Fear left behind, make up classes. After the millet out of the trough, Lei Jun still does not have absolute security. He wants to think about how Xiaomi was ten years from now and how he and the company should be writing business history in China. This is about Lei Jun's epitaph.
Original title: Cover Lei Jun's ambition era
Image Source: "Chinese Entrepreneur" magazine
Wen | "Chinese entrepreneurs" reporter Li Yating | editor Zhai Wenting
Two days ago in Wuzhen is still the wine of the Lei Jun, December 5, US time has stood at Qualcomm's annual new release site. "The next generation of Xiaomi flagship mobile phone will be equipped with the latest Snapdragon 845"; Lei Junzhi will win.
Less than ten minutes speech, Lei Jun introduced millet MIX 2, new retail, IoT platform, internationalization, patent. He wants to express as fully as possible how millet is a company. In front of many supply chain partners, he also throws a series of good news. "My pride is that the third quarter millet growth rate reached 102.6%. & rdquo;
Millet came back, that high-spirited Lei Jun also came back.
An important signal for measuring whether an entrepreneur is online or not is how to show his public expectations about the future of the business. "Millet in 2018 99% of the possibility to enter the world's top 500" Ten years later, millet 50% of the possibility of revenue over a trillion "," At that time, millet may become China's brand, Made in China spokesman & rdquo ;. Hard to imagine these slightly frivolous words are from the mouth of Lei Jun.
Lei Jun accept "Chinese entrepreneurs" interview the same day, it is the millet home Shenzhen flagship store opening date. After an opening ceremony in the morning, he seemed tired, asking for a cup of coffee stuck in the couch, talking about the millet vision aroused heated talk, he could not help but explain, "I always think I am arrogant, in fact, I was quite Low-key one. & rdquo;
In fact, the Lei Jun that morning excited a bit unusual. During the open-air speech, his voice was occasionally interrupted by the buzz of crowd fans. Subsequent group visits, he swept most of the questions, and answered as much as possible clearly. After the host announced his conclusion, he stopped moving away and took the trouble to answer reporters' questions.
Just last summer, Lei Jun also acknowledged at a closed-door meeting that "this time is our bottom." "Millet is not behind the voice, endless. Even loyal rice flour has also shown disappointment as the product failed to meet expectations. These Lei Jun know, "We are cursed miserable."
The brutality of the mobile phone industry is that once the slide is a no return, the number of cell phone brands dropped in the past few years is the best evidence. Today, Huawei, millet, OPPO, vivo, Apple occupy more than 70% market share, the head effect is more and more obvious. More importantly, so far no player has been eliminated to stand on the pitch. An exception is millet.
Less than three years, millet will draw a sliding and bottoming out of the anti-parabolic: the first to open a comprehensive screen pioneer, MIX 2 won a good reputation, the line shop doing things very well. Lei Jun use force to verify Xiaomi's core business model, Xiaomi first mobile phone company, or a new retail company.
In fact, the recovery came earlier than expected. In the Lei Jun timetable, millet may begin to rebound in 2018. 2017 is not over, millet has won several "history of the first" & rdquo. Starting in September, it delivered 10 million units in succession for three consecutive months. As of October, annual shipments surpassed 70 million. In the same month, the revenue of millet was broken at 100 billion.
Breaking billions is the "small target" proposed by Lei Jun at the beginning of this year. At that time, I knew that the remedial grade was almost the same. "Lei Jun pride personality, millet sliding into the trough in early 2016, he proposed the slogan" happy like "& rdquo ;. He was letting himself relax and letting employees relax. Once the momentum came back, he told his staff again that "the worst time for millet has passed."
