2022: a year of high-end breakthroughs for vivo
Despite extremely fierce competition in 2022, vivo continued its resilience to achieve its hard-earned reputation for brand recognition and technology capabilities. Last year was the ‘year of the high-end breakthrough’ for us, in which the company achieved numerous milestones with its high-end products through steadily implemented long-term strategies.
The clear establishment of the brand’s underlying fundamentals directly supported the promotion of vivo’s high-end brand image in 2022. Throughout the year, vivo fully invested in the core value of ‘user-centricity’. We have clarified the fundamental relationship between product and brand and believe that the product is the foundation, while the brand is the result and the driving force behind product development. We enhanced our tech-driven and design-driven innovation, the two engines of our growth, and enhanced our business strategy by putting as much emphasis on the closed-loop customer experience as the closed-loop business model ‘. Our dedicated approach to building strong foundations for our business has enabled us to succeed in the fiercely competitive industry in unpredictable times. As a user-centric brand, we recognize that only our dedication to building great products and pursuing the ultimate user experience will lay a foundation for vivo’s growth.
We underwent several tough challenges, achieved remarkable achievements in fundamental technology innovation, and made major breakthroughs in our high-performance product line, marking a monumental leap forward in creating a distinctive brand. After several years of strategic investment in basic research, vivo has ushered in a qualitative transformation regarding the four critical aspects of design, imaging, system and performance, leading to the emergence of a “moat effect” for us. We have built a clear reputation for the imaging capabilities of our phones and further enhanced it through our global partnership with ZEISS in an effort to redefine mobile imaging. The vivo V23 series, V25 series and X80 have been honored by users and have successfully achieved a high degree of loyalty, satisfaction and enthusiasm for our products. Net promoter scores have also reached record levels and market performance continues to improve.
Face long-term challenges and go all-in to build strong foundations and achieve long-term business vitality
Despite all the success, the future still holds many challenges. The smartphone industry is in the earliest stages of a new round of technological revolution, with a potential slowdown being the main obstacle facing the entire industry. Over the course of the next three to five years, this situation is expected to become relatively serious. We are confident in overcoming these challenges by adhering to our entrepreneurial mindset, long-term planning and embracing transformation and disruption.
Business development is supported with cash reserves and profitability; cash flow is everything for the life of a company. In vivo, we have recognized the need to make the creation and health of our cash flow a priority. In a challenging market scenario such as the one we are currently witnessing, we believe it is imperative to reduce costs and improve efficiency, with an emphasis on capacity improvement, constant innovation and optimizing operational efficiency. However, it must be ensured in a non-negotiable manner that cost savings are in line with vivo’s mission and vision. Cost reduction cannot be achieved through unsustainable short-term means, such as compromising quality, transferring risk and endangering the interests of related parties.
Way forward: vivo’s mission is to make users, employees, partners and shareholders happy and satisfied
vivo’s strategic opportunity lies in our high-end breakthroughs, with user-centricity as the guiding principle of our efforts, and forward-looking innovation as the cornerstone of impressive products. Our focus this year will be to dispel low-margin misconceptions about the brand through brand premiumization and to break innovation bottlenecks using core technologies. We will also try to avoid price wars and reject the prevailing industry temptations to be obsessed with numbers. We believe that great products and extraordinary services are the key path to success in the marketplace and are determined not to trade short-term gains for market size.
Our mission is to make users, employees, partners and shareholders happy and satisfied, with the aim of continuously developing into a more sustainable, world-class company. This will be facilitated by the culture of inner focus at vivo where we all strive to hold ourselves to the highest standards. vivo is fortunate to be in an industry that has a lot of room for growth. With the start of the next decade of smartphone development, we see many challenges but also unlimited potential ahead of us.
Every challenge is an opportunity for improvement. The best product of an outstanding company is itself, realized through its ability to stay ahead of the competition. Throughout the nearly 28 years of vivo’s history, difficulties and crises have always provided it with the best opportunities for development, to move forward and upward. Our user-centricity, adherence to the ‘Benfen’ philosophy, focus on long-term win-win strategies, investments in strong fundamentals and approach to address challenges head-on will ensure that we thrive through disruptions and market cycles to deliver a even bigger brand.
Faith is a spring bird in winter who can foresee all good. vivo’s golden age has begun and it’s here to stay!
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