'Welcome to BATJ to return to the domestic market, no longer miss the growth of new economic enterprises' has been repeatedly mentioned in the past two years, a group of companies known as 'unicorns' such as 360, Foxconn, Ningde era, Cobos and Enterprises such as Xiaomi Technology have queued up and waited for listing. In the case of returning to A-share 360, after returning to the A-share market, the market gave a stock price valuation of up to 6 times its US stock market value. After the newcomer, it is 'a slap in the waist', so that some investors sigh, 'unicorn, unicorn, is it a beast, or is it a scorpion?'
Millet mode and price war
On July 9th, another 'unicorn' company Xiaomi was listed in Hong Kong. It is reported that this is the first time the HKEx has listed new shares in the same way. It is also the third largest technology company in the world. The IPO, the amount of funds raised on the market reached 4.7 billion US dollars, second only to Alibaba's 25 billion US dollars and Facebook's 16 billion US dollars. But on the first day of the launch, Xiaomi suffered a break before the market, the lowest price was 16.08 Hong Kong dollars, a drop of more than 5%. At the close of HK$16.8, the decline was 1.18%. Before the listing, the valuation of the securities company to Xiaomi was US$54.3 billion, but compared with a company with a adjusted profit of only 5.362 billion yuan in 2017, many people think that Xiaomi’s estimate The value is high.
Although Xiaomi has packaged itself as an Internet company that integrates intelligent hardware + IoT platform + new retail as the core, it is known as 'new species', but undoubtedly, the main business that supports the majority of Xiaomi's profit is hardware such as smart phones. Plates, while other 'cross-border' plates, either small or small, or foggy.
Xiaomi mode, once relished, is because Xiaomi has created a variety of new marketing models and concepts, foreseeing a different kind of 'playing method' for the traditional industry that the beheading heads down, and Xiaomi and LeTV are also crowned. It is known as the 'Internet company'. However, after a long period of time and the mystery is revealed, Xiaomi’s core competitiveness can be simply attributed to the 'low price + marketing' strategy – 'to be a moving product, to be honest and kind. Price', whether the product is touching, but the price is really kind.
Take Xiaomi 8 series mobile phone as an example, using Snapdragon 845 processor, infrared face unlocking, AI zoom dual camera / Samsung AMOLED screen, the price is between 2699-3299 yuan, and the same configuration of products, other domestic manufacturers more than 4000 Yuan floats up and down, while Apple, Samsung, and Huawei each occupy more than 8,000 yuan, 6000-8000, 5000-6000 price files. As Lei Jun said in an open letter, from 2018, Xiaomi's overall hardware business (including smartphone/IoT) And the comprehensive net interest rate of consumer products) will not exceed 5%. If there is any excess, it will be returned to the user. The low price strategy has indeed brought about a surge in sales, starting from June 5, 18 days, millet 8 sales exceeded one million units.
But undoubtedly, this strategy is essentially a 'price war', which grabs market share at a low price to achieve the goal of repelling competitors. In a relatively short period of time, and in price-sensitive markets, low-price strategies are unfavorable, but for The long-term development of the enterprise is a kind of flaw. Only mentioning the sales volume and not mentioning the sales volume has become the practice of the Xiaomi conference.
In fact, Huawei has cooperated with 360 to prepare for the release of Huawei's special models. The products are against the standard Xiaomi, and pursue low-volume sales. However, at the last moment of the upcoming release, Ren Zhengfei was vetoed by one vote. Ren Zhengfei believes that unprofitable products will definitely not work. Since then, Huawei has not launched a special offer machine. However, when Huawei has established a foothold in the high-end mobile phone field, it has freed up its hands to launch a brand-name glory that is specifically aimed at the standard Xiaomi, as the main brand for young people and price-sensitive markets. Relying on Huawei's R&D and supply chain, Glory is the most developed brand among the emerging brands. In its independent operation in 2014, the annual mobile phone shipments reached 20 million units.
