On the 10th anniversary of Xiaomi, Lei Jun officially admitted losing to Dong Mingzhu: it was inflated at that time

 On the 10th anniversary of Xiaomi, Lei Jun officially admitted losing to Dong Mingzhu: it was inflated at that time

Lei Jun said that Xiaomi has created miracles in the past ten years: Xiaomi was founded in 2010, with an estimated value of US $250 million; its four-year valuation exceeded US $45 billion, 180 times of its founding period, and became a super Unicorn; its mobile phone products won the first place in Chinas market in three years; it became the youngest Fortune 500 company in nine years, with revenue exceeding 200 billion in less than 10 years

This speed is unprecedented. Of course, in this process, millet is not plain sailing, it has also had a trough, also experienced the death spiral of the mobile phone industry, but it survived.

In the past ten years, Xiaomi has experienced the high light moment which is wildly sought after, and also bears the reputation of high matching and low price; under the pressure of popularity and controversy, millet has become a unique new species.

For the past decade, Lei Jun is most proud that Xiaomis business model has been fully verified, and Xiaomi has promoted the transformation and upgrading of Chinas manufacturing industry. Unfortunately, there is still a long way to go before making the best mobile phone.

In the new decade, Lei Jun should be cleared and set off again.

Highlight time

1. Chinas market share ranked first in 2014

Ten years ago, on April 6, at the Silver Valley Building in Zhongguancun, 13 old men with an average age of more than 40 years old started revolution and founded Xiaomi because of a bowl of millet porridge.

At this time, the global smartphone market, including apple and Samsung in the world, Huawei and Lenovo OV and other mobile phone manufacturers in China, is the most competitive industry in the world. In Lei Juns words, Xiaomi is knowing that there are tigers in the mountains, leaning towards the tiger mountain.

By the end of 2014, Xiaomi had delivered more than 70 million mobile phones (including the data from overseas markets), and the domestic market had successfully surpassed Samsung in climbing to the first place. Xiaomi took the first place in Chinas smartphone market in three years. At the end of the same year, Xiaomi completed a new round of financing of US $1.1 billion, with a valuation of more than US $45 billion.

In the past four years, Xiaomi has become a representative of Chinas mobile phones. Xiaomi has been seen in both after dinner and on the front page of the media. Xiaomi set off the Internet thinking and fan economy tide, let everyone feel, on the tuyere, pigs can fly.

In the public speech of Lei Jun on Xiaomis 10th anniversary, the story behind Xiaomis highlight moment was revealed.

In the first year of Xiaomis establishment, Lei Jun, a mobile phone layman, spent more than 80% of his time looking for people. The first one was Lin bin, who worked in Google China Research Institute at that time. Lin bin was moved by the iron man of hardware + software + Internet and allowed him to join Xiaomi resolutely.

2. Listing in Hong Kong: the largest IPO of the year

At this time, millet has become a super market. In addition to mobile phone business, Xiaomi also has IOT and consumer goods, Internet services and others. Lei Jun said Xiaomi is not a pure hardware company, but an innovation driven Internet company.

In seven years, Xiaomis annual income has exceeded 100 billion yuan, which is beyond the reach of many traditional companies. Lei Jun mentioned a set of comparisons more than once: among the international technology giants with a revenue of over 100 billion yuan, apple spent 20 years, Facebook spent 12 years, Google spent 9 years, domestic technology companies, Ali used 17 years, Tencent 17 years, and Huawei used 21 years. Millet, on the other hand, has only been used for seven years.

This growth rate also confirms the success of Xiaomis original iron man three business model: Hardware + new retail + Internet service mode. Xiaomis new Triathlon evolved from the original software + hardware + Internet, which is one of the important reasons why Xiaomis No.2 employee Lin bin was able to leave Google China Research Institute.

At that time, Xiaomi invested or incubated more than 210 companies, including 90 companies focusing on developing intelligent hardware and consumer products to strengthen millet ecosystem. Xiaomi has also copied the successful model in China to overseas countries and regions, and has entered more than 74 countries and regions in the world.

In the next year (2019), Xiaomi was listed on Fortune 500, ranking 468, 7th among the global Internet companies and 112th among the Chinese enterprises on the list, becoming the fastest (youngest) Internet and technology enterprise in China.

The outside world always compares Xiaomi with the established top 500 companies, such as apple, Samsung and Huawei. I admit it is inferior to them. But if you look at Xiaomi carefully, Xiaomi has done a good job Lei Jun mentioned in his speech.

310m bet: a successful marketing

In 2013, Xiaomi model was in full swing. At the end of the years CCTV China economic man of the year award ceremony, Lei Jun and Dong Mingzhus 1 billion bet successfully attracted the attention of the outside world.

At that time, Lei Jun said that if Xiaomis business income beat gree in five years, he hoped that Dong Mingzhu would pay him 1 yuan. Dong Mingzhu responded strongly on the spot: dont mention one yuan, but bet on one billion yuan.

Lei Jun revealed that sister Dong temporarily raised the gambling from 1 yuan to 1 billion yuan.

