Why can Xiaomi succeed? How does he run this business?

20 14 In the first half of the year, Xiaomi sold 26 1 10000 sets of mobile phones, up 27 1% year-on-year, and the sales including tax was about 33 billion, up 149% year-on-year. This figure exceeds the annual 20 13. In addition, Xiaomi announced that the mobile phone shipment target in 20 14 is 60 million units. According to this estimation, the annual sales of Xiaomi in 20 14 is about 75.8 billion, which is 139.87% higher than that in 20 13. The shipment of Xiaomi 20 13 increased by 160% compared with 20 12. It can be seen from these data that Xiaomi is still in the high-speed growth period.

20 14 in the second quarter, Xiaomi mobile phone jumped to the second place in China mobile phone market, with a market share less than 2% after Samsung. It took Xiaomi only three years to do this.

There is no doubt that Lei Jun is the big winner of cmnet's vigorous development. As an outstanding representative of Chinese businessmen in the field of science and technology in the global Chinese Business Hall of Fame, Lei Jun shared with us Xiaomi's experience since he started his business:

First, the first step of starting a business: find a "typhoon mouth"

Lei Jun believes that the key to his success is to follow the trend and stand at the "typhoon mouth".

20 10, Xiaomi caught up with the golden age of the Weibo Big Bang as soon as she debuted. Many young people threw away their old mobile phones and replaced them with smart phones, which led to the explosion of smart phones; 20 1 1 year, Xiaomi caught up with the great wave of smartphone upgrading and the explosive growth of internet e-commerce, making its channel-free internet sales model popular.

He stressed, "If you want to achieve great success, you must stand at the mouth of the typhoon. When the typhoon comes, even pigs can fly. "

Second, when you see the general trend, you must do it immediately.

Lei Jun said that the most important thing he did was to "do it right away, and learn from others if you don't understand" when the wave of mobile Internet came.

In Lei Jun's view, there is no shortage of goods in our society today, but there is a lack of good products, and more importantly, there is a lack of quality and cheap products. Therefore, Xiaomi's goal is to make good quality and low price products, along three directions, namely computerization, connection and high quality.

A strategy is to do the right thing at the right time.

"Take advantage of the trend and it doesn't look sentimental and heroic enough. I don't know how to express it, but this is the true meaning of success. " Lei Jun has been emphasizing not to believe in yourself too much, but to believe that the trend is stronger than people.

Third, use Internet philosophy as hardware.

On the wave of mobile Internet, it's not just Xiaomi that wants to fly. Why can Xiaomi fly so high and so fast? The answer is simple, because only Xiaomi has really been using the Internet from the beginning, or it is a company whose concept of home Internet is developing.

Internet philosophy contains a lot of content. Lei Jun thinks that the most important content is to directly face the advantages of end consumers with the help of the Internet and let thousands of people work with you.

Under the philosophy of the Internet, Lei Jun found five core points to lead the rapid development of Xiaomi:

First, with the help of e-commerce.

Xiaomi uses the e-commerce model to directly market to consumers, which greatly saves channel costs and sales costs compared with traditional mobile phone companies.

Second, use the power of social media.

Xiaomi uses new media and self-media for marketing, and uses people for word-of-mouth marketing, which greatly saves marketing costs.

Third, make a mobile phone according to the thinking of the computer.

Combined with the functional requirements of Internet users for mobile phones, we developed our own third-party mobile phone operating system-MIUI, which was deeply optimized, customized and developed based on Android.

On April 20 10, Xiaomi Studio, the predecessor of Xiaomi Company, was established. In August of the same year, the first version of MIUI began internal testing, and Xiaomi mobile phone was released in August of the following year. 20 14 On August 6th, with the release of MIUI6, official data showed that MIUI has become a mobile phone system with 70 million users.

Fourth, pay attention to establishing their own local users and launching a fan mass movement.

Establishing various social and community systems and building a strong fan base and fan team was a completely subversive idea at that time and achieved unprecedented success.

Fifth, turn your supporters into your own consumers and turn your own consumers into your own fans.

Xiaomi has made a unique positioning for its user base, and thus derived a unique way to establish and maintain the user base, and took the lead in large-scale operation, thus turning the "fan economy" that many people are thinking about but have not landed from a dream into reality, and winning an effect beyond expectations.