According to Xiaomi’s previously announced prospectus, in the first quarter of 2015, 2016, 2017 and 2018, the net profit of Xiaomi Group was -7.627 billion yuan, 492 million yuan, -43.89 billion yuan and -70.27 billion yuan, as of 2018. On the 31st of the month, the company's accumulated losses amounted to 135.163 billion yuan. Among them, the net profit of the non-returning mothers was -22.48 billion yuan, 233 million yuan, 3.945 billion yuan (adjusted to 5.362 billion yuan) and 1.038 billion yuan. Obviously, Xiaomi It is being nourished by the meager profit of hardware and other sectors. A huge 'ecology', commonly known as 'burning money' for development, Xiaomi is eager to raise funds for listing, it is also very clear.
Xiaomi, where are you going?
In fact, the definition of the nature of Xiaomi has also caused many analysts to worry. In the prospectus, Xiaomi said that the main use of funds after fundraising will be used for hardware innovation, new retail channel construction and Internet services. But three areas In fact, it is not the strength of Xiaomi.
Taking mobile phone technology innovation as an example, in 2017, Xiaomi's annual R&D investment only accounted for 2.7% of revenue, only 3.1 billion yuan, and decreased by 0.4 percentage points year-on-year in 2016, far below the 4.6% of marketing promotion. Huawei's R&D The investment is 890 billion yuan. When Huawei breaks the foreign monopoly and applies the self-developed Kirin and Baron chips to its own products, Xiaomi's innovations are mostly concentrated in '200 process design awards'; when Huawei sets the 5G standard system, When competing with European and American countries for the common standards of basic technology, Xiaomi is working hard to 'cross-border' and engage in new retail. You are welcome to say that if the company listed today is Huawei, I believe that no matter the primary and secondary markets will sing together, but for Xiaomi, Obviously everyone is still holding a wait-and-see attitude.
Economist Xu Xiaonian believes that China is entering the post-industrial era. This era is characterized by overcapacity, and its economic growth is not on the demand side, but on the supply side. 'In the post-industrial era, enterprises are not integrated by your resources. Capability, not relying on your production scale to develop, but relying on innovation, to open up new markets with new products and new technologies, only in new markets, you can become the boss, in the original market, you It's hard to make a difference. '
However, it is obvious that Xiaomi’s thinking is not a technological innovation. Unlike Huawei’s focus on developing mobile phones and related intelligent hardware and communication technologies, Xiaomi seems to be more keen to stir up 'squid' in different industry markets, such as TVs, refrigerators, purifiers, Electric toothbrushes, electric cars and sleep pillows, and even recently Lei Jun began to make costumes and backpacks for 'Millet App.'
Xiaomi 'Yi Pin APP' with Lei Jun
As of March 31, 2018, Xiaomi has established an ecosystem of more than 210 companies through investment and management, 90 of which are dedicated to the development of smart hardware and consumer products. In the words of Lei Jun, 'these products are interconnected, It not only improves the user's life, but also provides a platform for the company's Internet services. The addition of consumer products further enhances the popularity of Xiaomi brand and directs user traffic to the company's retail channels.
However, for others, this kind of operation is a cloud cover, and I don’t know what it is. Some consumers ask, 'Millet is doing home appliances, making clean water, making bedding, to fill the free area of Xiaomi’s home or to be Chinese. MUJI? '
In fact, it is not only the consumers who look at the flowers in the fog. After the listing of Xiaomi, nearly dozens of analysts from different industries have analyzed Xiaomi as a company in this camp.
Chinese people have a special experience in the industry, and the cross-border millet has indeed caused a lot of industry vigilance, but it is still far from doing a good job. In the exhibition process of Xiaomi's Yunmi Technology Its products were dismantled on the spot due to infringement of patents of a well-known home appliance brand. Its air purifiers also suffered from patent infringement, consumer doubts and other black history. A home appliance practitioner believes that 'each industry has established barriers. The brand is bigger, the patent is a circumstance. Without its own R&D team, it can only choose to be OEM or low-end machine; and establishing a R&D team requires time and funds to settle. Xiaomi wants to be the door-to-door of the home appliance industry. The barbarian 'will not be too easy.'
For the future, Xiaomi regards smart hardware, new retail and Internet services as strategic development directions, but in the hardware field, mobile phones are suppressed by Apple, Samsung, Huawei, etc., and home appliances cannot be bypassed by traditional brand manufacturers. New retail is also difficult to match Ali, Jingdong. E-commerce platform, Internet services are Tencent, Baidu, etc. 'King the ear', Xiaomi's winning face is not prominent.
Under the fire, the oil is still on the ice!