HTC is trying to build an ecosystem in China to ensure its leading market position in the VR field, but the success of HTC remains to be seen.
The company had previously signed a strategic cooperation agreement with the Shenzhen government and set up a special VR research institute and a “Shenzhen VR Industry Fund†with a scale of RMB 10 billion to promote the development of VR industry in metropolitan areas.
Extended reading: HTC and Shenzhen government cooperate to build VR Research Institute and VR Industry Fund
HTC also launched the VR VC Virtual Reality Venture Capital Alliance (VRVCA) in June 2016. VRVCA virtual reality by the 28 investment institutions to provide $ 10 billion in investment funds, aimed to promote long-term development of virtual reality industry by sharing resources and virtual reality venture capital investment company. Since then, eight more members have joined the alliance, raising the total amount to US$12 billion.
Extended reading: HTC launches VR venture capital alliance with $10 billion in funds
In April this year, in order to solve the virtual shortages reality content and the development of virtual reality content platform Vive Port, HTC announced the Vive X accelerated program to foster virtual reality innovation and entrepreneurial team, HTC invested over 100 million dollars on Vive X Acceleration Program, and Has received applications from all over the world. HTC has so far selected 33 start-up companies, which have settled in incubators in Taipei, Beijing, Shenzhen and San Francisco.
HTC also signed a strategic cooperation agreement with Alibaba, a subsidiary of Alibaba Group, to jointly develop virtual reality technology and related solutions using cloud technology.
Due to the sluggish smartphone business, HTC had to find other outlets. HTC is eager to establish an ecosystem by investing a lot of money and resources to lead the development of the VR industry.
From the perspective of HTC’s recent investment, the company seems to be paying special attention to the Chinese market and hopes that China will establish local relations to improve its competitiveness.
Head of HTC Vive China, Graylin that, given that China has become the world's biggest movies, games and smart phone market, China can maintain market competitiveness is crucial in highly volatile markets of VR for HTC.
He pointed out that in the next five to ten years, the development of China's VR industry will have a major impact on the global VR industry in the future.
However, considering HTC's promotion of smart phone business in China, existing operating conditions, and competitive environment in VR industry, it remains to be seen whether HTC can take a place in the global VR market.
Although HTC smartphone is a pioneer in the development and production of, and able to compete with Apple and Samsung, but they never get a real victory in the Chinese smartphone market, mainly due to the distribution channels, brand marketing and pricing strategy Mistakes.
HTC Chairman Wang Xuehong once claimed that HTC is a Chinese brand because national brands have a strong affinity for the market. However, not many people value this statement because HTC is not actually a domestic mainland brand.
Now, HTC hopes to capitalize on its advantages in producing VR hardware and its close relationship with Chinese VR technology and product developers, once again trying to realize its dream of becoming a major manufacturer in China.
However, once China's VR market becomes more mature, currently China's major brand manufacturers such as Huawei, Lenovo, Xiaomi and Oppo will actively pursue it, and will try to seize market share from HTC. Local brands may also launch competitive products.
In addition, the mobile sector may become the largest market for VR products in the future. Supported by a large user base, China's smart phone manufacturers will be able to more effectively promote mobile VR platforms and products.
Wuxi Doton Power , https://www.dotonpower.com