Lei a speech in Beijing recently

Coincidentally, Millet is this year's cat double 11 absolute superstar, won the fastest break billion, the first sales, such as gold is very high laurel, although before, many people have predicted that this year's sales top non-millet, but the double 11 of the day the sale of millet is still enough to make people stunning. This also let the industry for this across the technology and electric business enterprises to take notice, the business logic behind it and the operating rules of curiosity, lei this speech, can let interested electric businessmen have a clear understanding of the operation of millet, and thus bring some inspiration.

Lei in the speech, mainly elaborated several:

1, the founder team average age of 43, is the elderly entrepreneurship, has an advantage, because the industry has more than 20 years of experience.

2, the success of Millet is the triathlon "Software + hardware + Internet" mode of success, three industries effectively combined, as long as the products are competitive, the result is naturally extraordinary.

3, millet pay attention to electricity quotient, after the integration of industrial chain, remove all intermediate links, direct contact with end users, rapid response to user needs.

4, the Internet thought, believe the masses, from the masses, to the masses.

5, Free mode more money.

The full text of the speech is as follows:

Two years ago this time, we probably sold 10,000 mobile phones, we are scolded futures, scold hunger marketing. I am very happy to share with you today, through 24 months of efforts, this month we sold more than more than 2 million mobile phones, I estimate that by December, a single month more than 3 million units. So I think there are huge changes and differences. I would like to take this opportunity to share with you what kind of company Millet is, what innovations we have made, what new ideas we have, and why we have such results.

I want to introduce millet from these aspects.

Older entrepreneurs, advantages in experience

We were founded 3.5 ago, in the North four green Si bridge Silver Valley building. We are mainly the founder of these 8 people, many people do not understand why the millet so fast, if you read the resume of these 8 people may know. In addition to me, Lin when we created millet, he was the dean of Google Research Institute, Dr. Zhou Guanping participated in the Moto in China's research and Development center of the founder, 1995 in the United States joined the Moto, began to do digital phone. Hong Feng, one of Google's most famous products is Street View, which he developed in his spare time. KK (Huangjiangi) from Microsoft, probably stayed in Microsoft for 14 years, in Hong Kong. Li Vanchang is in Jinshan with me for 14 years, Chuan founder of the Lei, in the karaoke system inside the domestic is ranked first. Liu De was also designed in foreign studies.

The average age of such a group of 43 years old, can be counted as the elderly entrepreneurship. In the July, I was in the United States, and Zuckerberg (Facebook founder) chatted for one hours, in fact, my heart is very stressful, feel particularly uncomfortable, a large billion dollar market capitalisation of the giant CEO who looks like a high school, that moment, I feel old.

As an old entrepreneur, where is our advantage? We all have close to 20 experience, the whole millet team in Zhongguancun is an excellent configuration, basically are very experienced together to do, this is why we can rise in a short time reason.

I have just come back from the United States, this trip I met in the United States very much the world's eldest brother, I feel this trip to July to go significantly different, because Hugo Barra joined the millet. I've known Hugo Barra for so many years, and I felt for the first time that Hugo Barra had a huge influence in Silicon Valley, and that the popularity of millet was greatly enhanced.

Estimated sales of 30 billion to 31 billion this year

Last year we did 12.6 billion, we estimated 30 billion to 31 billion this year, and this data is a miracle in the global field. To achieve this scale, the vast majority of the fastest also take 7 to 8 years of time. Earlier this year, I also said a more exaggerated words, because people always accuse us of hunger marketing. I said if the coming of the past, if slow to the same, millet can be over 100 billion. Because now we are selling 200多万只, so I am also very sorry. Well, what exactly is millet capable of creating such miracles?

The success of Millet is the success of "Software + hardware + Internet" Triathlon model

In fact, we have become more and more aware of: millet "Software + hardware + Internet Service" Triathlon model has led the entire era. These three industries you can effectively combine, your products in the market competitiveness, is certainly extraordinary.

Millet is about 3900 people, research and Development department about 1500 people, mainly under the strong gas is to do software, we based on Android to do a new generation of operating systems, called MIUI. An important innovation of MIUI is that we do the operating system as the Internet application software. What is our biggest innovation? is to release the new version of the operating system, the real difficulty in stability, tens of millions of if not open the machine is a lot of pain, this problem is a big problem, because the operating system upgrade is very likely your mobile phone will not start, so we have a lot of kung Fu. A quick release per week (the new version of the operating system) means: Two days to collect demand, two days of research and development, two days to release the test, this is a rapid iteration of the era.

Our most important feature is customizing the theme. That is, we stripped the performance layer and core layer, so that the entire user interface and application layer can be fully customizable, there are basically many teams can be in the MIUI ecological chain to do a formal job to survive.

In the past, domestic mobile phones, we are doing cheap mobile phones, we come up, on the positioning to do the most expensive, the highest end of the mobile phone, the best performance of the phone, and then, we sell mid-range price, this is our model, so I came up with almost all the components selected are international top suppliers, we are the same way to do the millet box.

Originally we do not do Volkswagen model, this time to do the Volkswagen model, made red rice. Red rice In fact, the cost of research and development is quite high, it should cost a small 100 million yuan bar. After coming out, the response is good to what extent, 799 of the products, Taobao people can sell to 1900 yuan, now basically in more than 1000 dollars. I can hardly imagine that low-end products have such a large quantity, so strong demand, so I think as long as the products do well, or can get a good return.

