Xi'an University of Electronic Science and Technology, after which he joined Huawei in 2001. Displaying exceptional talent from the very beginning, he was placed in an overseas role in Africa during his first year at Huawei

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Li's rapid ascent through the ranks—advancing three levels in a short span—culminated in him holding various high-level positions, including President of the West Africa Regional Division, President of the Northeast European Division, and roles involved in global process management and executive governance.

He has been characterized by his "deep scientific background, rich experience in overseas markets, and aptitude for tackling tough challenges," winning him the title of one of Huawei's "Blue Blood Ten.” His skill set aligns perfectly with Honor's present operational needs as it seeks to navigate the next phase of its development.

From a subjective standpoint, during the past four years, Honor has solidified its footing in the smartphone marketHowever, the "independence battle" is not the conclusion; for the company to thrive, it must engage in a quest for globalization and high-end positioning, reaching for greater sales and profit margins.

Objectively, the current landscape of the domestic smartphone market—characterized by a saturated environment, Huawei's strong resurgence, alongside the advent of the AI technology revolution—necessitates that Honor break into the "global high-end." This breakthrough represents its singular strategy for emerging from fierce competition, ultimately determining its success in contending with brands like Apple and Samsung, which currently face challenges of their own.

By examining the new leadership’s background and Honor's reality, one can discern clear intentions behind this leadership change

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The management seeks to leverage Li Jian's past international market expertise and strategic management acumen to drive Honor's IPO process and bolster its global high-end tilting journey.

The "high-end" shift has become a common objective among domestic smartphone manufacturersFor Honor, standing on the cusp of an IPO and eager to break through, the quest for "global high-end" is a mission that cannot afford failure.

Since its establishment as an independent entity, Honor has shown impressive achievements in sales, product offerings, and innovation in folding screens and AI technologiesThe market's reception of "Independent Honor" has paved the way for competitive parity with rising peers, as the term "Huawei, Honor, Xiaomi, OPPO, Vivo" suggests an equal footing in the landscape.

Specifically, when Honor first became independent, it held a mere 3% market shareHowever, the company quickly caught up, claiming the top domestic position in sales over several quarters

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The alignment of their product strategies—highlighted by series like Magic, the family of foldable screens, along with the new GT brand—signals the brand's intent to position itself firmly within the high-end market across various price tiers.

Perhaps most impressive has been Honor's leap into the realms of foldable screens and AI innovationAt a time when Huawei's folding products have pushed the industry standards to unprecedented thinness, Honor has heralded the era of millimeter-thin devicesTheir recent showcases, such as at the IFA 2024 exhibition, generated immense media attention, delivering a bold entrance into competitive landscapes against established players like SamsungAdditionally, prior to the generative AI boom, Honor had already restructured its operating system with platform-level AI, establishing a significant lead in the AI smartphone subset ahead of competitors like Apple, which is set to unveil its AI Smart Assistant-enabled Magic7 series in October 2024.

With the narrative of "independent growth" concluded, Honor now stands at a pivotal point, necessitating a fresh understanding of its "global high-end" ambitions.

The push toward international high-end branding is not merely a strategic decision, but an essential response to rampant industry competition

Rising through the ranks of an intensely competitive smartphone landscape, the path toward high-end branding is the singular option available for domestic players like Honor to escape homogeneity and expand profitability.

High-end positioning comprises three fundamental aspects: global sales, brand recognition, and technological alignmentSuccess hinges on a robust global sales network and a nuanced understanding of diverse regional markets; elevating brand perception to drive sales beyond mere price competitiveness; and securing a technological foothold within the rapidly evolving AI smartphone arena.

As a brand that has been independent for only a little over four years, Honor faces heightened pressures in its high-end strategyThey must swiftly accumulate experience in international market operations and establish extensive distribution channels, alongside developing tailored marketing strategies and service protocols to nurture powerful brand recognition

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The challenges that lie ahead are unparalleled.

