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Six months after the debut in the cut-throat Chinese market of YotaPhone2, VladislavMartynov, CEO of Yota Devices, sat down with China Daily to discuss his localizationstrategy, innovation philosophy and sales expectation.
In November Russian president Vladimir Putin presented the Russian-designed, Chinese-manufactured YotaPhone2 to President Xi Jinping as a symbol of cooperation in the field ofconsumer electronics between Russia and China.
Photos taken on April 15, 2015 show the Front ( left ) and back of the YotaPhone 2 [ Liu Zheng / chinadaily . com . cn ]
The phone features a quad-core 2.2 GHz Qualcomm Snapdragon 801 chip, a 5-inch, 1080PAMOLED screen and a 2GB random access memory.
Unlike other standard Android-based phones, flipping the phone over reveals the E-inkdisplay which uses zero power unless it is refreshing to receive new information.
Here are highlights of the interview and you can explore more detail in our video:
1. What are your business strategies in China as you readjust to the new Chineseeconomic policies and realities like the New Normal, the One Belt & One Road initiativeand the Internet Plus initiative?
"I think the "One Belt & One Road" initiative is a very good strategy to unite all nations in ajoint effort of economically beneficial collaboration. From my understanding, it means thatcountries on this road or belt should collaborate more for being comparative in the globalmarket," said Martynov.
According to Martynov, YotaPhone is a good practical example to show how to implement theplan.
On September 15, the company signed cooperation agreements with a Shenzhen ZTESupply Chain Co Ltd (ZTESC), an associate company of Chinese tech giant ZTE Corporation,and Shenzhen X&F Technology Co Ltd, an ODM that focuses on terminal products in the fieldof communications, aimed at producing innovative products.
"New Normal means to pay more attention to qualities rather than quantities in regarding toeconomic development in China," said Martynov.
In terms of the "Internet Plus" initiative, Martynov pointed out that the consumption of dataand the use of smartphones will be as simple as possible so people will get benefits withoutany barriers.
2. Economic slowdown pressures have increased in China since the second half of lastyear. During the first six months of this year, GDP growth has fallen to 7 percent, whiledeflation pressures have risen in the manufacturing sector. Against this backdrop,what are the challenges you have faced or continue to face in China, especially withregard to business development strategy and operations?
"You can have good times or you can have very good times. I think what China has benefitedfrom the last few years, is very good times in terms of economic growth. Right now, despitethe fact that it is slowing down, I still believe that compare with the other countries in theworld, China is still in the good times," said Martynov.
He used iPhone as an example to explain that innovation is usually the driver of the industryand the smartphone market. Although the first generation is twice as expensive as othercellphones, it triggered a big demand in consumers because it provided problem solutions forusers and offered convenient experience.
He is optimistic that as a newcomer to the Chinese market, taking a few percent of the marketshare means big success for Russian start-ups and the innovative genes of YotaPhone willtake over the slow down and capture the hearts of buyers.
3. How would you rate your company's performance in China after the debut ofYotaPhone2? Over the next three years, do you see an increase/decrease in China'scontribution to your global business? Having said that, do you also foresee any majorrisks in the China market over the long term?
"Currently, the selling performance of YotaPhone2 is in line with our expectations, but wedefinitely expect substantial increase and growth in China over the next one to two years,"said Martynov. He expects a big jump in the product's sales volume in China, which will be atidy contribution to the company's global business.
4. What's your advice to China's young entrepreneurs?
"They're quite lucky to have been born in this country, because opportunities in China,particularly during the time we are living, are unlimited," said Martynov. "Don't be afraid to tryto make your start-ups, to start your business, to bring your technologies to consumers andthe market".
Martynov pointed out that being persistent; believing in your ideas and technologies,collecting feedback and thinking globally are key pieces of advice for China's youngentrepreneurs.
