Lei Jun speech
On the morning of November 7, it was reported that Lei Jun, founder, chairman and CEO of Xiaomi, delivered a speech at the millennium investment annual meeting held recently. As a recognized model worker, Lei Jun said he felt guilty once and made a wrong demonstration. However, In fact, there is only one recipe for success on the entrepreneurial path: Work hard and hard. He also disclosed that at a time when millet dropped out of the world five years ago, he once wanted to change the company's name from millet to others and later was told that the establishment would not allow registration.
Lei Jun said entrepreneurs do not really have the media publicity and public opinion so bright. If in accordance with the bright label, he is undoubtedly a failed entrepreneur, because he is a model worker.
"When people say I am a model worker, I feel very guilty, I'm sorry, I made a wrong demonstration. But sometimes I think, if you really want to realize the dream of different hearts, you pay no more than others, how could it be successful? "Lei Jun believes that entrepreneurship is not a simple matter, successful entrepreneurs are not understood by the public, easily succeed. On the road to success, there is actually only one secret: work hard and hard.
Millet in the past two years when faced with declining, Lei Jun is more bluntly, "mobile phone is absolutely not dry industry".
"Internationally, do you think Apple is a good hit? Or Samsung hit? Apple has just exceeded 900 billion US dollars market value, is the planet's highest market value of the company. Everyone told me old, why your phone can do apple? I said, if I had done an apple, my company worth one trillion dollars, OK? I have never been on any occasion, like some entrepreneurs are vilifying Apple at every turn. I think even at some point better than Apple, it is already a world-class problem, and Samsung is the same. & rdquo;
When Xiaomi's global market share fell into the top five into others, Lei Jun joked that once he even discussed with Liu De, the co-founder and eco-chain manager of Xiaomi, and changed the name of Xiaomi to others to make up 39.9% of the shares First place in the list. Later did not know really fake, Liu De told me that the Trade and Industry Bureau will not register. & rdquo;
For millet mode, Lei Jun think is also replicable, such as controlling the gross profit margin, could have made a fortune, so that you earn a little less, can not earn only one dollar for each person. "To curb greed, write these four words easy, so difficult to ascend to heaven. What is the essence of restraint and greed? At any moment, we put the user first, the partner second, the shareholder third and the fourth. "(Zhang Jun)
The following is an excerpt from Lei Jun speech:
Entrepreneurship is not good, the secret of success is only hard work
Today, we have attended 190 companies. All of us are leaders in the start-up market. Almost every one of us is making miracles and our business is booming. Everyone is also an arrogant man of the times. But as an entrepreneur, I may see the other side. I think it is extremely difficult for everyone to work hard in the market because entrepreneurs are actually not as polished as the public understands.
Maybe a lot of people like the feeling of a successful entrepreneur before starting a business. What is the success of media advocacy entrepreneurs? Very successful career, but also luxury cars are famous, buy a plane today to buy a yacht tomorrow to attend a variety of bright occasions. Of course, there are many successful entrepreneurs who have really had a happy life. Anyway, by the label, no doubt, I am a failed entrepreneur, because I am a model worker.
When people say I am a model worker, I feel very guilty, I'm sorry, I made a wrong demonstration. But sometimes I think, if you really want to realize the dream of different hearts, you pay no more than others, how could it be successful? Most of you here, is your intelligence really higher than you? Do you really have special resources? Almost everyone of us, the first generation of entrepreneurs, faces such a fierce competition that it would be impossible to succeed if we did not pay more than others.
This is where my heart is very contradictory and complicated. I really do not want to hear everyone praising me as a model worker. When I was busy, I was also very guilty. I felt I was unsuccessful. Why can not I, like those successful entrepreneurs, get my job done by drinking coffee everyday? I was shaken by what I did, or was it right? Of course, the company has come to a stage where I think the CEO's main focus should be on strategic decision-making, organizational restructuring and major cooperation, but these are actually very busy. I have seen many successful entrepreneurs, in fact, they are much more busy than we think.
