Lei Juns internal letter said that the overall net profit of millet will never exceed 5%.

category:Internet
 Lei Juns internal letter said that the overall net profit of millet will never exceed 5%.


A few days ago, the millet board of directors approved a resolution: from now on, millet has officially promised users that the overall net interest rate for hardware, including mobile phones and IoT and consumer products, is not more than 5% per year. If we exceed, we will return over 5% of the parts to the users in a reasonable way. Lei Jun said that the reason for such a choice is because millet is essentially a mobile phone, intelligent hardware and IoT platform as the core of Internet Co. Because, we always firmly believe, compared to the pursuit of one-time hardware sales profit, the pursuit of product experience more promising; compared to the channel layer after price, real material pricing is more popular. The 5% red line not only includes mobile phones, but also mobile power, air purifiers and other hardware products. More importantly, the Lei Jun believes that millet adhered to this model has been tested, especially millet can be reversed after the decline in sales volume, such a reversal is more proof of the correctness and advancement of the millet model. Therefore, Lei Jun said he did not cling to Austria Maori, and insisted on the 5% hardware comprehensive net profit red line. (Cui Yuxian) The following is the full text of the internal letter of Lei Jun: Millet students: Today, for millet, it is a historic day. At the millet 6X conference held at the Wuhan University, we promised all users that the integrated net interest rate of the overall millet hardware business would never exceed 5%. Why do we do that? Because our name is millet. First, 5% hardware comprehensive net interest rate red line is the inevitable choice of our business mode. The day before yesterday, the millet Board approved a resolution: from now on, millet is formally committed to users, the overall net annual net interest rate of the hardware business (including mobile phones and IoT and consumer products) is not more than 5%. If we exceed, we will return more than 5% of the parts to the users in a reasonable way. We pay close attention to cost pricing and leave benefits to users. Users will always support us. Small profits and big profits are not small, but profits are not large. Unlike traditional Hard Suits Inc, we do not rely solely on hardware to obtain major profits. In essence, millet is a Internet Co based on mobile phones, intelligent hardware and IOT platform. This is our original Ironman Triathlon business model: Hardware + Internet services + new retail - close hardware cost pricing with well designed, superior quality products, deliver products directly to users through private or direct supply of efficient online and offline retail channels, and continue to provide rich interconnections for users. Network service. After 8 years of ups and downs, our business model has undergone many tests. In the most difficult time, millet is facing a great challenge. In addition to millet, there is no mobile phone company in the world, which can be reversed after sales decline. The miracle of millet reversal and the achievement of millet so far fully illustrate the correctness and advancement of millet mode. 8 years ago, when the company was founded, we had a great ambition to change the low efficiency of the business world. A shirt with a cost of 100 yuan will be sold at 1000 yuan in Chinese stores, with an astonishing 10 fold rate. A pair of shoes should be added 5 to 10 times, a tie plus 20 times. But I always find it difficult to understand why the huge loss in the middle part of commercial operation is to let users pay the bill. Millet has the courage, determination, and perseverance to promote a profound business efficiency revolution: every effort is devoted to making a good product, so that every penny paid by the user is worth a bit. All our ambitions start here, and all our achievements come from here. The essence of business competition is the argument of efficiency. It is a high efficiency proof of the millet to dare to promise that the net interest rate after the comprehensive hardware tax will not exceed 5%. Not only is the mobile phone, the 10 thousand milli mobile power supply has been priced more than 200 yuan before, we priced 69 yuan; the mainstream air purifier was originally priced at several thousand yuan, and we pulled the price to less than 1000 yuan... In many fields, we have also changed the appearance of the industry with the first-class quality and close cost, which has greatly accelerated the popularity of products. Todays millet 6X is also an example of this determination. As a new retail strategy for the design of the flagship aircraft, millet 6X using high-end chip 660, the latest AI technology, when the performance of the peer, the same level and even less than the allocation of products are priced nearly 3000 yuan, we still firmly close to the cost, only set the price of nearly half of the price of 1599 yuan. Two, moving the heart, the price is honest is an inseparable part of the two sides, is the best reward for user trust. In the past 8 years, on the way forward, we have been thinking: from ancient times to now, the business world is changing and what remains unchanged. This is the answer of millet. The 5% is our long-term commitment to users, as well as our continued spur. These eight words are inseparable from touching the heart and the price. They are two sides of a coin. The product is not good, the price is lower, no one likes it. In order to not overstep the 5% red line at the same time to maintain a strong competitiveness, we must adhere to innovative technology