March 31 news, Lei Jun recently accepted foreign media interview that millet company's most difficult period may have passed.
Millet co-founder Lei Jun said that with the heavy investment in India began to return, the company has re-growth, its global revenue this year should be more than 15 billion US dollars.
Two years ago to enter the Indian market, millet invested 500 million US dollars. Lei Jun said the company will maintain the same size investment in the next three to five years.
Lei Jun said in an interview, millet in the past few years facing some challenges, but its business once again showed a healthy pace of growth. He expects revenue in the Indian market to double this year to $ 2 billion. Millet recorded $ 1 billion in revenue in India last year, not only with hardware, but also its mobile applications and services, which has more than 10 million active users in India.
Lei Jun bet India holding the millet rejuvenated the key. Millet once in the Chinese market second to none, but then by the local counterparts catch up.
Lei Jun in mili is located in the outskirts of Bangalore, India, the office through the translation of the media said: "We have faced many challenges in the past, there are a lot of negative reports on us. However, the actual situation is not so bad that the outside world. We have returned to healthy growth again. We will achieve rapid growth in the next two years. & Rdquo;
As the global demand for mobile equipment stagnation, India attracts more and more foreign manufacturers. Valuation in 2014 has reached 45 billion US dollars of millet also joined the ranks of Chinese manufacturers to India gold rush. Chinese manufacturers through low-cost but durable mobile phone products, excluding Micromax and other local manufacturers. Millet last year in the Indian market shipments second only to South Korea's Samsung Electronics, but leading Oppo and other Chinese manufacturers is not the magnitude of the big.
In response to Modi call
India is the millet of the most important overseas market, but also the company's long-term global expansion plan springboard. At present, millet responded to India's Prime Minister Narendra Modi's "Made in India" initiative to join Huawei, Lenovo and many other foreign companies in India, mobile phone assembly. At present, India is mainly responsible for semi-finished product phone assembly, rather than assembled as a complete cell phone in China.
Millet has opened a second manufacturing facility in Andhra Pradesh, India with partner Foxconn, and says it can make a smartphone every second. Lei Jun attended the Economic Forum held in New Delhi on Tuesday, said millet will be in the next three years in India to create 20,000 jobs. In order to meet market demand, Lei Jun has begun to discuss the establishment of a third factory in India.
Lei Jun said: "The next two years, we hope to have greater influence in India. We hope to be more radical in India, but this risk is controllable. "Ryder said the risks include increasing production to further meet the expected demand, to get rid of the scarcity of the use of flash mode.
Market research firm IDC data show that millet smartphone shipments in India in the fourth quarter of last year grew 15.3%, higher than the overall industry growth rate of 5.2%. India launched last year's "cut" action dragged down the end of last year's smart phone sales. In this context, millet growth is particularly prominent. IDC said that millet in India smart phone market share of 10.7%, ranked second, slightly ahead of Lenovo. Samsung Electronics accounted for one quarter of India's smart phone market share, but shipments fell.
Globally, the smartphone market is expected to rebound from a record low of 2.5% in 2016. IDC expects global smartphone shipments to grow by 4.2% this year. Although Apple and Samsung Electronics's new products will intensify market competition, but this millet and other manufacturers is undoubtedly a good news.
Although millet in Europe, the United States and South America and other key markets progress weak, but in India has been successful. Former international business leader Hugo - Barak (Hugo Barra) under the leadership of millet successfully opened up the Indian market. However, with millet global expansion of the stagnant, Bara left in January this year to join social networking Facebook.
In addition, millet a few months ago to withdraw from the Brazilian market, while the same as the Chinese brand Huawei is in Europe and other developed markets occupy a dominant position. Bala has said that millet ready to enter the US market, but at this stage only to the United States sales of headphones and mobile power.
Millet's overseas expansion is currently focused on emerging markets such as Eastern Europe, Russia, and Southeast Asia, including Vietnam.
In China, millet is located on the edge of the left behind, which is painful contrast to the company. In 2014, millet with the rapid development of China's highest valuation of science and technology start-up companies. However, the past two years, millet market share by Oppo and Vivo and other local rivals eroded. Oppo and Vivo rely on recruiting a large number of distributors in rural areas and small towns to gain a dominant position in the Chinese smartphone market, while Huawei's high-end products attract more loyal users. IDC data show that the fourth quarter of last year, millet in China's smart phone market share of 7.4%, behind the three major competitors.
Although millet rely on the network to sell the smash hit, but Lei Jun is adjusting this model, so that the store to undertake more sales tasks. The next three years, millet plans to open 1,000 retail stores in China, and India's line of sales channels doubled.
Lei Jun in the interpretation of millet began to focus on physical retail stores, said: "Everyone has realized that the online market is very limited. & Rdquo;
Although the new product needs to invest in marketing and research and development, but Lei Jun said that millet now do not need to raise additional capital. For the outside world speculation millet will be the initial public offering (IPO), he did not directly respond.
Lei Jun said: "We have enough cash." & Rdquo; (compiled / li)