In September I and Zhang Feng (vice president of supply chain Xiaomi) went to Samsung headquarters in South Korea, fortunate enough to see the three vice president of Samsung. I just asked a question, so traffic jam in Seoul, when do you go to work in the morning? Two of the three vice presidents told me that they work at 6:30 in the morning. Because of out-of-stock memory, I went to visit the Vice President responsible for memory, he was five o'clock in the morning. He said because he wanted to run in the office for an hour and packed it to the office at half past six. What time do you get off from work? He said generally six o'clock, but at night have entertainment, about ten or so. Sure enough, there was entertainment that night, that is, please me drinking, the end has been more than 12 o'clock. Let me explain this example. Everyone understands why Samsung has become one of the most profitable or successful companies in the world. Each person's payment may be far beyond everyone's imagination, so I have a little bit of balance.
This time on the plane, I read a book of Inamori. Inamori and who is? From scratch, he founded two world top 500 enterprises, Kyocera and KDDI, and was hailed as the god of business by the Japanese. A few years ago, Kyocera came to visit and sent me a pile of books from Inamori. To be honest, too busy, never looked, are full of dust. When I came to Chengdu for a meeting, I found a book on the table - "Six Enterprising". Two-thirds of the content of this book is about these three sentences:
Pay as much as anyone's efforts
Work hard and hard
3. There is no clever operating know-how in the world except hard work.
I am very touched after reading this book. I may inadvertently use the world's most elegant business know-how, is working hard and hard work. Inamori said a lot of ideas, I read that, with Millet talk is amazing. Millet's values are two words: sincerity and love. They say three words: love, sincerity and harmony. Including the transparent operation & mdash; is all the company's operations are transparent & mdash; & mdash; & mdash; and so on, with the practice of millet is very consistent. Here I do not speak, just to share with you the first point. In my opinion, starting a business is not a simple matter. Successful entrepreneurs are not as easily understood by the public. They easily succeed. On the road to success, there is actually only one secret: work hard and hard.
Millet dropped out of the world five years ago wanted to rename the company others
Next to share with you the second point, millet pressure over the past two years.
Millet triumphed in the previous four and a half years and created a series of world records. In the past two years, we have been ravaged and criticized many times. Indeed, once the performance of the mobile phone industry began to decline, it entered the channel of death, few companies can reverse the competition more difficult than most industries. You close your eyes and think about it, what is the phone industry? Absolutely not a dry industry!
Internationally, do you think Apple is a good hit? Or Samsung hit? Apple has just exceeded 900 billion US dollars market value, is the planet's highest market value of the company. Everyone told me old, why your phone can do apple? I said, if I had done an apple, my company worth one trillion dollars, OK? I have never been on any occasion, like some entrepreneurs are vilifying Apple at every turn. I think even at some point better than Apple, it is already a world-class problem. Samsung is the same, I will not start to say.
Who is the domestic market? Huawei, the world's top 500, 180,000 people huge scale; when we enter the market there are associations, but also the world's top 500, but also tens of thousands of people, this is an extremely fierce market. I actually do not understand today, these cattle companies, why Xiaomi a small company to kill the market, all two years and a half to get down. We take it for granted that we should always be the king, we absolutely underestimated the difficulty of the mobile phone industry.
We look at the first quarter of this year, the mobile phone market rankings, the first second-ranked third Apple Samsung Huawei OPPO fifth VIVO. Millet it? I could not find the millet, and finally realized that we had a common name of others with all the other companies in the world. Two years ago, I told Liu De (millet co-founder and vice president) to discuss: we got the company changed its name, called others, do not come in first place, this big cow made. You see 39.9% other on the other list, more than double the Samsung. Later I do not know really fake, Liu De told me that the Trade and Industry Bureau will not register.
All people think millet not, my heart a little grudge. Ladies and gentlemen, this is a global ranking, in fact, we ranked sixth in the world. The media always scold me, I sometimes a little personality, I said: Sixth world shame it? In fact, not shameful, but everyone scolded you, little self-esteem suffered great harm. Of course, if we die from this, there will be no chance to explain. We can only think of us as loser.
Since the third quarter two years ago, we are truly in great pain. We slipped all the way after losing China's number one position. The second quarter of this year, we returned to the top five, up 58.9%; IDC just released third-quarter data, we up 102.6%. I think we have a great opportunity to climb another one in the fourth quarter to reach the fourth in the world. Today, I put this table on the table, I am very steadfast in my heart, I know how the past lost, but also know how to win back step by step.
