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Why is "Xiaomi" successful? How does he operate?

In the first half of 2014, Xiaomi sold a total of 26.11 million mobile phones, a year-on-year increase of 271%, and sales including tax were approximately 33 billion, a year-on-year increase of 149%. This figure surpassed the full-year total in 2013. In addition, Xiaomi announced that its mobile phone shipment target in 2014 is 60 million units. Based on this estimate, Xiaomi's full-year sales in 2014 were approximately 75.8 billion, an increase of 139.87% compared to 2013. In 2013, Xiaomi's shipments increased by 160% compared to 2012. It can be seen from these data that Xiaomi is still in a period of rapid growth.

In the second quarter of 2014, Xiaomi mobile phones ranked second in the Chinese mobile phone market, second only to Samsung in market share, with a gap of less than 2%. It only took Xiaomi three years to achieve this.

There is no doubt that Lei Jun is the big winner of the booming development of China’s mobile Internet. As an outstanding representative of Chinese businessmen in the global Chinese Business Hall of Fame in the technology sector, Lei Jun shared with us his experience in starting Xiaomi so far:

< p>1. The first step in starting a business: looking for the "typhoon outlet"

Lei Jun believes that the key to his ability to lead Xiaomi to success is to follow the trend and stand at the "typhoon outlet".

In 2010, Xiaomi caught up with the golden age of the Weibo explosion as soon as it debuted. Many young people threw away their old mobile phones and replaced them with smart phones, leading the explosion of smart phones; in 2011, Xiaomi again Catching up with the big wave of smartphone upgrades and the explosive growth of Internet e-commerce, its channel-less Internet sales model has become popular.

He emphasized, "If you want to succeed, you must stand at the mouth of the typhoon. When the typhoon comes, even a pig can fly."

2. When you When you see a big trend, you must do it immediately

Lei Jun said that the most important thing he did was that when the mobile Internet wave came, "do it immediately. If you don't understand, just do it." Learn from others. ”

In Lei Jun’s view, our society today does not lack commodities, but it lacks good products, and more importantly, it lacks good and cheap products. Therefore, Xiaomi’s goal is to make good and cheap products, and follow three directions, namely computerization, connectivity, and high quality.

The so-called strategy is to do the right thing at the right time.

"Follow the trend. It doesn't look sentimental enough or heroic enough. I don't know how to express it, but this is the true meaning of success." Lei Jun has been emphasizing not to believe in yourself too much, but to believe in trends. The principle of strong people.

3. Use Internet philosophy to make hardware

On top of the explosive wave of mobile Internet, it is not just Xiaomi that wants to fly. Why can Xiaomi fly so high? quick? The answer is simple, because Xiaomi is the only company that has really used the Internet method from the beginning. To be more precise, it is a company that is developing using the Internet philosophy.

Internet philosophy contains a lot of content, and Lei Jun believes that the most important content is to take advantage of the Internet's ability to directly face end consumers, allowing millions of people to do it with you.

Under the philosophy of the Internet, Lei Jun found five core points that lead Xiaomi’s rapid development:

First, rely on the power of e-commerce.

Xiaomi uses an e-commerce model to market directly to consumers. Compared with traditional mobile phone companies, this greatly saves channel costs and sales costs.

Second, leverage the power of social media.

Xiaomi uses new media and self-media for marketing, and uses the crowd for word-of-mouth marketing, which greatly saves marketing costs.

Third, make mobile phones based on computer thinking.

Carry out product research and development based on the functional needs of Internet users for mobile phones, provide users with the best hardware solutions to realize Internet life, and deeply optimize, customize and develop their own third-party mobile operating system based on Android - MIUI .

In April 2010, Xiaomi's predecessor "Xiaomi Studio" was established. In August of the same year, the first version of MIUI began internal testing. In August of the next year, Xiaomi mobile phones were released. On August 16, 2014, with the release of MIUI6, official data showed that MIUI has become a mobile phone system with 70 million users.

Fourth, focus on establishing your own user area and use this to launch a mass fan movement.

The various social and community systems established established a strong fan base and team of supporters. This was a completely subversive idea at the time and achieved unprecedented success.

Fifth, turn your supporters into your own consumers, and turn your own consumers into your own fans.

Xiaomi has uniquely positioned its user group, and derived a unique way of establishing and maintaining the user group. It was the first to operate on a large scale, and then "Xiaomi" has been thinking about but has not implemented it. "Fan economy" has turned from a dream into a reality, achieving effects beyond expectations.

