“Spain is an open and very good country for foreign brands, but also very challenging due to competition and focus on low prices,” said Laurence Li, the new Honorary Country Manager for Spain and Portugal. His tenure comes with significant expectations as Honor aims to solidify its market presence.
Competing at the Top: A Strategy for Spain
Honor Magic V5 | Image: Xataka
Li’s vision for Honor is ambitious. He believes that within the next five years, the company should be one of the top three consumer brands in Spain, extending beyond just smartphones. The focus is primarily on high-end products as the firm intentionally avoids entering the low-margin entry-range market.
Honor recognizes that Spain offers a fertile ground for Chinese brands; a sentiment echoed by the success stories of companies like Xiaomi and Huawei. They initially gained traction through competitive pricing and product competence, eventually transitioning to premium segments.
Quality Over Price
Honor is not interested in becoming a brand synonymous with low prices. “If you’re looking for an entry-level phone, you should consider other brands. However, if you want innovation and quality, Honor is your best option,” Li stated confidently.
The latest market data highlights that Apple and Samsung dominate the Spanish smartphone market, with Xiaomi trailing closely. Honor, with only a 1.3% market share, understands that quality is paramount for consumer loyalty. To put this into perspective, people are increasingly willing to invest in phones that offer longevity and exceptional quality, often keeping them for three to five years.
Innovation: Foldable Devices and AI
This is Honor’s humanoid robot, developed entirely by them and visible in their store | Image: Xataka
To carve out a distinct identity, Honor is set on becoming a leader in folding devices, as exemplified by the Honor Magic V5, touted as the thinnest foldable smartphone on the market. Li believes that this innovation, coupled with advanced AI integration, could position Honor competitively against veterans like Samsung and Apple.
Honor is investing heavily in silicon-carbon batteries and hinge technology, focusing on durability and performance. The upcoming plans also prioritize the integration of artificial intelligence into their products to enhance user experience.
Building Brand Visibility and Retail Presence
In China, 50-60% of Honor’s sales happen in physical stores, where customers can interact with products before buying. This tactile experience significantly influences consumer behavior. However, in Spain, the company currently opts to strengthen partnerships with key players like Vodafone and MediaMarkt rather than opening physical stores.
Stand of Honor in one of the El Corte Inglés in Córdoba, right next to Samsung, Google, Xiaomi and Apple | Image: Xataka
Ultimately, Honor’s strategy emphasizes building brand awareness through collaborations and innovative product offerings. Laurence Li envisions Honor not only as a smartphone brand but as a comprehensive consumer technology entity, aspiring to become one of the top three brands across all categories in Spain.