Lei Jun's first public speech: where did Xiaomi come from and where will it go

On August 11th, Lei Jun’s public speech on the 10th anniversary of Xiaomi with the theme of “Ahead of the Way” was held at Xiaomi Science Park. This is Lei Jun’s first public speech to the public and the first large-scale offline event of the consumer electronics industry in Beijing this year.

In more than two hours of speech, Lei Jun used 20 stories to review the history of Xiaomi’s growth, and gave the answer to the world and the future-believe in yourself and never move forward. This is also the most inspiring aspect of this speech.

Millet’s ten-year summary report, Lei Jun frankly said ups and downs

At the beginning of the speech, “The world is facing huge challenges, what should we do”, Lei Jun gave his own answer. He said that many people are anxious right now, but he is also anxious himself. But anxiety is useless. We are determined to change our mentality in order to face this complex world positively. The method he chose was to walk. He walked 318.11 kilometers in one month. “If you keep walking toward the sun, you will feel the inner peace and warmth again. Every step forward will increase your love and courage. Minute.”

According to Lei Jun, Xiaomi originally planned to hold a celebration to celebrate the company’s tenth anniversary, but due to the epidemic, the original plan was cancelled. The speech held today is to define it as a “summary report” for all friends who pay attention to Xiaomi, and to tell all the lessons of Xiaomi’s ten-year experience.

Xiaomi’s ten years of entrepreneurship is also the golden decade of China’s mobile Internet, and Xiaomi chose the most difficult track. At that time, there were international giants such as Nokia and Motorola in the mobile phone industry, as well as domestically produced “China Cool Alliance”, and there were copycat mobile phones everywhere. Xiaomi hopes to “make the world’s best mobile phone at half the price” and choose the “triathlon” model of hardware, software, and Internet triathlon. It is not easy to do one of these three items, and it is even more difficult to master them all. Even today, few companies in the world can do it.

At the beginning of the business, Xiaomi has braved the wind and waves all the way in areas where it is good at, such as MIUI. The 1999 yuan (USD $286) Xiaomi mobile phone and the 799 yuan (USD $114) Redmi phone have not only completely changed the ecology of China’s mobile phone industry, but also made Xiaomi a top student in the mobile Internet. Lei Jun not only shared the success story of mobile phones and the ecological chain, but also revealed the biggest difficulty of Xiaomi’s early start-up: in the hardware field that he is not good at, he has repeatedly run into walls, which he even described as the “biggest joke”.

The great success of Xiaomi’s mobile phone business at the outset sparked an upsurge in the industry to learn from Xiaomi. Lei Jun said that in the early days, Xiaomi’s delivery capabilities were insufficient, and even people who learned Xiaomi misunderstood the Xiaomi model and took “hunger marketing” seriously, and the result would not last long. More and more people trust the “Xiaomi Model”. After learning the “Xiaomi Model”, Xiaomi also took the initiative to open it up, launching the “Ecological Chain Plan”, investing in and helping like-minded entrepreneurs, and copying more than 100 “Xiaomi Model” companies. It has changed more than 100 industries and created thousands of good products that are widely loved by consumers.

To the surprise of the outside world, Lei Jun also decrypted the truth behind the 1 billion bet with Dong Mingzhu and told the truth behind it. It turned out that the “billion gambling game” originated from a joke arrangement at the CCTV Economic Figure of the Year award party, which was based on “program effects.” Lei Jun believes that after experiencing the “gambling”, Xiaomi has deepened its understanding of manufacturing.

In addition, the supply chain dilemma, the experience of “fire fighting” with 1 billion overseas inventory, the reversal of the mobile phone business from the bottom… The Xiaomi described in Lei Jun’s speech is not always bright, but it has always been high. He also enjoyed the experience of Xiaomi’s reversal and breakthrough: “Success is often not planned. Crisis is an opportunity you can’t think of.” He believes that the most important thing in encountering a trough is to stabilize the position in order to win the turn. For Xiaomi, it is surprising that it adheres to the cost-effective strategy and adheres to world-class quality. Only after maintaining integrity, “Innovation determines how high we fly, and quality determines How far have we gone.”

Three things that really make Xiaomi proud

Lei Jun also shared the stories of his three most memorable highlights on the tenth anniversary. They were trying to persuade investors before the IPO, agreeing that the comprehensive net profit margin of Xiaomi hardware will never exceed 5%; in 2019, Xiaomi finally moved into its own property, Xiaomi Technology Park, and “finally bought a house in 9 years in North Drifting”, was The intermediary industry called it “the most inspirational story of Bei Diao”; subsequently, Xiaomi became the youngest top 500 in the world.

