How far can millet rely on "low price snapping" mode?

High cost performance, one supply only a certain amount of mobile phones, pre-sales of social marketing plus the popularity of booking, Millet created a set of low-cost models are now being emulated by the traditional handset manufacturers, and even almost become the latter use the Internet to think about the main action of the problem, but in addition to consumers to buy machines constantly complaining has been growing outside, Nor is it possible for every enterprise to make a profit by buying it at a low price, and this core problem, if makes no money, determines that the pattern will not grow.

New snapping mode

"I heard the recent new Red meter note is good, do you have stock?" Yes, a price, 1300,1.4g version. You have a good luck, if it is not the rice flour Festival put some goods, then you are 1500 can not buy it. "This is the official website original price is 799 low price big screen" artifact "for most consumers, in fact it is not low price.

From the QQ space starting again to the practice of millet routine propaganda, the "thousand True Eight Core" The official number of appointments is said to be 122 million people, but the first batch of red Rice mobile phone issued only 300,000 units, in short supply must be a problem, in such a strong imbalance between the supply and demand relationship, the birth is the benefit of rent-seeking, a large number of scalpers seize the goods to make the difference, can say that Millet has not made money, those who did not buy mobile phone users complain indeed in the rapid growth.

Although there are all sorts of bad, but the success of millet still caused by other handset manufacturers to follow, the most well-known is undoubtedly Jingdong Jdphone plan. In this plan, only 599 yuan of Nokia X, ZTE's bull calf and Red Bull, Glory 3C, and even Iuni, Lenovo Gold fighter S8 and other mobile phones are the mode of learners. Features are very clear, is very competitive hardware and cost-effective, high order, and finally grabbed the proportion of the polar people.

Nokia X, for example, has made its first Android phone in the history of the launch and has topped 1 million in 4 days, but internal sources say only tens of thousands of of the first batch. According to Lenovo Group CEO Yang, now the industry's supply capacity is simply not in demand, who can not produce Lenovo to help.

But such a low-cost model is not long, at least not every manufacturer can use, the reason is very simple, not every manufacturer with this trick can make money.

It's the ox who made the money.

"From the birth of millet to now the ox has been accompanied by all the rice noodles to the present." A lot of rice noodles on the official website have been suspected, that the official website to put the volume is false, that the official website to the cattle to put goods privately. Many doubts linger in our hearts. "Millet website forum a 5000 points users sent such a post."

In fact, the most reliable channel to buy a red meter note is the cat. In the cat search "red meter note" results, the first 6 in total within one months of the deal 14,000 red meter note, this machine March the end of the goods, and today there is no one months of time. The price is more unlikely to be the official online 799 Yuan and strengthen version 999 yuan, but the minimum 1078 yuan, there are 1248 yuan and other prices. From the historical price, because of this batch of goods, the cat on the Red meter note price is also competing against each other.

Don't look at the new machine, August 2013 issued by the Red Rice, the official price of 799 yuan (mobile version of 699 Yuan), and today, the cat on the lowest price is 800 yuan before and after, while in the United States, Beijing and east channels, the red Rice mobile phone spot also in 899 Yuan, do a promotional cheap 50 also want 849 yuan. 8 months of delivery of mobile phones can not buy the official website price, this case is indeed Chinese characteristics.

But there is no more evidence that millet is cheaper than cattle. A mobile phone channel insiders to NetEase technology, the model of millet is very simple, cattle take goods have two channels, one is to buy, this does not say millet difficult to prevent, Apple's first iphone or what is also the cattle grab more, the other is from the carrier channel to take goods, Customized version of the carrier version of the supply of millet to the operators of the terminal total generation, the next mobile phone flow can only see the results.

Actually increase selling mobile phone is not difficult to understand, because the price of Millet official website completely did not consider the channel and the circulation cost, even millet oneself or is losing money. In this mode, the only money is the ox, but do not think they earn all the difference, which has a multi-level distribution of benefits, each job has an independent division of labor, a mobile phone can earn 50 is already very good results.

The model is not for every family.

"Millet never dozen price war, one up is cost price sell" Lei explained the operation Logic of millet in a public speech at the end of March, which means that Internet enterprises play the traditional enterprise method, that is, a full free (use the logic here is totally not making money). But Lei did not say that the point is millet all products in the short term is not profitable, but in the long run is a good profit.

It's not a secret. In today's fast-changing smartphone industry, chip, screen, PCB board, mold and other parts of the cost is at any time changes, if today is the cost of selling mobile phones, then six months later can sell hundreds of profits, a year of time profit space will only be higher.