After the second quarter earnings came out, I saw a report called "Lei Jun's golden years", I only read the title, because the content simply do not have to look. I know very well that today's millet has just begun. There are numerous difficulties and problems. What has been achieved today is nothing at all. Because I firmly believe that millet is on the right track, at least in the next two to three years which will step by step move forward.
Millet's dreams, values and business models have never waver
I want to share how millet is done. Apart from hard work, I think the reason for the reversal is essentially the success of Xiaomi's dream, values and business model. I have never questioned and shaken these three points in the hardest two years in the past.
Seven years ago, I do not understand that China ranks first in the world in manufacturing. Why do we, Chinese, look down on domestic products? Why do so many things in our store can not be sold out, buying and selling all over the world? I even want to fail to understand why Chinese products are much cheaper in the United States than in China. I have never done any one product, idle boring seven years ago, I said I am willing to crack this problem, I do for everyone to see. Although I know nothing, but I have a simple and pure heart: I hope everyone can use Chinese products made of high quality. I hope that everyone in the world, not only the country, the color, the religion, but also all the men, women and children, can enjoy the fun brought about by the scientific and technological innovation in China. So seven years ago we had the ambition of having a Globe Company, which is our ambition. We are going to lead the all-round rise of the manufacturing industry in China as a whole. This is also the biggest impetus we decided to make the ecological chain four years ago.
I think, millet, can not be alone. Many people told me that millet mode is too complicated to copy, that is, Lei Jun, you guys are awesome. I said no, the greatest place for millet mode is to copy. I am willing to help one hundred companies Xiaomi mode, set up the ecological chain department. We are directed at this, even if millet closed, we promote the progress of the entire Chinese mobile phone industry, but also the glory of millet. You recall, what is China's mobile phone industry six years ago? Cottage machine is the thing, millet is a little better cottage machine. But today, the whole world agrees with how strong the Chinese mobile phone semi-finals are, and it is really a drastic change. The next decade belongs to China, I hope everyone seize the opportunity to believe that the millet mode, I believe millet values.
Of course, the biggest difficulty here is that it is not easy to do. To be simple, especially simple, complex and complex. Such as controlling the gross profit margin, could have made a fortune, so you earn a little less, can each earn only a dollar. Suppress greed, the four words written out easily, so difficult to ascend to heaven. What is the essence of restraint and greed? At any moment, we put the user first, the partner second, the shareholder third and the fourth. It is a stupid solution if we think about it forever, but it is the cleverest way in the world, just as it is to work hard. Because you persevere, you end up with great success, and it can really affect the whole world.
With such dreams, we started to make mobile phones and start incubating eco-chain businesses. We started to preach everywhere about the entire methodology of millet. I demand that the department of ecological chain must become the communicator of millet values. We demonstrate and promote the millet values so that more Chinese enterprises can stand out from others. This is what we must do. Then millet values is sincere and love, here is not talked about.
Our business model, that is, Zhang Feng yesterday, I also talked about many times the tip mode. The money we make is what users are willing to give, not the various methods we use to hide. I also do not want to lose money business, I asked the hardware to add new retail sales, the profit comes mainly from the Internet business and Internet finance. Users are willing to use our Internet service, are willing to pay us money, we see themselves as a disguised form of tipping.
In fact, Costco (Good Market) has long been such a model, Costco gross profit margin is very low, the business basically flat, the profits come from membership fees and credit card income. When the user becomes Costco fan, Costco said you can use our credit card, let us make a little money, let our staff happy our shareholders happy, let our company sustainable growth. Costco should be considered a traditional chain, Wal-Mart is only 11 times the PE, Costco, like Google and Facebook, enjoyed thirty times the Internet, Internet PE. The logic here is that a company like this really gets the trust of the user and will only follow if there is a fan.
The term fan is now abused, but the fan is essentially someone who believes in you. Why millet home Ping effective high? One of our users said that I entered the millet house can buy things with eyes closed. Ladies and gentlemen, ask yourself, your customers can buy your product with your eyes closed? Millet present students also ask ourselves, our business today can not allow users to buy with their eyes closed? Does buying something with a closed-eyed user mean he needs to trust you to do that? You go to the millet house can see, millet house with the supermarket as a basket, a lot of users to buy things in a basket basket, behind this is trust. Millet spent more than seven years, before building a complete step by step the entire business model, I will not talk about this.
