Lei the road of millet characteristic: open resource Circle Layer type expansion

On the road of hardware expansion, what kind of path will millet choose? On December 17, Lei the economic Report of 21st century: Neither the closed road of Apple nor the absolute opening of IBM, but the middle road, which is the path of millet characteristic, a controllable mode.

After seven years of development (from Apple's iphone), mobile phones have moved from a disruptive innovation to a micro-innovation stage, already a relatively mature product, or the mobile phone industry has been over the tuyere period. Millet Technology founder, chairman and CEO Lei has been the thinking is "to find the outlet, to do the explosion," in the hardware industry expansion, Lei is looking for a new outlet.

Recently on the most lively two topics of millet two, one is the strategic investment in millet, Gree chairman Mingzhu, the second is millet in India encounter patent disputes. For the former, Lei said, millet in the creation of a hardware circle layer, investment in the United States is to build a hardware ring layer of a small step; for the latter, Lei said, patent dispute is the adult gift millet, millet from the establishment of that moment know must go through this threshold, now has arrived at this moment

Circle-Layer Expansion

Sometimes go to Shenzhen, Lei will go to visit Huaqiang North. This year, Lei in Huaqiang North found a lot of millet mobile phone accessories, are some unknown companies produced. Lei to attract so many social resources to participate, this is the power of the ecological chain.

Millet provided data show that the red rice this year, sales of about 30 million, Rice 3, M 4 plus this number. Millet shipments are expected to exceed 60 million this year. To do this amount, millet spent four years, this is a miracle.

On the hardware road, is millet going to do everything? Before the market to the evaluation of millet: millet every entry into an industry will destroy an industry. The reason is that the industry's original players do not have the price of millet, can only die. The so-called talk about millet and color change.

Lei's answer is that millet will not enter all industries, Millet has its own boundaries, the border is the three core categories: smart phones, televisions and boxes, routers. Why do you choose them? Lei to the 21st century Economic Report: "The Future heavy hardware Internet access to five, respectively, PCs, mobile phones, televisions, cars, routers, boxes are the key parts of the TV, tablet is the PC and mobile phone intermediate products."

Five heavy hardware Internet access, Millet has entered three. Future millet will not enter the PC, car? Lei's current answer is: "Millet will not enter the car, the real estate sector." "and the PC industry pattern has been set, product type maturity, the industry subversion opportunities for the time being."

Mobile phone, TV, router, these three products constitute the core of the Millet ecological circle layer. As for the United States, but Millet ecological circle layer of the second ring layer, that is, the hardware industry chain, has been the millet power supply, Huami hand ring, smart meter air purifier, millet camera, intelligent blood pressure meter.

Son, founder of SoftBank, said in a recent forum: the average person in the future will have more than 1000 smart hardware, including buttons. To the circle design, to solve the problem of category richness, lei own consideration: in an absolutely closed way, investment, wind inspection, not like the core circle layer of products, the market is huge, can accommodate a large number of players. To enter these industries in a circle, the risk will be shared by many partners and, of course, benefit sharing.

"Entrepreneurs in these industries should be happy because the entrepreneurial opportunities are coming." "Lei said.

Millet mode

Lei the so-called opportunity, in fact, is the circle layer model for the traditional hardware industry, so that these industries again hot.

What is empowerment? and millet related to this explanation, the first is the product concept and business model values, the second is the brand endorsement; The third is the vital supply chain resource support;

Lei explained: As a start-up company, both in the face of the generation of industry and commerce, or parts suppliers have no bargaining power. Millet initial entrepreneurial time, to Taiwan to find a substitute factory, no one knows what is millet company, also very few people understand lei, there is no willing to pick up millet single. We think that Millet is a small company, not sell much, open mold, and build production line costs are not back.

Not easy to get acquainted with Ying-Da (the world's top five generation of factories) Nanjing general manager Zhang Feng, Zhang Feng is a mainland people, Lei have heard, and finally picked up the first batch of millet orders. Lei so far are grateful, he said: Zhang Feng is the noble millet. Then Zhang Feng came out to do business power, Lei must cast, the company is the production of millet power of the purple rice technology.

