1. Xiaomi had 14 employees at the beginning of its establishment. The only female named Guan Yingzhi, work number 14, when Lei Jun launched the employee stock ownership plan, she invested the dowry money prepared by her parents to invest in Xiaomi.
2. Qualcomm invested in Xiaomi in 2011. It used to think that the $250 million valuation was too expensive. Who knows that at the end of 2011, the valuation of $250 million has risen to $1 billion. And in 2015, Wang Xiang, former president of Qualcomm Greater China, joined Xiaomi.
3. Before the establishment of Xiaomi, Lei Jun had talked with the current Xiaomi President Lin Bin and Chen Xing Capital Chairman Liu Qin for a long time. Finally, Lin Bin became the second head of Xiaomi; and Chenxing Capital participated in Xiaomi’s early investment and became Xiaomi’s second. Major shareholder.
4. At the end of 2013, Lei Jun decided to do IoT and pushed Liu De to the front desk. Liu De led more than a dozen engineers to grab projects in the market from the perspective of technology and products. His favorite is to paint the early eco-chain companies “sales 100 million yuan”.
5. At that time, Lei Jun invited his friend Wang Chuan to join Xiaomi, who knew that Wang Chuan refused. In the end, Lei Jun bought a multi-view team as a whole, and Wang Chuan eventually joined Xiaomi.
With the sound of a long, loud copper gong, on the morning of July 9, Xiaomi Company was officially listed on the Hong Kong Stock Exchange. For this purpose, the Hong Kong Stock Exchange has prepared a super-large copper gong that is 3 meters wide and 200 kilograms in weight.
Eight years ago, Lei Jun had just entered the age of no doubt, and after Jinshan was listed, it had passed a period of “retirement”. But for the dream of my heart, I started to start a new business. Lin Bin, Li Wanqiang, Hong Feng, Liu De, Wang Chuan and others were recruited. The founding team gathered in a 300 square meter office. The bowl of millet porridge, which was hand-made by the father of Li Wanqiang, said dry.
In eight years, the achievement of more than 47 billion US dollars in market value, in the history of Chinese business, Xiaomi left a strong color. No one expected that this small and inconspicuous company, after 8 years of wind and rain, wrote a brilliant entrepreneurial epic.
Xiaomi Edition China Partner
After the listing of Jinshan in 2007, Lei Jun resigned as the CEO of Jinshan in December of that year and intended to withdraw from the “Lakes of the Rivers”.
At that time, his life was as leisurely as retirement, and he slept naturally every day. If you have nothing to do, you can go to your old department to eat skewers, drink, and chat.
The winter of 2008 was particularly cold and the southern part was frozen.
On December 10th, Lei Jun resigned from Jinshan for almost a year, and there was heavy snow in Beijing that day. Lei Jun’s old colleagues from Jinshan met at the bar opposite Yanshan Hotel. After three rounds of wine, Lei Jun chatted about the future planning, and the mood was a little excited. At this time, a small man stood up in the crowd. He said loudly to Lei Jun: "At the age of forty, just started, what are you afraid of!" & rdquo; That day, Lei Jun stepped into the age of no doubt.
This small man is the old man of Lei Jun Jinshan, the former general manager of Jinshan PowerWord, loves Li Wanqiang, and is one of the co-founders of Xiaomi.
Lei Jun (left) and Li Wanqiang (right)
Li Wanqiang at the wine table did not think of it at the time. Inadvertently, like a fire in the cold winter, he woke up Lei Jun.
At the age of 18, he unwittingly saw a book in the library of his alma mater, Wuhan University, —— "The Fire of Silicon Valley", which is about the heroic entrepreneurship of Silicon Valley in the late 1970s and early 1980s. The story, the main chapter is about Apple founder Jobs.
At that time, I read this book, and the youth Lei Jun’s excitement was difficult to calm for a long time. Walk along the 400-meter runway in the playground. This book has planted a seed in the mind of Lei Jun: to create a great company like Apple and Microsoft.
In the 40 years of incomprehension, Lei Jun did not forget the 18-year-old dream. He always wanted to do something. He thought that people can't live like this for a lifetime. Still have to pursue and dream. "What if it is realized?" ” Lei Jun in 2010, he has long been financially free, he decided to restart the business.
Also in 2010, Li Wanqiang did not hesitate to follow the Lei Jun to establish Xiaomi Company. He has been in charge of Xiaomi's MIUI and Xiaomi.com, and is also “Mobile Control”, “F Code” and “Rice” Festival & rdquo; and other creators of online and microblogging popular words.
Finding people is the first element of entrepreneurial success. Lin Bin is the first co-founder of Lei Jun.
At the end of 2006, Lin Bin was invited from Microsoft to Google by Li Kaifu. He served as the vice president, engineering director and global technical director of Google China Engineering Research Institute. He is responsible for the team building and engineering development of Google's mobile search and service in China. jobs.
He and Lei Jun have known each other in 2008. At that time, Lin Bin wanted to promote cooperation between Google and UC browser, and Lei Jun was the chairman of UC browser at that time. In the process of contact, Lei Jun was surprised to find that Lin Bin had a heartfelt love for the products, and he was also very committed to his work and products.
Xiaomi President Lin Bin
Since then, Lei Jun often went to Lin Bin to chat, and chatted about one or two o'clock in the morning. Chatting and chatting, the two became friends with friends. On March 23, 2010, a major event occurred in the Internet community: Google's web search service exited the Chinese mainland market.