"We have not been ravaged in the past two years, saying that we are going to close the door. "Lei Jun out of the valley took the initiative to self-deprecating, there are even problems in his view is a good thing," said the company is energetic, if no problem, the company is estimated to die. Now we have a lot of problems, the key is how to find the key of the two or three issues. & rdquo;
Internet observer Hong Bo in the "labor model Lei Jun" article is interpreted, "the model worker in this nickname in addition to praising his work enough hard, serious enough, enough investment, but also contains boring, boring, no spare time and hobbies. His image is always flat, dull, lack of change, like a no story, no conflict, no accidental movie. & rdquo;
Lei Jun began to break free from such restrictions. Test water retail is questioned by the traditional practitioners, has also been criticized millet Hu Lai. When the Lei Jun did not hear, the reply said that it is through this way to activate the industry. "In China can not talk about theory, you want to like catfish, go in and stir, they live. & rdquo;
When asked the next key direction, Lei Jun put away his smile, "continue to make up classes, the year after the charge is" rdquo ;.
New retail save millet?
Millet in the past two years encountered any problems?
Lei Jun's answer is, one, millet online channel growth slowed down. Second, the universality of cost-effective business model is challenged, this challenge is more prominent when going down the line. Third, the rapid growth accompanied by management risk. The second is especially acute. It is about the cost pricing advocated by Xiaomi. Does the efficiency revolution only exist on the e-commerce platform and will lapse if the market prospects are greater?
There are only two roads in front of millet and continue to retreat to e-commerce or break new retail outlets. Compared to the light business, the team at the bottom of a confused, the only sure thing is to do. As for the king of the phone channel was regarded as OV (OPPO and vivo) play, Lei Jun that is not suitable for millet.
Lei Jun to the retail industry to consult, almost everyone told him to lose five years plan. "Scared me enough to choke, otherwise I will start earlier. "He is still determined to try," does not accomplish returned to only do electricity business, this is a solution, do not tell me to rank the first few, millet also no longer fight for rankings, people scolded scold it. & rdquo;
Millet new retail target of the object who? Zhang Jianhui think there is no clear answer (Photo: Wang Pan)
Chu Xian offline shop, Xiaomi sales and service vice president, general manager of Jian-Hui Zhang Jianhui to a lot of the retail industry Buchan apprentice. Millet new retail target of the object who? Zhang Jianhui does not think there is a clear answer to the sea service to catch up with the standard Tongrutang quality, from operational efficiency, Decathlon, 7-ELEVEN are worth studying.
The current Xiaomi offline channels mainly in four ways: self-owned millet home; he built self-owned millet stores, the other to provide venues, millet provide people, goods and operations; he built his battalion authorized stores , The other to provide people, venues and operations, millet to provide goods; millet stores, operated by individuals independently. The last three are the use of profit sharing model. If you distinguish from the city dimension, first and second tier cities are more self-built and self-operated, and third and fourth tier cities are dominated by specialty stores. County-level cities are mainly authorized stores.
In March this year, millet home began to recruit regional partners, a large number of third-party channels flocked to consumer electronics channels, clothing, daily necessities and other retailers. In Lin Bin's view, after Xiaomi and most offline channels have not formed a stable mode of cooperation, "can make money to sell, do not sell without making money." & rdquo;
Three years in charge of the millet channel, Lin Bin travel frequently, and only once or twice a month in Henan (Photo: Aji)
When the two sides began to talk about such details into the split, many channel operators are discouraged, they are more concerned about how much a red rice can make money, how much money millet get goods. The profit was not enough to support their determination.
In several communication channels with the process, Lin Bin feel their mentality change, "First, to accept a reasonable low-margin millet model, the second is aware of the future only selling mobile phones nowhere, to hit the product mix. & rdquo;
Millet's model is the electricity supplier, Lin Bin think this is the misunderstanding and illusion of the outside world, "millet's model is direct sales. "The reason why the original negation of the traditional offline channel mode, the reason is that millet can not channel to a higher percentage share. However, this is not to deny cooperation with third parties. The question is whether costs other than rent, utilities, staff salaries and rewards are reasonable.
Xiaomi General Staff Office hung a full screen "change change" poster, the last three words is "change" & rdquo ;. The magic of millet lies in overthrowing yesterday.
