Reborn multinational giant

When President Lei spoke, the noisy meeting room just now became silent, and everyone's eyes focused on Fang Zhe again.

In the previous life, after a few years of rapid development after its establishment, Xiaomi once fell into a low period that lasted for nearly two years. During that period, the sales of Xiaomi mobile phones fell sharply, whether it was the glory of Huawei learning the Xiaomi Internet model, or relying on offline and celebrities. Marketing strategies such as endorsements, such as vivo and oppo, have surpassed Xiaomi in sales and limelight.

Because of this, the outside world has also questioned Xiaomi, thinking that the glory of Xiaomi is gone forever, and Xiaomi is going downhill, whether it is the self-review of Xiaomi's internal high-level managers such as Lei, or the analysis and judgment of industry peers, they all believe that Xiaomi's mobile phone sales have been large. Decline, the main reason for Xiaomi's decline is because it ignored offline channels.

Of course, ignoring the reason that offline channels are only the surface layer, and looking deeper, it is that the growth rate of domestic e-commerce users has slowed down after several years of rapid development, and the demographic dividend has gradually disappeared. After several years of rapid development, Xiaomi, The users who are willing to buy Xiaomi mobile phones through online channels have basically consumed seven or eighty-eight. Potential Xiaomi users can only target offline consumers and replacement users.

Fortunately, it’s not too late for Mr. Lei to wait for Xiaomi’s top executives to “remedy the situation”. Because of the slowdown in e-commerce growth, he aims at Alibaba, which is under the banner of “new retail”, and has opened new retail models everywhere. Coupled with the rapid advancement of Xiaomi in overseas markets such as India, and the emergence of a new force, this has allowed Xiaomi to stop the decline and return to the top!

In Fang Zhe’s view, the main reason why Xiaomi ignored offline in the first few years was mainly because of the problems mentioned by the executives just now. The original intention of developing offline and using the Internet model as a mobile phone with Xiaomi is to compete with Xiaomi’s core. There is an irreconcilable contradiction between power and cost performance!

Originally, Fang Zhe planned to wait for a while and take the time to talk to Mr. Lei in private, and give him a reminder to make him pay attention to offline. But now, since Li Shangjun raised this matter at the meeting, Mr. Lei again When he personally asked, Fang Zhe didn't plan to hide it anymore.

As everyone watched, Fang Zhe slowly said:

"Before discussing whether Xiaomi should be offline now, let me ask you a few questions!

The first one, everyone thinks, according to our Xiaomi's current sales channel that only sells mobile phones online, what determines the ceiling of Xiaomi's mobile phone sales?"

Upon hearing Fang Zhe’s question, the executives at the meeting whispered and discussed with each other for a while, and finally came to a general conclusion: “According to the current channel sales model, the ceiling of Xiaomi mobile phone sales is determined by the willingness to buy Xiaomi mobile phones online. The number of users is determined, in other words, it is determined by the number of e-commerce users at a higher level!"

"Okay, the second question, when our online sales of Xiaomi hit the ceiling, where should potential Xiaomi users find?"

"Offline!"

"overseas!"

"Change user!"

The executives gave three different answers, Fang Zhe nodded and said:

“Let’s not talk about it offline. If we enter overseas markets, what channels should we use to sell mobile phones? Is it the same as we do now?

Even if it is possible, what about the consumption of dividends for overseas online users?There are also replacement users. According to the average smartphone replacement rate of one mobile phone every two years, it is basically impossible for Xiaomi to maintain rapid growth.

Therefore, in any case, it is impossible for us to bypass offline channels!"

The executives at the meeting heard it, and it was obvious that Fang Zhe, as the chief consultant, supported Li Shangjun’s views, but even so, many executives still had a lot to say.

"President Fang, I think your example is a bit too extreme. I think most of the colleagues here should have the same opinion as mine, that is, Xiaomi will enter the offline, but it should not be now, but at least once. Two years, even two to three years later!" A senior executive's speech was nodded and approved by most executives.

Fang Zhe smiled and looked at him. This executive is not someone else, but one of Xiaomi’s entrepreneurial veterans, who is in charge of MIUI business. Fang Zhe asked:

"Mr. Hong, and most of the executives who are doing it, I want to ask everyone, why do you think that Xiaomi should enter offline only after two to three years?"

Regarding Fang Zhe’s question, Hong Feng became a representative again without thinking, saying:

"I think that the way we use the Internet to make mobile phones in Xiaomi has only just started, and online sales channels have just opened up, and the company’s business development is also very rapid. We should not venture into offline channels. This will not only let us Our business and capital chain are under tremendous pressure, which will also seriously impact our core competitiveness based on cost performance!"

"Yes, we are now planning to enter the low-end mobile phone market, which is equivalent to opening one or more product R&D lines. If we enter offline at the same time, problems will easily arise from work pressure to funding!"

The executives in the conference room nodded in agreement with Hong Feng's reason, and even Lei, who was sitting in the main seat, nodded in approval.

Fang Zhe smiled clearly, so ah, in the past, Lei always said that the biggest mistake Xiaomi made was ignoring offline. This should not be ignoring, but a last resort!

"Two questions, let’s talk about the second one. Entering offline will seriously impact Xiaomi’s core competitiveness based on cost performance. I don’t object to this, but I don’t agree with it, because whether it is now or two or three years later It is an inevitable event that the offline entry will have an impact on our cost-effective advantage of Xiaomi, so what we should consider is the way to enter the offline and the size of the impact, and find a balance between the two!

Let’s talk about the first question. If we venture offline, we will put a lot of pressure on Xiaomi’s business and capital chain. I also have no objection to this. Entering offline, what competitiveness and advantages will we use to ensure that we can seize the offline channels they have been operating for two or three years from the hands of China Cool Alliance and other emerging smart phone manufacturers?"

As soon as Fang Zhe asked this question, the conference room was once again silent. Yes, Xiaomi’s core competitiveness can only exist online. Even after two or three years, this situation should not change. Then Xiaomi What do you rely on to get offline?

This question of spear and shield made the conference room extremely silent, and the needle fell with noise.After a long time, one of the executives only said:

"Even if we enter offline now, there is no competitive advantage. After two or three years, at least our online business will be stable, and Xiaomi's brand will definitely be much stronger than it is now. It should still be possible to open the market offline!"

Hearing this, Fang Zhe chuckled softly. It seems that some of the executives who insisted on not being offline have already shaken!

Therefore, Fang Zhe said vigorously:

"As Mr. Lei said just now, operators are now cutting subsidies to the four major mobile phone manufacturers of China Kulian. In the past, their model of bundling sales by China Mobile Unicom will become more and more unsustainable. It is a great time for agents to force traditional distributors.

In addition, everyone knows a little about the quality of their mobile phones. Even at the same price, the quality of their mobile phones will be worse than our Xiaomi. We should not underestimate our own capabilities and mobile phones made using the Internet model. quality.

Whether it is the MIUI system specifically designed for Chinese people, or our other cost reductions in addition to channels and other aspects, as well as the various leading black technology patents that Xiaomi cooperates with us, all can be counted as our competitive advantage.

Furthermore, it is now a big wave of smartphones rising in the world. Offline sales channels basically have no sales pressure. Two or three years ago, 7 out of 10 mobile phone stores on a street in Zhongguancun were selling Nokia. Now this number has dropped to a low level. Less than 5 homes.

These few mobile phone shops have begun to sell Samsung, LG, ZTE, Huawei and other smart phones. All channel vendors and agents are changing the track. If we don’t sell now, it will be better than now in two or three years. ?"