The launch of ZTE’s newest phone shows why it’s lost so much ground to Xiaomi

Chinese phone maker and telecommunication equipment provider ZTE held a launch event yesterday in Hong Kong for its new Blade S6 smartphone. Besides the phone, the small press- and VIP-only event also showcased why Chinese brands like ZTE have lost so much ground to Xiaomi in the past two years.

In 2014, Xiaomi sold 61 million smartphones in a handful of Asian countries, surpassing ZTE’s 48 million in global sales by a wide margin. Nearly 70 percent of ZTE’s revenue comes from its three tiers of smartphones: Blade, Grand, and Star. But the phones and how they’re marketed to consumers shows a huge disconnect between ZTE and the mobile-first generation.

The heavily-chandeliered ballroom on the 18th floor of a Hong Kong hotel was filled with the sound of looping generic parade music. The event was carnival themed, sporting a hot dog stand and two clowns. Attendees received a box of cheap magic trick toys. The entire event was inundated with a feeling of gimmickry.

Once the event started and speakers took to the stage, I felt as if I was watching a children’s play. Poorly rehearsed skits with a magician and a B-list Hong Kong celebrity were downright cringeworthy.

Say what you want about Lei Jun and Xiaomi, at least the man seems genuine when he speaks. At Xiaomi launch events – which suffer more from overcrowding than anything else – Lei doesn’t talk down to his fans. He doesn’t patronize or come across as fake. It’s his authenticity that has won over thousands of admirers.

The suited executives at ZTE didn’t convince me that they believed in their product. That’s probably due in no small part because their product is mediocre. The Blade S6, priced at US$249, is a flimsy piece of bland plastic that does nothing we haven’t seen before.