Finally found the reason for Nokia's poor sales.

by anonymous on 2013-08-08 10:10:44

This article is from ZhiJi.net, authored by Czerny. The content represents personal opinions and does not reflect the views of this site.

I am a newly graduated college student who found a job at a commercial company doing data analysis and product research. As a newcomer, I couldn't take on projects right away. For the past half year, I have accompanied my mentor to many electronic markets and mobile phone cities across various cities such as Beijing, Tianjin, Suzhou, Hangzhou, Ningbo, Guangzhou, Shenzhen, Zhongshan, Haikou, Xiamen... Our main task was to investigate various products, primarily focusing on the sales situation, market acceptance, core competitiveness, supply chain, profit margins, consumer preferences, reasons for liking or disliking, etc., regarding iPhones, Samsung, ZTE, Huawei, and Lenovo smartphones and tablets. We then aggregated the data and performed an initial statistical analysis using software, which would later be summarized and reported by senior analysts.

My position was relatively low, and I mostly did menial tasks like contacting people, asking questions, and taking notes. Originally, the project only involved iOS and Android. However, since I have a preference for Windows Phone and use a Lumia 920, whenever I encountered customers and shop assistants who liked chatting, I also asked about Nokia phones. We visited a total of 19 cities, and in each city, I asked approximately 100 to 150 people about Nokia, resulting in a sample size of over 2000 people. There were more samples from the southern regions than the northern ones.

I will first list the most common reactions, which might hurt some fans' feelings, but I believe honesty is the best policy.

1. Nokia has a good reputation, but it leaves the majority with the impression of being durable and affordable. Many respondents had Nokia 1200 and other bar-style phones. In the minds of most respondents, the value of Nokia phones ranges from 100 to 300 yuan, with very few people choosing Nokia if the price exceeds 500 yuan. Among these users of cheap bar-style phones, the majority are women, middle-aged people, rural students with limited financial means, and migrant workers. Skilled laborers such as bricklayers and electricians tend to prefer Nokia phones, while unskilled laborers like coolies often use counterfeit or Coolpad phones with plastic screens. Based on my analysis, unskilled laborers generally have lower incomes and fewer entertainment options, so they prefer the entertainment features of counterfeit phones.

2. When I asked them if they knew that Nokia had launched the Lumia 920 and was about to launch the Lumia 1020 (which we called EOS or 41 million pixels during my survey), over 90% said they did not know. Those who did know about the Lumia 920/1020 were almost exclusively male college students or young working males.

3. When I asked if they would spend 3999 yuan (the price at the time of the survey) on a Lumia 920 with excellent camera capabilities, 80% said they would not buy it. When I asked why, they replied that taking photos was just an auxiliary function of a smartphone. With such busy work schedules and fast-paced lifestyles, who has the time or mood to constantly take pictures? Going out to eat and pulling out a camera would likely make one seem outdated. When I asked what they mainly took pictures of, 70% said children, while some women mentioned taking pictures of clothing tags, codes, QR codes, promotional flyers, rental listings, and courier numbers in malls. They mainly preferred taking pictures because it was faster and more convenient than writing things down, and they did not have special requirements for image quality. Many manual laborers and middle-aged people still used flip phones with poor-quality cameras (estimated to have only 300,000 pixels) and small 200x100 screens to take pictures of their pets.

4. Regarding the distribution channels, many second-tier cities have seen the closure of Nokia counters. Many stores labeled as "Nokia" actually sell mostly Samsung, HTC, and domestic brands. It's worth mentioning that elderly-friendly phones are now very popular. Brands like Changhong, which hold high status among middle-aged and elderly consumers, have entered the mobile phone market to compete for profits. A Changhong phone sells for only 199 yuan but offers high profit margins, so store clerks actively promote them due to higher commissions. On the contrary, Nokia phones offer low profit margins, so unless specifically asked for, store clerks and guides rarely proactively promote Nokia phones.