Before Google’s decision was officially announced, Lin Bin actually had his own plans.
In one of the two meetings, Lin Bin revealed to Lei Jun: "I want to come out and start a business, do an internet music project, how do you see it?" "Lei Jun listened to the big joy, said to Lin Bin: "Do not make music, music, we vote for money, others can do it, boring. Let's do something bigger together! In this way, Lin Bin later became the second head of Xiaomi.
“ Lei Jun does not sleep, Lin Bin does not eat. "Whenever talking about the two model workers, Xiaomi's internal staff can't help but show admiration." Lei Jun’s respect for Lin Bin is also reflected in the fact that everyone else refers to Lei Jun as “Lei General” and only Lin Bin will call his name.
Huang Jiangji is the third founder of Xiaomi, and Lin Bin’s former colleague at Microsoft, who is familiar with him calls him kk. At the end of 2009, the Microsoft Windows Phone team was reorganized internally. The 100-person R&D team led by Huang Jiangji faced reorganization pressure, which made him very depressed.
One day, he went to Lin Bin to complain. The two chatted for a while, Lin Bin advised Huang Jiangji to do it at Microsoft, and came out with him and Lei Jun to start a Chinese company. Huang Jiangji, who had been hitting the wall at Microsoft, had already changed his mind, and with the trust of Lin Bin, he promised to join.
After Huang Jiangji, Lin Bin introduced Lei Jun to a colleague at Google —— Hong Feng. Google Music, hosted by Hong Feng, was one of the few highly acclaimed products in Google China at the time. Lin Bin said that Hong Feng is very strong, and Lei Jun wants to meet him. But what I didn't expect was that Hong Feng actually prepared hundreds of detailed and difficult questions to ask Lei Jun. It is not reliable to interview him as a boss.
In the end, Hong Feng felt that Lei Jun had a very difficult task, so he decided to try it. Zhou Luping, senior director of the original Motorola R&D Center in Beijing, and Liu De, former director of the Department of Industrial Design at Beijing University of Science and Technology, have joined in, and the Chinese partner of the Xiaomi version has also started.
Liu Qin (left) and Lei Jun
In addition to the above, there are two people to mention, one of whom is Liu Qin, chairman and general manager of Morningside Capital. He is one of the early investors in Xiaomi. In 2003, he met Lei Jun through a friend introduction and recommended Thunder to Lei Jun. Liu Qin is 5 years younger than Lei Jun, and Lei Jun is a good teacher and friend. Later, Lei Jun introduced him to invest in several projects, such as UC browser, YY and so on.
Before Lei Jun did Xiaomi, he used to call Liu Qin for 12 hours, from 9:00 pm to 9:00 the next morning. At that time, Liu Qin was in Shanghai. Lei Jun talked about the idea of doing Xiaomi on the phone. Liu Qin was very excited and listened. He thought it was reliable.
During the 12 hours, both of them talked about something, only the parties themselves knew. However, it was because of this call that Morningside Capital participated in Xiaomi’s early investment and later became the second largest shareholder of Xiaomi, and has been supporting Xiaomi’s financing since then. Lei Jun Xiaomi issued an open letter the day before the official listing on July 9. It was mentioned that “the earliest VC had a investment of 5 million US dollars, and today's return is as high as 866 times”, referring to Morningside Capital.
From left to right, Liu Qin, Wang Chuan and Lei Jun
Another one is now the co-founder, senior vice president of Xiaomi Company, and Wang Chuan, head of Xiaomi TV. He and Lei Jun have a very good personal relationship. The two also went to Switzerland for skiing in the spring of 2018.
The two never concealed the relationship between each other. Lei Jun once said to Wang Chuan: I support you all.
At that time, Wang Chuan’s company had two products, one called Lei Shi. People who often go to KTV are no strangers to this name. This is the number one KTV VOD system in China; another product is more to watch. The first reading experience of outstanding mobile phone reading software, and support Amazon Kindle, in 2011, Wang Chuan also led the team to develop more to see For Apple TV.
When Lei Jun invited Wang Chuan to join Xiaomi for the first time, Wang Chuan refused because Xiaomi had too much uncertainty and had little to do with the field he was good at. Then there was Wang Chuan who always took the bottom of the hand as a business. The brothers look at it and are responsible for their rice bowl.
However, Lei Jun did not give up on this, and took enough sincerity, and finally decided to invest more to see his team's income, and agreed to see more stocks and Xiaomi stocks in a 1:1 ratio. In the face of this sincere offer and friends, Wang Chuan finally joined Xiaomi.
In Lei Jun’s latest open letter, Wang Xiao’s Xiaomi TV business has won China’s first place.
Drink a bowl of millet porridge and dry it.
Time is back to April 6, 2010, Beijing, the early spring is expected to be steep.
Xiaomi founder team drinking millet porridge
In the Yingu Building in Zhongguancun, Lei Jun, Lin Bin, Li Wanqiang, and Huang Jiangji drank a bowl of Li Wanqiang's father and arrived at the company's millet porridge at 5 o'clock in the morning to start a business. At that time, there were only 14 people in Xiaomi. Early employees including Li Weixing and Sun Peng completed the early engineering development of MIUI.
The only female employee named Guan Yingzhi, who is very awkward around a group of science and engineering men, her work number is 14. Now Xiaomi people call her "Sister-in-law".
Guan Yingzhi was the only female employee at the time.