In more than two hours, Lei Jun summarized the 10-year history of Xiaomi with 20 stories to answer the question “Where did Xiaomi come from and where will it go”. Lei Jun said that Xiaomi’s 10 years of pride are three things that he is most proud of: accelerating the popularization of mobile Internet and promoting the rise of a new generation of Internet leading companies represented by Didi Chu; a large number of ecological chain companies represented by Stone Technology More than 100 industry changes; Xiaomi has recruited a large number of female workers in its factories in Indonesia, giving ordinary people the opportunity to change their lives.

In addition, during the speech, Lei Jun also disclosed his three wishes for Xiaomi after ten years:

Xiaomi can become a truly international brand originating from China, and users all over the world know how to pronounce “Xiaomi”;

No one ever said that Lei Jun is a model worker, and the stage of struggle belongs to the new generation of Xiaomi people;

A group of amazing new companies were born because of the inspiration of Xiaomi’s entrepreneurial story.

A speech can’t tell the wonderful story of Xiaomi’s ten years. This speech also released a special work-the first official authorized biography of Xiaomi, written by the writer Fan Haitao and published by CITIC Publishing House, “Infinitely Forward”. It is understood that the book lasted one and a half years, interviewed more than 100 people from the Xiaomi team, and the whole book was 360,000 words, which was very informative. After the speech, sales began on major platforms.

Where will Xiaomi go? Lei Jun announced the “Three Iron Laws”

Who is Xiaomi? Why does Xiaomi struggle? This is the subject of Lei Jun’s open letter when Xiaomi went public. In this speech, Lei Jun gave a richer and multidimensional answer.

Just the day before the speech, “Fortune” magazine announced the latest Fortune 500. Xiaomi was once again selected and ranked 422, a sharp increase of 46 places from last year. Lei Jun believes that Xiaomi has always been compared with the established top 500 brands, such as Apple, Samsung and Huawei, but Xiaomi is only a ten-year-old boy. If you look at it from a development perspective, Xiaomi has many outstanding places.

What changes will Xiaomi bring to the world in the future? Lei Jun chose to use three products to answer. At the new product launch conference after the keynote speech, Xiaomi launched three 10th anniversary gifts in one go: Xiaomi 10 Extreme Commemorative Edition, Redmi K30 Extreme Commemorative Edition and Xiaomi Transparent TV.

Lei Jun chose to use these three products to represent the three iron laws that Xiaomi never changes: technology-oriented, cost-effectiveness-oriented, and the coolest products. He explained that technology-based is Xiaomi’s attitude of sticking to hard-core technology in the next ten years, and he also disclosed: Xiaomi is still developing the surging chip that fans care about; price-performance is Xiaomi’s greatest sincerity in making friends with users. Xiaomi’s core strategy; making cool products is the responsibility of Xiaomi engineers, and being the coolest company in Mi Fan’s mind is Xiaomi’s vision.

Three development strategies for Xiaomi in the next decade

Lei Jun is not only releasing products, but also releasing Xiaomi’s declaration for the next decade. At the same time, Lei Jun also gave the audience the answer “Where will Xiaomi go?” and disclosed the three major development strategies of Xiaomi in the next decade.

“Today we are facing a very complex international environment, and at the same time facing an extremely fierce competitive environment. What should we do next? If we want to stick to today’s results and live on the past performance, there is no doubt that we can’t hold it. If you want to continue to ignore, rush, and grow extensively, there is no doubt that this road will not work.” Lei Jun said that the first strategy is to start a new business, boldly use entrepreneurial talents, boldly use entrepreneurial incentives, and boldly Seize new strategic opportunities.

The second strategy is to continue to deepen “Internet + manufacturing” and insist on using the Internet to empower manufacturing. Lei Jun said that on the basis of continuing sincere cooperation with foundries, Xiaomi will be deeply involved in manufacturing: At present, Xiaomi has self-developed a large number of high-end equipment, and has designed a fully automated high-end mobile phone production line. In addition, the Xiaomi Industry Fund has also invested in more than 70 semiconductor and smart manufacturing companies. Xiaomi will make great efforts to “manufacture” in the future.

The third strategy is to “develop steadily and farther.” Lei Jun said that Xiaomi will take ten years to look at its development, be steady and do long-term valuable things. He said that Xiaomi will “be friends with time and never venture into it.”