Every Monday afternoon, Zhang Jianhui has to hold video conferences with the heads of the nine regions of the country for three hours and will not be able to fight. In addition to Monday in Beijing, Zhang Jianhui ran all over the country Xiaomi home at other times. As of December 11, Millet House opened 258 stores throughout the country, she has been to more than half of her colleagues in Beijing headquarters to see her, the first sentence is "how do you in Beijing? & rdquo;
Xiaomi behind the "new retail" is one of the company's most important core strategy in 2017, the annual revenue is expected to be about 6 billion yuan, "within five years to 10 billion US dollars, but also to increase 10 Times, there is a chance. "Lei Jun said in the opening of the flagship store in Shenzhen millet home. See Zhang Jianhui standing in the last row, he smiled and added, "so many reporters testify. & rdquo;
For many years with Lei Jun, Zhang Jianhui understands his style of work, usually affirming the work of the previous stage, and later put forward higher requirements. Once, Zhang from millet colorful city headquarters fifteen passing by, just met Lei Jun, was questioned "how do you in Beijing? Is the task completed? This year can not exceed the standard? "Zhang Jianhui even said," will not be super, the shop is finished. "But I thought a few more is still possible.
Millet House has an unwritten rules, "not in the office to do with shop-related decisions. "The highest record of Zhang Jianhui ran four cities a day, pointed out the problem, and set aside a week's time to perfection. Every time a new store, she will experience the whole process from the user point of view, where the garage, the store is looking for good, whether the goods are neatly placed, how the staff training and so on.
Lei Jun believes that the core of the new retail is to improve efficiency. Similar to the millet House offline store, the common point is to do more SKU. However, Lei Jun believes that simply adding SKU is a dead end, "after a certain number of control more difficult. & rdquo;
At present there are about 2000 SKU millet mall, offline stores under different store size, SKU from 100 to 300 range. Select the standard millet mall to buy the highest frequency products. Mainly focused on three categories: smart home products, cool products, health products, travel products, each one is not high-frequency consumption, but the superposition will be from low to high frequency.
After two years of grinding, the team made a complex model to consider the store's performance, efficiency, cost rate, conversion rate and so on. Ping efficiency is the efficiency per square meter, Millet House can currently be done 270,000 yuan in the field of consumer electronics ranked second in the world, the first apple, you can reach 400,000 yuan.
The cost rate is the ratio of cost and revenue, the cost of millet home and millet Mall basically the same as the traditional retail industry half. Conversion rate can be done seven times the traditional industries.
The user's enthusiasm once made Lei Jun illusion, "as if we drove to the ends of the earth, they will go. "The beginning of the shop, Lei Jun has just taken a step forward a bit guilty of anger, and then open a shop not to grab their own business with yourself? There are people around constantly encouraged him not to stop. Lei Jun later want to understand, within ten kilometers, each district opened a no problem.
Lei Jun speech on the stage, the audience is constantly cheering rice (Photo: Shi Xiaobing)
"Dry for three years, out of 1000 stores before going into the line, we are far away from the trip. "Lei Jun said in an interview. Zhang Jianhui believes management will be a big risk next. Currently there are 3,000 teams in the team. 90% have just passed the probationary period and only about 10% of the old staff members have passed the values of Xiaomi to every employee. This is a major challenge .
As of the end of last year, millet home stores across the country have more than 50, a week to open a shop to promote the speed. Earlier this year, the team set the goal of the Leiju to open two hundred a year, an average of one or two days to open a. The busiest time is October 1 this year, Zhang Jianhui 200 people in the team is divided into 20 groups, more than 10 cities at the same time opening 20 stores.
When asked if there is a big change in the proportion of offline and offline revenue of millet, Lei Jun responded that "temporary contribution is limited, and the scale of 1000 will be formed afterwards." "But he gave the expectation that millet and the industry will have a big impact when the millet home accounts for 15% of the turnover. At present millet House more value lies in business model building and brand promotion.
