According to research firms, China’s Huawei Technologies is plotting a return to the 5G smartphone industry by the end of this year. The company’s comeback would mark a significant victory for Huawei after a U.S. ban on equipment sales decimated its consumer electronics business. It could also signal a new chapter for the Chinese technology giant, which has built its reputation on a dedication to innovation and resilience in the face of adversity.
By nature, Huawei, a B2B company, has never achieved worldwide recognition due to its Chinese roots and business-to-business approach. Its most significant gains have been outside the public eye, mainly with telephone and internet providers using its network equipment in their networks. However, the company is now a global leader in 5G wireless infrastructure and boasts 31 of 50 top telecom global operators as chosen corporate partners.
But the company still has a long way to go to become a mainstream consumer brand in the United States. The company should rethink its marketing strategy and focus less on superior product features. Instead, it should use storytelling to better connect with consumers and build a deeper understanding of their needs and how its products can help improve their lives.
The company also needs to do a much better job of managing its public image. It has a significant challenge in this regard because of the constant attacks from its U.S. rivals and the politicization of the issue by the Trump administration.
Last, Huawei must concerted effort to bring more international and diverse thinking into its senior management ranks. This is essential in allowing the company to gain a foothold in foreign markets.
The U.S. has imposed several restrictions on the sale of hardware and software to the Chinese tech giant since the beginning of the year. The most recent move was implementing a new formal policy restricting most U.S. suppliers from shipping technology to Huawei unless they get a license from the Commerce Department. The move follows a broader crackdown on the chip market in 2019. The restrictions are based on fears that the chips could be used to support Chinese military activities. Nevertheless, the Chinese semiconductor industry has proven resilient and will remain competitive even without access to critical technologies from the West. The U.S. will likely continue its repression of the semiconductor industry, which may not be suitable for the global economy in the long run. This is why it is so vital for Huawei to fight back. It should be prepared for a long battle and ensure it has the resources necessary to prevail. The stakes are high, and a failure to do so will severely impact the global economy. The world can’t afford that.