Guan Yingzhi went to Jinshan Company for an internship in the third year of university. Later, after she graduated from graduate school, she went to a state-owned enterprise and worked in the human resources department. In 2010, a HR from Jinshan Company recommended her to Li Wanqiang. At that time, several co-founders just set up to work in the Yingu Building on the edge of the North Fourth Ring Road. One person needed to be able to undertake basic work such as payroll and employee social security.
At the time of Lei Jun's test tube Ying Zhi, the company's name was not finalized until she officially joined. She relied on the early people in Jinshan for Lei Jun to think that this is a software company. In addition to being responsible for some of the compensation and benefits, Guan Yingzhi is also responsible for the company's recruitment. Like Lei Jun pulled up Lin Bin, Lin Bin also recommended Huang Jiangji and Hong Feng. The early team of Xiaomi was mostly recommended by the founders, and Guan Yingzhi took the list of flowers listed by the founders and called them one by one. Come over to the interview.
The founding team's network of talents accumulated in large companies such as Jinshan, Google, and Microsoft has helped the construction of talents in the early days of Xiaomi's founding. With the signatures of Lei Jun and Lin Bin, Xiaomi gathered a large number of talents in the way of “snowballing”. In addition to participating in MIUI's R&D and financing, Lei Jun also had a part of his job interviewing his staff. Everyone in Xiaomi's former 100 employees personally saw it.
At the same time, in order to motivate these early employees and make them more involved, Lei Jun also decided to let employees hold shares. This shareholding scheme follows the principle of voluntary subscription. The maximum amount of shares held is about 300,000 yuan, and everyone can participate. Finally, about 60 people invest and hold shares, and the amount is different. Guan Yingzhi is also one of them.
At the time, she used an iPhone 3GS phone, which was previously used by the Nokia N70. She could use the “fashion” in the choice of mobile phone. However, she is not sure what the Xiaomi company led by Lei Jun is going to do, and she does not know what is “the ventilator”, “the entrance to the mobile Internet”, etc., let alone see what changes will happen to the industry in the next 5 years. .
In the trust of Lei Jun, Li Wanqiang and other founding teams, she asked her parents to save more than 100,000 yuan of dowry money, and then made up a little money to participate in Xiaomi's employee stock ownership plan. Her other thought is that in 2010, this money is not enough to buy a house in Beijing, it is better to invest in it. At that time, her parents did not know what Xiaomi was, but did not know Lei Jun, but she had contact with stocks and finally did not block her daughter's decision.
Guan Yingzhi and her parents would not have thought of it at the time. Now that Xiaomi is listed, some of their early employees have already passed through 10 million yuan or even hundreds of millions.
“In fact, two or three people actually gave up this investment and shareholding opportunity. After these people left Xiaomi, they would not be allowed to mention the words “small millet” in front of them. ” Some people close to Xiaomi told Phoenix.com. Along with Xiaomi's completion of this highly anticipated IPO, in addition to these co-founders, some of the early employees who accompanied Xiaomi along the way for eight years have also received varying degrees of financial returns.
Millet has more than 7,000 employees holding stocks or options, and after successful listing, they will also receive financial returns from the capital market.
In fact, many of Xiaomi's early employees decided to join, “money” was not the main purpose for them. At the beginning of its establishment, Xiaomi was small in scale and had no products. It was able to attract Hongfeng and Zhou Guangping to join the cattle in their respective industries. In fact, the most crucial thing is that these people are like-minded.
Let Guan Yingzhi and other early employees participate in the shares, Lei Jun is more want to let them have a sense of participation in entrepreneurship. The bosses of startups usually like to draw cakes for their employees. For example, you will get huge financial returns after the company goes public. But Lei Jun is a little different. He is a very entrepreneurial person, and this is enough to illustrate this in the process of recruiting Qian Chen.
At the beginning of the establishment of Xiaomi, Lei Jun has recruited technology giants including Google and Microsoft, including Lin Bin and Huang Jiangji. However, if they want to make mobile phones, they still lack a person who truly understands mobile phone products and industries. In 2011, after Qian Chen came out of Motorola, Lei Jun got the contact information of Qian Chen through Xu Chunli.
At first, Qian Chen didn't know who Lei Jun was. When Lei Jun reported to his home, Qian Chen used a phrase "I'm sorry, who are you?" I do not know you. ” responded, but he knew Jinshan software, so the two took the line. If Liu Bei was asked to leave Zhuge Liang at the time, for Qian Chen, Lei Jun spent three months convincing him to join.
But what surprised Lei Jun was that Qian Chen was not keen on equity, but rather how much cash compensation the Lei Jun gave. Lei Jun does not agree with this point. He believes that people who do not care about equity are lack of entrepreneurial spirit. So in the end, even if it took a lot of energy to convince Qian Chen to join, but because of this irreconcilable idea conflict, Lei Jun eventually gave up the invitation to join Qian Chen.
Xiaomi’s team has come in a lot of people, and Guan Yingzhi heard the mission of Lei Jun to talk about Xiaomi. Lei Jun told his team that Xiaomi would become a Fortune 500 company in the future. Another point that makes Guan Yingzhi impressed is that Lei Jun also said that he wants to break the profit of the mobile phone industry, so that ordinary consumers can buy cheap and easy to use products.
Lei Jun has seen a huge opportunity for the Chinese mobile phone market to brew a functional machine to a smart phone.
“ Standing on the vent, the pigs can fly. & rdquo; This is a widely circulated sentence in the early years of Xiaomi Lei Jun. In fact, in the industrial environment at the time, Xiaomi did rise as fast as a rocket.