4. The philosophy of success is summarized in 7 words: focus, perfection, reputation, speed

Lei Jun summed up the philosophy of success based on his many years of experience.

Use focus, perfection, word-of-mouth, and speed to make hardware, software, and Internet services, and run "focus, perfection, word-of-mouth, and speed" into the entire chain of Xiaomi's operations, making it a habit and character trait of Xiaomi.

●Focus on few but promising things

Lei Jun said that the advantage of focusing is not only that the front-end R&D strength can be gathered for a product, but also that the back-end We can more keenly grasp market feedback and user experience, and then surpass ourselves to create more extreme products.

Xiaomi’s focus is not on one industry as is usually said, but on few but promising things. They first lock their work and value in product research and development, marketing and service, and only do things at both ends of the "smile curve".

“I may only be selling two mobile phones today. I can use them at least every day. If there are any problems, I must know better than the users. If I made 50 mobile phones, I would never use them. "How can I sell it with confidence?" Lei Jun said, when it comes to concentration, it is actually that simple, that is, when you focus all your thoughts on one model or one product, the competitiveness is actually very strong, which is the ability to pressure. .

●Never prepare to win everyone’s likes

Xiaomi also has precise and focused positioning for its own market. It has never prepared to win everyone’s love, and will not do so because of its own positioning. If someone doesn't like you, change yourself.

When Xiaomi launched mobile phones, they staggered the competition with Apple, Samsung and other giants in the high-end price market, focusing on the largest mid- to low-price market, the most dynamic one, and the one that can be most changed and led by Internet communication. The young consumer group is its own customer base, and it concentrates its efforts on making the most extreme products in this price range of the market, and concentrates the efforts of others to make dozens of products to make one or a few products.

When Xiaomi entered the TV field, Lei Jun took his focus to the extreme. "When I decided to make TVs, I saw that every TV manufacturer made 100 models of TVs every year. I said I would make 47-inch TVs. When I saw that our peers had four or five models of 47-inch TVs, I The model number is very long, I can’t remember the numbers and the English, and I don’t know what the difference is. My idea is to make a TV only for young people.”

Xiaomi started with 2999. Launched a 47-inch high-definition TV at a price of 1.0 yuan, targeting young people. “I don’t expect every user to like my product. I only need the users I care about most to like it.”

< p>●Extreme, work to the limit of what you can do

How to make the product the best? Don't be superstitious about masters or inspiration. The so-called master or inspiration only points out the right direction, but in fact it has just begun! Behind the ultimate products are huge investments, and they are all made through hard work. Behind the awesomeness is hard work.

Many users are amazed when they open the packaging box of Xiaomi mobile phones for the first time. It is extremely simple and has a high sense of quality. They will keep the packaging box as a storage box.

Actually, it is just such a packaging box. It took the entire design team six months, more than 30 structural modifications, hundreds of proofs, and more than 10,000 samples to finally arrive at the commendable craftsmanship and quality of the Xiaomi mobile phone packaging box. Generally, the cost for manufacturers to make a packaging box is about 2-3 yuan, while Xiaomi's packaging cost is nearly 10 yuan, but they think this investment is well worth it.

5. The key to victory: Make the highest-end products at the lowest price

To this day, some people still think that Xiaomi wins through low prices and marketing. This is the biggest misunderstanding about Xiaomi, and it is also the reason why some people who use this as a starting point to imitate Xiaomi cannot succeed. In fact, Xiaomi's real core idea is to make better products at lower prices, or in other words, to make the highest-end products at the lowest price.

The Redmi mobile phone priced at RMB 799, just released by Xiaomi in 2013, can be regarded as an example of this. The first batch of 100,000 units was sold within 90 seconds, and the number of reservations exceeded 745 Thousands of people, behind this success is the ultimate effect - Xiaomi has made impossible products at impossible prices.

High performance, cool and cost-effective. The 799 yuan Redmi has been described as a product that cuts into the heart of China's smartphone industry like a knife, forcing the entire smartphone market priced below 1,000 yuan to improve overall performance and quality.

●Save channel costs and pass on profits to consumers

The reason why Xiaomi can offer the lowest prices for its highest-end products is largely due to its Internet direct sales model. They save the costs of channels, wholesale, and retail, as well as the profits of these entities, and they pass these cost savings to consumers to a large extent, rather than turning them into their own profits.

