In an exclusive interview conducted by EqualOcean, we had the privilege to gain insights from Mr. Yu Lei, the visionary founder behind FreeYond. This discussion aimed to shed light on the key factors contributing to the company's exceptional success.
Shenzhen-based technology enterprise FreeYond (Chinese: 深圳自由跃动科技有限公司), founded in May 2022, has emerged as a prominent player in the global market. With a strong focus on intelligent smartphones, wearable devices, and other consumer-oriented smart products, the company has witnessed rapid and expansive growth within a remarkably short period. FreeYond has successfully expanded its sales network to encompass 31 countries worldwide and has strategically launched its products on globally recognized e-commerce platforms.
Marrying cutting-edge technology with consumer electronics
Setting itself apart from other smartphone manufacturers, FreeYond strives to fuse advanced technology with consumer electronics. By leveraging breakthroughs from hard technology domains like artificial intelligence, quantum communication, and brain-computer interfaces, FreeYond aims to bridge the gap between these disciplines and the consumer market. Yu Lei noted that while the high-tech industry primarily caters to B2B and government sectors, the consumer electronics industry still has untapped potential for incorporating high technology.
Yu Lei cited collaboration with OPPO in developing augmented reality (AR) glasses, which revealed the limited understanding of high technology even among established companies. This realization propelled the establishment of FreeYond, with the goal of fostering a deeper comprehension of high technology within the consumer electronics industry. Their roadmap includes integrating technologies such as artificial intelligence and quantum communication into smartphones and other smart devices, thus offering users a distinct and unparalleled experience.
Current offerings and future innovations
FreeYond has already introduced four smartphones, two smartwatches, and a pair of headphones. Yu Lei revealed that they plan to maintain a rapid pace of innovation, launching new products every month. Initially, they have focused on ensuring solid sales volume and establishing market channels, resulting in products that strike a balance between risk, security, and cost-performance ratio. Notably, their M5A smartphone has been acclaimed as the most cost-effective device among Chinese smartphone brands.
Strategically, FreeYond aims to swiftly penetrate the market through high-cost-performance offerings while continuing to introduce ground-breaking technologies. Their vision is to seamlessly integrate hard technology into consumer electronics products, empowering users with unparalleled capabilities and features.
Global expansion and market cultivation
While FreeYond primarily targets East Asia, Africa, and Latin America, its expansion strategy revolves around the Belt and Road Initiative. However, they face challenges associated with exchange rate fluctuations and settlement issues during their international expansion. For instance, they encountered difficulties exchanging Chinese yuan for US dollars in Egypt. Additionally, countries like Brazil impose high taxes, while others such as Bangladesh, Indonesia, and Pakistan necessitate adaptations to local nuances. Yu Lei expressed hope for simplified tariffs and import-export procedures to facilitate smoother business operations.
Regarding e-commerce channels, Yu Lei initially did not consider Amazon a primary E-commerce platform. However, they plan to position Amazon at a higher level in the future. Instead, they have succeeded by strategically choosing non-mainstream platforms such as Merkado Libre, JUMIA, and Temu. These platforms, though not widely recognized in cross-border e-commerce, have allowed FreeYond to gain recognition and even receive awards.
In terms of African e-commerce platforms, FreeYond has performed exceptionally well, particularly in Kenya, where they have secured a spot among the top five brands on the JUMIA platform and captured a market share of nearly 10%—an impressive feat for a new entrant. Their presence on the JUMIA platform is also projected to place them within the top ten this year. FreeYond intends to expand further in African countries and envisions becoming a leading e-commerce platform on the continent. Furthermore, they have formed a strategic partnership with Temu in the United States), leveraging Temu's extensive user base and robust e-commerce platform to access a larger consumer market.
Exploring high-tech advancements in the smartphone industry ecosystem
FreeYond's future plans involve advancing the integration of high technology into smartphones, accelerating the pace of new product releases, and entering new major categories. While some of these categories align with popular trends, they also encompass unique yet appealing sectors. Their smartphone-centered strategy extends to industries with significant volume rather than focusing solely on super-niche areas. Yu Lei emphasized three pivotal elements: intelligence, interconnectivity, and new energy. Expanding product offerings and categories centered around these keywords remains at the core of their strategic direction.
When discussing future trends in the smartphone industry and the consumer electronics market, Yu Lei predicted a stabilization of global smartphone shipments at around 1.1 billion to 1.2 billion units, a slight decrease compared to the previous year's 1.3 billion units. This decline is primarily attributed to the improving quality of smartphones rather than a stock market saturation. He emphasized that each year's 1.1 to 1.3 billion units signify a new market. Additionally, Yu Lei highlighted opportunities in emerging markets such as Africa, where users are transitioning from feature phones to smartphones and from 4G to 5G networks.
However, Yu Lei noted that the widespread adoption of 5G has been limited due to consumers not perceiving significant changes brought by the technology, and the difference in internet speed compared to 4G is not substantial. Looking ahead, he predicted that the era of 6G will witness numerous innovations, including satellite internet. Cloud computing was also underscored as crucial in the 6G era. Yu Lei believes that global smartphone ownership could reach approximately 4 billion units over time. However, the pace of smartphone upgrades is anticipated to slow down due to increasing device quality and the thriving development of the smart hardware market. He expects the market for smart connected devices to reach 100 billion units in the coming years.
Concluding the interview, Yu Lei emphasized FreeYond's unique positioning as a company. While their origins lie in smartphones, they aspire to become more than just a smartphone brand. He stated that in the coming years, the world will witness FreeYond building an entire ecosystem. Contrary to brands like Xiaomi (Chinese: 小米), Yu Lei believes that the internet thinking paradigm belongs to a previous era, aspiring instead to connect the entire ecosystem with the core ideology of high technology. FreeYond's vision revolves around creating a market centered around intelligence, the Internet of Things (IoT), and interconnectivity, and this core ideology remains steadfast.