In 2010, Apple was ambitious with the iPhone 3GS, and the market share of iOS and Android expanded rapidly. HTC entered the mainland market, and Nokia Symbian and BlackBerry BlackBerry, which once led the global mobile phone market, continued to be eroded. At that time, "China Cool Alliance" was still addicted to the huge market of operators' custom machines, and it has not yet emerged.
On August 16, 2010, Xiaomi released the first beta version of MIUI. At that time, there were few mobile phone manufacturers in China who specialized in the development of ROM for native Android systems. They relied on MIUI and Xiaomi to consciously build communities and interact with users. Xiaomi quickly gathered a large number of rice noodles.
In the first half of 2011, Lin Bin introduced the senior vice president of Qualcomm and the general manager of Qualcomm Ventures China, Shen Jin, and both sides met. At that time, Xiaomi did not even have a hardware product. According to Shen Jin’s interview with Fenghuang.com, Lei Jun told him about the Internet model of Xiaomi and introduced the current team members.
Before Shen Jin was the head of Qualcomm China Internet Service Department, Qualcomm tried to do its own mobile phone operating system. Therefore, he knew about Lei Jun’s Internet model and was able to quickly update MIUI on a weekly basis. Qualcomm China's investment is most valued by innovation. At that time, China's mobile phone market was in the period of change of functional machine to smart machine. Shen Jin believed that Xiaomi had innovation, and the co-founder and R&D team at that time were more reliable, so he decided to invest. .
One of the episodes occurred: the middle layer of Qualcomm felt that it was too expensive to enter the millet with a valuation of $250 million. The internal opinions were not unified. In the end, Shen Jin had to find the high-level communication of Qualcomm. At the time, Wang Xiang, the president of Qualcomm Greater China, was also very optimistic about Xiaomi, and finally passed the decision to invest in Xiaomi. In 2015, Wang Xiang, former president of Qualcomm Greater China, joined Xiaomi as senior vice president, responsible for international business, intellectual property and legal affairs.
By the end of 2011, the new round of financing was $90 million, and the valuation of Xiaomi has risen from $250 million to $1 billion.
Xiaomi's founding team officially unveiled and announced that it entered the mobile phone market in July 2011, when it revealed three products: MIUI, Mi Chat, Xiaomi mobile phone. Subsequently, on August 16th, Xiaomi Mobile 1 was officially released, and it was officially launched in October, with a price of 1999 yuan.
China's first dual-core 1.5GHz mobile phone, based on Android's self-developed MIUI operating system, only online sales and so on. After the launch of this product, it caused a big sensation in the market. Soon, Xiaomi opened a hole in the smartphone market. From 7.19 million in 2012 and 17.7 million in 2013, to 2014, Xiaomi became the first in the Chinese market with an annual shipment of 61.12 million units.
For Xiaomi and Lei Jun, the theory of the wind mouth, the Internet seven characters, and "hardware + new retail + Internet" are all familiar to everyone. In fact, the essence of Xiaomi company is two words: efficiency. Because the essence of Internet thinking is actually to improve efficiency, from the perspective of consumers to interpret the millet model, it is high quality, cost-effective.
Lei Jun can only make people realize that his attempt to break the profit of the mobile phone industry is not just a slogan.
At that time, domestic mobile phone manufacturers, in addition to the operator channel, some of the open retail channels are dealers to order, and some are cooperative operations, Xiaomi, this pure online self-operated official mall reservation, snapped up, and then the manufacturer directly shipped the model to the customer, at that time It is a subversion. Cancel the middlemen to make the difference, so that Xiaomi can reduce the cost to the greatest extent, to create low-cost and high-end products. The online booking method of buying and selling has made Xiaomi almost no risk of inventory backlog.
Today, Xiaomi is the originator of the well-deserved Internet mobile phone. It is also the beauty of the Xiaomi model. Around 2013, brands such as Coca-Cola, Glory, IUNI, and Ijia have sprung up in the market, and even Lenovo, which has long relied on the operator market, has launched the Internet. Mobile phone brand ZUK.
At the end of 2013, Lei Jun saw the trend of intelligent hardware and IoT (Internet of Things), decided to use Xiaomi to make a successful mobile phone experience to copy 100 millet and lay out IoT in advance. On the other hand, this is also to circumvent the three mountains of BAT to open up a new battlefield.
Eco-chain: a group of brothers fight group
Therefore, the same story as Xiaomi’s entrepreneurship began in the ecological chain, looking for familiar people to do what they wanted to do. Liu De, the co-founder of Xiaomi, who had rarely appeared before, went to the front desk.
Liu De is also one of the co-founders who joined Xiaomi by Lei Jun’s personality charm and ideal feelings. Very early on, he was a very well-known figure in the industrial design industry, and he was ranked in the Chinese and American design circles. Lei Jun mentioned the achievements of Liu De before. “ACCD (Art Center College of Design) has only established more than 20 Chinese graduates in the past 80 years. Liu De is one of them. ”
Under his impetus, the Department of Industrial Design of the University of Science and Technology of Beijing was established. He served as the head of the department from 2001 to 2003. During his teaching at the University of Science and Technology Beijing, he also founded a famous design company in the industrial design industry as the chief designer. Later, Liu De chose to go to the United States to continue his studies. In 2010, taking advantage of Liu De’s return to the United States in the middle of studying in the United States, Hong Feng found Liu De, wanted to pull him into the occupation, and introduced him to know Lei Jun.
