Xiaomi has grown up?

On the evening of August 11, Xiaomi Chairman Lei Jun gave a public speech, telling the story of entrepreneurship, including the release of new products, which lasted 175 minutes, nearly 3 hours. The theme of his speech is: Go ahead and pay tribute to everyone in the past, present and future who is not afraid of trials and chooses to “forward”. In ten years, Xiaomi has achieved good results, but the road will be long and will face more challenges in the future.

Ten years of ups and downs
On August 9th, the 2020 Fortune Global 500 list was released, and Xiaomi Group ranked 422; this is the first time that this is the first time in 2019, this company ranked one of the world’s top five smartphone manufacturers on the list again , A sharp increase of 46 places compared with 468 places last year.

The 2019 financial report shows that the company’s total annual revenue exceeded 200 billion yuan, reaching 205.8 billion yuan, a year-on-year increase of 17.7%; adjusted net profit was RMB 11.5 billion, a year-on-year increase of 34.8%. Revenue from overseas markets exceeded 10 billion U.S. dollars, reaching RMB 91.2 billion, entering more than 90 countries and markets around the world and becoming a truly global enterprise. Among them, the total revenue in the fourth quarter of 2019 was RMB 56.5 billion, a year-on-year increase of 27.1%, which was the highest quarter of Xiaomi Group’s revenue in 2019; adjusted net profit was RMB 2.3 billion, a year-on-year increase of 26.5%.

Looking back over the past 10 years, Xiaomi and like-minded entrepreneurs have changed many industries and made many entrepreneurs at the same time. Xiaomi’s ecological model has driven the transformation of more than 100 industries and has created a large number of entrepreneurs. From an ordinary worker to a worth of 7.7 billion, Chang Jing, a young man born in the 1980s, quit a big company. Thanks to the Xiaomi ecological chain, in only 5 years, Roborock Technology he founded has become a leader in the sweeping robot industry. Successfully listed on the Science and Technology Innovation Board in February this year.

Of course, when Xiaomi was tired and Lei Jun had brain expansion, the most difficult thing for him was to bet with Dong Mingzhu.

At the 2013 China Economic Figure of the Year Announcement Ceremony, the director of the program group specially arranged an impromptu “game”. The same winners, Lei Jun and Dong Mingzhu, one is the chairman and CEO of Xiaomi, and the other is the chairman of Zhuhai Gree Group Co., Ltd. , One is the head of Internet technology companies and the other is the leader of traditional industrial companies. The two set up a “gambling game” in public. Lei Jun said that if the Xiaomi model’s turnover beats Gree within 5 years, he would like Dong Mingzhu to pay him 1 yuan, and Dong Mingzhu said that if he is defeated, he is willing to pay 1 billion. Until recently, Lei Jun wanted to understand: At that time, our confidence was bursting, and it was indeed expanded. Soon, Xiaomi encountered a lot of growth troubles.

At the end of 2015, Xiaomi’s ultra-high growth in the early stage covered up many growing problems, and all of them broke out all at once. In 2016, Xiaomi mobile phone sales fell into a trough.

However, despite the gap with Apple, the ten-year-old still achieved good results in the Internet manufacturing industry.

Strategic review
If you look back from the “rear-view mirror” to the future, what are the main things that Xiaomi has done right?

Dare to take risks and seize opportunities again and again. In 2011, in order to get the screen supplier, Xiaomi contacted the world’s screen giant Sharp after several setbacks, and was scheduled to meet and communicate at Sharp’s headquarters on March 26 of that year, but it was only half a month before the agreed date, which was March. On the 11th, the earthquake in Japan and the leakage of nuclear power plants caused turmoil around the world. Go or not? After getting on the plane, Lei Jun and his entourage discovered that there were only three of them in the entire cabin. When we arrived at Sharp, the whole building was empty, only their group of visitors. In this way, Xiaomi’s sincerity moved Sharp, and Sharp became the top supplier of Xiaomi screens.

Insist on innovation and occupy the commanding heights of the industry. Whether it is the “Triathlon” of “Internet + Software + Hardware”, or the “Focused, Ultimate, Word-of-mouth, Fast” Internet Seven-character formula, or the pursuit of the highest cost performance, it fully reflects Xiaomi’s innovative spirit.

Adhering to quality, there are more and more rice noodles, which promotes Xiaomi to go further and further in the competition in the mobile phone market. In order to maintain quality, Zhang Ruimin of Haier smashed several refrigerators that did not meet the quality specifications, causing public opinion to boil. Lei Jun was to realize the “Red Rice Project”, optimizing the domestic industrial chain and making national mobile phones. At that time, the domestic industrial chain was not yet mature. Lei Jun was very dissatisfied with the first-generation products made by Xiaomi and decided to overthrow and start over. All of a sudden, 40 million R&D expenses became a waste of water. The first-generation Redmi that was officially released later became more popular than expected and sold 44.6 million units.

Road is hindered and long
The Internet is the vanguard of the new technological wave of the world economy in the 21st century. “Internet+” has become an overwhelming trend, ranging from market giants to small business workshops. At present, no traditional industry does not fear it and reflects on the industry with Internet thinking. Construction, in which intelligent manufacturing based mainly on the Internet will be the new birth and way out of the real economy in the future.

Xiaomi successfully grafted the Internet with traditional manufacturing, and insisted on using the Internet to empower the manufacturing industry with the methodology of the Internet. In the face of external opportunities and challenges, Xiaomi will be deeply involved in manufacturing on the basis of continuing sincere cooperation with foundries. It is reported that the company has self-developed a large number of high-end equipment, and has designed a fully automated high-end mobile phone production line. Its industry fund has invested in more than 70 semiconductor and smart manufacturing companies.

Facing the next decade, where is Xiaomi’s road? Lei Jun said that there are three strategies, one is to show the enthusiasm for starting a new business; the other is to aim at the “Internet + manufacturing” strategy; the third is to be steady and not aggressive.

The ten-year-old has aspirations, outstanding achievements, and has also been naughty and reckless. The outside world has different opinions on his leader, Lei Jun. However, this does not represent the future, and ultimately depends on the performance of the entrepreneur and the contribution to society.

The track is established, and the road is long and difficult.