On June 21, when Lei Jun led the core executives to conduct IPO roadshows in Hong Kong, he said that the business model of Xiaomi was well-executed and eternal! The site also threatened that 'millet is an all-round company', and the valuation is Tencent multiplied by Apple's valuation. Lei Jun was once dubbed by some media as 'Lao Luo ( Luo Yonghao) possession'.
Going back to see the millet mode, Lei Jun’s 'Hardware + New Retail + Internet' Triathlon has been a big pie for Xiaomi's future. If you focus on the product, the millet mode can be summarized as 'price, single product, explosion ', whether it is Xiaomi mobile phone or Xiaomi ecological chain products are this gameplay, focusing on a single product, through the cost-effective and online and offline the same price strategy to create explosive products.
Just this year is just the fifth year of the origin of Xiaomi's ecological chain. At the end of 2013, Rebs rumored to invest 100 eco-chain companies in 5 years. According to Xiaomi's prospectus, there are more than 90 eco-chain companies invested by Xiaomi, which have basically been completed. Lei Jun's 'five-year plan'.
Thanks to the idea of cost-effective and explosive models in Xiaomi mode, Xiaomi has created some explosive products in the fields of wristbands, air purifiers, mobile power supplies, etc., and has formed an impact on players in these traditional fields. In previous years, some people called Xiaomi. The field that the model has stepped through is 'the grass is not born', here mainly refers to the 'millet ecological chain model'. However, at present, the millet model is not a panacea, and Xiaomi also has many 'blind zones' that cannot be worn.
The blind spots here mainly refer to two categories, one is that Xiaomi does not enter the field, and the other is that Xiaomi products have entered a certain field but have not broken through the barriers. The mountain is king and becomes a real subversive. In many hardware fields, Xiaomi has entered through the eco-chain enterprise model but has not played a leading role or subversive role. Even some hardware products are not optimistic, such as air conditioners, refrigerators, drones, Internet speakers, etc.
Once the unstoppable 'Millet Eco-chain model', 'Internet thinking', 'Internet seven-character', why there is a failure, you can see more truth through the recovery of these areas.
Millet air conditioner tested twice
As early as 2015, Xiaomi and Midea launched a youthful version of intelligent air conditioner, claiming to be 'the first air conditioner for young people', which can be linked with Xiaomi bracelet and smart home set in real time, starting at 2699 yuan.
In 2014, the previous year, Xiaomi also made a high-profile investment of 1.266 billion yuan, which seems to be on the air conditioner. But this product did not cause much repercussions at the time, and there was no sound afterwards.
Obviously, the failure of the first test of water did not stop Xiaomi’s determination to do air conditioning. It’s not that Rebs remembers Miss Dong’s “1 billion gambling contract” and is worried about air conditioning. This time, Xiaomi Ecological Chain Enterprise Zhimi Technology Undertake this heavy responsibility, it has created a millet air purifier for Xiaomi Eco.
Zhimi Technology launched a DC inverter air conditioner in August 2017. The price of 4399 yuan does not seem to show the high cost performance of millet products. According to China Information Industry Network data, in the first quarter of 2018, China's air conditioner industry shipped The top five companies were Gree, Midea, Haier, Aux, TCL, with sales of 11.77 million, 10.6 million, 4.31 million, 4.24 million, and 2.58 million units, accounting for 82.6% of total sales in the first quarter.
Xiaomi did not disclose its air-conditioning sales. From the perspective of air-conditioning sales in the first quarter of 2018, Xiaomi air-conditioning is still a marginal player in sales. It seems that it has little impact on the industry. The main players are still in the traditional home appliance manufacturers.
Xiaomi, which tested water and air conditioning twice, did not enter the traditional field by relying on the millet model. Large appliance manufacturers still continue to dominate the air-conditioning industry, showing that they still have high technology accumulation behind the home appliances, and traditional home appliances. Manufacturers have been killing in this field for many years, establishing a strong offline channel and brand influence. The millet model has not yet formed a breakthrough in the face of strong offline channels and brand influence.