Lei said that hardware intelligence will bring a large number of entrepreneurial wave, due to the category of many, this batch of opportunities will be 10 times times the PC Internet, mobile internet. Millet is more willing to be standing behind these entrepreneurial people.

Through millet, these companies can obtain the following capabilities, one is the ability to negotiate with the supply chain, millet can represent the platform of all hardware vendors to negotiate; the second is the sales channels, through the millet network, they do not need to like every guest, millet entrepreneurial period, the construction of logistics; The third is to connect with more hardware; four is the software of MIUI platform, applications, services.

Lei said that China's manufacturing industry is very similar to Japan and South Korea in the early days, limited by the low price, low quality of the vicious circle, not only make less money, but also bear anti-dumping and other international trade disputes. But Chinese enterprises are now in a good era, this era contains at least two aspects, one is the wave of hardware intelligence, the second is E-commerce. Chinese people rely on these two elements, seriously do products, you can achieve upgrades.

Lei's ideal is, through the millet Fu, the circle layer of the manufacturers finally achieve a point: excellent cost-effective products. Lei that this is the road of millet characteristics, but also the road of Chinese manufacturing characteristics.

The Secret of Millet

There was a Thunder army and Zhanghongjiang (Jinshan Software CEO), Fu (Leopard Mobile CEO), Lee Colling (more play founder, CEO) and so on to travel to the United States. In Fu's agitation, Lei also went to stroll Costco. Things were so cheap that everyone bought a lot and finally started buying boxes.

Lei is curious about why Americans can sell things so cheaply, especially in China. For example, new beauty, the United States a 150-dollar box, in China can sell to 8000 yuan, or even 9000 yuan. Lei's summary is that the key reason is the improvement of efficiency.

How is efficiency improved? Before the Costco, Wal-Mart made two points, one is every day parity, is to sell their own goods than all competitors lower, and the second is to transform the old plant of urban-rural integration department, greatly reducing the store costs. Wal-Mart's model greatly improves efficiency compared with traditional American Ultra or retail outlets. Costco basically copied Wal-Mart's approach, but a step closer to Wal-Mart.

According to Lei, Costco history has never had a gross profit margin of 14% of products, and Wal-Mart's gross margin of about 22%. At present, Amazon's gross margin also in 22%, China's Beijing East is also close to 20%. It is Wal-Mart, the existence of Costco, so that the Amazon, ebay, such as the electric business, far from the Chinese Taobao, Cat, Beijing East volume. In fact, the Alibaba Group alone has surpassed the entire U.S. electric-business transaction (GMV).

The low efficiency of business is one of the reasons why Chinese people can't enjoy high quality life because they spend a lot of money. Another reason is the Chinese-made product model: a long-term low price, low quality dual-low model. How to break through the predicament, improve product quality? Is Lei founded Millet thought of the problem.

In terms of product quality, the greatest inspiration to Lei is the Tong Ren Tong. Lei pinch the finger calculate: Tang Ren Tong already is a company that existed for more than 340 years. How do you do that? Lei in the Tong Tong Shop found the answer: although the processing, will not dare to save labor, taste although expensive, will not be afraid to reduce material. Lei that this is the Tong Ren Tong has been adhering to the shop training, but also hundreds of years not to fall the secret.

The original purpose of the Millet mobile phone was to produce a good mobile phone that the army had experienced. Lei's approach is: for millet to choose the highest level of hardware, regardless of development costs. Lei said: "Millet and Apple, Samsung compared to the product is indeed inferior, but Millet is only a set up only four years of enterprise, millet to use 100 years, or even longer time to achieve high quality."

Lei hope that through the model of millet Fu can become the path of China's manufacturing reinvent. In addition to the core circle layer, on each lap, millet will open its own resources to achieve energy transfer.