On August 11th, Lei Jun, the founder, chairman and CEO of Xiaomi Group, gave a speech on the 10th anniversary of Xiaomi. Xiaomi also released three products with commemorative summary significance on that day, namely Xiaomi 10 Extreme Commemorative Edition, Redmi K30 Extreme Commemorative Edition, and the world’s first mass-produced transparent TV, Xiaomi Transparent TV. At the same time, the Xiaomi unmanned smart factory was launched, detonating the field of smart manufacturing.
In his speech, Lei Jun combined with the three products released on the same day to set three iron laws for Xiaomi, namely “technology-oriented, cost-effective, and the coolest product.”
Lei Jun believes that technology-based means never stop on the road to climbing the peak of technology. This is Xiaomi’s attitude toward hard core technology in the next ten years. Cost-effectiveness is Xiaomi’s greatest sincerity in making friends with users, and it is Xiaomi’s core strategy. Whether it is a mass product or a high-end product, Xiaomi will always adhere to the price-performance ratio so that all users can buy with their eyes closed. And insisting on making the coolest products is Xiaomi’s eternal pursuit. To be the coolest company in the minds of users, this is Xiaomi’s vision.
Market analysts believe that these “three iron laws” enable the market to see the three major values of Xiaomi in terms of technological strength, business model and innovation direction. Xiaomi is expected to invest more than RMB 10 billion in technology research and development in 2020. , Is the foundation of Xiaomi’s development; based on the cost-effectiveness, behind Xiaomi’s pursuit of an extremely efficient business model, this is a weapon for Xiaomi’s market competition; “persist in making the coolest product” reflects the innovative genes in Xiaomi’s bones. The ultimate guarantee to promote the development of Xiaomi’s business and technological ecology.
In this speech, Lei Jun traced the company’s entire history of entrepreneurship and summed up the gains and losses, pains and pleasures that Xiaomi has experienced in different business environments over the past ten years. Summarizing the past is to better meet the future. Today’s business environment is full of changes, challenges and opportunities. Lei Jun said in his speech that if you want to stick to today’s achievements and live on the past performance, there is no doubt that you can’t hold it. If you want to continue to ignore, rush, and grow extensively, this road will not work. Therefore, Lei Jun formulated three major strategies for Xiaomi’s future development.
The first is to start a new business. Lei Jun believes that in today’s situation, Xiaomi still needs to show the enthusiasm for starting a new business, go all out, boldly use entrepreneurial talents, boldly use entrepreneurial incentives, and boldly grasp new strategic opportunities.
The second is Internet + manufacturing. Lei Jun believes that Xiaomi believes in the Internet and believes in the methodology of the Internet. Xiaomi will insist on using the Internet to empower manufacturing. On the basis of continuing sincere cooperation with the foundry, we are deeply involved in the manufacturing industry. 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. The Xiaomi Industry Fund has invested in more than 70 semiconductor and smart manufacturing companies. This is the “manufacturing” that Xiaomi will do in the future.
The third is to be steady and far-reaching. Lei Jun said that for all things, Xiaomi will take ten years to see, do long-term valuable things, and be friends with time. At the same time, strategically be steady, and don’t go ahead.
Technology-based, Xiaomi Mi 10 Extreme Commemorative Edition brings hard technology to stand firm in the high-end market
In Xiaomi’s corporate development narrative, there is always a key factor, that is, Xiaomi’s internal constructive engineer culture. Xiaomi’s outstanding Internet operations capabilities are more like the fruit of the collision between this engineer culture and the early enthusiast group.
Lei Jun once said: “Our eight partners are all from research and development. Among the top 100 employees, almost 99% are in technology. Technology is the genes in Xiaomi’s bones.”
The Xiaomi Mi 10 Extreme Commemorative Edition released this time is a concentrated expression of Xiaomi’s technical genes, which proves Xiaomi’s success in the high-end market and also reflects Xiaomi’s strong synergy in the high-tech industry chain.