小's millet drone
In May 2016, Lei Jun released the Xiaomi drone through Xiaomi live broadcast, priced at 2,499 yuan, which was built by Xiaomi ecological chain enterprise.
Lei Jun said at the time that the millet drone was developed for two and a half years, and the mold was developed by 104 sets. The mold cost more than 4 million yuan. However, this consumer-grade drone seems to be a 'destiny' from the birth of a consumer. The first flight of the live broadcast actually lost control, 'explosive machine', it is said that the number of online users reached 1 million.
At that time, the millet drone was a high-end drone in Dajiang, and it was to challenge Dajiang’s position as the 'overlord' in the consumer drone market. But after the first flight of the Xiaomi drone, the technology blog 'grass bag Technology's broke the news, saying that the millet UAV production plant has stopped shipping, and subsequently stopped developing new products. Then Fei Mi Technology founder Cai Wei and Xiaomi both denied this rumor.
However, in August of the same year, Xiaomi UAV released an 'Upgrade Maintenance Activity Announcement', which provides free replacement motor for the 3000 batches of the crowdfunding millet drones that have been shipped, and free maintenance of drones. However, in the Xiaomi UAV Forum, some users believe that Xiaomi's move is a disguised recall. Some industry insiders also interpret that these drones have quality problems or safety hazards. The birth of Xiaomi UAV can be described as '尴尬'.
At the time two months before the release of the millet drone, Dajiang released a new generation of 4-axis aerial drones, the Elf 4, with a complete obstacle avoidance system. Xiaomi clearly does not have a technical advantage. Wait until 2016. In September, the Dajiang Elf 3 entry version entered at a price of 2,999 yuan, which further suppressed the living space of the millet drone. The price advantage of the millet drone is less obvious.
The millet drone has gradually become a marginal product in the first flight accident, technical questioning, and the 'blocking' from industry competitors DJI. It also proves that the millet model is insurmountable to the core technology. Undoubtedly recognized as the leader of the consumer-grade drone market, it has a market share of more than 65% in the international consumer drone market. It can be seen that Dajiang has always insisted on independent innovation on the road of drones, and has excellent visual navigation technology. , obstacle avoidance systems, communication systems, etc., first cut from the high-end professional-level market, and then landed the technology on different product lines, constantly squeezing the competitor's living space, and thus becoming the industry leader.
According to the data of the China Business Research Institute, the top ten brands of drones in 2017 are still in the forefront of Dajiang, Zhongke Remote Sensing, Keweitai, Feifei, etc., Xiaomi UAV is not in the list. In the face of the drone industry with high technical reserves and high thresholds, as well as powerful opponents such as Dajiang, the Xiaomi model seems to have encountered a wall.
Exploring the millet refrigerator
In the electricity of everyone, Xiaomi not only covets the air conditioner, but also is very persistent with the refrigerator. However, as mentioned above, the large household appliance market seems to be difficult to 'pass' with its excellent technology accumulation, channel barriers and brand advantages.
As early as the beginning of 2017, Xiaomi ecological chain enterprise Yunmi released the first Internet smart refrigerator.
In June 2017, Xiaomi crowdfunding launched a mini-fridge with a crowdfunding price of 999 yuan, and played the 'first refrigerator for young people'. The air-conditioning routine has come again and again! Despite its maker Xiaoji Science and technology is not a millet eco-chain enterprise, but the products are connected with Mijia and also maintain close contact with Xiaomi.
The timeline continues to pull back. In March 2018, Xiaomi Ecological Chain Company Yunmi launched an Internet smart refrigerator iLive. The initial price was 1999 yuan, which claimed to bring the refrigerator to the 2000 yuan era. The refrigerator supports WiFi connection. The temperature can be adjusted remotely by mobile phone APP. It is equipped with 4 temperature sensors to sense and adjust the temperature of the refrigerator.
In terms of market structure, according to China Industrial Information Network, the top five refrigerator manufacturers in the first quarter of 2018 were Haier, Midea, Hisense Kelon, Meiling, and Omar, with sales of 3.36 million, 2.4 million, 2.11 million, and 1.32 million respectively. 1,1.3 million units. Xiaomi is not among them, Xiaomi official did not release data related to sales, it can be seen that Xiaomi refrigerator has not become an explosive product, still can not stir the veteran players in the industry.
