After nearly a year of preparations, the first flagship store, which was regarded as the new retail model of millet by Lei Jun, was officially opened in Shenzhen in November 5th
Millet company founder, chairman and CEO Lei Jun (right) and millet company co-founder and President Lin Bin (left)
Personally in charge of mobile phone supply chain, command Quality Committee Chairman, President Lin Bin to promote millet home, after delivery and the channel line up, millet finally returned to the path of growth.
In announcing the beginning of the year 70 million units shipped, billion in revenue over the target ahead of schedule, Lei Jun to the media made a small new goal: 2018 shipped 100 million units, to enter the world top 500; 5 years millet home turnover of $10 billion, 10 years after the millet revenue reached 1 trillion yuan.
For the past two years millet decline, Lei Jun summed up the three difficulties facing.
First, millet as an entrepreneurial company, after the rapid growth, there is a problem of management upgrades. Millet employees have developed from the first dozen people to the present more than 10 thousand people, and the organizational structure and management ideas need to be readjusted.
After 80 million shipments were not completed in 2015, Lei Jun realized the management problems,
Two millet before focusing on electricity providers, ignoring the line. While the electricity supplier accounted for only 10% of the total retail sales, millet faces the bottleneck of how to move from line to line.
In fact, millet in the beginning of last year to really start the pace of offline channels. In 2016 to do 50 millet home, millet began to accelerate the pace, in addition to proprietary, but also using the store and authorized stores and other forms. At present, millet home has opened to 228, in the overseas market also opened more than 100 official authorized stores. Lei Jun plans to open to 250 this year, next year 500, 1000 after the year.
And because of 270 thousand yuan of Gaoping effect, millet home to achieve revenue coverage costs, no loss
Lei Jun believes that millet home millet significance mainly in two aspects: strategic value and brand publicity value. In the strategy, let millet from the implementation of the Online to Offline breakthrough, to verify the feasibility of the new retail; brand, people gathered in the district has a natural brand exposure, so that the line had no idea how people understand millet millet. At the same time, through the product experience offline dispel doubts, to promote the purchase.
He admitted that the current millet home contribution to millet performance is still limited, but in the next year after the volume, will gradually form sales scale. He also set a goal for the millet family team: the next 5 years to do 10 billion dollars, 70 billion yuan, and this year's turnover is about 6 billion yuan.
The three is the supply chain, quality and delivery issues. Millet has been burdened with hunger marketing label, while the quality of cost-effective mode has also been criticized.
In May last year, Lei Jun personally took over mobile phone R & D and hardware to promote the integration of production, marketing and supply. The mobile phone industry is a collaborative system, and R & D, supply chain, production, sales and other links need to match each other. More than a year later, millet in September and October this year to achieve a continuous shipment of 10 million units, which was Lei Jun as millet has basically solved the supply chain and capacity problems.
At the same time, Lei Jun in the beginning of this year personally led the establishment of Quality Committee and served as chairman, developed a quality action outline, and the establishment of quality office special supervision
After making up lessons, millet return to growth track, and Lei Jun also put forward new requirements for millet.
At the beginning of this year, Lei Jun set down 70 million shipments for millet, revenue exceeding 100 billion target
For next year, Lei Jun set 100 million shipments target
In addition to the goal of shipments, he also put forward millet next year to enter the world's top 500 goals
In this year's fortune 500 world rankings, the 500th AutoNation company's revenue was $21 billion 609 million, or about 143 billion 400 million yuan. This means that millet next year's revenue target may be around 1400-1500 yuan.
The flagship store opened in Shenzhen, almost all of the millet Lei Jun convened executives came to Shenzhen. Strategy seminar held at the meeting, he raised a question: millet within ten years there is no opportunity to do the turnover of 1 trillion yuan.
In fact, behind the 1 trillion turnover target, Lei Jun is also the orientation of the globalization of millet.
He revealed that this year millet international business growth of around 300%, the millet has entered the 60 countries worldwide, including 12 top five. It takes India as an example, a year ago, millet market share of 6%, while the last quarter has increased to 25%, close to the Samsung.