Continued on "The IPO valuation is going to exceed 100 billion, but the net profit does not exceed 5%, and the history of Xiaomi's outlet is always pumping "wind" (Part 1: Wind)"
"The IPO valuation should exceed 100 billion yuan, but the net profit does not exceed 5%, and the history of Xiaomi's air outlet is always pumping "wind" (middle: cold article)"
On May 2, Xiaomi submitted a prospectus for listing in Hong Kong.
Sources close to Xiaomi’s IPO intermediary said that sponsors, investment banks and potential investors generally accept that the current valuation is at least US$70 billion, and that Xiaomi’s market value will exceed US$100 billion in the short term after the IPO.
At the same time, in terms of US$70 billion, Lei Jun’s 31.4124% shareholding corresponds to a worth of at least US$21.989 billion (it can be included in the Forbes list of the world’s top 50 richest people); if Xiaomi’s market value exceeds US$100 billion, Lei Jun’s worth is at least US$31.412 billion ( Can enter the Forbes Rich List of the world's top 30), surpassing Wang Jianlin and approaching Li Ka-shing.
Moreover, if nothing else, the top 100 employees may become billionaires in the future, and the top 1,000 employees may become multi-millionaires in the future.
Obviously, the ultra-large-scale valuation and financing plan have formed Xiaomi, which has been adhering to the slogan theory, the most beautiful convulsion this year.
Starting a business is not easy, and Lei Jun and the Xiaomi company founded in April 2010 have once again returned to their own outlets.
Xiaomi, which is always exhausted, can currently be summarized as the three stages of "wind - cold - wind". It is possible that after the IPO, the historical cycle will be regular again. Let's take a look at how Xiaomi has made wind in the past two years:
The IPO valuation needs to exceed 100 billion yuan, but the net profit does not exceed 5%. The history of Xiaomi's air outlet is always pumping "wind" (below: wind creation)
Nine
Make wind, a new retail of new domestic products
During the 2017 National Day, Lei Jun, a self-proclaimed model worker, made a very exciting move: at the employee meeting of Xiaomi Nanjing R&D Center, he stood on the coffee table and preached to the employees below.
In Lei Jun's words, "there is a very strong entrepreneurial atmosphere in such a meeting."
This preference was reproduced by Lei Jun again a month later. In the early morning of November 12, a photo of Lei Jun jumping on his desk and cheering was circulated among Xiaomi employees. The reason why Lei Jun was so excited this time was that during the "Double 11", the total payment amount of Xiaomi Tmall flagship store exceeded 2.464 billion yuan. , once again won the five consecutive championships in Tmall's "Double 11" with the first mobile phone sales and the first Android mobile phone payment amount, and greatly refreshed the payment amount record since participating in Tmall Double 11, an increase of nearly 100%.
Except for the occasional "crazy" move, in the eyes of Wang Xiang, senior vice president of Xiaomi, Lei Jun is a thinker. A few years ago, when Xiaomi, who stepped on the Internet and smart phones, was in the limelight, Lei Jun proposed the "Flying Pig Theory", "Triathlon", and the Seven Characters, and later the "New Domestic Products Movement", and then there are smart hardware. Ecological chain layout methodology, "efficiency first" in the new retail era, etc.
This time, how will Xiaomi, who has been adhering to the outlet theory, find its own new outlet and let Lei Jun's "new domestic products" fly?
Lei Jun's recipe is actually a summary of Xiaomi's core competitiveness: the first is Mi Fan culture, making friends with users. The second is to make good products that move people's hearts and at a fair price. The third is triathlon, which is three basic skills: hardware + new retail + Internet, and the fourth is industry + investment, using the ecological chain to improve the product portfolio.
Among them, what is particularly eye-catching is the extension of the ecological chain and Xiaomi's home.