At that time, Xiaomi had just been established for three years. Although Xiaomi was a star company in the field of science and technology, its annual revenue was only 30 billion yuan, while Gree Electric Appliance had an annual revenue of 120 billion yuan. From the perspective of revenue comparison alone, the strength of the gap, but also because of this, gambling is more controversial and promising.

In the following five years, the two sides also entered each others main business position: Xiaomi has released a number of air conditioning products, and continued the strategy of Xiaomi brand with ultra-high cost performance; Gree has also been trying to do mobile phone business, and later announced its involvement in the chip field.

Although in 2019, the two sides announced their total revenue in 2018: Gree RMB 200.24 billion and millet RMB 174.9 billion. Obviously, Dong Mingzhu won Lei Juns 1 billion bet five years ago. While admitting that he lost the bet, Lei Jun also reflected on the practice at that time, which was a bit inflated.

Gambling with Dong Mingzhu is a stupid thing Xiaomi has done on her way to entrepreneurship, Lei said.

But at this time, it seems that it is not very important who wins or loses. What is important is that both sides have improved their brands and their revenue has increased. And this bet, like an advertisement, has always been the talk material of netizens and the headlines of the media on the list.

Dark hour

1. The first big hurdle in 2016

Of course, Xiaomis development in this decade has not been smooth.

In 2015 and 2016, we met the first big hurdle in Xiaomis decade. Lei Jun once said in an interview with China Entrepreneur Magazine.

Whats more, there is a death spiral in the mobile phone industry. If sales revenue and shipping volume come down, its hard to get up again.

At this time, the millet shipment has been a problem.

Therefore, Lei Jun returned to the front line and began to make up lessons. At that time, I made a great determination to study all the research and development processes of hardware, and I am very grateful for turning myself into a half expert or pseudo expert in the past two years. Lei Jun revealed.

It is also the model worker Lei Juns move to solve the difficulties encountered by millet, millet mobile phone began to rebound. Strategy analytics released the global smartphone manufacturers shipping volume and market share report in the second quarter of 2017. According to the report, millet shipped 23.2 million units, with a market share of 6.4%, returning to the top five in the world.

For this achievement, Lei Jun once said that Xiaomi is the only mobile phone manufacturer that can successfully reverse the sales decline. It is also because of this great challenge that Lei Jun firmly believes that innovation determines how high we fly, and quality determines how far we go.

However, although the sales volume of Xiaomi mobile phone has been reversed, the attempt to transform Xiaomi mobile phone brand to high-end has failed.

It is understood that in 2015 / 2016, Lei Jun found an expert team to diagnose the company, find problems and consider brand upgrading. Therefore, it weakened the concept of rice noodles and the slogan of living for enthusiasts and put forward the slogan of touching peoples hearts and being generous in price.

2. The stock price has been cut down in the first anniversary of listing

The price of small shares was 35.60% on the opening price of HK $17.2/2018, down from the opening price of HK $17.2 in 2018. Although the highest share price of this young peoples first share rose to HK $22.2 per share, it began to fall the next day and fell for about 10 consecutive working days.

On the first anniversary of its listing, Xiaomis share price closed at HK $9.61/share, with a market value of US $29.6 billion. Compared with the issuance price of HK $17 / share a year ago, Xiaomis share price has fallen by more than 43%, compared with the peak of HK $22.2/share.

You know, at the beginning of Xiaomi listing, Lei Jun made a promise to all investors: to make the first batch of investors supporting Xiaomi earn at least twice.

Of course, this is related to the general environment of the stock market downturn. In addition, Xiaomis smartphone industry is increasingly competitive, and Xiaomi is facing the pain of high-end transformation.

At the beginning of 2019, Lei Jun even called out the cruel words of indifferent to life and death, do not accept it. It is also in 2019 that Xiaomis smart phone business has launched a dual brand strategy, and Hongmi brand has played the role of Xiaomi with high cost performance; and Xiaomi brand, according to Lei Juns idea, has gradually abandoned the shackles of price and moved closer to the high-end market.

Although the performance of Xiaomi mobile phone market in the first half of the year was not optimistic, it recovered in the fourth quarter, with a year-on-year growth of 27%, and the annual shipment volume was 125 million units, ranking the top four in the world.

Future: one of the most famous brands

In the new decade, Lei Jun has begun planning.

Not only that, Lei Jun also included Lu Weibing, former president of Jinli, Chang Cheng, former vice president of Lenovo Group, Wang Xiaoyan, CEO of Xiaojiao, Yang Zhe, former Meizu executive, and Zeng Xuezhong, former CEO of ZTE terminal.

Netizens think Lei Jun is organizing Avengers alliance. In this regard, Lei Jun said, they are super hero, a group of coolest people.

For the past decade, Lei Jun is most proud that Xiaomis business model has been fully verified, and Xiaomi has promoted the transformation and upgrading of Chinas manufacturing industry. Unfortunately, there is still a long way to go before making the best mobile phone.

Lei Jun hopes that Xiaomi will become one of the most famous brands in the world ten years later. He hopes that people will no longer say that Lei Jun is a model worker because this platform belongs to young people. He hopes that there will be a large number of start-up companies because Xiaomi has been successful.