Xiaomi Chairman and CEO Lei Jun represented the NPC Beijing delegation this year and was very concerned about areas such as accelerating the construction of a strong manufacturing country. In the group's speeches, he repeatedly expressed his opinions on topics such as improving manufacturing soft power. His suggestions include: “Recommendations on vigorously developing China's design industry and comprehensively upgrading China's design level”, etc. Lei Jun accepted an interview with a Beijing Youth Daily reporter and elaborated on these issues.
Xiaomi Chairman and CEO Lei Jun represented the NPC Beijing delegation this year. In the group's speech, he repeatedly expressed his opinions on the topic of improving soft power for manufacturing. He believes that if China's manufacturing industry wants to further develop, it also needs to develop soft power. This soft power , mainly design capabilities, and the ability to improve the user experience.
Talking about Manufacturing Power
The most important thing in developing manufacturing is innovation and quality.
Bei Qing Bao: This year's report mentions 'Internet +' and so on. What are the reports that are impressive?
Lei Jun: At the time of listening to the report at the scene, I felt that it was a tall building. It fully demonstrated China’s achievements in all aspects over the past five years, and made detailed arrangements for this year’s work. It also made clear plans for future development.
As a deputy to the people’s congresses in the Internet field, what’s particularly encouraging to me is that the report attached great importance to innovation, “Internet+” and manufacturing power. I counted numbers, reports, “innovation” appeared 53 times, and “Internet” raised 12 This time, 7 of them are 'Internet+'. We always adhere to the "Internet +" to promote the transformation and upgrading of China's manufacturing industry as the direction of the company's development. The emphasis on the report has made us feel more confident and motivated.
The report also emphasized the need to speed up the building of a powerful nation, promote the spirit of craftsmanship, and develop a quality revolution made in China. The new formulation of the quality revolution has also made me shine. In the ordinary work, we have always emphasized innovation and quality. importance.
In addition, the report proposes to further reduce the tax burden on enterprises. In the whole year of this year, enterprises and individuals will be tax-deducted by more than 800 billion yuan, reducing the non-tax burden for market players by more than 300 billion yuan, which is a great advantage for China's economic development.
Beiqing Bao: The report also mentions manufacturing powers. In your review report, you mentioned that quality can defeat the Shanzhai, kill fakes and shoddy, and make China's manufacturing stand in the world. China is a big manufacturing country and it is most important to develop the manufacturing industry. What is it?
Lei Jun: I think that for a company, quality and innovation are the most important things. I often tell my colleagues that we have to use telescopes to see innovation and quality with a microscope. Because innovation determines how much we can fly High, but quality determines how far we can go. Xiaomi is mainly engaged in 'Internet + manufacturing'. Therefore, from the experience of the seven to eight years since we started our business, I think that to develop manufacturing, we must first rely on innovation and rely on quality. The main innovation is to break through the core technology, seize the commanding heights of technology, and gain the right to speak in technology. I think at this point, innovation is the most important means of manufacturing development. I believe everyone is very much in agreement.
Bei Qing Bao: Made in China, it was often associated with low-end, cottage and other words. How do you think that you can improve the quality and level of Chinese manufacturing by improving quality?
Lei Jun: The report mentioned the need to 'promote the spirit of craftsmen and come to a quality revolution made in China'. Only by doing a good job of quality, can Chinese manufacturing remove the 'shanzhai' and remove the relatively low-level image. I think the emphasis on quality is very critical of.
In addition to this, I believe that quality is the hard power of Chinese manufacturing. If China's manufacturing needs further development, it also needs to develop soft power. This soft power is mainly the design capability and the ability to improve the user experience. We must also attach importance to 'Internet+'. , The Internet has advanced technologies and advanced methodologies that can effectively help transform and upgrade the manufacturing industry and improve quality and efficiency. This is my four-point view on the future development of China's manufacturing industry: innovation, quality, design and 'Internet+'.
Talk about suggestions
Chinese manufacturing also needs to develop soft power
Beiqing Bao: For the first time this year, as a member of the National People's Congress Beijing Group, what kind of homework has been done before making recommendations?
Lei Jun: According to Xiaomi's own development experience and the status quo of private enterprises learned during the exchanges with other entrepreneurs, I made two suggestions this year. The proposal for China's design was the first time I proposed to address the 'Belt and Road' initiative. ' The construction proposal is the second time.
Over the past year, the industry in which I live has clearly felt the continuous development of the “One Belt and One Road” and the continuous rise of private enterprises. During the first few years of Xiaomi’s 'going out', we also overcome many difficulties. So I summarize In the process of going global, private enterprises will encounter unfamiliar circumstances. The “Belt and Road” approach can provide necessary assistance to offshore enterprises. Private enterprises have already played an important role in the social economy. , So I proposed this year to encourage private enterprises to actively participate in the 'Belt and Road' initiative.
Bei Qing Bao: The suggestions that you brought here, as well as the suggestions made in the group's deliberations, made many suggestions to develop the design industry. Why did you attach so much importance to the design industry?