Return to business
From 0 to the domestic first, millet spent two and a half years, chaos punched dead old master, Lei Jun did not think clearly how became the first. "I learned cell phone delivery last year. "One of the reasons for the decline in the shipment of millet last year was that it went through two serious shortcomings of up to 2 to 3 months each.
In fact, handset manufacturers and supply chains are at the two ends of the game. When handset manufacturers are climbing and innovation is strong, the suppliers will make concerted efforts. However, when faced with more choices and the brand is in the midst of a competitive situation, the suppliers will control a little bit more.
In 2015, Xiaomi's core management was aware of the seriousness of the problem, but Lin Bin said: "The adjustment will take a long time, after several generations of product iteration. "The first quarter of 2016, millet shipments fell out of the world's top five.
This year, millet days not too good. In June of that year, Xiaomi and Unicom formulated a 15 million-unit underwriting plan for the whole year. The Red Rice Note 4 released in August is also a custom machine in cooperation with operators. Both parties Also signed a 30 million Taiwan's underwriting agreement. Lin Bin admits that at that time can only use such a solution, "This is a transitional method, we must first of this mammy past. & rdquo;
If in the past Lenovo Group had trouble, Liu Chuanzhi twice to return to the position of chairman of the board to turn the tide, Lei Jun personally jumped into the mobile phone business because, this is the lifeline of millet. In his words, if the phone collapsed, the basic is beyond redemption.
"Lei Jun is not often the truth, that is, to encounter problems to solve the problem. He will withstand the first to stabilize the situation, and then find the problem one by one to solve. "One of the frequent supply chain partners with Lei Jun told" Chinese entrepreneurs, "" Lei Jun is always ready for the top people, and he can not be on the security guard. & rdquo;
"Lei Jun loves things like kin, like a general, the war must be rushed to the front. Another mobile phone operator commented.
In the middle of last year, Lei Jun began to focus on the mobile phone business, focusing on delivery, innovation and quality. "We are facing 300 problems at the same time, but I can not solve 300, first pick three major problems to solve. "Daguai upgrade all the way, Lei Jun believes that the first is out of quality PK PK cottage manufacturers, but today the strength of all competitors, millet must first improve the quality.
"Today, the user phone out of the question, will not find customer service, is certainly microblogging, friends circle Tucao again. "Lei Jun clear millet is based on young Internet users, the focus of these users is compulsory. At the beginning of the year, Lei Jun led the establishment of quality committees within the company and formulated a detailed set of quality standards.
Appears in the outside world, millet is the most lack of innovation, millet MIX such products is difficult to appear in most domestic mobile phone manufacturers. Lei Jun clear Xiaomi's problem is not how to innovate, but how to effectively innovate. Because of inefficient innovation or too much innovation behind the huge cost.
The consequence of adding a number of innovations to a product is that the millet MIX Generation 1 can only be called a concept machine. In the millet MIX 2 released later this year, improvements were made to user experience and yield. "There are always new imperfections in technology, and we are often scolded by users because of bad innovation. "In an interview, Lei Jun mentioned several times" was scolded "word.
"Some innovation will affect delivery, cost and quality, innovation to be restrained. "Xiaomi co-founder and senior vice president Wang Chuan also reflect on the pace of innovation in millet, adjust innovation is not no longer innovative, but focused on user-related areas. Lei Jun said the rate of innovation in millet callback, spend a year or two, find the best balance.
Wang Chuan believes that some innovation will affect the delivery, cost and quality, innovation to be restrained (Photo: Shi Xiaobing)
Mobile phone industry competition today, although different factions, but are obeying the objective laws. In 2015, millet frequently introduced new products, a supplier responsible person recommended Lei Jun to streamline the product line. Lei Jun do not agree, some two broke up. A few months later, Lei Jun changed his mind. "He is an entrepreneur with aura. It is not easy to do this. Everyone should respect the right thing." "The person in charge said.
