From 10 to Infinity: Xiaomi 10th Anniversary
My notes of Lei Jun's inspiring speech on Xiaomi's 10th anniversary.
- 2010, Xiaomi established a top team (with the power of Jinshan Capital: Fund + Vision).
- Accumulated reputation from the online community. Relying on the MVP product of the mobile phone system, Xiaomi hired a bunch of bravehearts for testing and obtained the first batch of users.
"Focus, extreme, word-of-mouth, fast." - Lei Jun
- Jun's personal connections and networking -> Top supply chain (Sharp).
- The price of Mi 1 is ¥1,999, which is far lower than the price of the same level of mobile phones at that time. -> 20 billion in cash
- Xiaomi considered to pivot from using the world's top supply chain to the domestic supply chain, which is preferred to lower the price for mobile phones. (Lower price -> hit the low price mobile phone market)
- Redmi 1 was internally overthrown, 45 million loss in R&D, and Redmi 2 was iterated internally.
- Redmi launched with a super low price of ¥799, which brought back 35.6 billion to advance the development of the domestic industrial chain.
"There is no risk without any success. Face the risk and go all out." - Lei Jun
- The "Mi Mode" was noticed, imitated, and succeeded even by competitors. (e.g. Little Pepper Mobile)
- At the beginning of 2016, the "Xiaomi Internet Pattern" was formed to help every enterprise and promote social progress. "Xiaomi Ecological Chain": In 5 years, Xiaomi was going to incubate at least 100 companies to make positive impacts to more than 100 industries. (E.g. Mijia brand incubated many low-priced good-quality goods, such as Xiaomi IH rice cooker, Roborock roomba, balance car, power bank. I personally have a gut feeling that Amazon Basics is following this path now.)
- 2015 and 2016: Xiaomi encountered sales decline crisis. Xiaomi has grown too fast since launch on 2010, many problems are hidden under the extremently fast growth. 2016 becomes the moment of life and death for Xiaomi. From overall environment, too many competing products were also featured for low prices making users gradually insensitive to prices. Xiaomi losed their price advantage. Evenmore, the long-term low-price and marketing strategies have formed the "original sin" of Xiaomi's lower brand image. -> Jun went to the front line to make adjustments and reforms, and solved long-term problems through painful processes.
- In October 2016, MIX 1 became the world’s first full screen mobile phone. (brand image reshaping and innovation brought . And MIX 1's symbolism was more important than the real profits to bring a reversal opportunity for Xiaomi. It also cultivated Xiaomi's attentions to technical and engineering culture. (It sounds so familiar as similar to Google))
- In 2017, the major goal was quality improvement (continue to reshape the brand image)
"Innovation determines how high we fly, and quality determines how far we go." - Lei Jun
- In 2014, Xiaomi started international business. Xiaomi India had a backlog of 1 billion in inventory, and an international "firefighting" team was established to clear the inventory. Fortune and misfortune are interdependent, this incidence helped Xiaomi to open up the international market.
"Success is often not planned by you. Crisis can transform to an opportunity you can't think of." - Lei Jun
- Before the listing, Xiaomi's board decided : Xiaomi's future comprehensive net profit will not exceed 5%, and if it does, all exceeded profits will be returned to users. "If I retire, can the next CEO still support it?" (Xiaomi seems to intend to pay more attention to market share for long-term development and cheers the secondary market up before going public. But the reality is that Xiaomi didn't get good hot in the secondary market somehow, maybe caused by investors' sensitivity to P/E and 5% profit rule became anti-pattern.)
"Excellent companies make profits, but great companies win hearts and minds." - Lei Jun
- In 2019, Xiaomi entered the Fortune Global 500, with annual revenue exceeding 200 billion.
- 2010 组建顶级团队（金山资本、钱 + 饼）。
- 从网络社区开始积累口碑。靠手机系统 mvp 产品做勇敢者内测获得第一批用户。
- 人脉 -> 顶级供应链（夏普）。
- 小米 1 成本定价 ¥1,999，远低于当时同等级手机配置的定价。-> 200 亿进帐
- 全球顶级供应链到本国供应链，优选国内产业链做大众手机。（更低定价 -> 打低价手机市场）
- 红米 1 内部推翻，4500 万打水漂，内部迭代出红米 2。
- 红米推出定价 ¥799，356 亿进帐，推动国内产业链发展。
- 16 年初，形成“小米互联网模式”，帮助每一个企业，推动社会进步。“小米生态链”：用 5 年时间，至少孵化 100 家企业，改变 100 个行业。 （米家品牌，众多低价物美商品，比如小米 IH 电饭煲、石头扫地机器人、平衡车、充电宝。感觉现在的 Amazon Basics 也在走这条路。）
- 15 年、16 年销量下滑危机：小米成长速度过快，隐藏在增长下的问题爆发、生死存亡时刻。大环境看，竞品过多压低价格，用户逐渐价格不敏感，失去价格优势。长期低价和宣传策略，形成较低品牌形象“原罪”。-> 去一线踏实调整改革，痛苦过程解决长期问题。
- 2016 年 10 月，MIX 1 世界首个全面屏（品牌形象重塑、创新带来逆转机会但象征性大于实际 -> 技术文化、工程师文化（怎么跟谷歌这么像））
- 17 年，质量改进大目标（继续重塑品牌形象）
- 14 年小米开始国际业务，印度库存积压 10 亿，成立国际救火队清库存。祸福相依，打开了国际市场。
- 上市前董事会决定：小米综合净利润不会超过 5%，如超过返回给用户。“万一我退休了，下届 CEO 能不能撑住呢？”（铺市场更重视市场占有率来长远发展、上市前拉动二级市场，但是因为什么原因小米上市二级市场反馈并不好呢？）
- 2019 年，小米进入世界 500 强，超 2000 亿年收入。