and top design, take out the extreme products far beyond the expectations of consumers, and do price, to truly move people. Because of this, we have the inexhaustible motive force, we will take out the comprehensive screen technology that leads the global industry wind and knock out the ceramic technology; we will realize the Golden Grand Slam of global design, so far more than 200 top design awards in the world have been won. In the past 8 years, I have had many unforgettable moments in Xiaomi. For the first time, I heard the first cry of millet phone, the first time I received the gift from rice noodle, and the first time I heard the news of millet MIX mobile being collected by museum. But what excites me most is to hear customers say, enter millet home or log on to millet mall, and they can confidently close their eyes to buy. This shows that all our efforts and efforts have not been wasted. Why do users trust us? Because we always adhere to technological innovation, in the minds of users have established a high quality, high face value, cost-effective reputation. They believe that as long as millet is produced, the quality and price will be the best. Students, the trust of users is our greatest recognition and our most valuable asset. We can not bear, nor can we, even more, let it suffer even a little bit of harm. Only by continuously winning the trust of users can our business go forward without delay. Three, controlling reasonable profit is the historical trend of commercial development, and the only way for us to fulfill our mission. Looking at the history of human commerce, whether it is the automobile industry or the PC industry, the great companies that change the world are making good things cheaper and making use of more and more people. Millet is a company dominated by engineers and culture. The pursuit of engineers is to constantly explore the latest technology, to benefit the public and change the world. Our mission is to adhere to the product of moving the heart and the price, so that everyone in the world can enjoy the beautiful life brought by technology. Over the past 8 years, we have promoted the popularity of smart phones in China, the performance and quality of the whole industry, and contributed to the rapid rise and maturity of the mobile Internet in China. Now, we are pushing all these positive influences to the world. Not only that, we also together with nearly 100 values of the millet ecological chain enterprises, the millet model and methodology has been copied to hundreds of industries, promoting the rapid penetration of new intelligent lifestyle, the worlds largest consumer level IoT platform. Deep into everyday life, all kinds of scenes, good and cheap refined products, make more people enjoy the beautiful life brought by technology. Resolutely implement the 5% hardware comprehensive net interest rate red line, is to fulfill the companys mission of millet. Because, we always firmly believe, compared to the pursuit of one-time hardware sales profit, the pursuit of product experience more promising; compared to the channel layer after price, real material pricing in the end is more popular. We have always believed that our belief that the mass consumer goods should take the initiative to control reasonable profits will become an unstoppable trend of the times, and that any measure of high Maori will go on the road to no return. Therefore, we set this red line, not only in the present, but also the long-term inheritance of millet values. At present, the company has broken through hundreds of millions of revenue every year, with nearly twenty thousand employees. In the future, millet may have larger revenue and larger organization, but this red line will remind every millet people to remember our ideals and keep in mind why we start. Speaking of ideals, this millet 6X conference has a special meaning for me. Because the venue for the conference was at my alma mater, Wuhan University, for me, this is the place where dreams begin. Thirty years ago, when I was in my freshman year, I saw a book that changed my life in the library of Wuhan University: the fire of Silicon Valley. After reading it, my heart for a long time can not be calm, walking around the playground of Wuhan University. There was a fire in my heart, and from then on I had the faith to fight for it: to be a great company and to influence enough people. Today, I went back to my alma mater, and I looked at the fire in my heart. It was as hot and bright as before. The students of Xiaomi, eight years ago, we also ignited a group of fire, that is our millet peoples initial heart. This group of flames is burning and growing. Today we have changed hundreds of millions of peoples lives. In the future, we will become a part of billions of people in the world. Lei Jun 2018.4.25 at Wuhan University, source: NetEase science and technology report editor: Hou Wei Cheng _NT4124 Thirty years ago, when I was in my freshman year, I saw a book that changed my life in the library of Wuhan University: the fire of Silicon Valley. After reading it, my heart for a long time can not be calm, walking around the playground of Wuhan University. There was a fire in my heart, and from then on I had the faith to fight for it: to be a great company and to influence enough people. Today, I went back to my alma mater, and I looked at the fire in my heart. It was as hot and bright as before. The students of Xiaomi, eight years ago, we also ignited a group of fire, that is our millet peoples initial heart. This group of flames is burning and growing. Today we have changed hundreds of millions of peoples lives. In the future, we will become a part of billions of people in the world. The thunder Army 2018.4.25 at Wuhan University