SIMCom Develops Domestic and Foreign Markets at the Same Time, Steadily Pushing Ahead with Its Market Globalization
2019 is called the first year of 5G. The commercialization of 5G networks provides a technical assurance for the Internet of Things (IoT), a digital, intelligent, information-based ecological network. IoT will be a new economic carrier to drive the rapid growth of the global economy. It is of great significance to the new round of industrial reform and green, intelligent and sustainable economic and social development. Therefore, it has grabbed global attention. The whole world is actively making strategic arrangements, hoping to seize the initiative in future international economic and technological competition.
In the meantime, SIMCom Wireless Solutions Co., Ltd., a leader in the communication module industry, is making active preparations when IoT is in full swing. On Nov. 10, 2019, SIMCom held a national sales agent training conference. Agents from first and second-tier cities and national key cities such as Beijing, Shenzhen, Chengdu, Nanjing, Hangzhou, Chongqing gathered at the Shanghai headquarters, to receive in-depth training on IoT products and its full range of products. In addition, training for overseas agents is also in preparation. Overseas training will cover agents and FAEs in many countries such as Europe, the Americas, Asia Pacific and so on.
This move in the IoT explosion implies the ambition and foresight of SIMCom. Since its establishment in 2002, SIMCom has gradually grown into a leader in the module industry. At present, its product distribution network and field technical support network cover six continents. It has become a veritable giant in the industry. Today, we had the pleasure of interviewing Tan Mengxi, Marketing Director of SIMCom, on the company’s market globalization strategy and arrangements. The following is the interview.
Tan Mengxi, Marketing Director of SIMCom
(Question) As we know, SIMCom has a high brand awareness in relevant fields overseas. What does it take to achieve it?
SIMCom is 17 years old now, with over 10 years of overseas experience. Over the years, we have used our professional technical innovation and service capabilities to continuously meet the IoT needs of customers from all walks of life and paid great attention to product quality and supply. We always keep abreast of the global dynamics and have the foresight to move in advance. For example, this year we took the lead in launching the world's first 5G module SIM8200EA-M2 series and passed the real network signal test. Next year, we plan to introduce 4G|5G C-V2X modules SIM7920X-AU and SIM8200X-AU. The main target market is level-3 and higher-level autonomous driving applications. While exploring vertical industries, SIMCom continuously defines superior products and keeps building competitive edges in four aspects, i.e. product quality, cost, service and innovation. In addition, I think the high brand awareness of SIMCom overseas may also be attributed to the company’s rapid development in the past few years, which makes our brand positioning clearer. SIMCom, the abbreviation easy to identify and remember is used internationally, while the name“芯讯通”which is familiar to the domestic market is used in China.
(Question) How do you implement the differentiation strategy for your domestic and international logos?
We usually make deliberate arrangements when designing booths and producing promotional materials. Every year, SIMCom participates in different communications and IoT exhibitions of various sizes around the world, including the world’s most famous communications exhibitions, MWC Barcelona, MWC Americas, MWC Shanghai, CommunicAsia, CES, etc. At professional exhibitions in different regions and industries in Europe, the Americas and Asia Pacific, such as European Electronics Show, European Utility Week and IFSEC, SIMCom and its familiar red also can be found. Every international exhibition is an important battleground for our publicity. On this basis, the red of SIMCom has been engraved on the hearts of overseas customers as the brand’s second mark. At present, our annual budget for overseas exhibitions and events exceeds RMB one million. The group’s senior management has put a lot of efforts and attention in overseas forays and development.
(Question) What exactly does SIMCom's “path of international development” mean?
It means that SIMCom insists on internationalization in terms of the overall product mix. SIMCom is a Chinese company. We insist on the advantage of products made in China. While ensuring product quality, we maintain optimal product pricing. Made in China is an important factor and advantage of SIMCom. We insist on Made in China + globalization. Not just in China, we actively expand markets and customers worldwide. Through in-depth exploration of customer needs and the latest applications in various industries, we create SIMCom’s unique advantages in four aspects, i.e. product quality, cost, service, innovation.