When Xiaomi finds the air vents again, it no longer waits for the air vents or steps on the air vents, but takes the initiative to create the air vents.
ten
Ecological chain, how can OEM new domestic products not collapse
"Buying a mobile phone is a low-frequency behavior. Manufacturers put a lot of advertisements to persuade users to buy once every two years. After two years, they need to make a lot of advertisements. How to solve this problem? It requires product mix, and we invented it for this purpose. The way of playing the hardware ecological chain, enriching and improving the product portfolio, and sticking to users with one or two hundred products." Lei Jun's similar statements in several public occasions showed his confidence that the Xiaomi ecological chain is difficult to be copied by peers.
The Xiaomi ecological chain department, established in 2014, is led by Liu De. According to statistics, by 2017, Xiaomi's ecological chain department and Xiaomi's own investment department had invested in more than 200 companies. Liu De claimed that this model is a new strategy formulated by reverse thinking after thoroughly researching investment cases such as Google, Apple, and Facebook.
Interestingly, among the various ecological chain enterprises called a certain rice, there is a common feature that most of them belong to the ultra-early investment, many companies can not even be called "company", they can only be regarded as a team. There is no complete product before Xiaomi invests.
According to Xia Yongfeng, vice president of Xiaomi Ecological Chain, the products under Xiaomi Ecological Chain have been widely deployed in the fields of speakers, air conditioners, sweeping robots, air purifiers, water purifiers and other fields, but this is less than half of the expected categories. In the future, Xiaomi Ecological Chain More smart home appliances will be produced.
The effect of the ecological chain is also obvious:
In the first year, the sales volume of the ecological chain was more than one billion yuan.
The second year in 2015 was more than 5 billion yuan.
More than 10 billion yuan in 2016.
In 2017, it exceeded 20 billion yuan.
Geometric level growth.
At the same time, Xiaomi also announced in July last year that the Xiaomi ecological chain has become the world's largest intelligent hardware platform, and the total number of connected devices based on the Xiaomi MIOT platform has exceeded 60 million units.
High cost performance is no longer the ultimate pursuit of products on the Xiaomi ecological chain. When Lei Jun was also promoting the concept of new domestic products, he quietly replaced his original idea of making traditional hardware smarter, and instead used the banner of improving the craftsmanship of products made in China.
But the ecological chain is not an aimless layout. After three years of development, there are more and more products on the ecological chain, and balance cars, air conditioners, toothbrushes, toothpaste and even tea have all appeared, and a pan-smart home layout has also appeared. prototype.
Many conspiracies around the ecological chain have been launched, and Xiaomi is bold and careful in this step.
In March 2016, Xiaomi upgraded its smart home strategy, officially released the "Mijia" brand, and continuously launched various explosive models, but this is not the whole truth of the Mijia brand.
"The Xiaomi ecological chain will not collapse," Liu De said: What is most likely to collapse? It is a major quality problem, and it appears in different companies continuously, which will cause a negative effect in an instant, which will be a catastrophic consequence. If there is no problem at this level, the probability of a crash is very small, almost zero.
And Mijia's "accommodation" ecological chain product brand is precisely the key to ensuring that it does not collapse. Industry insiders once analyzed the media and said: Xiaomi distinguishes Xiaomi mobile phones from Xiaomi ecological chain products very well, so even if the ecological chain exposes product problems, it will not involve Xiaomi mobile phones. This is a very good practice.
The new OEM method of effective isolation was successful, but Lei Jun was still prepared for danger. He began to shout to the ecological chain enterprises continuously, calling on them to maintain the Xiaomi brand.
"We have a lot of companies. The promotional materials on the website say Xiaomi ecological chain enterprises. When Taobao sells, it is written that the products made by a certain company in the Xiaomi ecological chain are all endorsed by Xiaomi. This is a huge burden on the Xiaomi brand. It is very important, because you accidentally hurt the Xiaomi brand." Lei Jun also revealed a hidden danger of the collapse of Xiaomi's ecological chain: the brands you created have made so many products, which confuses Mi fans and consumers: Xiaomi Does your business have boundaries? A company that does everything is hard to do well. If any one person abuses it, the damage done to us is beyond repair.