Before he came to the 807 room of Yingu Building to see Lei Jun, the two did not meet. Liu De didn't even know who Lei Jun was, and he didn't know what the future millet would be. Then he and Lei Jun met and chatted for one night, and felt that Lei Jun was very close to — — Liu De was a person who liked “fighting” in the bones, and finally he took the initiative to contact Lei Jun and decided to join Xiaomi as co-founder. Undertake Xiaomi's "Industrial Design + X" business.
In 2013, Lei Jun saw the trend of IoT and intelligent hardware and decided to hatch the Xiaomi ecological chain.
At that time, Lei Jun had a basic judgment on the development stage of the Internet: the first stage was the Internet, the second stage was the mobile Internet, and the third stage was IoT. Lei Jun believes that at each stage, there will be opportunities to achieve a trillion-scale company. For example, Tencent, Alibaba, and Baidu caught up with the Internet, and Xiaomi’s mobile phone was the one that triggered the mobile Internet.
When receiving the task of Lei Jun to do the ecological chain, “designer” Liu De feels that this is another business of his own, once again starting from scratch. This reminds Reid of the main character in his favorite movie, Forrest Gump, A-Gump. In the movie, A-Gump has been running. During the run, he saw the scenery that others had never seen before, and he also completed one dream after another through running. The team led by Liu De is also running, but it is not blindfolded.
Lei Jun said to him at the time: "To quickly swept the market, grab the company, and grab the project. “At the time, Liu De did not have systematic planning and ideas for the ecological chain, so he followed the ideas and methods of Lei Jun’s “robbing”. He pulled out a dozen engineers from Xiaomi Company, used the investment method to find the right team, and used Xiaomi's platform and resources to help them make good products and quickly lay out IoT.
In the early days, when choosing the investment target, Xiaomi Ecological Chain was based on two principles: one is to find familiar people, so as to reduce communication costs and risks as much as possible, familiar with each other before, and the cooperation effect is better; the second is to see Products and technologies, do not value business plans, and some projects can be invested in an office for an hour if the product and technology are excellent.
In just three years, in 2016, the Xiaomi Eco-chain “grabbed” and hatched 77 companies, of which 16 had annual sales of over 100 million, 3 annual sales exceeded 1 billion, and 4 were cultivated. “Unicorn” company. “The sales of over 100 million” is the first “cake” that Liu De painted for most ecological chain incubators.
When investing in Huami, the ecological chain and the local government talked about the hope that you can achieve 100 million in the first year, 300 million in the second year, and 1 billion in the third year. The local government and the team at Huami are not convinced. As a result, in the second year of the Xiaomi bracelet, Huami's sales exceeded RMB 1 billion.
The same drama is still played on Zi Mi Technology and Zhimi Technology. When Xiaomi started to make mobile phones in 2010, he was not famous. No big mobile phone manufacturer dared to accept orders for Xiaomi mobile phones. At that time, Zhang Feng was the general manager of Inventec (Nanjing) Technology Co., Ltd. He first promised to produce mobile phones for Xiaomi.
It is because of this source that Lei Jun is very grateful to Zhang Feng in his heart, and when Zhang Feng decided to start a business, he was the first to stand up and support. However, when Zhang Feng left the company to start a business, he did not know what to do, so he found Lei Jun to ask what to do better.
Lei Jun, Liu De, and Zhang Feng had a deep chat in Lei Jun’s office. Lei Jun wanted Zhang Feng to be a charging treasure. With the user group of Xiaomi mobile phone, there was a sales guarantee. However, Zhang Feng felt that this business could not be on the countertop. Lei Jun eventually "when charging treasure can be the first in the industry, it is also very powerful" to convince Zhang Feng. In February 2012, the first company of the Xiaomi Eco-chain —— Zi Mi was born. By the end of 2013, they launched the first millet mobile power supply, which was the first in the world after two months.
It is a success to do simple things, but it is a very difficult thing. This sentence applies to almost all Xiaomi ecological chain enterprises.
Founder and CEO of Zhimi Technology Su Jun
Su Jun, the founder and CEO of Zhimi Technology, was originally the teacher of the design department of North China University of Technology. He and Liu De were peers and met each other early. In 2014, Liu De met Su Jun in a teahouse and proposed that the Xiaomi ecological chain hopes to be an air purifier, and he painted a good view of Su Jing and mdash; —“ three years to sell 100 million. "For this goal, Su Jun did not feel unrealizable. At that time, the haze weather in northern China showed a serious trend; secondly, Su Jun had already begun to pay attention to Xiaomi's ecological chain products, and he was also a designer. Good for fine packaging and product design.
Although he has already sent his heart to Xiaomi, he also has tangled things. For Su Jun, “University Teacher” is a work within the system and can enjoy many benefits. To start a business in Xiaomi Ecological Chain means giving up all this. But in the end, under the call of Andu, he persuaded himself to convince his family to join the Xiaomi ecological chain to create Zhimi Technology.
“The teacher teaches the students, in essence, they are also building products; to the Xiaomi ecological chain, they are also making products. The former is to teach and educate people, the latter is to use technology to serve the lives of the people. But I also hope that I can use technology to make a good product and serve the people. & rdquo; Su Jun said.
The newly established Zhimi borrowed the office space of Xiaomi to get Xiaomi's support in product design and supply chain. Su Jun’s team has gradually changed from being one person to six, and then growing. However, when he is busy, he has to be in the factory and fully experience the process of modeling, trial production, mass production and so on. After running it all down, Su Jun finally felt that he was no longer a teacher, but a product manager and a founder of a company.