The Mi 10 Extreme Commemorative Edition has dedicated a lot of black technology to the market. First of all, fast charging technology has made a revolutionary breakthrough. For the first time, 120 watts wired second charging is mass-produced. The battery adopts the industry’s first mass-produced graphene-based lithium-ion battery, equivalent to 4500mAh, dual-cell series-connected butterfly symmetric structure design, effective Improve charging speed. As far as the lens is concerned, the Xiaomi Mi 10 Extreme Commemorative Edition is blessed with a powerful camera hardware combination, advanced camera algorithms and professional software adjustments, and its overall image shooting capabilities are very good. It ranks first in mobile phone cameras with a score of 130 in the authority DXOMARK evaluation. Become the best smartphone for photography in the world. This series of black technology blessings is the strength of Xiaomi that continues to compete in the high-end market. Behind this is Xiaomi’s continuous investment and pursuit of technology research and development, and it is also Xiaomi’s attitude towards hard core technology in the next ten years.
Looking at the technological landscape of Xiaomi mobile phone + AIoT, we can also see the grand pattern of external industrial technology investment. In 2019, Xiaomi has continued to invest in supporting innovative technologies and applications, investing in materials, chips and parts companies related to 5G, the Internet of Things, and artificial intelligence in the industry chain to build a strong ecosystem. Currently, the Xiaomi Industry Fund has invested in more than 70 semiconductor and smart manufacturing companies. Just take the Xiaomi Mi 10 series released at the beginning of this year as an example, it involves three industrial investments for the future frontier technology tuyere: gallium nitride charger, graphene heat dissipation film, WiFi6 related technology. The ultimate goal of “Internet + Manufacturing”, one of the three strategies formulated by Lei Jun, is the “manufacturing of manufacturing.”
At the same time, Xiaomi continues to empower technological development through organization and management. At the beginning of 2019, Xiaomi established the Group Technical Committee. One of the major missions of the committee is to establish a young, high-end and large-scale technical talent echelon. To encourage engineer culture, Xiaomi also set up the Xiaomi Technology Award. This is the highest award within Xiaomi, rewarding technical teams with breakthrough contributions. The bonus is worth millions of dollars. The MIX Alpha product team that creatively broke through the surround screen technology won the award. A huge team of R&D talents is also carrying out considerable technical output. As of December 31, 2019, Xiaomi Group has submitted more than 33,000 patent applications, of which the number of patent applications in the AI field has entered the first camp of global Internet companies.
Xiaomi is now facing the next decade, as Lei Jun said in his speech: “Smart manufacturing will further boost the rise of Chinese brands, and Xiaomi will become an emerging force that cannot be ignored in China’s manufacturing industry.”
Cost-effective Redmi K30 Extreme Commemorative Edition pays tribute to the original intention, efficiency and victory
If you say, Xiaomi 10 Extreme Commemorative Edition represents the comprehensive strength of Xiaomi in the past ten years. The Redmi K30 Extreme Commemorative Edition represents another dimension of Xiaomi-the ultimate commercial efficiency.
The starting price of Redmi K30 is 1999 yuan (USD $286) , which is exactly the starting price of Xiaomi’s mobile phone generation. Ten years have passed, and Xiaomi is able to show more powerful pricing capabilities than it did in the past. The launch of Redmi K30 is also a self-certification-when the Xiaomi brand firmly established itself in the mid-to-high-end market, Xiaomi still took the mass market as its basic market, and focused on promoting the “popularization of high-end products and quality of mass products.”
In his speech, Lei Jun emphatically mentioned one thing that Lei Jun held a press conference at Wuhan University on the eve of Xiaomi’s listing and announced a board resolution: Xiaomi’s hardware comprehensive net profit margin will never exceed 5%, the excess part Return all to the user. The principle of cost-effectiveness of Xiaomi products is determined through the legal form. Many shareholders are puzzled. Lei Jun’s response is: “Excellent companies make profits, great companies win hearts and minds!”
The independent Redmi brand at the beginning of 2019, on the one hand, enables the Xiaomi brand to continue to explore and apply cutting-edge technologies to gain a firm foothold in the high-end mobile phone market. On the other hand, it adheres to its original intention and uses high-quality smartphones that most people can accept. Cost pricing is popular with the most widespread mass consumers in the world.
One year after independence, Redmi became popular. According to public data, Redmi Note 7 sales exceeded 26 million units in 2019. Canalys announced that the global mobile phone sales Redmi Note7 in the Q3 quarter of 2019 was the highest-selling domestic mobile phone. Redmi K30 5G starts at RMB 1999 and is the first 5G mobile phone priced below RMB 2,000. It has successfully entered the mass market with 5G mobile phone pricing.