Lei Jun attaches great importance to learning and observing competitors. An apprentice with a supplier who is familiar with every handset maker commented: "Every industry has an objective law of development. Successful companies often provide the optimal solution. For your own version. & rdquo;
Lei Jun believes that millet more and more close to the nature of business, not lose money earned. Someone once asked, "Xiaomi research OPPO, vivo, will they revolution? "Lei Jun gives a negative answer, the reason is to learn from the top three in the industry in order to enter the top three, really be eliminated is not learned the essence of the fourth and fifth.
In the middle of last year, Lei Jun chiefly took charge of the mobile phone business and made the first adjustment that was to establish a staff coordination and planning department. Lin Bin described, like a military staff. This less than 100 team docking all the business of mobile phone department, millet network, supply chain and all other departments, not directly to the customer, but the operation of the core assets, in essence, is a hub.
Mobile phone is a non-size business, how much capacity, 18 months after the product planning is what, every channel, daily shipments and so on. The urgency of this issue has reached the point where it can not move forward without solving the problem. Lei Jun last year, the company's strategy is defined as "remedial", the core is the integration of mobile phone production and marketing.
Lei Jun this year, the emphasis is the hardware + new retail + Internet Triathlon, including already begun to take shape Xiaomi IoT platform. Up to now, millet IoT platform access to more than 85 million devices, more than 20 million households in use. Millet first IoT developer conference a few days ago, Xiaomi announced with Baidu in the field of artificial intelligence cooperation, "Xiaomi has a terminal, IoT network, AI product experience and application development technology, Baidu has AI basic technology, our two Cooperation is appropriate. "Xiaodian co-founder and senior vice president Liu De explained.
Liu De do not think millet stand in Taiwan to sing everybody, we are moving cars, each section has power, will not say which section is the front. (Photo: Shi Xiaobing)
Wang Chuan led a year to make millet AI speakers, the product before the release of a small beta, he set a standard, "home needs 15 AI speakers can control the millet products, such as millet TV, Sweeping robot, similar to the pen is not in the range. Not wait for the registration ended, there are 200,000 people meet the requirements. Then continue to raise the threshold, the ceiling is 300, Wang Chuan also curious, "how the user at home there are so many millet equipment? & rdquo;
Millet is also combining artificial intelligence with more products, such as cell phone camera, TV voice search. Millet TV launched smart recommendations through big data, tagged a large amount of content with hundreds of thousands of tags, and recommended content to users based on data such as user search and viewing records. In other words, the more you see, the more you know about the user. Wang Chuan said that compared with the previous millet TV's use of time, frequency, and monthly activities have increased.
Behind the IoT strategy is the ambition of Xiaomi to lay artificial intelligence. At present, there are more than 100 hardware companies invested by Xiaomi. After completing the investments in the 1.0 era, Liu De believes that the next will tend to invest in invisible champions in various industries to jointly expand the platform. "We are moving cars, each section has power, will not say which section is the front. & rdquo;
From a different perspective, millet will be a different company. "Millet walked in front of IoT, the thing to do is to reduce the threshold for hardware products to access the Internet and become the company with the most data in IoT area. "said Liu De.
Millet TV next year want to force India, Wang Chuan went to investigate in November. Xiaomi coincides with the first time as the first smart phone brand in India, the market share of 23.5%, Lei Jun made a special trip to celebrate. Two things about drinking, talking about corporate culture, they agreed that only two things to the failure of millet: arrogance and greed.
"We did a lot of wrong decisions, but it does not matter, it only affects a moment, you can correct, to destroy millet's only arrogant and greedy attitude." "Wang Chuan said.
On the seventh anniversary of millet, Lei Jun and his six partners re-started Venture Road, back to the office that year, but unexpectedly ate the door. Lei Jun some regret, jokingly said, "this company too will not do marketing & rdquo. Several people stand downstairs shot a photo.
Venture seven years, Wang Chuan think in addition to more busy outside, the company no change, even 20 years do not have to change. Lei Jun told him, "We will certainly be able to persevere before the death, will not change. & rdquo;
In the eyes of Wang Chuan, millet MIX 1 generation pricing is trying to curb greed.
