On April 25, at the press conference of Xiaomi 6X Wuhan University, Lei Jun pledged that the comprehensive net profit of Xiaomi's hardware will never exceed 5%. If there is any excess, the excess will be returned to the user. Lei Jun made a statement, Instantly provoked thousands of waves in the industry. After Xiaomi continues to maintain low profits, whether it will impact the industry has attracted much attention from the industry.
'Net profit never exceeds 5%'
Lei Jun, who returned to his alma mater for the first time to develop the conference, no longer talked about technology as much as before, but focused on profit, and for the first time digitized the channel price proposed earlier.
At the launch of Xiaomi 6X, Lei Jun emphasized Xiaomi's values and promised at the same time that the comprehensive after-tax net profit rate of the overall hardware business (including mobile phones and IOTs and consumer products) should not exceed 5%. More than 5% of the parts are returned to Xiaomi users in a reasonable way.
According to Lei Jun, Xiaomi has always insisted on 'moving people's hearts and valoring prices' products. In order to achieve a comprehensive redline with a post-tax net rate of no more than 5%, Lei Jun has also discussed with the board of directors several times.
In this regard, industry insiders explained to reporters that Lei Jun’s reaffirmation of Xiaomi’s values not only expressed his confidence in the millet model, but also showed Xiaomi’s innovative business model to transform the traditional retail industry and promote China’s consumption and manufacturing upgrades. determination.
At the press conference, Lei Jun said frankly, compared to chasing profits, he believes that the pursuit of product experience is more promising. Compared with the channel's price increase, I believe that real materials and goodwill will eventually become even more popular.
According to the data, Xiaomi 6X is not only high in color value, but also equipped with Qualcomm Snapdragon 660 high-end processor, the main 20 million pixels before and after, the front camera also has the same high quality as the rear, pixels are also up to 20 million pixels and equipped with soft light Lights, with excellent self-timer.
And in sharp contrast, Xiaomi 6X is priced at only RMB1,599. Compared with the market-priced products with a general price of about RMB 3,000, it is evaluated as 'almost the same configuration, almost half the price'.
There are industry observers analyzing the reporters that this move by Xiaomi is also the flagship new product designed for the new retail, and is also an opportunity for millet to take the opportunity to deepen the new retail sector.
In fact, since the previous Internet model gradually weakened, the layout of the new offline retail market driven by the retail industry has become another new idea for the Return of the King of Thunder.
According to the statistics, since 2016, while continuing to lead the online market, Xiaomi has launched a 'new retail' strategy and vigorously explored the offline market. Xiaomi’s efficient, transparent and straightforward implementation of the direct offline and direct supply model. The 'Internet +' concept allows traditional retailers to plug in the Internet and has the same high efficiency as online e-commerce.
Because of this, Lei Jun quickly achieved its original goal of 100 billion yuan in 2017, and this time again creating low-cost high-end retail flagships, both demonstrating Lei Jun’s deep plowing of retail retail sales. The determination. 'Another retailer analyzed the reporter.
Consolidate market value of millet
'The Lei Jun's proposed net profit will never exceed 5%, not only to let Xiaomi once again win the applause of the consumer groups, but also allows the millennium group's market value at the time of listing is fundamentally consolidated. ' An industry observer Analysis of the reporter said.
Although Xiaomi did not respond directly to the listing issue, the market value of Xiaomi Group’s listing has been the focus of the industry’s largest controversy. The reporter’s access to the market value of Xiaomi’s recent media reports shows that it is estimated to be between US$50 billion and US$70 billion. between.
After Lei Jun promised that the comprehensive net profit of the company's hardware will never exceed 5%, it seems to be isolated by the industry. However, in the long run, it is a win-win strategy that achieves stable profits and realizes future development. The stability of the above-mentioned person said to reporters.
As of last year, Xiaomi has invested in more than 100 ecological chain companies, of which 16 or more have annual revenues of over 100 million yuan, 3 have annual revenues of more than 1 billion yuan, and 4 have been listed.
'Millet wants to support high valuations, there must be a rapid growth. And this time, Lei Jun’s emphasis on low-profit practices is undoubtedly the final sprint of Xiaomi before its listing, in order to guarantee Xiaomi’s core development goals and also take various measures. Strengthen the growth rate. 'There are industry insiders bluntly.
The above-mentioned sources frankly told reporters that letting profit is on the one hand, and the efficiency of opening stores and the efficiency of overseas expansion are all staring at this year's millet.
From the current mobile phone market pattern and saturation, the competition in the Chinese mobile phone market has been fierce, and some old mobile phones in China have reached the crucial moment of dying and struggling. Le Jun's move is undoubtedly an increase in the disputed millet. A competitive chip.
According to data from the China Institute of Information and Communications, China's mobile phone market experienced a further decline in the first quarter of this year, down 26.1% year-on-year to 87.37 million units. Among them, shipments in March totaled 30.185 million units, down 27.9% year-on-year.
Can Xiaomi Group, which continues to rely on low profits to maintain rapid growth, be able to achieve rapid expansion under the renewed commitment of Lei Jun, and this reporter will continue to pay attention.