This year we released the Millet TV, the response is also more intense. We do product thinking is: can make every effort to do the best products, can be better than others, I do not know, at least our attitude is better than others, we under the kung fu than others. In making millet TV, we actually do it as a computer, television is only a computer application. In fact, I do not want to advertise, just want to introduce the spirit of millet products.

Pay attention to electricity quotient, integrate industry chain, reach end user directly

I think the 3rd is important: We integrate the internet into consumer electronics. We have removed the market, removed the channel, the end of the sales, completely rely on E-commerce. The middle link all take off, you have the opportunity to contact the end user directly, according to the user's opinion quick response, and have enough cost-effective, the past cost-effective is by cost down (reduce costs) to achieve, the price of Millet is based on the overall mode of innovation to complete. Many people think that Samsung is vertical industry chain integration, in fact, in a different perspective, millet is also industrial chain integration. Samsung integration is the front-end, is the integration of components, we are the market, sales, research and development, service integration, after the integration, we press the BOM (BOM) to collect, relying on huge sales to form the scale, this is our determination to enter the industry.

Internet ideas

I think there is another important one: Internet thinking. The core of the internet is somewhat like the mass line, which is to believe in the masses, to mobilize the masses, to come from the masses and to the masses. We launched millions of online internet users to do mobile phones with us, a lot of rice noodles to our products have a strong sense of ownership, he felt he participated in, this function is his design, this function is his imagination, this feature he has participation, so we put the original closed research and development model into a fully developed mode.

Millet has a special forum, every day there are 800,000 people visit to discuss a variety of issues, so that our products come out, the product definition of the accuracy is relatively high, but also give full play to the wisdom of netizens. They also help us do a lot of research and development, such as translation of 25 languages, in the world to help us promote. Anyway, when I first went to Silicon Valley two years ago, including when we went to Taiwan to convince the supply chain, engineers at the supplier were using MIUI, and we were relatively easy to convince them that Millet was a mobile phone.

Users also adapted for us 143 models, so that MIUI in a customizable ROM has a high impact. The participation of netizens is very very enthusiastic: this one September 5 product launch, in the National Convention Center office, there are very few product launches are selling tickets, our conference to sell, there are many netizens did not buy tickets, the door can also find scalpers to take you in, the entire conference hall population density huge. And very few product launch is run two, we two o'clock in the afternoon, five points to do two, and after the online also have live video, live video I saw yesterday, a lot of more than 3.5 million people have seen (on Youku).

We have made great efforts to maintain direct communication and communication with the user base, and the Internet industry is very concerned about the user experience. The core of the user experience is that you have to mingle with users, I do millet for more than two years, I received the user sent me a gift, is dozens of times times my past 20 years. We do not underestimate the pattern of millet, we are not selling a product, we are through products to make more friends, so that they have the opportunity to participate, have the opportunity to change something, they and our feelings is not a simple commodity trading.

So what I'm sharing with you today is the "triathlon" model for this change in the entire hardware industry, there is a way to use the Internet, not only to the Internet as a tool, but also to use the idea of the Internet to think about the problem, using this method to turn users into their friends, so that users to participate effectively, This is millet a very essence, very core thing.

Perhaps to an Internet company to understand this thing is easier, for the people who have been doing hardware may have a little difficulty, this thing itself has the competitiveness is intrinsic, not simple competitiveness, it is difficult to imitate, with strong penetration. This is the millet miracle behind, so we also quite willing to take out to share with you. Because the whole consumer electronics is a huge industry, millet in which the share is very very low, and millet has just been dry for two years, but also the leaders here, experts, including peer support, because so millet can only have the opportunity to continue to grow, to achieve our goal, The creation of a world-class consumer electronics company, which I founded three years ago, the biggest desire of millet. Of course, I still have a lot of difficulties and problems, but I believe in the next ten years, we Chinese enterprises still have great opportunities, thank you.

Free Mode makes more money

Q: Rei, when can chips be free?

Lei: The last time Nvidia boss came, I told him why the chip could not be the same as our mobile phone, and sell TSMC's 3-dollar price. In fact, I talk to him that day, why must be thirty or forty U.S. dollars, can not sell 3 U.S. dollars, why not sell at the cost price. In fact, the free mode is a very strong model, that is, to reduce their own things, this model to make more money than you originally earn a lot more. I have experienced the most important industry is the original online games, online games are charged, and later changed to free games, I found that these manufacturers of income is more than 10 times times.

Our Jinshan also has a core business is the network security-Jinshan poison PA, when free time than the charge time to earn several times the money. So we think about the real reason, can also be like the Internet Free mode, I am convinced of the doubt. I was thinking, if this is true, the future of such high-end mobile phones like millet only need 500 yuan, we make money will not be smaller than before. Because the real big head, is the entire handset provides the related service, is many. Everyone thinks: How does Google make money, all of Google's services appear to be free, Android is free, Gmail is free, the community is free, why it can earn 60 billion dollars a year, profit 12 billion dollars, why the market value is 200 billion or 300 billion dollars. So if you want to understand this problem, you must think I have a point.