Fourth, the successful philosophy can be summed up in seven words: focus, extreme, word of mouth and fast.

Lei Jun combined his years of experience to sum up a set of successful philosophy. There are dedicated, extreme, word-of-mouth, fast hardware, software and Internet services, and "dedicated, extreme, word-of-mouth and fast" runs through the whole chain of Xiaomi's homework, which has become a habit and personality of Xiaomi.

● Focus on a few promising things.

Lei Jun said that the advantage of concentration is not only that it can gather the front-end R&D power for a product, but also that the back-end can more keenly grasp the market feedback and user experience, and then surpass itself and make more extreme products.

Xiaomi's focus is usually not on one industry, but on a few promising things. They first lock their work and value in product research and development, marketing and service, and only do things at both ends of the "smile curve".

"I may only sell two mobile phones today. I can at least use them every day. I must know any problem better than the users. If I have made 50 mobile phones and have never used them, how can I sell them with confidence? " Lei Jun said that when it comes to concentration, it is actually as simple as that, that is, when you concentrate all your thoughts on one model and one product, in fact, this competitiveness is very strong, and this is the pressure ability.

● Never ready to win everyone's love.

Xiaomi also has a precise and focused positioning for his own market. He is never ready to win everyone's love, nor will he change himself because someone outside his position doesn't like it.

When Xiaomi launched the mobile phone, it staggered the competition with giants such as Apple and Samsung in the high-end price market, took the widest low-priced market and the most dynamic young consumer groups as the customer base, concentrated on making the most extreme products in this price market range, and concentrated on others to make dozens of products to make one or several products.

When Xiaomi enters the TV field, Lei Jun will focus on the extreme. "When I decided to make TV, I saw that each TV factory had 100 models of TV every year. I said I was making a 47-inch TV. When I saw it, our peers had four or five models of 47-inch TVs. I said that this model is very long, and I can't remember numbers and English at all, and I don't know where the difference is. My idea is to make a TV for young people. "

Xiaomi launched a 47-inch HDTV, priced at 2999 yuan, targeting young people. "I don't expect every user to like my product, I just need the group of users I care about most."

● Extreme, do what you can.

How to achieve the ultimate product? Don't be superstitious about masters or inspiration. The so-called master or inspiration just points out the right direction, but it has just begun! Behind the final product are huge investments and painstaking efforts. Behind the cow force is hard work.

Many users are amazed when they open the box of Xiaomi mobile phone for the first time, which is extremely concise and has a high sense of quality. They will keep this box as a storage box.

Actually, but it is such a box. The whole design team lasted for 6 months, after more than 30 versions of structural modification, hundreds of proofing and more than 10000 samples, and finally obtained the admirable technology and quality of Xiaomi mobile phone packaging box. Generally, the cost of making a packaging box is about 2-3 yuan, while the packaging cost of Xiaomi is nearly 10 yuan, but they think this investment is very worthwhile.

The key to success: the highest-end products need the lowest price.

So far, some people think that Xiaomi wins by low price and marketing. This is the biggest misunderstanding of Xiaomi and the reason why some people who imitate Xiaomi from this angle can't succeed. In fact, the real core idea of Xiaomi is to make better products at lower prices, or to make the highest-end products at the lowest prices.

Xiaomi's red rice mobile phone with a price of 799 RMB just released in 20 13 can be regarded as an example. The first batch of 654.38+10,000 mobile phones were sold within 90 seconds, with more than 7.45 million subscribers. Behind this success is the ultimate role-Xiaomi made an impossible product at an impossible price.

High performance, cool and cost-effective. This 799-yuan Redmi is described as a product stuck in the heart of China's smart phone industry like a knife, which has forced the whole smart phone market below 1,000 yuan to improve in performance and quality.

● Save channel costs and benefit consumers.

The reason why Xiaomi can make the lowest price for the highest-end products is largely due to its Internet direct selling model. They saved the costs of channels, wholesale and retail and the profits of these entities, and they gave these saved costs to consumers to a large extent, instead of turning them into their own profits.

But this does not mean that Xiaomi should be a living Lei Feng in business, but because they have their own other ways to pursue profits. Another core of Lei Jun's Internet concept is to operate not only products but also users.