Lei Jun: From my own years of experience, to enlarge and strengthen China's manufacturing industry not only needs to improve the ability of independent innovation in manufacturing, but also needs innovative design to lead the upgrading of manufacturing. Consumption upgrades and quality upgrades in China's manufacturing industry. The reason is that the reason is the same. Because the current people are pursuing a quality of life, like the quality of goods. Manufacturing to meet the people's growing needs for a better life. So consumption upgrades, to some extent, the core It is design upgrade.
Bei Qing Bao: What is the current situation of China's design industry?
Lei Jun: At present, the overall level of China's design industry is still far from the advanced countries in the world design industry. Compared with the urgent needs of the upgrading of manufacturing industries, the foundation of the design industry is relatively weak, and the number of related design practitioners is insufficient, especially in terms of top talents. It is very scarce. So I mentioned in the proposal that to vigorously develop industrial design, in fact, through the improvement of design, drive innovation, drive quality improvement, and gain new development momentum.
Bei Qing Bao: You mentioned the importance of vigorously developing industrial design. How important is it to improve the brand value of Chinese manufacturing?
Lei Jun: For our own sake, Xiaomi has always regarded design as one of the company's core competitiveness. Among the seven co-founders of the company, two of them are designers. At present, Xiaomi’s designer team already has hundreds of people. If you want to further develop, you need to develop soft power. This soft power is mainly the design ability, and the ability to improve the user experience. Today's users to buy things, if it does not look good, it is not easy to use, everyone will not buy it. The world's four major design There are two awards in Germany, one in the United States, and one in Japan. If China wants to become a world power, it must have the right to speak in the design community and to train a large number of design talents. Only by designing well, I think that Chinese brands have the opportunity to Doing better and better in the world.
Innovation
Chinese high-tech companies follow and lead
Beiqing Bao: Scientific and technological innovation is a development strategy that we now attach great importance to. In your speech, you mentioned that millet is likely to enter the world’s top 500 this year. The core behind it is innovation-driven innovation. How to define innovation in current corporate development and manufacturing development The role?
Lei Jun: In the entire mobile phone manufacturing industry, in just a few short years, there are already three Chinese companies among the top five mobile phone manufacturers in the world. The fundamental reason that Chinese high-tech companies can go from being to leading in many fields is innovation. Xiaomi's innovation includes technology. There are two aspects of innovation and business model innovation. I noticed that in the report, the 'Internet' was mentioned 12 times, 7 of which were 'Internet+'. I would like to use 8 words to summarize the role of 'Internet+' - many In the field, full empowerment. With the introduction of 'Internet+', Xiaomi made a mobile phone and a series of products using the Internet's technology and methodology. The Internet is a new methodology, a concept that uses this concept to rethink the original Business can get a lot of different conclusions, how to achieve the ultimate user experience, how to achieve the ultimate operating efficiency, combining these two points, there are many things that can be done.
Lei Jun resigned more than security mini millet listed?
The news of Xiaomi's IPO continued to ferment. Lei Jun resigned from the chairman and director of Cheetah Mobile and reunited with the chairman of the era to avoid suspicion of excessive connected transactions. At the same time, an exposure of the Xiaomi Pre-IPO financing promotion materials was also received. Different interpretations of market parties. Xiaomi declined to comment on this material.
The above materials show that Xiaomi’s 2015 loss was 980 million yuan, and its 2016 profit was 913 million yuan. The 2017 profit is expected to reach 7.582 billion yuan, which is expected to increase to 18.831 billion yuan in 2019. During the four years from 2016 to 2019, Xiaomi’s net profit year The compound growth rate can reach 174%.
In 2017, Xiaomi’s revenue was estimated to be US$17.6 billion (approximately RMB111.3 billion), and the proportion of Internet service revenue rose to 31.7%. In November 2017, Lei Jun had publicly stated that it had completed a sales target of RMB100 billion. It is expected to reach 2019. In the year, Xiaomi's annual revenue reached 38.2 billion U.S. dollars (approximately 241.6 billion yuan), and Internet service revenue accounted for more than 50%. Xiaomi currently has a valuation of 68 billion U.S. dollars (approximately 430 billion yuan) if it is in 2018. In the fourth quarter, the market value will be in the range of 85.4 billion to 135.1 billion U.S. dollars (approximately 540 billion to 854.5 billion yuan).
According to market analysis, Xiaomi did not disclose the overall profitability data. Prior to this, Wang Yanhui, the secretary general of the Mobile China Alliance, said on Weibo that the profit of Xiaomi in 2017 will not be less than one billion US dollars. This figure is in line with the expectations of the industry. What the market is most concerned about is that the valuation of millet currently given in this financing material is far below the market rumors of the 100 billion US dollar valuation. From the perspective of this material's market value expected to be listed in the fourth quarter, the market analysis stated that , Xiaomi may raise its valuation this year and reach a market value of about 100 billion US dollars at the time of IPO.
From the fourth quarter of last year, the rumors that Xiaomi is expected to go public this year have engulfed the capital market. For Xiaomi's valuation, the sources stated that it had negotiated with the investment bank and sought a market value of at least 50 billion US dollars, but many investment banks believe that there is no problem with the market value of 100 billion US dollars. Xiaomi can land in the capital market with a valuation of more than US$50 billion in 2018. It will be the largest listed technology company since Alibaba was listed in 2014 (231.4 billion US dollars).