But this does not mean that Xiaomi wants to be a lively Lei Feng in business, but because they have their own other ways of pursuing profits. Another core of Lei Jun's Internet philosophy is not only to manage products, but also to manage users.

6. Word-of-mouth: The best product is the best marketing

With focus on making the ultimate products and services, and the reputation gained thereby, Lei Jun put his mass line Deduced into the unprecedented splendor of China's business world. Every Xiaomi press conference is a scene of great joy, and many rice fans buy tickets to attend.

Lei Jun often says that the best product is the best marketing, and the bridge between this is word of mouth. The best products win the best reputation, and word-of-mouth spread among users creates the best marketing. "Now we are starting to learn about advertising. It turns out that we don't advertise. The core of not advertising is that only by not advertising can you know whether your product's reputation is good or not, and you can better test the reputation of your product."

Regarding users, Lei Jun has a famous saying: Don’t treat users as God. God does not exist. Don’t treat users as numbers, but treat users as friends. This is Xiaomi's basic attitude towards users. They use this attitude to do everything for users.

7. What Xiaomi sells is a sense of participation. This is the real secret behind Xiaomi’s secrets

Xiaomi already has more than 20 million users and the consumption potential of these users in the new Internet life , must be the reason Lei Jun never forgets to emphasize when explaining to investors why Xiaomi can be worth US$10 billion.

Relying closely on users, Lei Jun launched a "people's war" to help Xiaomi take off quickly. "Xiaomi is made by leveraging the fine traditions of our party. We insist on coming from the masses, going to the masses, trusting the masses, and relying on the masses."

Lei Jun said that he had thought this problem through. "Actually, this is mobilization, which is how to mobilize enough people through the Internet to help you come up with ideas, help you promote, and do things together. I think this is the most critical thing, which is to use everything on the Internet and use Internet philosophy to think about your ideas. Everything. I thought about it all day long. I didn’t have much money to start a business, and I didn’t have many people. How could we mobilize enough people to help us make the product better? In the end, Mifen from all over the world helped me translate it in 25 countries. The language version has helped me establish service stations in 17 countries, helped me create a thousand sets of topics and ten thousand question and answer solutions, and helped me post 130 million posts in my forum. Xiaomi Forum has 200,000 posts every day this year. I estimate that there are not many companies on the Internet that are bigger than us. We mobilize the people on the Internet.”

This is actually the real reason for Xiaomi’s success in Lei Jun’s mind. "To put it bluntly, what Xiaomi sells is a sense of participation. This is the real secret behind Xiaomi's secret."

8. Find people at least 80% of the time, only the best people

In the first year of Xiaomi’s establishment, Lei Jun spent most of his time looking for people.

With his efforts, the Xiaomi team expanded from 14 people to about 400 people two years after the company was founded. The most important thing is that this is a truly elite team. The average age of the entire team is as high as 33 years old. Almost all major employees come from companies such as Google, Microsoft, Kingsoft, and Motorola, and have more than 5-7 years of work experience. Among the first 100 people, Lei Jun met and communicated with everyone in person, and even a hardware engineer was "interviewed" for a full 12 hours.

●Find the best people and let them do what they like and are good at most

When it comes to employee recruitment, Xiaomi’s approach is to use the best people. A good engineer doesn't like 10 people, but likes 100 people. Therefore, when it comes to core engineers, you must spend all your money to find them. Don’t be lazy and just use the method of training college students to do it. The best person has a strong driving force. As long as you put him in the things he likes and let him have a playful mentality, he can really do something to impress himself and others. So today Xiaomi has many engineers who are innovating while playing. So, find the best person and give him something he likes and is good at.

●The more capable and talented people are, the more they have their own opinions, the more they like to be unconventional, and the more they like to go against the grain

It is also quite challenging to manage these outstanding talents. Lei Jun's approach is to ignore it as much as possible. At Xiaomi, even today, there are no complicated levels in the team of several thousand people.

In the Xiaomi team, there are no long and boring meetings and processes. Every Xiaomi person enjoys working with top talents in technology, product, design and other fields in an equal and relaxed partnership-style working atmosphere. ***The joy of entrepreneurial growth. "The more capable and talented people are, the more they have their own opinions, the more they like to be unconventional, and the more they like to go against the grain." Lei Jun said

Therefore, Xiaomi not only has low marketing costs, but also low management costs. Except for the regular meeting every Monday, the company rarely holds meetings. In the more than three years since its establishment, the seven partners have only held three collective meetings. This management system reduces the time wasted in reporting to each other between levels.

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