(Question) Every year, SIMCom makes great efforts to apply for lots of overseas certifications. What do you think about that?
I just said that SIMCom takes the path of Made in China + globalization. The first step to globalization is to obtain overseas certifications, which is the first step to winning customers' trust. Every year, SIMCom spends a lot of money on overseas certifications. A single carrier network certification may cost more than RMB one million, not to mention the extra time and efforts put in. These certifications can take a few weeks or more than a month. However, we've always enjoyed it. Every year, SIMCom passes more than 400 overseas certifications. Our certification team’s working hours have overcome the distance and time difference. Sometimes, in a crucial stage, in order to guarantee no time difference with overseas customers, they work 24 hours a day and 7 days a week. I'm proud of our team and professionalism.
(Question) Apart from taking part in overseas exhibitions, what other overseas activities does SIMCom have every year?
Well, SIMCom has many overseas activities every year. Some are held regularly and some are not. In many overseas regions, such as Germany, Ukraine and other countries, our local sales and FAE teams have established deep connections with local carriers and customers. We often invite them to have regular product and technical training. At the same time, we are also invited to participate in activities jointly with local customers. For example, in Oct. and Nov. this year, we have participated in several international automotive electronics and IoT conferences. Local customers are very glad that we can participate and provide product technical support and marketing support. SIMCom also regularly holds partner conferences for communication with overseas customers. Last year, we respectively held a grand partner conference in Europe and Asia Pacific, which were well received. Overseas customers expressed their affection for SIMCom and their recognition of SIMCom products. Next year, we plan to hold corresponding partner conferences in the Americas, Asia Pacific and Europe.
(Question) In your opinion, what impact will 5G have on SIMCom?
The arrival of 5G is both an opportunity and a challenge for SIMCom’s global development. It imposes stricter requirements on the company’s capital and talent reserves. Module products must integrate perception, front-end data processing, analysis, data access and transmission and other complex functions. Therefore, pure module manufacturing will face great challenges. Module manufacturers with strong competitiveness should gradually improve the value added of modules and build such abilities as data analysis while providing modules. This is a new challenge for the module industry. But for SIMCom, which has clear strategic objectives and double competitive advantages in product and service, it’s a golden age.
(Question) Is the training for domestic and overseas global agents a sign of SIMCom’s upcoming moves?
IoT technology is an important foundation underpinning national strategies such as Cyber Power and Made in China 2025. It plays an important role in promoting the upgrading and optimization of national industrial structure. IoT is also a new global economic carrier integrating digital economy, intelligent economy, cyber economy and real economy. This is a critical time node for any company involved in the IoT industry. SIMCom organized the training for sales agents, in response to the national development process on the one hand, and hoping to have clearer ideas about development in the trend of 5G on the other hand. As long as our agents at home and abroad have the same understanding, coupled with professional, unique, innovative products and services, putting our heads and strengths together, I believe SIMCom will move into the future at a faster and steadier pace.
At the SIMCom Partner Conference at the beginning of the year, SIMCom CEO Yang Tao emphasized that SIMCom is a global company, so both its product and market strategies are based on the global perspective, while overseas markets make its core business segment. SIMCom will continue to improve its operational efficiency, product empowerment and customer service.
Mr. Yang Tao joined SIMCom in Aug. 2019, as SIMCom’s President and Sunsea AIoT Module Division’s President. With a decade of accumulation in the communications industry, he has high carrier business operation capability. Well-known enterprises he has served include KELON and TELLING, etc. He was in charge of group marketing, outbound investment/M&A, external strategy and relations and other fields, and accumulated rich experience in the whole communications industry chain and resources including upstream spare parts suppliers, brand manufacturers, carriers and channel operators. He successfully introduced China Mobile and CSIP as strategic investors. As LONGSUNG’s President, he played a key role in promoting the strategic cooperation between LONGSUNG and China Mobile IoT, etc. In LONGCHEER and LONGSUNG, he successively ran five projects exceeding RMB 100 million. He played a decisive role in the company's performance growth in the past two years.