Word of mouth: the best product is the best marketing.

With his focus on creating the ultimate products and services, and the reputation he gained from it, Lei Jun interpreted his mass line as the unprecedented glory of China business community. Every time Xiaomi's press conference is a jubilant scene, many rice noodles are bought.

Lei Jun often said that the best product is the best marketing, and the bridge is word of mouth. The best products win the best word of mouth, and word of mouth among users brings the best marketing. "Now we are learning to advertise. So we don't advertise. The core of not advertising is that only by not advertising can you know whether your product reputation is good or not, and then you can better test your product reputation. "

Regarding users, Lei Jun has a famous saying, don't treat users as gods, gods don't exist, let alone treat users as numbers and treat users as friends. This is Xiaomi's basic attitude towards users. They do everything for users with this attitude.

Seven, Xiaomi sells a sense of participation, which is the real secret behind Xiaomi's secret.

Xiaomi has more than 20 million users and the consumption potential of these users in the new life of the Internet. This will definitely be the reason why Lei Jun did not forget to emphasize when explaining to investors why Xiaomi can be worth $65.438+000 billion.

Relying on users, Lei Jun launched a "people's war" to help Xiaomi take off quickly. "Xiaomi is made by exerting the fine traditions of our party. Adhere to the masses, go to the masses, believe in the masses, and rely on the masses. "

Lei Jun said that he had thought the problem through. "In fact, this is mobilization, that is, how to mobilize enough people to help you advise, help you promote and do it together through the Internet. I think this is the most crucial thing, that is, to think about everything with the philosophy of the Internet. I have been thinking that there are not many people who say that they have no money to start a business. How can we mobilize enough people to help us do our work well? Finally, the world's' rice noodle' helped me translate the language versions of 25 countries, set up offices in 17 countries, made 1000 topics and 10000 question-and-answer programs, and posted 654.38+3 million posts in my forum. Xiaomi Forum posts 200,000 posts every day this year. I guess there are not many posts bigger than ours on the whole Internet. We have mobilized everyone on the Internet. "

This is actually the real reason for the success of Xiaomi in Lei Jun's mind. "To put it bluntly, Xiaomi sells a sense of participation. This is the real secret behind Xiaomi's secret. "

Eight, at least 80% of the time looking for someone, only looking for the best people.

In the first year of Xiaomi's establishment, what Lei Jun did most of the time was to find someone.

Thanks to its efforts, by the time the company was established two years ago, the Xiaomi team had expanded from 14 to about 400 people. Most importantly, this is a truly elite team. The average age of the team is as high as 33 years old. Almost all the main employees come from companies such as Google, Microsoft, Kingsoft and Motorola, and have more than 5-7 years of work experience. In the first batch of people 100, everyone Lei Jun would meet and communicate in person, and even a hardware engineer was "interviewed" 12 hours.

● Find the best person and let him do what he likes best.

In employee recruitment, Xiaomi's approach is to use the best people. A good engineer is not 10, but 100. Therefore, among the core engineers, we should spare no effort to find them, and never want to be lazy just by cultivating college students. The best people have a strong driving force. As long as he puts on his favorite clothes and holds a playful attitude, he can really do something that impresses himself and others. So there are many engineers in Xiaomi today, innovating while playing. So, find the best person and do something for him that he likes and is good at.

● The more capable and talented people are, the more opinionated they are, the more they like to be unconventional and the more they like to go against the sky.

Managing these excellent talents is also quite challenging. Lei Jun's solution is to try not to care. In Xiaomi, even today's thousand-person team has no complicated hierarchy.

In Xiaomi team, there are no long and boring meetings and processes. Everyone in Xiaomi enjoys the pleasure of starting a business with top talents in the fields of technology, products and design in an equal and relaxed working atmosphere. "The more capable and talented people are, the more opinionated they are, the more they like to be unconventional and the more they like to go against the sky." Lei Jun said

Therefore, Xiaomi not only has low marketing cost, but also has low management cost. Except for the regular meeting every Monday, the company seldom holds meetings. Since its establishment three years ago, the seven partners have only held three collective meetings. This management system reduces the time wasted in reporting to each other at different levels.

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