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Xiaomi’s The story is the result of capturing the pulse of the times as China’s consumption trends change and the manufacturing industry upgrades and transforms; Xiaomi’s success is inseparable from Lei Jun’s “pirate”-like adventure and “peasant”-like pragmatism.
In the following article “Chinese Entrepreneur”‘s exclusive interview with Mr. Lei Jun, you will learn:
After Kingsoft, why did Mr. Lei choose to start Xiaomi from scratch?
In what aspects is Xiaomi’s “taking advantage of the trend” reflected?
What is Xiaomi’s future vision for smart manufacturing?
…
The following is the full text of the interview:
“I am more and more aware that everyone still has a lot of misunderstandings about Xiaomi.” Lei Jun told “Chinese Entrepreneur” The inner troubles are heartbreaking.
Ten years after its founding, Xiaomi successfully went public, became one of the top 500 companies in the world, and returned to the top three in the world in terms of mobile phone shipments. It can be said that Xiaomi has made a considerable achievement in ten years, and Lei Jun has already achieved success in the worldly sense, but this “model worker” is still running at a high speed without stopping. Brain is stillHowever, it did not dissipate.
A few months ago, Lei Jun LR Escorts also expressed in an exclusive conversation with He Zhenhong, the president of “Chinese Entrepreneur” magazine : “In fact, many people don’t understand Xiaomi.” What worries him is that Xiaomi has not yet grown into the Xiaomi he imagined, and the outside world doesn’t even understand Xiaomi now.
Lei Jun wanted to confirm Xiaomi too much.
From starting a business after graduating from college, to dedicating 16 years of youth to Kingsoft Software, and starting again, Lei Jun started his second entrepreneurial adventure with a bowl of millet porridge, and successfully transformed China’s mobile phones with Internet ideas industry, promoted the popularization of smart phones and accelerated the take-off of the mobile Internet. The story of Xiaomi and Lei Jun is already familiar to the outside world, but the joys and sorrows in it are far more complicated than the outside world imagines.
1. Ten Years of Xiaomi
Recalling the events of Xiaomi’s birth, Lei Jun still has tears in his eyes.
Lei Jun’s sixteen years in Jinshan were a period of burning passion. But at that time, there was a huge gap between the market value of Kingsoft and Internet companies, even less than that of some game companies. This made Lei Jun later reflect: “Kingsoft is like planting grass in the salt field. Why not fly kites at the entrance of the typhoon? What? Standing at the mouth of a typhoon, pigs can fly into the sky.” After leaving Jinshan, LeiLiberians Sugardaddy was lost. It took a while, but when he saw the opportunity of the changing Internet era and decided to enter the mobile phone industry Liberians Sugardaddy, he had huge ambitions and impulses Back again.
The international mobile phone market at that time could be said to be a vast country, with international giants such as Nokia, Motorola and Samsung standing at the high end, while domestically produced mid- to low-end phones were dominated by the “China Cool Alliance” and numerous counterfeit mobile phones. Looking at the global market, the birth of iPhoneLiberia Sugar Daddye announced that the era of smartphones has officially arrived. The global economy is growing rapidly, and a number of With the rise of a huge middle class, the manufacturing industry is undergoing transformation and upgrading.
This is a historic opportunity that makes Lei Jun feel vaguely excited.
“Follow the trend” was one of Lei Jun’s experiences later summarizing Xiaomi’s victory. Tong Shihao, partner of GGV Capital Management, remembers very clearly the meeting with Lei Jun in Pangu Seven Star Building in January 2010. At that time, the first thing Lei Jun said was: “Hans, in the next 10 years, smartphones will replace computers and becomeFor the middle of the user’s life. ”
An expert who has never made a mobile phone started from scratch and used his Internet experience to empower the transformation and upgrading of the manufacturing industry. In 2013, the three-year-old Xiaomi emerged among the international consumer groups and smartphones ushered in the In the context of the recent outbreak, it pioneered the Internet sales model, caused the demise of a large number of counterfeit companies, and even changed the outside world’s stereotype of China’s shoddy manufacturing.
It intervened and even affected the trend of China’s manufacturing industry. The goal is a positive aspect of Xiaomi’s growth story. During this process, Xiaomi also broke into the top three positions in international mobile phone shipments and became a changeLiberia Sugar Daddy is the new favorite in the Internet era. Although China’s mainstream mobile phone companies at that time showed disdain for Xiaomi’s approach of “seeking market share at low prices”, it was later confirmed that Xiaomi was about to undergo a reshuffle. It also played a role in promoting the popularity of smartphones.
