Reborn multinational giant

"In addition, judging from the age distribution of users who purchase our Xiaomi phones, young people aged 20-35 account for more than 70%.

Judging from these two data, the main potential users of our Xiaomi mobile phones are young people in first- and second-tier cities. This is also in line with the target user group we originally envisioned. Therefore, the first step since the establishment of our Xiaomi mobile phones is considered Achieved very good results!"

As soon as Mr. Lei finished speaking, Lin Xiaobin, who was sitting on the right, took the lead and applauded. Warm applause rang out in the conference room to celebrate Xiaomi's past achievements.

However, all the executives who attended the meeting knew that this simple report was nothing more than an introductory remark, and the next step was the main content of this strategy meeting.

Sure enough, after the applause subsided, Mr. Lei continued:

"Although the three Xiaomi phones we have launched have achieved very good sales results and market response, there are also some problems that we cannot ignore. The first point is that our user groups are concentrated in first- and second-tier cities, and the second point is that we The user base is too young.

Therefore, in response to this situation, Zonglin Fang and I have discussed in private before and decided to officially enter the low-end mobile phone market!"

As soon as Mr. Lei finished speaking, the executives in the conference room whispered and talked. In fact, as early as a few months ago, discussions about Xiaomi’s entry into the low-end mobile phone market had spread among the top executives of Xiaomi. For the first time, this content was discussed in a formal meeting.

"Should Xiaomi enter the low-end mobile phone market?"

"When should Xiaomi enter the low-end mobile phone market?"

"What are the core advantages and selling points of Xiaomi's entry into the low-end mobile phone market?"

"Should we directly launch one or more Xiaomi models of low-end mobile phones, or rebuild a sub-brand for the low-end mobile phone market?"

These four issues are the most discussed issues among Xiaomi executives during this period.

Regarding the first question, it is obvious that almost all executives agree that Xiaomi should enter the low-end mobile phone market, because in China, the largest user group is still 800 million farmers, and the best-selling mobile phone models , It is still a thousand yuan and less than one thousand yuan mobile phone, abandoning the low-end market is almost equivalent to giving up more than half of the Chinese market, so on this point, all executives agree!

The reason why executives have been talking about this issue is actually mainly because of the second question, when should Xiaomi enter the low-end mobile phone market?

After several months of discussion, two main voices have been formed in the senior management. One is that Xiaomi should start deploying into the low-end mobile phone market immediately, and the other is that after one to two years, Xiaomi will pay 2,000 yuan. After the left and right mid-end mobile phone market has stabilized, it will enter the low-end mobile phone market.

However, judging from what Mr. Lei said just now, several of the core helms of Xiaomi, including Mr. Lei, have made up their minds to enter the low-end mobile phone market now!

Of course, Mr. Lei explained to the executives present at the meeting why he finally decided to enter the low-end mobile phone market now:

"I know that some people within us think that Xiaomi has just been established for less than two years, and has just made some achievements in the mid-end mobile phone market. At this time, it is dangerous to enter the low-end mobile phone market in a hurry.

Is there any danger?Yes, we have been making mobile phones since our establishment, and we have made mid-range mobile phones priced at 2,000 yuan. We have never touched on how to play low-end mobile phones.

But what I want to say is that, compared to the Xiaomi mobile phone we made from scratch, based on the Xiaomi mobile phone, making a mobile phone for the low-end mobile phone market is just like asking a college student to do a primary school problem. The questions are very simple. , But you will still make mistakes if you want to be careless!

So the difficulty is not the key. The key is that we must be cautious and steadfast. Just like when we made Xiaomi 1, we made a mobile phone for the low-end market. As long as one comes out, the rest will be easy to handle. !

And why do I have to worry about letting Xiaomi enter the low-end mobile phone market now?The reason is simple, because of the market environment, because of development space!