Other mobile phone prices continue to rise, the price of millet to follow the high price is out of tune. Even millet internal sound feedback, the product sold so cheap, take out to shame. Millet MIX 1 generation before the release of the team was proposed to set the price to 9999, Wang agreed, many people support. Lei Jun was voted against, stuck in 3999. After the release of the product in short supply.
Lei Jun was later explained to Wang Chuan, "We told the user Xiaomi is a kind company, millet kind 100 times, when the 101st can make money not kind, then the millet in the end is kind or not kind? & rdquo;
"No one at the time of success questioned them, and whenever they encountered difficulties, everyone asked. "This makes Lei Jun a bit confused.
He believes that the outside world still do not understand millet, or even misunderstanding. He made microblogging explained that "consumption upgrade is not something more expensive to sell, but the same price you can buy a better product". When millet caused condemning, Lei Jun appease the team, was scolded that our products are still not good enough, if you really play no other way, they scold scolded.
He did not waver on the price issue, and even regarded it as discipline and faith. This is his understanding of the essence of millet fans gather fans, they buy millet do not need to look at the price of things.
However, the profit is always a topic that the mobile phone industry can not bypass. The profits of Apple and Samsung in the entire mobile phone industry account for more than 100%. Huawei also said at the beginning of this year that it is going to raise profits this year. Lei Jun disagree with him word by word to the "Chinese entrepreneurs" stressed that "we will never be profit-centric, will be rice noodles, users as the core. & rdquo;
He even classified this as millet experiencing the plight of the core but not the reason behind the team? The world's top five mobile phone manufacturers only millet is cost-effective as the core. Others frequently talk about the brand premium, always feel that the money earned enough. According to Lei Jun's argument, it is not difficult to make money, 1699 yuan all-metal suitcase if you sell 1799, the profit is not up?
But Wang Chuan said that Xiaomi is not a company that sells 9999 products at 9999 but sells 3999 at 3999 yuan.
Prior to joining Millet, Lin worked in the United States and underwent the entire process of building trust with Costco. From the very beginning, she had to go shopping for Costco until she had any shopping needs. "Ten times inside five times cheaper than others is not enough, to be cheaper than everyone else" & rdquo.
Lei Jun in Shenzhen flagship store on the second floor experience products (Photo: Shi Xiaobing)
In the interviews with several high-level millers, their conception of the future is almost identical. Millet House Costco do that, users can buy with their eyes closed, without considering the price, it must be the highest cost.
Two years ago is the most anxious moments of the Lei Jun. He realized that the company is too large and needs to rethink its growth strategy.
Products, channels, and supply chains are just business layers, and management challenges follow. At the beginning of entrepreneurship, millet to follow the flat management approach, emphasizing that "go management, to KPI, to title". Lei Jun has nearly 30 years of experience in managing companies and knows the negative impact that strong KPIs have on the company.
He hoped Millet would not manage its staff like a screw. However, the requirements for flat management are exceptionally high. From a few dozen people who grew to tens of thousands of people, Lei Jun discovered that "God, everywhere leaks".
Impression in the outside world, millet is good at surprise. In fact, the thinking of Lei Jun is that "everyone hopes to use odd ways to reverse the predicament, which is wrong. Encounter difficulties must be a basic problem, especially for millet hundreds of billions of turnover, the scale of tens of thousands of employees, the company is more important than the surprising. & rdquo;
Millet's flagship store in Shenzhen opened the day before, millet executives opened a full day of strategic seminars, the theme is millet 10 years later can become the representative of China's real economy, millet will be a kind of company 10 years later?
Lei Jun carefully consider this issue from the manufacturing field, "At that time, millet should lead a group of Chinese brands and advanced manufacturing in China, has laid an unshakable position in the world. In other words, if we stick to it, millet may become a Chinese spokesman for Chinese-made and Chinese brands ten years from now. & rdquo;
He also said internally that he hopes his own epitaph will be that the Lei Jun has changed China's manufacturing industry. This is his ideal of life.