Lei: Some Internet companies don't fight price wars because of free

March 30 News, Millet Technology Chairman and Chief Executive officer Lei at the 2014 China (Shenzhen) It leaders summit this morning, said the Internet is a winner-take-all industry, "the Brave wins", competition is extremely fierce, so the price war is endless. Some internet companies do not fight price wars because they are free at first. In the face of market changes, internet companies must be quick enough to respond to user needs in a timely manner.

He said that the Internet in various fields is the most brutal competition, in such a competition, to do their utmost. Traditional companies play a price war, the internet never hit the price war, because they are free. Millet is also from do not hit the price war company, a come up only directly sell cost price.

Lei stressed that the millet mobile phone attaches great importance to four strategies: focus, Ultimate, Word-of-mouth, fast, using the Internet thinking to do mobile phones.

He also said that multiple growth is the most basic principle of internet companies, including not only business growth, but also the response to customer service. The entire Internet company to the user experience, the user's word of mouth one step to push to the extreme, this is the internet to the traditional industry brings the most important ideas.

China (Shenzhen) It leaders summit by the Shenzhen Municipal People's government and the Digital China Federation, organized since 2009, has been successfully held 5 sessions, this year's summit theme is "it new value and industry Internet."

Following is the Millet technology Chairman and CEO Lei speech record:

Hello everyone! We are all immersed in the wonderful speech of the academician just now. Mr Ma's comments are stand-up. Wu Academician gave a few examples of millet, I tell you a brief report of the situation of millet. Not to advertise, because many leaders do not understand the progress of millet. Millet is a very very new company, founded four years ago, 10来 people, 7, 8 guns, along with the Millet revolution. Choose to do mobile phones, mobile phone is indeed a Red Sea market, Apple, Samsung made 110% profit, other enterprises lost 10%. The first interview of Google engineers, no one to join the millet. But even so, we have formed the best team in the industry. They are mainly from motorcycles, Google, Microsoft, Kingsoft software. A few of my special introduction, the average age of 8 people 45 years old, 5 returnees, 3 turtles, Turyan. Older entrepreneurs. We think encourage is Ren 42 years old founder of Huawei, we say you can? In fact, like young people, we initially worked 6 days a week, 11 hours a day. Our luck is very very good is that our products entered the market at the end of 2011, the first year 12.6 billion, last 31.6 billion. Rose 150%. The quarter ended, with a 150% per cent rise in the first quarter as it did last year. If you grow by 150% a year, you have a chance to do 80 billion this year. I think 70 billion is more certainty. With the same growth pattern, next year's billions should be visible. Last year sold 18.7 million units, this year at least 40 million units shipped, the first quarter has shipped 11 million units, I expect this year 40 million is just passing level, there is a chance to do 5000, 60 million, next year, the target of 100 million.

Millet has just entered the market soon, in the market has a very strong influence. In addition to Apple, Samsung, Millet mobile phone most influential. The Millet user group is very active. Here I report two points, millet mode in the end is what kind of. I think millet is a triathlon. To put it simply, we think that we are mobile phone companies, but what mode do we use? Is that we make every effort to use the best materials to do the best mobile hardware, through the Internet to do on the basis of Android our system, the weekly iteration, so that the millet mobile phone inside experience far more than peers. Recently we released a small application, more than 20,000 cafes, restaurants, airports, railway stations, those free and safe WiFi millet can be a key to connect. This is our free WiFi service provider, do not need to lose the account number, password, asked you to do not access, but also safe and reliable, greatly enhance the user experience. This experience in the Millet mobile phone has at least 10,000 optimization, when you use it will understand why so many users like millet mobile phones. Our whole millet inherited from the design, research and development, supply chain management to the market, channels, sales, services, all integrated, the electric business model greatly optimized millet. So the millet close to cost price retail, build a mobile internet platform.

The 2nd important reason is how we use Internet thinking to do mobile phones. The word Internet thinking is very popular recently, why? This point I tell you, I am involved in the founder of the first company is Jinshan Software, founded in 1988, the Internet in China heat up is 1999 we were the Internet revolution off the first generation. The internet was the first to eat with his recent industry, the software industry. After the revolution, we began to think about what the Internet is. In fact, the Internet we also use, but why the software industry has been so hard hit? Later, I understand that the Internet is actually a new methodology. The way to think about problems is completely different. Through step-by-step thinking, including practice, one day I think he is a complete set of things, if we use this thing to do any product industry, I think can produce a nuclear explosion. So 2010 I use this method to make mobile phone. A lot of people do you think that way? The whole method of doing millet before, is already ripe. So the past more than 10 years of Internet business practice, in fact, explored a lot of ways. What is the core of this picture? Is Word-of-mouth. I remember the 80 's when IBM talked about customer satisfaction. 90 's Microsoft talk about the user experience. In fact, internet companies today all talk about user reputation. We believe that no one form of promotion is more important than the user's word of mouth. When the Millet cell phone was released, my colleague took a 35 million advertising budget to show me, I picked up on the budget table tore, I said we can not spend a penny, I can not believe that users can let us become China and even the world of the company, we are using this method to restrain their own promotion. Millet just set up 1.5, millet extremely low-key, do not do any advertising, nor any PR. Nobody even knows what we do. When we made the system in 2010, the first version came out with only 100 people. There are 200 people in the second week. The third week has 400 people, less than a year, 300,000 people around the world. I say do not advertise, only do not advertise can really test clearly your product has not enough word-of-mouth.