In addition, the millet of Xiaomi smart refrigerator, Yunmi, originally made the explosion of the millet water purifier, followed by the development of the whole house appliance, refrigerator, washing machine, range hood, electric fan, etc. is also a comprehensive layout, a startup company What is so scattered and complicated in the product category, how to truly implement the accumulation of core technology, and compete with the old appliance manufacturers?
Hard to have a subversive projector / no screen TV
In June 2017, Xiaomi released Mijia Laser TV. Xiaomi co-founder and vice president Liu Dedang said that the original intention of this product is that the other brands of laser TV in the market are too expensive, they have pulled a team, flowers I have been researching and developing for 2 years.
The price of this laser TV was 9999 yuan, which actually further lowered the price of the laser TV industry.
Then in May of this year, the Xiaomi Eco-chain was launched on a consumer-grade Mijia projector, priced at 3,999 yuan. This is similar to the screenless TV of the pole meter, but the meter is used earlier in the consumer class. The market, and put forward a concept of 'no screen TV'.
In the market of screenless TV, Jimmy CEO Zhong Bo once said that in 2018, the sales of ultra-screen TVs in the first quarter accounted for 70% of the total sales, and the sales volume was more than that of the next 2~10.
Extreme rice (not Xiaomi ecological chain enterprise) As an early cultivator of the market segment of TV screenless TV, it is also one of the core players. In 2014, an optical laboratory was set up to lay out the upstream core optical technology. At present, it has obtained more than 400 patents. In this spring's new product launch conference, the launch of the laser TV has reached 10,000 yuan, and launched a main cost-effective screenless TV H2Slim, priced at 3,999 yuan, the price has been level with the Mijia projector.
Can be analogous to the extreme meters for the UAV field, first cut into the market from high-end non-screen TV, and continue to lay out the core technology, and then rely on technology, product iteration brings advantages to further reduce prices, and product line layout products. Under the circumstances that the core technology is insufficient and the price advantage is not obvious, the Xiaomi model can only be 'obsessed'.
In the face of this segment of the 'big brother' rice, how many markets can you shake the loss of cost-effective Mijia projector? From the monthly sales of nearly 300 models of Tmall Mall, it seems that this sales volume is also not ideal.
In the projector market, according to the data of the projector market network in 2017, Epson, BenQ, Sony, Panasonic, NEC, and the top meters are in the forefront. The old projection products still occupy the mainstream market, and the millet projector still flows. follower.
Depressed Xiaomi Internet Speaker
At present, in terms of speakers, Xiaomi is known as a smart speaker. In March of this year, Lei Jun personally made a smart speaker platform and launched a small love speaker mini. According to the wisdom of things, the sales of Xiaomi smart speakers have exceeded 2 million this year. station.
However, before the Xiaomi smart speaker, Xiaomi also launched an Internet speaker in November 2016. It comes from Xiaomi TV. The product itself supports networking, and can play online content without connecting with a mobile phone. It integrates 10 mainstreams. Audio service content, providing more than 1,500 radio stations nationwide.
In hardware, Xiaomi Internet speakers have built-in four speakers, supporting audio amplitude from low frequency 60Hz to high frequency 22KHz, the sound quality is also relatively good, priced at 399 yuan.
However, it is understood that this WiFi speaker product is not selling well, and caused inventory. Inventory is difficult for Xiaomi, because once the inventory is formed, it will increase the cost of the product, which is lower for the hardware profit margin. The millet will be a great burden.
Of course, this is also related to the lack of demand for the entire domestic WiFi speaker market. Industry chain veterans have revealed to Zhizhi that the overall sales of domestic WiFi speakers may not reach 100,000 units. Not to mention Xiaomi's Internet speaker, at the time of the market environment. Next, destined to be a blast.
It is also because the sales of Xiaomi Internet speakers are not ideal, Lei Jun has almost cut off the smart speakers. Then when the smart speakers began to be popular, due to the conservative of Xiaomi on the smart speakers, it also led to insufficient capacity at the end of last year.