The pricing of Xiaomi’s products is behind the ultimate pursuit of commercial efficiency. This efficiency is manifested in the channel advantages of the Internet business model, in the interconnection of business forms represented by the ecological chain model, and also in the extremely strong ability to control the industrial chain, as well as the resistance to different economic conditions. Risk capacity.
By copying the smart phone model to other fields and combining with a unique ecological chain investment model, Xiaomi has built a huge ecological chain covering more than 2,000 products and attracting each other in a few years.
In almost any field that Xiaomi has set foot in, Xiaomi can achieve “the popularization of high-end products and the quality of popular products”. It is this practice of lowering the barriers to entry for consumers by virtue of efficiency that has prompted Xiaomi to build a globally unique scale. Consumer-grade Internet of Things. As of Q1 of 2020, the number of connected devices on the Xiaomi IoT platform has reached 252 million (excluding smartphones and laptops), building a world-leading consumer-grade IoT platform.
Behind the principle of 5% net profit margin is not only the values and mission, but also the business structure and forward-looking power. After all, attracting consumers to invest in the entire ecology is far more in line with the trend of the times than profiting from a single product. In such an era of pursuing interconnection, only a healthy ecology is the future.
Innovation drives Xiaomi’s first smart factory to lead smart manufacturing
Among the three products released that day, the smart factory behind the Mi 10 Extreme Commemorative Edition attracted a lot of attention.
The Xiaomi Smart Factory, located in Yizhuang, Beijing, is a product of Xiaomi’s use of the Internet to empower manufacturing. It has a total construction area of 18,600 square meters and an investment of 600 million yuan. It has become the industry’s leading intelligent “black light factory”. The so-called “black light factory” is an automated unmanned black light production that can realize the entire factory production management process, mechanical processing process, and packaging, storage and transportation process.
Currently assumes three roles: 1) a “black light factory” with an annual output of one million high-end mobile phones; 2) a “large laboratory” for pre-research of new processes, new materials and new technologies; 3) manufacturing equipment and automated production lines “Experimental base”. Xiaomi Smart Factory is designed to have an annual production capacity of one million. In addition to being a dedicated high-end flagship production line for Xiaomi, it is also focusing on new process development, pre-research projects, benchmark standard process output, and automation equipment research and development. It can be described as a test field for Xiaomi’s high-end products. The Mi 10 Extreme Commemorative Edition is the first mass-produced ultra-high-end model of Xiaomi Smart Factory. The transparent version of the Mi 10 Extreme Commemorative Edition is all produced by Xiaomi Smart Factory.
On the basis of continuing to cooperate sincerely with the foundry, Xiaomi began to deeply participate in the manufacturing industry: not only has it self-developed a large number of high-end equipment, but has also designed a fully automated high-end mobile phone production line. The Xiaomi Industry Fund has invested in more than 70 semiconductor and smart manufacturing companies. What Xiaomi will do in the future is “manufacturing by manufacturing” to help more manufacturing companies realize smart manufacturing. Xiaomi will become an emerging force that cannot be ignored in China’s manufacturing industry. In the future, Xiaomi will promote the upgrading of smart manufacturing in China’s manufacturing industry through its smart manufacturing achievements in Xiaomi smart factories, so that smart manufacturing will further help the rise of Chinese brands in the world.
At the speech site, Xiaomi also released the second ultra-high-end product in the Mi TV Master series-Xiaomi Transparent TV, which is the world’s first mass-produced transparent TV. This product was the biggest “accident” of the day’s press conference. With its amazing magical form, it became the focus of the audience.
From the innovation of the underlying business model at the beginning of the business, to the continuous launch of the quality creation of cool products, to the strategic innovation of the “mobile phone + AIoT” dual engine proposed after the listing, to today’s powerful technological innovation. Xiaomi’s innovative genes are written in the bones.
At the beginning of 2020, Xiaomi proposed to invest 50 billion yuan in the “5G+AIoT” field in five years, and devote itself to the era of super Internet based on smart hardware. Xiaomi, which is still expanding the boundaries of smart life and working on smart manufacturing, is still preparing many surprises.