Interpretation of Lei June speech, can borrow "Muji products of the technology industry" rebound? (Hard and pure heart to do this thing well)

Chinese entrepreneur Text | Gao Qian Editor | wenting

The quiet long lei June finally audible, just in the form of closed doors. The three-hour speech was streamed out last night, and Lei June a lot of retail talk. For the next 5 years, focus is on offline retail.

You may feel that this is far from the beginner's mind of mobile phone. So lei June in the beginning of the speech to review why small rice--"My dream is a bit exaggerated, is to change the image of Chinese products in the eyes of ordinary people, so that people use high-quality products." ”

What are the conditions and steps to achieve this dream? This is also the logical and central point of Lei June's speech:

First, I used to do the Internet, and know how to improve the efficiency of traditional industries, especially manufacturing.

Second, the United States of retailing is because of the great solution to the efficiency problem, the emergence of such a Big Mac like Wal -Mart Enterprises.

Three, but with the consumption upgrade, Wal-Mart is not enough to meet the real production of live, Costco is the future.

Four, millet at first to the target is Costco.

Five, millet through the way of investment into 100 industries, are made of scientific and technological works of art, in the next 5 years like no Muji to do the home of millet.

Therefore, "our real business model is to do the technology industry Muji, do retail brand." "Lei June also honest millet at the bottom, but soon will be fully rebound, the next six months to a year will have new millet."

That's pretty much the essence of Lei June's 3-hour speech. But what is the current millet meet? Can the new story really solve the problem?

Founded in 2010, spent five years valuing the company as high as 56 billion, the world's second-largest venture company. In the United States even called the "Chinese version of the Apple ", "rebels" also came. With online flash shopping and social media marketing,  shipments have been refreshed and recorded. According to foreign media reports, mobile phone sales growth of 2013 years to 160%, 2014 growth soared to 227%.

However, after high-speed growth,suffered its own development bottleneck period. Compared with the previous three-digit sales increase, its 2015-year increase was only 15%. Such sales growth apparently did not meet the company's 2015 sales target, they initially set a target of 100 million units, then reduced to 80 million to 100 million units.

IDC, an American market research firm, estimates that actually sold 71 million smartphones throughout 2015. In the first quarter of this year, smartphone sales shrank 5%, causing its market share to fall out of the world's top five, overtaking Huawei, OPPO, Vivo and Apple.

At this point, singing the sound of millet constantly. The once sensational mobile phone conference, also no longer cause crazy brush screen. and in order to promote millet mobile phones, millet drones, lei June even personally fencing for live broadcast.

In order to cope with the decline, has launched the power strip, rice cookers, purifiers and other products have been trying to brush the existence of the feeling, but few money. Compared to before, Lei June was silent.

The answer given by Lei June has been vague about whether to go public. He has said he has not listed in 5 years, and later has not rejected the listing. More often to "to do great company, to take advantage of the trend, do not want to be pressured by external pressure" to explain. But at this year's summer Davos, lei June unexpectedly gave a definite answer, and is likely to make an IPO in 2025 (initial public offering).

Lei June also said it would take at least 15 years for the company to be ready for the IPO, because needs to be trusted from the bottom of the user's heart. At present, should focus on building physical retail stores and developing new products. Can turn the situation around?

  The following is a transcript of the Lei June speech compiled by Chinese entrepreneurs, with limitations:

"What the hell is doing?" ”

We sometimes do not know how to express millet, we sometimes do not know what millet is doing. We made a mobile phone, mobile power, air purifier, rice cooker, electric fan, feel very not focused, in fact, in a different angle to see the millet, you will feel that the company is extremely focused.

Our ideal is to allow every Chinese to enjoy the joy of technology, with cheap money to enjoy the latest technology and ideas, and even for everyone in the world to enjoy the joy of technology. That's just the first thing we want to say.

On the second floor we are going to represent the progress made in China. is to enter 100 industries, in fact, Millet does not do products, do is the art of science and technology.

"is going to be an offline retailer for the next 5 years."

We have worked in the past 5 years e-commerce Network, the next 5 years we will do millet home. Like Muji, there are only 50 to 100 items in the store, with 50 to 100 products conquering consumers. We are in fact extremely focused, air purifier dry two years only two models, the first model has not been sold, water purifier has only done one, the fan is also, so we shop as long as 50 to 100 goods, 250 square meters.