China has four first-tier cities with a total population of over 100 million. Among these 100 million people, the proportion of Xiaomi mobile phone users is 54%, while the remaining 46% are scattered in more than 1.2 billion second- and third-tier, fourth- and fifth-tier cities, and rural populations in towns. in.

This not only shows that the brand awareness of the Xiaomi mobile phones we are selling now is still very small among the remaining 1.2 billion people, but also shows that the three Xiaomi phones we are now launching are difficult to quickly eat this part of the market.

The main reason is the price!

A mobile phone of 1999 yuan may be considered a suitable price for many young people in cities like Yanjing and Jianghai. However, the price is still too high for many people in the third and fourth tiers, villages, towns and rural areas. According to the sales data of the mobile phone industry in the year, whether it is a feature phone or a new smartphone, the most sold are still low-end mobile phones of 1,000 yuan and below.

In addition, I have received news that operators have already been asked to reduce the subsidies for the bundled sales of mobile phones from China Kulian’s major mobile phone manufacturers. If we can't join in at that time, we can only watch when the market is occupied by others."

Mr. Lei’s remarks have completely laid the strategic tone for Xiaomi's upcoming entry into the low-end mobile phone market. Regardless of whether there is opposition from the senior management, this matter is considered passed!

Then, Vice President Lin Xiaobin revealed the core advantages and selling points of Xiaomi's entry into the low-end mobile phone market. As expected by the executives, it is still three words, cost-effective!

The current Xiaomi mobile phone, with a price of about 2,000 yuan, can match the configuration of more than 3,000, more than 4,000 or even more than 5,000 yuan on the market, while the mobile phones launched by Xiaomi for the low-end mobile phone market cost about 1,000 yuan, or even a few hundred. Yuan, to achieve the configuration of more than 1,000 yuan and 2,000 yuan mobile phones in the market except for Xiaomi. The executives at the meeting believed that the three words cost-effectiveness are enough to make Xiaomi also in the low-end mobile phone market. United, kill a piece without leaving!

After the first three questions were determined, the discussion content of the meeting entered the fourth question, whether to directly launch one or more Xiaomi models of low-end mobile phones, or to rebuild a sub-brand for the low-end mobile phone market?Regarding the content of this discussion, executives have their own opinions.

"From the perspective of Nokia, Motorola and domestic mobile phone brands such as ZTE and Huawei, whether it is a low-end, mid-range or high-end mobile phone, they are basically the same brand. Most mobile phones are mainly distinguished by mobile phone models. , At most, it is to add some version labels or something after the parent brand.

The advantage of this is that the marketing department only needs to do a brand promotion. In addition, from the cost of research and development, materials, promotion, etc., this is also very cost-effective!"

"I object, I think we shouldn't always be philosophical and take over those big mobile phone brands that did not do well in the past. Nokia, Motorola, huh, they are not declining now, last month Motorola, which has been established for hundreds of years, was acquired by Google, which has only been established for more than ten years. It can be seen that their experience is not always good.

Just distinguishing from mobile phone models, although it is convenient for our internal management and easy to reduce our costs in all aspects, but it is very unfriendly to consumers and users.

Just talk about Nokia’s previous 5230, 7070, 8800, and audio-visual models. Who knows that there is a gap of several thousand yuan between these three mobile phones. So I think we should still launch a sub-brand for the low-end mobile phone market. !"

"Yes, we Xiaomi has only been established for less than two years, and the three phones launched are all mid-range phones of around 2,000 yuan. The user's brand impression of our mid-range phones has just been established. If you use Xiaomi plus models directly , It is easy to cause confusion, anyway, we are just starting out, why not re-establish a new brand!

......

Just as the executives were arguing, the chief consultant Fang Zhe, who was sitting in the left position and hadn't said a word from the meeting until now, said flatly: "Let's call it Redmi!"

Red is a Chinese color, called red rice. It is easy to remember and easy to distinguish from the word Xiaomi. Both names contain the word rice, which is also considered to be associated with the parent brand of Xiaomi! "