The customer loyalty of millet company needs to be improved

Millet company launch fans of the introduction: Reuters published in Friday, entitled "Millet must not waste the hype opportunity" (Xiaomi can ' t afford to let it hype go to waste) commented that millet, although received extensive media attention, but also achieved a decent growth, But user loyalty needs to be improved, otherwise, instead of becoming "China's apple", it may become "China's palm". The following is the full text of the article: Millet dug away a Google executive, but can it take Silicon Valley's technology laurel? The Chinese smartphone maker sold more smartphones in China than Apple's iphone in the second quarter of 2013. Recent funding figures show that its market capitalisation has surged from $4 billion trillion to $10 billion trillion in just a year. The company must not waste opportunities before hiring Google to further Tangyugo the millet Barra. The business model of Millet is made up of hardware, software and social networks. Millet operating system based on Android development, updated once a week, won the Geek's favorite. Services and communities are also its strengths. Users can ask for help via Weibo and get a response within minutes. Hunger marketing is also one of the company's winning magic, because of this, the price of the cheap red rice mobile phone in the listing 90 seconds after being snapped. The company has yet to disclose details of the latest round of financing, but the 10 billion dollar valuation is not too exaggerated. Millet 2013 plans to sell 20 million mobile phones, almost 3 times times last year. Suppose that the average mobile phone price of 250 U.S. dollars, the annual revenue will reach 5 billion U.S. dollars. Assuming the company has a net profit margin of 10%, the valuation corresponds to a price-to-earnings ratio of about 20 times times. What Millet really lacks is a "moat" that protects its market share from shrinking in a fiercely competitive smartphone market. The company's operating system has attracted some 20 million near-crazy fans, but companies with more money, such as Baidu, Alibaba and Huawei, are also targeting the user's small screen. Millet now relies primarily on the initial attractiveness of the user, and does not form too much loyalty, as Apple does, nor does it target email users in big businesses like blackberries. Top tech start-ups have mixed performance in other markets. For millet, the biggest challenge may be to expand the user base while retaining the core fans. So far, the focus of millet is focused on services and communication with the user, does not rely on hardware, indicating that the hype is worthwhile. Digging the corner of Google is a clever plan, but to turn millet into "China's apple", but also need to enhance the user stickiness, otherwise, they may eventually become "China's palm." (PEI)