In the first year after its establishment, Zhimi Technology achieved sales of 600 million yuan, and sales in the second year exceeded the 1 billion yuan mark. At the same time, Zhimi Technology has become a unicorn company with a valuation of over US$1 billion.
Now look at Xiaomi's eco-chain products, covering air purifiers, rice cookers, water purifiers, electric fans, air conditioners and many other fields. It has invested in more than 210 eco-chain enterprises. In 2017, the income of the Xiaomi ecological chain reached 23.447 billion yuan, and the proportion of the entire group's revenue increased to 20.5%, becoming a force to be reckoned with.
“For the ecological chain enterprise, Xiaomi is the amplifier. & rdquo; Su Jun used an appropriate metaphor to describe the relationship between the ecological chain enterprise and Xiaomi. If there is no millet, Zhimi can make a good air purifier, Huami can make a good smart bracelet and watch, and the purple rice can also make a mobile power supply. But Xiaomi has amplified the products, brands and channels of these eco-chain companies.
For the early hardware startups, the three major pitfalls were product definition and design, supply chain, promotion and sales channels. The Xiaomi eco-chain enterprise has the advantage that other hardware startups do not have, that is, Xiaomi can provide all-round help in products, supply chains and sales channels. Even Xiaomi has more than 100 million users, which means that the eco-chain company has a user base since its inception.
When Su Jun was the first generation of Xiaomi air purifier, whether it was Lei Jun or Liu De, he gave Su Jun a lot of suggestions from the perspective of enterprises and users; Liu De also personally took Su Jun to run the supply chain; As for the new product launch conference of the chain enterprise, as long as Lei Jun is in Beijing, it will definitely be the product platform; Xiaomi Mall will provide sales support.
This is also reflected in Naunbo. Na Enbo is not an eco-chain enterprise supported by Xiaomi. It has been more cooperative with Xiaomi. In the second half of 2014, Xiaomi entered Nainbo in an investment way, and Naunbo began to enter the fast lane of development. The iconic time was that Nahnbo subsequently acquired the “Established Car Originator” from the United States.
In addition, with the endorsement of Xiaomi, Nainbo’s voice in the supply chain has increased. Gao Lufeng, founder and CEO of Nainbo, was deeply touched by this. Xiaomi even sent people to talk with Nainbo about the cooperation between motors and batteries, helping Nainbo to reduce the cost of the supply chain by nearly 30%.
In addition, Lei Jun himself is also very concerned about Nainbo. What impressed Gao Lufeng most was that the product name had not been finalized before the release of the No. 9 balance car. Nainbo tends to call the mini No. 9 balance car. One day, it was already late at night. Gao Lufeng suddenly received a call from Lei Jun. Lei Jun suggested on the phone that the product name was set to “No. 9 balance car”, which was simple and memorable. But it did not let Gao Lufeng have to do it according to his own opinions. However, Gao Lufeng, while stunning Lei Jun's professional attitude, also thought about his opinions, and finally set the product name as “No. 9 Balance Car”.
Lei Jun also formulated a rule for the Xiaomi ecological chain enterprise, which is also considered to be an important reason for the success of the ecological chain product. For hardware products, there are two ways to price: one is to determine the price and cost first, and the cost is used to select the material; the other is to select the material first, and then price according to the final cost. The former method is to guarantee profits, and the latter method can choose both quality and cost performance. However, Lei Jun requires eco-chain companies to adopt the second method, which is why the products of the eco-chain have always been labeled as “good quality and low price”.
Xiaomi TV is not an eco-chain enterprise, but it is also on the pricing issue. Wang Chuan and Lei Jun also have time to talk. At the pricing meeting before the release of Xiaomi TV 1, Wang Chuan, the head of the Xiaomi TV business at that time, proposed to set the price at 3,999 yuan. However, Lei Jun did not agree with this practice and thought that it deviated from Xiaomi’s product strategy and mission. It is recommended to set the price at 2999. yuan. But in the end, Wang Chuan still listened to Lei Jun's suggestion, and the price announced at the press conference was 2,999 yuan.
Supply chain crisis
With the peak of mobile phone shipments in 2014, Xiaomi's voice in the supply chain has been increasing, and it is no longer the embarrassing situation of not being able to find a foundry when it first started to make a mobile phone. In addition, as the ecological chain of Xiaomi's new business and the supply chain of Xiaomi also played a mutual promotion role, Xiaomi's supply chain helped Xiaomi's ecological chain avoid many pits encountered by startups, and the growing demand of ecological chain is also Xiaomi's The supply chain brings tangible benefits.
It seems that Xiaomi's management of the supply chain can be said to be an art, which is largely due to the picky of Lei Jun. In 2013, a relative of Lei Jun came to Beijing to visit him. When he came, he married two turtles. Lei Jun is a native of Hubei. The stewed stewed turtle soup is a very classic dish in Hubei cuisine.
However, when Lei Jun saw that the relative was talking and arrogant, he asked him if there was anything to come over. Can't help Lei Jun's repeated questioning, the relative told the truth: Entrusted by the leadership of the company, I hope to become the headset line supplier of Xiaomi. Lei Jun further asked to know that after the incident, the relative could get a 20% rebate. Subsequently, Lei Jun directly threw the turtle, and afterwards ordered the company to blacklist the headset manufacturer.
