The success of Honor didn't just push back against China Star—it also pressured Xiaomi.
At its peak, Honor wasn't just Huawei's sub-brand—it was a digital-native juggernaut, rivaling Xiaomi in popularity and online dominance.
The competition became so intense that it forced Lei Jun to utter a now-famous line:
"Take life and death lightly. Just do it."
That was the kind of pressure Honor created at its prime.
Huawei had built something rare:
A strong offline market that could go toe-to-toe with OPPO and VIVO[1]
And an online market where Honor boxed directly with Xiaomi
That was the strength of its dual-track strategy—backed by robust R&D.
In his previous life, Haifeng recalled the "Big Four" of China's mobile phone market:
Huawei
Xiaomi
OPPO
VIVO
Each had its growth track:
Xiaomi focused almost entirely on the online market
OPPO and VIVO dominated offline retail
Huawei covered both, using Honor to counter Xiaomi and its leading brand to counter the rest
The battle lines were clear—and so were the flame wars.
Honor vs. Xiaomi wasn't just a brand rivalry.
It triggered fan battles across every forum and tech community in the country.
It wasn't until the market matured that all four brands began to pivot—trying to balance both channels.
Offline Realities
One harsh truth limited Xiaomi's offline ambitions: profit margins.
Low margins meant low dealer enthusiasm. Many retail distributors avoided Xiaomi altogether.
So Xiaomi launched Xiaomi Home—a self-owned franchise model—to build its offline footprint.
Meanwhile, OPPO and VIVO created new sub-brands to capture online audiences and hedge their risk.
China Star had a clear lesson here.
Haifeng knew the Star M1 series had razor-thin profit margins.
"Retailers aren't going to touch this," he told Zhang Yu bluntly.
The solution?
Keep the Star Series online and in self-owned stores
Use high-margin lines like the Hongmeng S and X series for distribution partnerships
And that's exactly what China Star would do:
Expand self-operated stores
Push flagship models into partner retail chains
Leverage the industry's current chaos to lock down shelf space
"We've got a two-year window," Haifeng said, "before the next reshuffle hits. Let's own the offline market while everyone else is still adjusting."
Bigger Picture: Beyond Phones
As the meeting wrapped up, Haifeng stood and delivered final instructions to the leadership team.
"Last year was solid. The industry knows we've got the edge in R&D.
But this year, we're raising the bar."
"Start planning a September product upgrade."
The team looked up.
"The next-gen Hongmeng flagship must improve on last year's weak spots."
"Better camera. Longer battery life. Sleeker industrial design."
"And most important—wireless charging."
The senior team nodded, but some hesitated.
Zhang Yu spoke first.
"President Lu, the concept of wireless charging is exciting… but the tech is still hard to pull off."
He wasn't wrong.
The basic circuit board was easy.
However, the real challenge was the sensor chip needed for safe, efficient wireless charging.
Haifeng, however, had already committed.
"Let the lab take over. We'll prototype it.
If we solve this, it won't just be a feature but the flagship's defining trait."
"Every generation of the product must have a breakthrough.
Not just an upgrade—a new era."
[1] Oppo and Vivo are sister brands under the BBK Electronics umbrella, known for focusing on camera technology and sleek designs. Oppo often emphasizes fast charging, and Vivo prioritizes innovative camera features.