Is Xiaomi far from the market?

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Meizu founder Huan Zang once said that all the people in China will do mobile phones only he and Zhou Hongyi, from the current OS and Meizu early generations of mobile phone products, this is not false. Huawei and Xiaomi, although the sales lead the two, but a relying on the communications giant born emphasis on technology, another marketing focus on the participation, other rising stars such as music vision through the ecological chain way to innovate, but this new business model from the present time still remains to be proved.

Different business models determine a different way of returning home. These mobile phone practitioners, Xiaomi's business model is the closest to the capital market, from the current millet in the product enterprise layout, the next step of Xiaomi may be to login to the capital market, the peak of China's smartphone industry.

But in the process of achieving this goal, Xiaomi's path is still not too flat.

1, the profit embarrassment: high-end machine failure and low-end machine's No value

Xiaomi has a tens of billions of valuation, the annual sales volume and sales are also breathtaking, but in terms of profit margins, Xiaomi lags far behind other friends.

In the early stage of the campaign through low-end machine layout market, millet harvest the vast market of the cock wire users, but with the industry development, these low-consumption capacity of users is not enough to support Xiaomi's profit source. In the context of this sharp demand, Xiaomi has launched a build-up for the high-end market through Xiaomi note. However, this ambitious impact did not bring millet a good wish, millet note this millet history of the most cutting-edge high-end test water, and ultimately did not bring new world to millet.

and millet proud of the Red Rice series although in marketing constantly refresh new records, but the problem of red rice to millet as well as other mobile phone manufacturers of the same problems-low-end machine sales huge, but not make money.

So we've seen Xiaomi's efforts over the past year: Millet note changed its name and Title 8 times, and launched a mid-range Xiaomi 4c between the red rice and Xiaomi phones. But these moves, though seemingly hectic, have not been recognised in the consumer market. One of the main reasons, one is that most consumers have become sensible, and will not be a change in color and name of the product to pay; second, Xiaomi 4c this product in terms of configuration or price, there is no intention to give consumers the advantage of the heartbeat. Later, Xiaomi complied with the trend of rice noodles to launch the most expected Xiaomi 5, but this official flaunt countless black technology products have not won the market favor.

2, for the listing or adjust the product line: Red rice or face the risk of disappearance

In the early years of Xiaomi launched the mobile phone, red rice and other low-end machine in the case of not making money to promote the role of MIUI market share, after just a few years of the journey, red rice glorious and arduous to complete the task. The ubiquitous advertising, the inability to shut down, and the removal of implant information on the latest MIUI 7 system mean that MIUI, as another core asset of Xiaomi, is one of the pillars that really build Xiaomi's revenue streams. If the Xiaomi mobile phone and MIUI users only a few people, to millet big courage it also dare not implant in the system so many interference experience ads.

This sign confirms that the role of red Rice is merely to become the paving stone of MIUI's growth.

In this process, other manufacturers have also introduced thousand-yuan machine, but the same with the red rice, other manufacturers of the thousand-yuan machine in addition to the impulse there are other values. For example, The Lego 1s and other thousand-dollar machines as a member of the vision ecosystem, which not only help Le Vision opened the mobile Internet user incision, but also can become the music vision to improve the main hub of the ecological chain. But throughout the red rice, there is no use other than to provide MIUI with the installed capacity.

Thanks to the credit of Red rice, today's millet has a large number of user base, Rice series eco-chain enterprises are also covered in various segments of the market pattern, from now on, through MIUI and millet ecological products more directly connected to users. This means that red rice can no longer provide new value for Xiaomi, the red rice is only a stumbling block of millet, from this point of view, it is not difficult to see the weight after millet or have to abandon the red rice plan. In fact, starting from Xiaomi 4, millet in the mobile phone technology, design and experience of the step-by-step is also indirectly disclosed, high-end mobile phone products will be the main direction of Millet future.

In this case, what do you keep with red rice?

3, the user's distance, the product's length: listed or into Lei June's personal carnival

Xiaomi's business rules are to attract users through the ultimate price-performance ratio, after building a massive user base, building other business channels and digging new directions to achieve revenue, from the current MIUI ubiquitous ads can see such signs. In the rapid rise of smartphones in the years, the Red Rice series as the main model for Xiaomi, not only for the rapid rise of millet and brand communication, the user base played a positive role, but also for the promotion and development of the MIUI user groups to provide invaluable value, as a very cost-effective entry model, The value of red rice in the past is worth witnessing. But today, this successful sub-brand has completely finished its road, played the last value, now it has left to the most appropriate time.

And now the red rice users what to do? It's good--either spend more money on more expensive Xiaomi phones, think about other brands, or simply don't use your phone.

For Xiaomi, to abandon the red rice product line and user groups, from a strategic perspective is a reasonable choice. In the low-end user community, the group's consumption capacity is limited for the enterprise market value can not contribute directly to the situation, the strategic adjustment is in tune with the concept of business development. In addition, to abandon the low-end users of high-end groups, this strategy can let the enterprise itself realize value creation, late millet years of birth of the hammer is the main city elite consumer groups. In Xiaomi, there is nothing bad about abandoning the worthless low-end user group for future development. Lei June is a good businessman, in the years of the Sea Rapids, he clearly know the needs of the enterprises he led, now if the millet can be valued on the basis of $ tens of billions of, then the glory and status of his life will rise to a unique height, for his such people, Business is definitely the dream of all the pursuit of carnival.

Therefore, he needs Xiaomi to have a remarkable performance in the commercial market.

　Finish

朱翊, technology from the media, Well-known opinion leader.
:izhuyi 
male: ZHUYIWEIXIN

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Is Xiaomi far from the market?