5. Store clerks are resistant to Lumia phones. Indeed, many stores are resistant to Lumia. In several cities (I don't remember which ones), there was a large electronics department store with a dedicated Nokia counter, which made me excited. However, upon closer inspection, I was disappointed to find that the main products were still Lumia 610/710 models. When I talked to the store clerks, they generally seemed helpless, especially female clerks and guides who didn't fully understand the Windows Phone system themselves. They didn't know how to copy movies or songs; some male guides could manage it but found the process too cumbersome (WP7 still used ZUNE). As a result, they were mostly dual-device users, displaying a Lumia for show but personally using Android or iPhone devices, with some still using Symbian. Due to the slow jailbreak progress of WP, it is evident that the WP system, which claims to be simple and easy to use, is not considered simple by ordinary people, even the guides themselves do not use it.

6. Regarding issues commonly reflected on forums such as gravity lock, sound separation, and A-screens, there was little response in physical stores. Only the push notification feature drew a comment from one male clerk, who mentioned that an important matter was almost missed because QQ notifications weren't pushed. This shows that the product requirements among the general public, especially in physical stores, are much lower than those online. Many people consider brand first when choosing a phone, followed by price. As long as the software can play what everyone else can, it suffices.

7. Regarding mobile office functionality, based on these 19 cities, it is basically negligible. Since our surveys were mainly conducted among the general public, we rarely encountered big bosses. Most were employees, college students, middle-aged individuals, and office clerks. Among these groups, some civil servants who are required to keep their phones on 24/7 occasionally send simple photos (but most use MMS included in their packages); a very small number have sent Word documents via their phones, and only a few college students have submitted papers through email. These cases are so few that they can be ignored.

For those whose jobs do not require keeping their phones on, many switch off their work SIM cards after work. They do not want to be disturbed by work-related matters during their personal time and have no habit of working from home. Many public institution employees feel disillusioned, believing that whether they work hard or not makes no difference in terms of promotion, so they simply go through the motions. This sentiment is particularly prevalent among those around 40 years old. Therefore, the Windows Phone system, which emphasizes mobile office, working from home, and working in official vehicles, should proceed cautiously...

8. Software installed on respondents' phones. This is roughly based on memory, as the specific statistical results from the company are not yet visible to our level.

QQ, WeChat, Weibo, 360 Mobile Assistant, Kuwo/Kugou/Duomi players, QQ games/QQ space, UC/QQ/Dolphin browsers, Youku, Taobao/Alipay online banking apps, Meitu, Tieba, Baidu Maps, Sogou/Baidu input methods, various e-books/QQ reading apps, various deal-finding/discount/offering apps, Renren/Douban...

It is clear that users place the highest importance on communication software. Keeping QQ and WeChat running is almost essential for everyone, and many corporate users even hold meetings via WeChat. Thus, push notifications for QQ and WeChat are highly valued. Map applications are almost monopolized by Baidu Maps due to its comprehensive features, full Chinese interface, and user-friendly design. Next come various audio players, as people mainly listen to music on buses and subways. Domestic software is convenient to use, automatically loads lyrics, and frequently updates new songs. Then come e-book readers, as many people enjoy reading e-books in bed at home or while walking. Finally, shopping apps are popular due to the proliferation of discount websites. Many people are enthusiastic about grabbing bargains, especially in second- and third-tier economically underdeveloped areas where they cannot easily access goods and thus rely heavily on online shopping.

Regrettably, photo-taking apps are not prominent in most people's software lists or demands. Perhaps photographing really is just an extremely ordinary auxiliary function of smartphones?

At the end of the article: Some people doubt me, but I do not wish to explain further. I will not violate company rules by uploading internal documents to prove myself. I merely asked some people in each city while investigating Android and iOS, summarizing based on memory. Although it may hurt some people's feelings, my intention is good.

Nokia's current predicament is well known. We need to help it recognize itself and strive harder, not indulge in unrealistic fantasies or maintain an arrogant mindset of being the best. Otherwise, it risks being overwhelmed by market trends. As a long-time Nokia user, I do not want my phone to become a relic.