Talking about here, people say what is Word-of-mouth? Many people feel that good products have word-of-mouth, but also some people think that cheap products have word-of-mouth, I would like to say that is not the case, the world a lot of good products, cheap products, a lot of good and cheap products are also many, the spread of Word-of-mouth is more than expected. Wouldn't it be painful if you opened your browser in a café with an Apple phone and lost the password on a small screen? When you want the password with the waiter, the first minor is not right, but also the second time, you pull out millet mobile phone, he automatically asked you are not connected, you say is, naturally connected up.

I believe everyone has experience, especially in the hotel when the pain. Millet is to rely on such a detail to impress you. On the word of mouth, seabed fishing is doing very well in this respect. There is a satin on the net, I have never tried, said to the seabed fishing, fruit did not eat up, with the waiter said can pack away, the waiter said no, checkout time, the waiter gave you a whole watermelon, said cut the watermelon is not hygienic, you want to pack words, send you a watermelon. The core of the seabed is word-of-mouth, the core of Word-of-mouth is the hyper-expectations. We have a great emphasis on focus. Because you are not attentive, you must not be a good mobile phone. Traditional mobile phone companies typically make at least 50 models. In fact, 50 models I was thinking that their boss really used these 50 phones? I don't believe it. Because you don't have to test a phone for months, you don't know if the phone is good or not. Our color TV companies, do at least 50 color TV each year. When I was making color tv, I searched 49 inch, no matter which company has more than 10 models, the code has 20, 30 digits, the number adds the pinyin to add the numeral, the ghost all cannot remember. I used to use 57 mobile phones, only you are very focused, product is very concise, when the product is astronomical, can be really done.

With focus, we also emphasize the ultimate. Either you don't do it or you do the limit. Why do you think that? Because on the Internet from company A to company B, just move the mouse. It's that simple. So the Internet competition is the winner-all. Basically in the United States, the world is a winner in all. The internet is the most brutal competition in every field. In such a brutal competition, only to achieve the ultimate. Traditional companies play a price war, the internet never hit the price war, because they are free. Millet is also from do not hit the price war company, a come up only directly sell cost price. Directly to half the price. Almost every industry in this pattern can cause avalanche effects. So that's why, that's because the Internet environment we're growing up on is assuming that the other person is totally out of power. In the same, the brave wins. Internet culture is better than one. I just had a quick chat with a taxi and we hope the competition will continue.

There is another word called fast. When you remind me that Millet is not very fast, in fact, in the Internet companies, especially in the early 100% growth did not do the poor company, multiple growth is the most basic principles of internet companies. Not only business growth, including responsiveness to user services, is particularly fast. You make an opinion by millet adopt, release out only need one weeks, this in the traditional handset enterprise is no way to imagine. Nokia era, 35 years does not update the system. Apple publishes once a year, Google publishes quarterly, and Millet is updated once a week, and we use this efficiency. This is the methodology we emphasize, focus, Ultimate, word-of-mouth, fast. Internet seven word.

Then, millet encourages users to participate. User participation is the biggest element, and his identity and emotion are completely different. We encourage 400, 5 million users to participate in the entire mobile design, even global users. There is a very core element in this, the user as a friend. Anyone who verbally puts the user in God is a lie. Because the Chinese have few believers in God. You can be a great company when you are a friend. Although the millet is not perfect, very very young company, but Millet uphold the spirit of the Internet, the user as a friend, I believe that will be done a step at a greater. All the service centers in millet are as beautiful as the Apple store. The repair shop is likely to brighten everyone's eyes. You go in to repair the phone, starting from the door, we require 60 minutes must be done. I'll pay you 20 yuan per hour. In such a step-by-step improvement, I feel that the entire Internet company to the user experience, user Word-of-mouth step-by-step to the extreme, this is the internet to the traditional industry brought about the most important ideas. I have said a very important point in these speeches, that is to use Internet thinking to arm our traditional industries, I think the transformation and upgrading of traditional industries will have great significance. Here's a small example of a small company founded last August, 20 people, doing mobile power. Millet gave him some money and his product was released last December. Three months from now more than 200 million, this year probably do 2 billion. I expect more than half billion in three years, he is using the Millet mode copy. He made a mobile power supply with 4-cut 1860, the best battery. The aluminum shell, like the ipad, is priced at 69 yuan when it is more than 10,000 ma. It is 9 dollars after tax deduction. It's easy to be 2 billion in the first year. It is estimated that over three billion years. No matter what the future of millet, millet advocated by the Internet culture and the spirit of the Internet with industrial integration, will be brewing a group of large enterprises out. Thank you!