Although this Xiaomi Internet speaker has high cost performance and sound quality, it has no competitive advantage compared with the cheaper bluetooth speaker. In addition, there is no obvious demand for the Internet speaker itself in China, which also reflects the deviation of product positioning. Under the circumstance of predicting market demand, the millet model is still difficult to function.
There are still many areas in which Xiaomi has not been subverted.
Back in the second half of 2013, according to Lei Jun’s plan at the time, Xiaomi would invest 100 eco-chain enterprises in 5 years, copy the millet model, and build explosive hardware in various market segments, and closely integrate with Xiaomi mobile phones. To enhance the security of Xiaomi.
At that time, the logic of Xiaomi's investment eco-chain enterprises mainly focused on specific areas where the market was large enough. This also means that the market is relatively mature. Xiaomi uses the Internet model to focus on creating explosive products, and it is occupied by a strategy of high cost performance and small profits but quick turnover. market.
At that time, Xiaomi co-founder, Liu De, head of the Xiaomi ecological chain, talked about the criteria for measuring the success of member companies. The annual sales of single products did not exceed 1 million units.
It is also driven by this concept that Xiaomi mobile phones, Xiaomi routing, Xiaomi bracelets, mobile power supplies, etc. have all become subversive explosives, with cumulative sales reaching 10 million, becoming the core players in specific markets. But apart from the above In certain areas, Xiaomi has been unable to quickly win tens of millions of sales in a specific market in recent years.
Although it includes good results such as Mijia camera, VR glasses, sweeping robot, rice cooker, and car rearview mirror, it is not a subversive of the industry or dominates a certain segment.
For example, in the sweeping robot market, Xiaomi has won the annual sales volume of one million yuan with the price of 1699 yuan. The market share of millet sweeping robot ranks third in this segment of 2017, in front of Cobos and iRobot. Cobos has a market share of nearly 50%, and only about 10% of the market share of Xiaomi seems to still play a follower role.
For example, in the smart rearview mirror market, Xiaomi has not brought too much subversion to this industry. In the first half of 2017, Xiaomi Ecological Chain Enterprise Die Technology launched a rearview mirror product, but so far no sales have been announced. According to industry insiders familiar with the market, the sales volume may not be large, only tens of thousands of orders of magnitude. The larger players in this market include Jiedu, Yunlong, Wei Shite, Che Yi Pai, etc. Xiaomi is not mixed in this dragon. The rearview mirror market has not received much attention.
In addition, in the children's story machine market, Xiaomi launched the Mi Rabbit Intelligent Story Machine in June 2016. By March 2018, Mi Rabbit had achieved 1 million sales in nearly two years. But the children's market is a more IP. The market, the brand is numerous and scattered, in the story machine market of about 20 to 30 million, Fire Rabbit, Keda Xunfei, 360, etc. have also launched smart story machines, Xiaomi Mi rabbit is far from being dominant.
Conclusion: Blind area of millet mode
Xiaomi mode + mature market-specific gameplay has indeed created another explosion for Xiaomi Ecology. Xiaomi Eco also promotes the price of products in more industries. But the millet model is by no means omnipotent.
On the one hand, it is manifested in the field of major electricity that requires deep accumulation. Traditional home appliance manufacturers have solid technical reserves, strong offline channels, and long-term brand influence. The Xiaomi model can be broken overnight.
On the other hand, in the field of cutting-edge technology, such as drones with high technical reserves and R&D capabilities, AR/VR, robots, etc., the millet model seems to be not developing ideally. Facing the solid technical capabilities of the industry bosses, Millet products still can not be expected.
Looking at the Xiaomi ecology, we should be more rational. While we look at it to create one explosion after another, we must also see its 'insurmountable hurdle'. For other hardware companies, it is still necessary to build the core advantages of their products. Differentiate, instead of blindly playing price cards, learn about Xiaomi's product model. At the same time, for Xiaomi, after 5 years of eco-chain mode promotion, can it continue to produce millions of bracelets, empty nets, mobile power, routers? The upgrade to the scale of hundreds of millions of shipments is the real test to verify the vitality of its model.