To become a vent, not to leak everywhere, this is the bottom line of Xiaomi's "quality first, not cost-effective" appeal to the ecological chain.
At the same time, Xiaomi is also collecting the existing ecological chain, using Xiaomi's main small objects to connect OEM products in series.
A 299 yuan Xiaomi AI smart speaker launched at the Xiaomi new product launch conference in July last year was an attempt at this conspiracy.
This speaker, nicknamed "Xiao Ai", was jointly developed by Xiaomi TV, Xiaomi Brain, and Xiaomi Discovery Lab. As a "personal" product, such a low-priced product with a common smart hardware model seems to have a too grand background. But in addition to the ambiguous name that is easily reminiscent of the love action stars of the island country, it also brings out Xiaomi's smart home strategy - the range that Xiao Ai can control includes TVs, boxes, sweeping robots, rice cookers, cameras, boxes, air conditioners , air purifiers, electric fans, Mijia smart sockets, power strips, switches and other Xiaomi and Mijia devices.
It seems that Xiaomi's careless and scattered smart home layout for many years, through Xiao Ai, the "hub" of only 299 yuan, can make a game that is about to be won.
Although the outside world talks about such a "Xiao Ai classmate", it is already a routine used by various smart home manufacturers, and it is not easy to use.
However, Xiaomi has once again brought into play its user's specialties: the call of "Xiao Ai" is the key, that is to use the warmth of companionship to replace the coldness of intelligence, to warm up the smart home, and to use more warm experience to make User orgasm, or that's the truth of having a name like an actress or a blow-up doll.
Perhaps, "Xiao Ai" can't create a smart home outlet, but several "hubs" produced by Xiaomi continue to trial and error, and the ecological chain will be full of outlets.
eleven
New retail, Xiaomi Home wants to split the road
If you keep coming out with "quotes", it is inevitable to break your promises in the context of rapid iteration. Ma Yun is like this, and so is Lei Jun.
Lei Jun, who once shouted that "Xiaomi mobile phone has no physical store", now says that the focus of sales channels will shift from online marketing to physical stores.
On November 5, 2017, Lei Jun led all Xiaomi executives to Vientiane World, Nanshan District, Shenzhen, to cut the ribbon for Xiaomi's first flagship store in the world. Since March 2016, Xiaomi has opened 228 Xiaomi Homes in more than 20 provinces across the country.
The name Home of Xiaomi is actually not unfamiliar. Since the birth of Xiaomi, there have been small batches of Home of Xiaomi stores offline. But at that time, Xiaomi Home played the role of an after-sales service store, and it was also placed in a residential building due to cost considerations.
After that, Xiaomi Home began to further increase the function of Mi Fan Gathering due to the popularity of the fan economy, with the sales and display of some peripheral products.
The new round of Xiaomi Home has completely transformed into a new retail model. Taking the flagship store as an example, the overall visual design of the store was created by the world-renowned design team Eight Inc. Its founder Tim Kobe once designed the Apple flagship store on Fifth Avenue in New York for Steve Jobs.
The entire store is divided into upper and lower floors. The first floor is used to experience mobile phones, TVs, smart hardware and other products, focusing on technology; the second floor focuses on the experience of smart home and lifestyle products, oriented to life.
Lin Bin's evaluation of this is: "On the one hand, technology, on the other hand, art is the biggest feature of this store."
Preliminary results have been revealed. According to data released by Xiaomi, as of October 31, Xiaomi Home has attracted a total of 32 million passengers, with an annual effect of 270,000 yuan. At the same time, according to the plan, Xiaomi Home plans to open 500 stores in 2018 and reach 1,000 stores in the year after.