From the recent Rice Noodle Festival can be seen, many users in the comments that the Red Rice note on sale 5 seconds sold out, 1 hours of millet 3 can also be a single, to the afternoon can buy only millet 2s. And Millet 2S is released in April 2013, to the current configuration if the cost of sales is necessarily not enough to convince people.

At present, the Chinese Cool Alliance and other manufacturers to learn only to buy that step, a year later can also sell the same section of the ability is far from learning. The channel people in the channel for ten years, in his explanation, the Chinese cool joint mobile phone is to sell short-term, if the goods within 100 days has not been settled, that one model even half of the failure of goods. But if the sale is short, the millet of this set of selling parts of the model will be difficult for other manufacturers to win long tail profits.

This is no wonder that Ren in the Huawei Glory 3C sell high time to throw cold water, he last Friday in a public speech stressed that the cell phone is still profit, sales are to serve the profit, if it is only sales but basically no profit, it is trifles.

In view of this, even if the early snapping of this part of the manufacturers can imitate, but the end is still low profit or can not make the brand lasting to make money, that model is destined to be the next replacement. The key difficulty with this model is the control of the supply chain (continuous access to the lower-priced chips) and the ability to have a lasting brand operation (until it is profitable to sell), but none of these two points can be owned by every business, and the result is destined to change the mindset of most participants.

Another reason for not learning millet: Channel drag

The channel people continue to introduce, although the family are learning millet, but the latter model is still difficult to replicate, because of the burden of the channel, that is, in addition to this phone, you have other to sell.

The operating mechanism is the same as the trans-provincial sales of cigarettes, when you want to enter a batch of best-selling cigarettes, the tobacco factory will require you to follow a proportion into another bad sell cigarettes, the pattern of the sale is more common than imagined. And in the mobile phone market, even if the Chinese cool to take out the millet 3 other cost-effective mobile phones, then the channel will have the requirements of the sales, for example, you want to channel into a number of low-cost smartphone impulse, you must give a certain amount of cost-effective mobile phone channels.

The result is open volume of supply is less, and in multi-channel supply, manufacturers of market price control will also decline. China Cool union in the sales rankings have a quarter of tens sales, but the star models are only millions, they can not risk offending channels, affecting the risk of shipments to thoroughly study millet. On the contrary, Millet's own model is quite light, with only one channel and two outlets (official website and operators), even if the ox earns no impact on the enterprise's unified shipping strategy.

Another reason for the channel drag is to value shipments, not real sales. People familiar with the situation said that in the traditional channels, there are a large number of non-best-selling smartphones in the channel, this is the industry practice, and these sources in the provincial channels, the line of the channel between the continuous series of goods, to obtain time and again the sales price difference, the final receiver often has been the profits, such as tax rebates, marketing costs, regional spreads, etc., Even if the last mobile phone sold at a price below the standard price of 150 yuan, but from other channels to earn 200 yuan, that a mobile phone 50 yuan profit can still be achieved, the business model can continue to go on.

This is still the result of valuing shipments. Whether it is IDC or the domestic Saino and other third-party statistical agencies, compared to the mobile phone market ranked most commonly used standards are the shipments of enterprises, and the Federation of such agencies to statistics using mobile Internet traffic, the most active mobile phone models. Nature in the previous report, the Chinese Cool Alliance are leading in millet, but the latter type of report, the IPhone, Galaxy note, meter 3, such as single models occupy the forefront, and in the intermodal games, operating the app ecosystem, such as based on the user's two mining, active users significantly more valuable.

But will millet continue to play this model will not have hidden trouble? Of course it is impossible. In the forum, 10 consecutive times to buy a red rice rice noodles is unstable factors, and when the millet will continue to extend this model to television, routers, power and other peripheral products, sales growth will affect Word-of-mouth. At the same time, Millet is still not a complete control of the supply chain and upstream manufacturers of the scale, so in some parts of the supply, equipment and capital of the switch will also appear opportunities. For example, the end of the 2013 Gaotong 800 chip, all the first-line manufacturers are in use, although the release of Millet early, but 骁丽 Dragon 800 mass production chip is another Rob Hu, himself to create high-performance transmission of the image of other contributions to the sales.

Therefore, for the "Chinese Cool Alliance", imitation will never be beyond the way, in the hidden trouble of millet to find new ideas will be a better way to break the ice.