Lei Jun is rigorous about the strictness of supply chain management, but can't avoid Xiaomi's young tuition for his own.
In 2015, the growth rate of Xiaomi's mobile phone shipments began to slow down, and it fell to the bottom in 2016. The annual mobile phone sales plummeted by more than 36%, surpassing both OPPO and vivo.
As Lei Jun said at the beginning of the establishment of Xiaomi, Xiaomi has indeed hit the mobile phone industry's huge profits to a large extent. The red rice series allows consumers to spend about a thousand dollars to buy a mobile phone with good performance and experience. . According to the data of IDC at that time, the shipment of Xiaomi smart machine in 2015 was 64.90 million units, up 23.2% year-on-year, ranking first; Huawei was biting behind it, and smartphone shipments were 62.9 million units, up 53% year-on-year. .
However, in fact, Xiaomi set a sales target of 80 million units in 2015. According to that sales volume, it was actually not completed in early 2015. For such a result, Lei Jun said at the annual meeting that year that he was happy in 2016, saying that Xiaomi will re-adjust, forget the KPI, return to the original heart, and re-do the products with the ultimate fever.
At that time, few people knew that Xiaomi faced a serious supply chain crisis. The crisis that started in 2015 has lasted for more than half a year.
On January 15th, 2015, Xiaomi Note was officially released. The price of the standard version and the top version was 2299 yuan and 2999 yuan respectively. The top version has a price range of 3,000 yuan, which makes it difficult for rice noodles to accept. On the other hand, Xiaomi Note was also criticized by users at the time because of excessive fever, and the sales volume was not as expected.
Throughout 2015, the signature 1999 yuan flagship millet 5 has not been released and has been delayed until February 2016. All of this is not the end of the Internet, but the development of the millet and the supply chain. According to Xiaomi's internal staff, he told Fenghuang.com that in 2015, after the double 11 and the New Year, Xiaomi had almost no mobile phones to sell.
On February 24, 2016, Xiaomi officially released the fifth generation of Xiaomi mobile phone, the flagship mobile phone of the year. It is one of the most important products of Xiaomi in 2016. However, after the release of this product, it suffered another capacity crisis: the evaluation was very good after the release, but the consumers could not buy the goods for two or three months.
Lei Jun at the Mimi 2 MICE2 conference
"Like my brother, Lei Ge, people don't have much goods. ” All major social media can see the situation of rice noodles in the Xiaomi mobile phone. If this situation continues to develop, it will be fatal to any mobile phone manufacturer.
After realizing many problems in product delivery and sales behind the rapid growth of performance, Lei Jun showed his own side of killing and decisive, and replaced some old employees who could not keep up with the company's development pace.
At the same time, since May 2016, Lei Jun has personally taken over the mobile phone R&D and supply chain, integrating production, supply and marketing. Delivery, quality and innovation are his main problems. Mobile phones and consumer electronics today compete in the industry, in addition to sales channels, prices, quality and product definition, delivery capabilities are also one of the core. For example, when a product is being developed and designed, it begins to think about possible delivery problems, and also needs to prepare the supplier for stocking.
Before Lei Jun took over the mobile phone supply chain, Guo Jun was the direct person in charge at the time. In the back, he was called by internal staff to “Grandma”. In one of the cooperation negotiations with Samsung Semiconductor, the two sides disputed, Guo Jun directly patted the table. In the face of this rude move, Samsung executives stood up and turned away. Xiaomi also offended Samsung, and did not get the Samsung AMOLED screen supply during that time.
This pit can only be filled by Lei Jun personally. After taking over the R&D and supply chain, Lei Jun flew four Koreas in 2016, in order to repair the upstream supply chain with the core components of mobile phones such as screens and memory. It is also in 2016 that Lei Jun solved the fatal problem of mobile phone delivery.
At the same time, Lei Jun also found the founder of the ecological chain enterprise Zi Mi Technology, Zhang Feng, as a helper. He has accumulated a wealth of experience in the production of smart phones in Inventa, and is the right person to come to help Lei Jun reorganize the supply chain. At that time, the purple rice had already been on the right track. After receiving this request from Lei Jun, Zhang Feng agreed without saying anything.
The left one is Zhang Feng
According to an interview with Phoenix.com last year, Lin Bin revealed that it is not just a mobile phone. The most important thing for Lei Jun is to get through the cooperation between every team of Xiaomi's entire company. At that time, the quality supervision department was set up inside Xiaomi, and Lei Jun personally supervised it. In an interview last November, Lei Jun said: “Now the millet mobile phone repair rate is very low, close to zero, and the people with poor quality of millet are sharply reduced. ”
As the second-born Lin Bin, in the most difficult time of Xiaomi, it is natural to cooperate with Lei Jun to help turn the tide.
In January 2016, Lin Bin made an internal structural adjustment for the entire Xiaomi network team and established a sales operation department. This department is responsible for the production forecast of Xiaomi's back-end supply chain, including the prediction of core components and front-end sales channels, which is equivalent to a hub department. “Before the establishment of this department, the sales department’s job is to sell goods, but if you sell it out of stock, you don’t know what to do. There is no neutral department to make predictions and regulation. ”
Lin Bin caught the sales, Lei Jun caught the delivery, plus Zhang Feng's help, the troika effect was significant. In April 2017, Xiaomi released the annual flagship product Xiaomi Mobile Phone 6. After the listing, it has not suffered from the serious shortage of the predecessor Xiaomi 5.