Wu Bofan, a researcher at the New Media Research Institute of Peking University, once said that Lei Jun has many conflicting points, including a “pirate” side. There is also a “peasant” side. One is sharp and the other is mellow, but these two qualities are balanced in Lei Jun. “Pirate” refers to being quick and pursuing victory, while “peasant” is pragmatic.
” The miss between Jinshan and the Internet era greatly aroused his ambition Liberians Sugardaddy. If an adventurer or reformer does not have a progressive or rebellious spirit, he will not be able to achieve this goal. Tomorrow’s. ” Said Fan Haitao, the author of Xiaomi’s official authorized biography “Go Forward”.
2. Understand the manufacturing industry
The best expression of farmers’ energy is the comeback in 2016 that Lei Jun often mentioned to the media .
Back to 2015. The long-standing problems finally broke out in the fast-growing Xiaomi. Xiaomi entered a critical moment of life and death. Due to supply chain problems, Xiaomi 5 was delayed. After that, the production capacity could not keep up.
At that time, Lei Jun hesitated for a long time, and finally rushed to the front line and personally took over the mobile phone department, taking on the responsibility of “firefighting captain” in Xiaomi mobile phone department. At the meeting, there were only four big words on the screen behind Lei Jun: “The situation is serious. If you Liberia Sugar trust me, please come with me. Try your best to changeLiberia Sugar changes the situation. “
Lei Jun also admitted in an exclusive conversation with He Zhenhong, the president of “Chinese Entrepreneur” magazine, that the crisis Xiaomi encountered in 2016 was actually a make-up lesson, especially a lesson in hardware manufacturing. “If the conditions are not good In certain circumstances, it is easy to capsize if you blindly pursue high speed. In 2016, we proposed to respect the manufacturing industry. In fact, we have fully realized that in the process of accumulating manufacturing experience, no matter how good, smart or diligent the team is, they have to pay for itLiberia Sugar Daddy price, which may have been underestimated before. ”
That time was miserable. Lei Jun often got off work at 9 a.m. and was still sitting in the conference room at one or two in the morning. When there was a whole class, Lei Jun counted and found that he had 23 meetings that day. Looking back now, although Xiaomi has almost destroyed itself and rebuilt itself through pain, it was in 2016 that Liberia Sugar DaddyThis supplementary lesson in manufacturing has allowed Xiaomi to truly enter the field of mobile phone hardware manufacturing, and also deepened Lei Jun’s understanding and awe of manufacturing.
Lei Jun believes that one of the misunderstandings about Xiaomi by the outside world is that “Xiaomi”. “The products are all OEM.” Behind this sentence is that Xiaomi has no technology and does not understand manufacturing. The key factor affecting Xiaomi’s mobile phone business is largely its reliance on the downstream supply chain. In order to improve Xiaomi’s focus on manufacturing Lei Jun decided to build a smart factory in Yizhuang, Beijing, to help OEMs further improve their efficiency.
Three years ago, Xiaomi established an industrial fund to engage in financial industry Liberia Sugar DaddyIndustrial investment, layout of cutting-edge technology and upstream and downstream industry chains, has invested in more than 100 companies, focusing on promoting the coordinated development of China’s intelligent manufacturing. Currently, Xiaomi Smart Factory has been completed The automated high-end mobile phone production line has the ability to manufacture millions of machines per year with 100 people. Its efficiency is 25% higher than that of the most advanced factories in the current foundry industry. All equipment in the factory, except for the placement machine, is. Self-developed by Xiaomi or companies invested by Xiaomi
At Xiaomi’s 10th anniversary speech, Lei Jun clarified the future direction of “internet + manufacturing” and gave Xiaomi’s future vision for intelligent manufacturing: “In the next decade, intelligence will Manufacturing will further help the rise of Chinese brands, and Xiaomi will become an emerging force that cannot be ignored in China’s manufacturing industry.” Lei Jun believes that other external factorsOne misunderstanding is that Xiaomi products are all mid- to low-end.
“After ten years of working, I still feel that we underestimated the difficulty of manufacturing.” Lei Jun said that ten years later, Xiaomi is still working hard, but when it finally entered the manufacturing industry, Xiaomi It was designed to solve the problems of foreign goods being looked down upon, poor quality, and poor design. Lei Jun hopes to use improved business efficiency and cost-effectiveness to help foreign goods improve their products and design. “But after we have been working for 10 years, some friends still feel that what Xiaomi does is mid- to low-end, which makes me quite depressed.”
