phone sales plummeted 36% lei June what did you do wrong? (People's needs are complex, not just a price/performance ratio; To do experience-price ratio, not to configure the cost ratio) good

 phone sales plummeted 36% lei June what did you do wrong?

Recently, Technology founder Lei June attended the opening ceremony of the 20th Harvard China Forum and delivered a speech in Cambridge, Massachusetts, USA. In the speech, Lei June said, but only took 2.5 of the time to become China's first, the world's third, the fourth year after the release of mobile phone turnover of more than 10 billion U.S. dollars.
Lei June

And for the profit, Lei June said, the higher the gross margin of the company is not necessarily the better, high gross margin is actually a no way. Because many companies in order to increase gross profit margins will be considered in two ways: increase prices and control costs. However, increasing the price of the product is slowly becoming an enemy with the user, once the cost control will slowly become Jerry-building. Therefore, how to make a great company, it depends on whether the company has the courage to limit gross margin.

The remark, public outcry, the handset industry leader Apple, Samsung are high margin,  upstream chip manufacturers Qualcomm is an astonishing profit margin. Are they all on the wrong path? Lei June, is that right?

One,  decline is this user not?

Lei June has been introducing  since 2011, and the business slogan has been changed many times in 2017.

When  first appeared, Lei June said it was focused, extreme, fast, and word-of-mouth. And with the development of millet.  is still insisting on the only word of mouth left. Lei June in turn said efficiency, innovation. After all, it's hard to concentrate on making millet into a department store.

Also at this time, Millet put forward the concept of "new goods", lei June proposed to Costco.

to reduce the cost of the channel, low gross profit, higher quality to obtain the long-term trust and reputation of consumers.

Lei June logic seems to be unobstructed, millet low gross margin perennial to provide users with high-quality low-priced goods, to obtain the trust of users, training loyal users. Low profit But high sales, this is a business model that can run.

But after began diversifying in 2015, the Chinese smartphone market gave  a slap on the face.

2015,  did not complete the expected sales, 2016,  mobile phone sales in China dropped 36%.

Obviously  mobile phone cost is not low, the price is not expensive. But users are rushing to buy products from Huawei, OPPO and Vivo. The so-called high-quality low price does not retain their users, but is lei June in the eyes of poor efficiency, high-cost products have been favored by users.

Lei June in the speech said how long millet used to become China's first, but did not dare to say the subsequent  has a sharp decline, and the rapid growth is precisely the LEI June strategy against the Oppo and vivo.

Is this the user level of this session not? Lei June where did you see it wrong?

Second, the user's needs are not simple

In Lei June's mind, a thing with high cost and low price is a good product. This product must be able to get the favor of consumers.

Millet mobile phone is in accordance with this idea to do, followed by the spirit of Millet and Meizu, le vision, queer cool and other brands. These brands are indeed gaining a small market share in the short term.

However, in the real world, the user's needs are complex, far from being a cost-effective to cover.

But the user bought at that time is not the configuration price ratio, but the experience price ratio. The same 1999 yuan,  mobile phone run faster than the same price mobile phone more fluent. Users need this experience.

And 2015 years later, because of the excessive performance of smartphones, the configuration has not been equal to the experience.

High configuration and low configuration, the experience gap is not big. The smooth needs of users have been met, it is necessary to pursue other aspects of satisfaction.

This time, Oppo,vivo on the product to seize this demand point, in the self-portrait of the article to do enough, you can use 16 million of high-pixel camera, you can optimize the effect of selfie beauty, you can get out double-shot to do the virtual ...

For the needs of the photo shoot, oppo a quick focus, raising the chip rate, rather than the picture quality, to enhance the overall experience of the photo.

It is undeniable that the brand itself is a demand for the mobile phone as a display product. Who will take a low-grade, cost-effective brand proud of it?

So, OV sign star endorsement, do first-class level ads impress people, signs all over the streets, enhance brand image.

and millet How to improve the configuration and products, the brand low no one willing to pay.

Third, millet to withstand loneliness

In the United States, Costco is not smooth sailing, it was also on the verge of bankruptcy. Millet to do network Costco, always to provide consumers with high-cost low-priced things, also can not be quick.

Word-of-mouth to slowly accumulate, products to be slowly polished, if the user to ensure that has been buying millet products are lei June to face.

The user is to grow, the student time user 699 Yuan mobile phone is very good, and after several years of work, after a career, 6999 yuan cell phone will also die they have the ability to bear, as long as you do good enough. To meet their needs.

People's needs are complex, not just a price/performance ratio. brand Low, why not set up a high-point brand?

Since fluency is not the most urgent demand, then  for women's selfie, the user's photo, business users demand for the life of what?

cost-effective is not no market, India, Southeast Asia, Africa users of the cost-effective or very like, should go to vigorously expand AH.

 other products to have a focus, one by one according to market demand to do, not the highest cost, the lowest price is good, to do experience 

 needs a long cycle, so that users recognize the products, brand, buy anything to go to store first to look at, and then like Costco members take away without asking the price. The cultivation of this loyal user will take at least 10 years. Millet to endure loneliness.

Hope that  can get out of the trough, made in China's network Costco, for consumers, more than a choice is always good.

Hot comment of netizens:

1, because can not buy, buy other mobile phone, I just can't buy, buy Huawei.

2, look at the Oppo stocking are 3 million or 4 million sets start, a listing on the fierce sell out. Look at the Millet 61 batches to prepare a 1.0002 billion units, half a year after the estimated only good buy, in this period of time many want to buy the hearts are erased, also had to say goodbye to millet.

3, as a 5-year rice noodles, I have a few words to say, millet company is very good, millet phone is also very good, red rice general, this is the feeling that I use, for consumers, let me with a cost-effective mobile phone, this little millet company is very good, but your phone is very difficult to rob, let people lose patience, Thousands of block of mobile phone who is not can not afford, why must be used for a few months is not necessarily able to rob the phone, with your mobile phone is a good point? Must wait until you have the spot to buy? No, I can add some money for other brands have goods, no problem? This is not black millet, this is my good-natured reminder, I do not want such a vigorous company into the old age, that would be a pity. I still want to support millet, just don't have a chance. There is also a point, millet outside the official millet too many fake.

4, that year just out of the router, the router is bad in the home, want to join to buy a, the result robbed several times did not Rob, the result bought TP link router, not you millet a router.

Source: Internet

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 phone sales plummeted 36% lei June what did you do wrong? (People's needs are complex, not just a price/performance ratio; To do experience-price ratio, not to configure the cost ratio) good