At the end of last year, it was reported that Dell plans to stop using Chinese chips in 2024, move production capacity out of China in 2025, and de-Chinese 100% of products sold in the United States in 2027. The plan immediately sparked a strong response in China.
Chinese consumers have launched a boycott and opted for Lenovo, Huawei and other brand products. Dell's market share in China has declined sharply, accumulating nearly 150% in three quarters, and has been marginalized. Its global performance has also been hit hard.
In the face of the performance cliff, Wu Dongmei, global vice president of Dell, recently said that the statement about the withdrawal of the ** chain from China is purely "rumor". Dale's tone was tough and reversed, and it was eye-catching.
Some analysts believe that Dell originally planned to execute, but the market resistance made it have to stop. There is also a view that Dell took it lightly from the beginning. In any case, the sudden reversal is inevitably subject to divergent opinions.
Whatever Dell's intentions, the choice of Chinese consumers is clear. After a year of boycott, the Chinese market has basically "de-Dellized", and its prospects are worrying. If you want to make a comeback, I'm afraid it will be even more difficult.
Dell has learned a profound lesson, and companies must understand the attitude of the Chinese market. It is necessary to judge the situation and be cautious in words and deeds, and never take it lightly. Dell has been hit hard in the Chinese market, and its move to deny its de-sinicization plan appears to be helpless. It remains to be seen how it responds to the status quo and whether it can regain its footing.
Business decisions need to be made carefully. Dell's de-China plan may be derived from its global layout strategy, but it obviously does not fully consider the reaction of the Chinese market. The more it wants to get rid of China, the more actively the Chinese market will resist it, and the result will be counterproductive. Corporate decision-making needs to assess the situation and not act rashly.
Consumers are increasingly vocalized. In the past, companies had the final say, but now consumers also have the right to speak. Dell's collective consumer boycott is a microcosm of the Chinese people's increased voice. If companies want to gain a foothold in China, they must face up to the role of consumers and respect their choices.
In economic globalization, glory and dreams are shared. For decades, Chinese and American companies have shared the dividends of globalization. Dell's previous success has also benefited from the Chinese market. Now that it has turned its head and wants to cut off the Chinese elements, it is obviously detached from the basic laws of economic globalization and goes against the trend of the times, and it will inevitably suffer losses.