Huawei: How to secure a foothold in China’s high-end wearables market

Huawei, facing global challenges in its smartphone business, has performed exceptionally in the high-end smart wearables market in China. According to Canalys, the company secured a dominant position with over 30% market share in Q3 2023, marking its ninth consecutive quarter at the top. In the premium category (US$500+), it holds more than a 23% share, closely trailing Apple. This raises the question, how did Huawei achieve such success in China’s high-end wearables market?

Comprehensive market coverage, easy consumer access

Huawei strategically covers a broad range of market segments, offering wearables from entry-level bands to sophisticated wristwatches and accommodating diverse consumer preferences. Informed by market insights, Huawei tailors devices for professionals, seniors and children. The GT 4 series is a prime example, with designs catering to both genders, ensuring versatility. This extensive product lineup, addressing various price points, age groups, designs and use cases, forms a robust foundation for market education.

Elevated ecosystem experience, increased user stickiness

HarmonyOS unifies Huawei’s ecosystem, ensuring a seamless interface and experience. Integration allows smart connectivity between devices such as smartwatches, smartphones and tablets, enhancing user convenience and intelligence. This interconnected ecosystem boosts each product’s appeal, creating a synergistic effect. Huawei’s diverse upgrade options cater to evolving user needs, from basic interactions to immersive experiences across devices, encouraging deep integration into their ecosystem.

Strong in-house technical strength and quality-oriented product design

Huawei’s high-end market dominance is underpinned by exceptional tech expertise, refined design and meticulous attention to detail. In the realm of health tech, it enhanced fitness tracking through in-house algorithms and extensive sports and health data. This continuous improvement solidifies Huawei’s leadership, aligning with the growing consumer interest in health and fitness. Industry-setting innovations, such as blood pressure and blood sugar monitoring, further enhance consumers’ perception of Huawei’s innovation capabilities and help to drive shipments for fitness enthusiasts and users who need to monitor these metrics.

Huawei’s wearables uniquely merge traditional watch aesthetics with sports elements, providing an alternative to Apple’s “tech square” design. Premium materials, such as space-grade metals in models like the GT 4 series, ensure comfort and luxury, catering to various consumers seeking standout products.

Multi-channel marketing, maintaining brand influence

Huawei prioritizes marketing efforts, using a multi-channel strategy across online and offline platforms to bolster brand recognition. Using its strengths in government, enterprise and telecom channels in the local market, it cultivates a favorable image. Flagship stores in key cities serve not only as showcases for premium products but also as hubs for consumer interaction. Emphasizing after-sales service and promotional activities enhances the overall user experience and perceived value of Huawei’s offerings. This proactive operational approach fosters customer loyalty, supported by ongoing product quality enhancements driven by valuable feedback.

Challenges ahead

Despite initial expectations of a positive impact from Huawei’s return to the smartphone business on its wearable devices, growth has been limited. Challenges lie in attracting new users and retaining current users with existing devices, due to its mature wearable installed base in China. The extension of device lifecycles, due to expensive and capable releases in recent years, adds to the difficulty of sustaining shipment growth. To overcome this, Huawei needs to continue to innovate, optimize performance and encourage ecosystem users to upgrade, simultaneously enhancing loyalty. By aligning device development with smartphone shipment growth, Huawei can attract users from other ecosystems and address stagnating wearable device sales, ultimately benefiting its entire smartphone business. As competition intensifies, particularly from rivals emphasizing ecosystem development, Huawei must increase R&D efforts, constantly launch innovative products and collaborate with various industries to strengthen its ecosystem’s comprehensiveness.

Exploring and developing new features is a sustained commitment for Huawei, requiring continuous investment in technical research and development. Equally vital is the optimization of existing functionalities, such as battery life and stability. Collaboration with partners across industries is pivotal for driving innovation upgrades across a broader product spectrum. The launch of innovative products, such as Watch Buds and the Business Series basic band, not only captures consumer attention but also solidifies Huawei’s market-leading position. These successes underscore the significance of continual innovation and product optimization in maintaining Huawei’s competitive edge.

In the future, the high-end wearable device market is poised for significant value growth, a shift that plays to Huawei’s strengths with its robust presence and health-tracking products in the high-end segment. Huawei’s focus on technological innovation and data value sets the stage for this evolution. With improved health monitoring capabilities, enhanced accuracy and seamless AI integration into its ecosystem, Huawei’s wearables promise a sophisticated and user-centric smart living experience. Its strategic approach involves understanding user needs, introducing upscale products and services, and staying aligned with market dynamics. As the smart ecosystem matures and personalized health management gains traction, Huawei’s wearables are well-positioned to fortify its leadership in the market.