Throughout 2016, Xiaomi has accelerated the layout of the supply chain. Lei Jun has repeatedly stated in public that online retailing accounts for only 10% of the entire retail market, and the remaining 90% comes from offline channels. However, according to the comprehensive net profit margin of Xiaomi's mobile phone of less than 5%, it is obviously unable to copy the offline mode of heavy assets such as OPPO and vivo.
Xiaomi lays out the channels under the line, and at the same time guarantees the same price online and offline. If you don't want to lose money, you must find ways to ensure that the sales per square meter in the store is high enough. It is also called the efficacies, improving the conversion rate, and making small profits and quick turnover to share the cost. In the exploration of new retail, Xiaomi also uses the Internet's thinking.
Xiaomi's home began construction in the second half of 2011. It initially provided millet mobile phones and accessories for the majority of rice noodles, and after-sales maintenance and technical support for Xiaomi mobile phones. From 2016, it began to transform into Xiaomi's exploration of new retail. It focuses on mobile phones and is aimed at TVs, routers, AI speakers and eco-chain products.
Lin Bin has been responsible for the sales of Xiaomi mobile phone since 2004. The early site selection of Xiaomi's home was chosen by him. He will personally inspect it before and after the opening of the business. In the past 2017, it was the rapid development of Xiaomi's new retail represented by Xiaomi's home, which opened more than 200 across the country. According to Xiaomi's plan, the retail store of Xiaomi Home will open to 1000 in 2019.
According to the official data released by Xiaomi on August 28, 2017, the cumulative passenger flow of Xiaomi Home reached 15.7 million, with a monthly average of 5.19 million yuan, and a floor efficiency of 270,000 yuan per square meter, currently ranked second in the world.
The new retail layout has achieved initial results, and the overseas market has also been reported frequently. Xiaomi has rebounded strongly since the second quarter of 2017.
reverse! Launching a new journey
“This is a remarkable victory in the history of Xiaomi’s development! There is no mobile phone company in the world, which can be successfully reversed after the sales decline, except for Xiaomi! & rdquo; On the afternoon of July 7, 2017, Lei Jun said at the Xiaomi company's internal mobile phone business swearing conference.
Xiaomi, who has been sung for more than a year, can finally speak up again.
Lei Jun announced a data at that time. Xiaomi's mobile phone shipments in the second quarter of 2017 were 23.16 million units, a 70% increase from the previous quarter, setting a new record for mobile phone shipments in the millennium quarter. In the statistics of research companies such as IDC, Xiaomi's market share in the second quarter of 2017 also returned to the fifth in the world.
“The performance of two consecutive quarters, like steel, is a hard testament to the greatness of Xiaomi’s business model. ” In the interview after the opening ceremony of the Xiaomi Home Shenzhen flagship store on November 14 last year, the whole process was almost all Lei Jun said. He has reason to be excited about this, because at that time Xiaomi had already completed the 70 million mobile phone shipments set at the beginning of the year and the goal of breaking revenue by 100 billion yuan.
At the same time, Xiaomi invested in the international market for more than three years. Last year, the return of the company also broke out. Especially in the Indian market, the performance was particularly outstanding. The performance in the first half of 2017 increased by 328% year-on-year, the market share has already ranked second, and the millet brand has become India. The most popular mobile phone brand, Redmi Note4X has become the best-selling mobile phone in the region.
The millet that had been invincible was re-killed. At this time, the rumors that Xiaomi will be listed will also increase.
When the Thunder was listed in 2014, Lei Jun asked Lin Bin to learn about the listing. Lei Jun said: “I have done a lot of back, you can learn. "Lin Bin was a shareholder of Thunder at the time, so he took the opportunity to run the entire listing process.
“I didn’t understand the listing before, I felt that the listing was definitely a very happy thing. After all, it’s the company’s listing. Everyone recognizes that the listed stocks can also be sold. I think it’s still very exciting. “But after running around, Lin Bin found that it was not the case.
Listing is a double-edged sword. In the long run, you can leverage the capital market to expand the company. But after the listing, it is equivalent to selling the company to the capital market. The investors see only the company's past, and the company's future is concerned with the interests. Enterprises will encounter different problems at different stages, and there will be peaks and valleys, which is difficult to achieve.
“So I ran back and said to Lei, our company really wants to go public, it must be done very well, very solid. & rdquo; Lin Bin said at the time. When Xiaomi fell to the bottom in 2016, the industry’s doubts were one after another. As an investor, Shen Jin was not worried at the time. Because of his most valued Xiaomi Internet service revenue and the development of the ecological chain, these two parts of the business are growing rapidly.
Nowadays, whether it is Xiaomi mobile phone, TV or ecological chain, Lei Jun’s game is at the end of the game.
According to the data disclosed in the previous Xiaomi prospectus, the sales volume of millet mobile phones reached 91.4 million units in 2017, a significant increase of 64.9% compared with 2016, ranking fourth in the world. In 2017, Xiaomi's overseas market revenue exceeded 32 billion yuan, and has entered the world 74. Countries and regions, and entered the top five smartphone sales in 15 countries and regions around the world
Today, Xiaomi has also built the world's largest consumer-grade IoT IoT platform, connecting more than 100 million smart devices (excluding mobile phones and laptops); investing or incubating more than 90 companies focused on developing smart hardware and consumer products. The three-layer product matrix of mobile phone peripherals, smart hardware and consumer goods was constructed. The income of Xiaomi IoT and consumer products segment in 2017 was 23.44 billion yuan, an increase of 88.8%.