At the end of 2022, Dell announced a "de-China" plan, moving production lines to Vietnam, India and other places, and stopping the use of chips and other elements produced in China. The news caused a strong response from Chinese consumers. Consumers believe that Dell intends to leave the Chinese market aside, that is, to hold China's rice bowl, but to smash China's pot. This behavior was unacceptable, and consumers chose to boycott Dell products.
Dell's sales in the Chinese market have fallen sharply because consumers believe that the core technologies purchased by Dell come from other brands, such as Intel, AMD's CPUs, and storage from Samsung, SK hynix, Micron, etc. In addition, the operating system used by Dell is also Windows, so consumers feel that they do not lose money by buying computers from other brands. Dell's "de-Chinaization" plan is undoubtedly a sign of disrespect to Chinese consumers, so consumers have collectively boycotted it.
Consumer boycotts of Dell continue to be conducted, and the reasons and ways to act against Dell are publicized through social media, forums and other channels. Some consumers have called on others not to buy Dell products, and they have also recommended alternatives from other brands. Many consumers also specifically ask if the product is made in China when buying a computer to ensure that they will not buy a Dell product. This boycott was undoubtedly a heavy blow to Dell, not only leading to a significant drop in sales, but also causing huge damage to Dell's brand reputation.
Due to the boycott of Dell by Chinese consumers, Dell's sales in the Chinese market continued to decline. In the first quarter of 2023, Dell's sales in China will increase by 451%。And that's just the beginning, by the second quarter, sales fell again by 52%, and in the third quarter by another 36%. At present, Dell's share of the Chinese market has dropped to about 9%, ranking fourth. If this trend continues, Dell's market position will decline further.
Dell's continuous decline in sales in the Chinese market has attracted the attention of the industry. Major ** have reported a sharp drop in Dell's sales, analyzed the reasons and speculated on the future trend. Some experts believe that Dell's severe impact on the Chinese market is mainly due to consumer outrage caused by its "de-China" plan. Consumers have shifted their choice of buying computers to other brands and are reluctant to support Dell. In addition, the boycott of Dell has triggered a group effect, with more and more consumers joining the boycott, resulting in a continuous decline in Dell's sales.
Dell's sales volume for three consecutive quarters** is undoubtedly a huge challenge for the company. In the face of intensified market competition, Dell needs to take steps to improve the situation as soon as possible. However, it is not easy to reverse the trend of declining sales. Dell needed to reassess its positioning in the Chinese market, retailor its product strategy, and strengthen its branding efforts.
At the same time as Dell's sales declined, domestic brands such as Huawei began to emerge. Huawei has replaced Dell as the third place in the Chinese market, and its sales continue to rise. In addition, brands such as Shenzhou, Xiaomi, and Honor have also seized the opportunity in this market turmoil to actively increase their market share, gradually replacing Dell's position in the Chinese market.
As a well-known brand in China, Huawei has been committed to developing its computer business in recent years. With its excellent technical strength and brand influence, Huawei has risen rapidly and replaced Dell as the third place in the Chinese market. Huawei's computer products are not only beautifully designed, but also have excellent performance, which has been recognized by the majority of consumers. Huawei also focuses on user experience, and continuously improves product features and performance to meet consumer demand for high-performance PCs.
In addition to Huawei, domestic brands such as Shenzhou, Xiaomi, and Honor have also risen rapidly. These brands have successfully captured the attention of consumers through innovative product design and best strategies. Their products are not only cost-effective, but also have strong performance and stable quality, which can meet the needs of different consumers. Among them, Xiaomi has launched a series of high-performance and high-configuration computer products through the positioning of "performance monsters", which has won the favor of consumers. Honor, on the other hand, has attracted the attention of young users by creating a sleek appearance and excellent performance.
The rise of these domestic brands indicates that China's computer market is gradually liberating itself from the monopoly of foreign brands. Consumers are increasingly aware that the performance and quality of domestic computers are not inferior to foreign brands, and even better than those of foreign brands. In the increasingly competitive environment in the Chinese market, domestic brands such as Huawei will continue to grow and rewrite the pattern of the Chinese computer market.
Faced with the pressure of declining sales, Wu Dongmei, global vice president of Dell, denied Dell's "de-China" plan and said that the previous rumors were all "rumors". However, Dell's failure to debunk the rumors in a timely manner has severely damaged consumer confidence. Dell needs to recalibrate its strategy to deal with the current predicament.
Dell needed to reassess the potential of the Chinese market and its position in the market. Dell has made some achievements in the past, but in the context of the era of market change, its strategy may need to be recalibrated. How to provide more attractive products and meet the needs of consumers is an urgent problem to be solved. Dell needs to continuously innovate and improve in product design, performance improvement, after-sales service, etc., to win the trust and support of consumers.
In addition, Dell should strengthen communication and interaction with Chinese consumers. By increasing brand promotion, reshaping the brand image, and enhancing consumer awareness and favorability. At the same time, by increasing cooperation with partners, more benefits and offers are provided to attract consumers to refocus on Dell products. In addition, Dell can consider partnering with local brands to jointly launch market-competitive products to compete for more market share.
Dell's "de-Chinaization" plan has sparked a backlash from Chinese consumers, leading to a sharp decline in Dell's sales in the Chinese market. At the same time, domestic brands such as Huawei have risen in this turmoil, gradually replacing Dell's position in the Chinese market. Dell faced severe market competition and brand image challenges, and needed to readjust its strategy to respond to changes in the market. Dell needs to strengthen communication and interaction with Chinese consumers and provide more attractive products and services in order to regain consumer recognition and support in the Chinese market. Dell's future depends on its ability to respond to current challenges and innovate and evolve in the face of market change.