Domestic home appliances store average single shop 5000 square meters, the average single store sales should be more than 40 million yuan. goal is 250 square meters, the average single shop to do 50 million, now the highest day to 1.43 million.  home is a sea of faces when it's not working. I now open 5 to 10 each month, 3-4 years of time to open 1000 stores, may be 400 to 50 billion of the retail price, and do not join, not listed, I request is 100% of their own management, because only like me so hard and pure heart, can do this thing well.

Our true business model is the Muji of the technology industry, making the retail brand.

"Who is the company of Millet to the target?" ”

Founded, we have three company to mark. The first, just talked about the Costco, the second house, Ren Tang, choose the real material, built a century-old shop, in essence, is the Craftsman spirit; third, the seabed fishing, learn word of mouth, the marketing all killed.

I was in Jinshan when senior executives went to the United States on business, the plane during Dr. Rent a car to go straight to Costco. After coming back for a long while, he fanned out, except for all of my 9 executives. The results come back at night everyone said things too good, I asked how good. Actually just one thing, cheap. All things are cheaper than domestic, only one-tenth, a pile of things in Beijing, more than 9,000 yuan, Costco as long as 900 yuan.

So the next morning I went to Costco, stood for 15 minutes I said I understand, just like I think the same thing! It's essentially the same pattern I did when I was doing it. In fact, just a few:

First, a selection of items, only 4,000 SKUs are sold. You want to know Wal-Mart at least hundreds of thousands of kinds, Costco Select to how far? His partner said that all of the things I sold were chosen by me and used at home, and I felt good before I sold them. For example, there are two kinds of TV, but the quality and experience are very good. Because of the few varieties sold, with the upstream manufacturers desperately pressure unit price, plus 6% direct to the final store, like the wholesale price is much cheaper than others.

Second, to have a surprise. Is that every 10 things to have a surprise you: there is such a good thing! So we all become Costco fans. I was on the spot to investigate our company's returnees, some people said that I spent my life only in Costco shopping, Costco did not go to other stores. Its 6.5% gross profit would have been no money, but the United States has a very good tip culture, he said everyone to tip, that is, membership income. It now earns $2 billion a year for its members, so the gross profit margin is 11%.

Third, internet finance. Call its users to use Costco credit card, it can be divided into one or two points, the actual profit is mainly from the membership fees and credit cards.

Four, the waiter is very few. Save labor cost, retail price is cheaper than wholesale.

"avoids becoming a big company"

Millet is not a charity, even if Lei June do not want to make money, but we colleagues, these families what to do. Thanks to the great Internet invented the long tail theory, so our core revenue will come from the customer tips and the Internet revenue, the Internet revenue we published a few figures, now active tens of millions of  own app has 9, the monthly active tens of millions of 43, this must not be a small income, There is a chance to see 10 billion net profit next year.

About the Millet model I would also like to say that it is now 8500 people, and then we have a stake in the company and a total of 220 companies, which is a huge ecological.

We also have industrial and financial two-wheeled drive, we use the method of investment to avoid millet into a big company, our ecological chain products is how to do it? For example, I want to do power strip, I will find the most cattle in the world, persuade you to start a business, I invest in small stocks, you accounted for large stocks, your products to meet the requirements of, and then I help you into my millet channel.

We have invested 55 companies in this way, in the case of large companies that are 55 departments, the 55 companies only 170 people in the management, is almost from idea to structure, software, hardware, is a huge incubator. If I want to make fifty or sixty departments, I will be exhausted, I have to turn them all into the boss, so Millet is a fleet.

"problem at the moment."

This time period is one of our bottom, this year we have 3 months supply chain is extremely out of stock, there are many negative reports, but I think the rebound immediately began fully. Whether it is product sales, business size, or the perfect business model, including  accumulated in the past two years of various technologies released, in the next six months to a year, will show a new millet.

Because in the past we have done a lot of innovation, but in our disruptive business model is covered up, or our innovation is not enough to impress you, but I will be in the next year, may show a lot of completely different things, I have enough confidence.

I saw Feng Xiaogang last time, he said Millet you do not have to introduce, our family almost everything is millet. When all the things in the family are millet, everyone's understanding of millet may be different from the present.

My overall goal is to achieve the ultimate product, when the user's home can be armed with millet armed, know how strong we are, this is an exciting new start for millet.

Http://tech.sina.com.cn/i/2016-07-10/doc-ifxtwihp9934163.shtml

Interpretation of Lei June speech, can borrow "Muji products of the technology industry" rebound? (Hard and pure heart to do this thing well)