High quality first, cost-effective second
Speaking here, repeat the millet's most important point of view, first of all, to do high-quality products.
High-quality products, not just quality, but also in the design and user experience. Why millet-based products make everyone eyes bright? The core innovation in design and user experience. Millet Department of the start-up company to a certain size, will encounter bottlenecks, to see if this one can be filled in the traditional ability. If you can not improve, quality control, supply chain capabilities, large-scale organizational skills, relying on design, experience, there will be one by one scale of growth pressure, so all three capacities should be gradually increased.
The first is high quality, the second is cost-effective. Not long ago, we also argued that high cost. I said, the office pen with a penny, but also cost-effective. Cottage product performance, as long as the price of more cottage, but also cost-effective. China's manufacturing industry has succeeded in today's scale under the guidance of high cost performance. However, the problems we faced seven years ago were the upgrading of quality and upgrading of consumption. With the high cost performance of traditional Chinese enterprises, millet added high quality. We think the first is quality, and the second is price. Because China's spending power has come up, it is meaningless to be cheaper than anyone else.
Is our absolute price really cheap? We enter the mobile phone market, domestic mobile phone an average of six or seven hundred dollars, we are up to two thousand dollars, many times more expensive. We entered the rice cooker market, rice cooker an average of more than 300 dollars, we get one hundred ninety-nine. Is it cheaper? not cheap. Because of high quality, then honest and honest price. We make the first generation of millet MIX, to promote the application of the entire precision ceramic in mobile phones. Just started volume production, the ceramic cost is 1400, to discontinued MIX generation, the border, the back panel plus keys at least one thousand one hundred. Our MIX 2 Unibody all ceramic, the whole cost far more than just listed on the iPhone X, got the same hand with the artwork.
So, everyone is pondering millet mode, the first premise is high quality. Of course, some users may not need such a high quality, the so-called high-quality is defined for the user base. Today, our red rice cell phone, regardless of design, experience or quality, have reached a staggering achievements, but not too much black technology superimposed, the eight hundred everybody can buy.
We have promoted the popularization of the entire smart phone. Today, we are popular in India, popular in Indonesia and popular in Russia. I believe I went to the United States, we are also welcome. Because it is human nature, everyone desires to buy a good, price-good product, and everyone wants their business to be like a friend. We think about it, we have to go to the mall to buy things how tired, you have to compare to compare repeatedly. Can we be an honest business so that consumers do not need to compare? They just trust us.
Millet maintenance millet brand treasure charging rate of 80%
So, the most important thing about the millet pattern is trust. Here, I also urge the Xiaomi family of 190 companies: millet brand is not easy to make, it is easy to smash. Any one of you here in the quality of the accident, will remember the head of millet, even if it is not with the millet brand, even if it is not with rice brand.
We have a lot of companies, web site promotional materials that read "millet ecological chain business", Taobao sales that "millet ecological chain of certain companies to do certain products", all with endorsement of millet. This is very heavy burden on the millet brand, because you hurt the millet brand a little by accident. Another point, you create your own brand so many products, so that rice and consumers are confused: Xiaomi's business has no boundaries? A company that does everything is hard to do.
I sincerely urge everyone to help me, we encounter today the biggest problem is how to maintain the millet brand. It can not carry so many products, nor can you indefinitely endorsement for you. Even the most absent-minded companies that have no relationship with us, including those fake books, end up with the greatest pressure on us. Once we feel the quality of millet is not good, to be honest, millet phone in the hottest fake rate of 40% in a few years, millet Charging treasure out to today's fake rate is about 80%.
Millet brand has gone through a lot of hardships, step by step until today, until no one to do our fakes, you can stand up again, I think the brand is the lifeline for millet, that is, all users trust us. We only work together to maintain this brand, we can symbiotic win-win situation. Because I believe millet move forward faster, millet platform potential energy is stronger, everyone in the millet family can benefit. If any one of them abuse, the harm caused to us is no way to repair. We all want to discuss together to find a balance between quality control and business expansion. I believe that development and stability are integrated and unified. I will not talk about the details.
Finally, I'd like to thank you all for contributing to Xiaomi's millet business. At the same time, I would like to ask your help, let's work together to make Xiaomi brand, Xiaomi brand and Xiaomi brand products together. Thank you.