"For the retail industry, managing 1,000 stores in 3 years is considered a newcomer to the industry, so Xiaomi Home has not yet entered the industry." Lei Jun still gave a small goal in a light-hearted way: Xiaomi Home should do it within five years. $10 billion in sales.
But Xiaomi also faces difficult problems. Although Lei Jun keeps saying that he wants to attack the offline market, which accounts for 90% of the total retail sales, he must also face the bottleneck brought by the past model: "I want to be an e-commerce company at a cost price, and at the same time I want to increase the price of 100% to be offline, so I started The left-handed and the left-handed, and the personalities are distorted. So in the past two years, we have been making strategic breakthroughs, either we are willing to be a fairly good mobile e-commerce company, or we can find ways to improve the efficiency of the entire Chinese retail industry.”
Xiaomi Home became a touchstone that Lei Jun used to improve the efficiency of the retail industry.
Second only to Apple and the second highest in the world, it has become a common evidence used by Lei Jun to prove that Xiaomi Home is a model of new retail.
However, the plan of Xiaomi Home is not the gradual coverage from Beijing, Shanghai, Guangzhou to first- and second-tier cities like the physical stores in the past. From August 17th to 20th, Lei Jun spent four days visiting Henan townships and other areas, including four cities of Luoyang, Nanyang, Xuchang and Zhengzhou, five counties of Yichuan, Ruyang, Zhenping, Tanghe and Fangcheng, and more than a dozen counties. There are five millet homes in a township.
The countryside surrounding the city is the key layout point of this offline new retail.
According to the research report titled "The Great Era of "Watershed" released by Tencent Penguin Think Tank, going to sea, going to the countryside, and youthful gray hair are the three major opportunities for the development of China's technology Internet in the future. Xiaomi has already completed the layout of going overseas and going to the countryside, and going to the countryside is the key to truly jumping out of e-commerce and getting in touch with 90% of offline retail transactions.
At the same time, Xiaomi, which has entered overseas, is also stepping up its overseas offline layout. It is also a three-year period, and 1,000 authorized stores will be opened overseas, mainly in cooperation with partners.
"I'm not opening Xiaomi Home, or I'm on the road to opening Xiaomi Home." In July, Lei Jun's self-promotion on Weibo showed that he wanted to use Xiaomi Home to create a new one with 90% of the best retail transactions. The ambition of the contact surface.
twelve
Written on the tuyere, before the IPO
In the rise of Xiaomi's domestic products, tuyere is the most critical word among them. Xiaomi, which once flew as a pig on the tuyere, was once too fast because of its own "fat gain" (e-commerce expansion reached a bottleneck) and did not bring its own " Wings" (insufficient ability to innovate) and fall into the dust.
When they re-emerged again, Lei Jun and Xiaomi chose to fill the pit and repay the debt.
Insufficient technological innovation, with 2 years of dormancy in exchange for the innovation of core technology;
The online retail model only accounts for 10%. Xiaomi uses a large number of extreme items in the ecological chain to replace the state of a Xiaomi mobile phone, so that only 10% of e-commerce retail, from a 10% retail share of a product, to N The 10% retail share of each product is made into an "addition";
With "addition", there can also be "multiplication". Xiaomi's home in the new retail format is still filling in the pits and paying off debts, filling in the pits that used to be dominated by e-commerce and ignoring offline, and returning a handful of "Xiaomi" to rural consumers .
Find your own big wind, and create a big wind that others can't replicate. Xiaomi, who has experienced setbacks, defines his own new domestic product logic in this.
Before this round of IPO, some veterans left, but Xiaomi's basic market has also stabilized.
It’s just that after this round of IPO, Xiaomi, who once stole the wind, later caught wind, and finally found that wind was the “guy” who was really just in need. In the next round of business blueprint, will it be successful, or will it be crazy?
Zhang Shule People's Network, People's Posts and Telecommunications columnist, Internet and game industry observers