In order to resolve this misunderstanding, Liberians EscortIn 2020, Xiaomi embarked on the road of premiumization. Xiaomi 10 series and Xiaomi 10 Ultra commemorative edition were released successively this year, and they lived up to their expectations. According to data from market research organization Canalys, Xiaomi ranked third in market share in the European market in the third quarter of 2020, with a year-on-year increase of 91%, only a slight gap from Apple. Data provided by Xiaomi shows that in foreign countries, products in the price range of 500 to 700 euros have increased by nearly 300% year-on-year, and products in the price range of more than 700 euros have increased by more than 300%. Xiaomi is making rapid progress in the high-end market.
In the next decade, Xiaomi will undoubtedly face a greater business adventure in the high-end market and manufacturing fields.
3. Go with the trend
Back to Lei Jun’s “Trend Theory”. If Xiaomi’s development is to seize the trend of changing the position of the Internet, then the birth of Xiaomi’s ecological chain is to seize the trend of the Internet of Things.
In 2020, the war between mobile phone manufacturers has spread to the IoT ecological field. Many mobile phone manufacturers such as Apple, Huawei, OnePlus, and OPPO have all competed to seize the opportunity. However, Xiaomi is one of the first manufacturers to lay out the IoT ecological chain. First, by incubating ecological chain enterprises, Xiaomi has rapidly expanded its product line. Now Xiaomi’s ecological chain is as huge as a giant, and it has a first-mover advantage among mobile phone manufacturers.
Xiaomi’s financial report for the second quarter of 2020 shows that as of June 30, 2020, Xiaomi has invested in more than 300 companies. These companies total LR Escorts‘s book value was RMB 36.8 billion, a year-on-year increase of 28.4%. Among them, four ecological chain companies invested by Huami, Yunmi, Stone Technology and No. 9 Company have entered the capital market. The number of connected devices (excluding smartphones and laptops) on the IoTLR Escorts platform reached 271 million, a year-on-year increaseAdd 38.3%.
The success of Xiaomi’s ecological chain is inseparable from Lei Jun’s concept of industrial layout. In 2013, when Lei Jun saw the huge opportunities in the IoT field, Liberia Sugar felt that something should be done, so he transferred employees from various departments A few old employees and an investment team with no experience were formed in this way, and the Xiaomi ecological chain plan was launched.
Liu De, who has single-handedly built the Xiaomi ecosystem and is also the co-founder of Xiaomi, believes that Xiaomi is a brand that relies on popularity to drive life. Xiaomi has a huge fan base, and its products and conferences have brought a steady stream of excitement to Xiaomi. Incessant internet popularity. Back at this point in 2013, the battle for Xiaomi’s mobile phones was not over yet. The IoT category could make up for the brand’s popularity, and hot products could not only attract traffic to Xiaomi, but also make up for the capital flow.
Liu De has repeatedly explained to the public that the model of Xiaomi’s ecological chain follows the development logic of “bamboo forest ecology”. A single tree does not form a forest, but once a bamboo forest is formed, new bamboo shoots will continue to sprout, and the ability to withstand wind and rain will be rapidly enhanced. A stable bamboo forest Ecology is formed.
In the end, Lei Jun decided to use the “investment + incubation” approach to seize the new trend. The ecological chain was partially established in 2014, and realized a turnover of 1.7 billion yuan that year, and in 2019, the turnover reached 60 billion yuan. Most of the more than 300 ecological chain companies do not belong to Xiaomi and only have a small amount of equity investment. However, they have come together because of their recognition of Xiaomi’s values and formed a healthy joint cooperation.
Xiaomi’s story is the result of seizing the pulse of China’s changing consumption trends and upgrading and transformation of the manufacturing industry Liberians Escort ; Xiaomi’s victory is even more inseparable from Lei Jun’s “pirate”-like adventure and “peasant”-like retreat.
On May 4th Youth Day this year, Lei Jun posted a photo of himself at Wuhan University on Weibo, and added a sentence: “May you be away for half your life and still a young man when you come back.” In the photo, Lei Jun is in LR Escorts Sitting on the ground on a lawn of Wuhan University, grass The end of Liberia Sugar Daddy’s flat is the old library of Wuhan University, and it was in this old library that he read the book “Fire in Silicon Valley” that changed the trajectory of his life.
Lei Jun, who has passed the age of knowing his destiny, already knows where Xiaomi will go in the next ten years.
Volunteer editor: xj
Original title: Lei Jun: Adventure and retreat invented Xiaomi
Article source: [WeChat official account: Shunwei Capital] Welcome to add tracking and attention! Please indicate the source when transcribing and publishing the article.
Original title: Lei Jun: Adventure and retreat invented Xiaomi
Article source: [Microelectronic signal: shunweicapital, WeChat official account: Shunwei Capital 】Welcome to add tracking and care! Please indicate the source when transcribing and publishing the article.
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