Furthermore, in today's market milieu, where all manufacturers are intensifying efforts in the high-end segment—especially with Huawei's comeback efforts and Xiaomi's brand development bolstered by its automotive venture—Honor must act quicker and more decisively to carve out its nicheThis leadership transition resonates with the anticipation for accelerating Honor's trajectory.

The impact of the change in leadership will soon be felt across the domestic market as well.

With consumer electronics such as smartphones and tablets now falling under state subsidy schemes, competition within the industry has escalatedFacing the shifting landscape, Honor has already begun to realign its strategy, stepping forward with a more proactive stance under new leadershipFor instance, new initiatives have emerged, such as offering special incentives to consumers purchasing premium models like the Magic V3 and the Magic7 RSR Stewart Designs, reflecting a clear ambition to penetrate the premium market—an approach that Li Jian's leadership is likely to amplify further.

Beyond sales strategies, Li Jian's installment as CEO is expected to catalyze increased investment in high-end technology and brand establishment

For competitors, the development of "Honor's change in leadership" constitutes a critical factor.

Taking the helm under these circumstances, Li Jian finds himself with a favorable hand, inheriting a company that boasts foundational strengths in its high-end endeavors.

Reports indicate that in the context of global expansion, Honor has seen a staggering 50% annual increase in overseas smartphone sales, with international market sales surpassing 50% in December, and achieving single-day sales of over 150,000 units during the Christmas season.

Looking ahead, Honor's drive aimed at global expansion has garnered remarkable momentumPlans for entering the vast Indonesian market were confirmed at the year's outset, which, coupled with recent data indicating Honor's position among the top five in the global high-end market segment (priced above $600) during Q3 of 2024, showcases the brand's capability and ambition

Additionally, in regions like Malaysia and Hong Kong, combined market shares have outperformed competitors in categories like high-end foldable devices.

With AI advancements, Honor has also taken a leading role by launching MagicOS 9.0, a pioneering operating system equipped with comprehensive AI capabilities.

These milestones form the foundation for Honor's foray into the global high-end ranksAs a seasoned professional instrumental in Huawei’s international expansion, Li Jian is expected to synchronize the company’s existing strengths with the drive necessary for the next developmental phase.

One of the more notable anecdotes surrounding Li Jian revolves around his experience in Nigeria, where, amid scant structural clarity within the target market, he skillfully managed product and sales roles simultaneouslyWithin just three months, he secured contracts exceeding $30 million, generating significant sales growth within two years.

Insiders reveal that Li Jian’s long trajectory involved time in various critical operational roles spanning Africa, Europe, and the Americas

His extensive background in strategic business, global sales initiatives, corporate transformation, personnel management, and other high-level leadership functions has underscored his capability to revitalize underperforming operations across regions.

Moreover, having served as the Global Process Owner (GPO) further equates to his understanding of major corporate frameworks internally and allows him to adapt adeptly to different market conditions across countriesThis broad and rare expertise equips him with profound insights into global business processes and operational management.

The imperative for a global perspective and substantial international market aptitude aligns perfectly with Honor's aspirations as it forges ahead with its "World Honor" campaign.

In the multifaceted challenges facing Honor today—from globalization to premium positioning and advancements in AI—the stakes have never been higher

Should Li Jian excel, he may navigate the brand into promising new terrain for domestic manufacturers; however, failure to manage these challenges could lead to a regression into hardship.

With Honor's trajectory closely intertwined with multiple suppliers and distributors, the weight of expectation on Li Jian is considerableReports highlight that distributors have voiced concerns about Huawei's resurgence and others amplifying their efforts—underscoring that the current Honor must elevate its response"The new leader should adopt a holistic view, guiding the team to breakout," an insider advised.

Naturally, any significant leadership transition will necessitate an internal adjustment process, demanding adept coordination with partners at all levels to ensure all stakeholders are engaged in this new chapterFor Li Jian, this presents considerable challenge; however, progress must follow one clear direction—forward