Reborn multinational giant

Fang Zhe's words were shocking!

All the executives here are aware that, indeed, now is the best time for Xiaomi to launch its offline efforts. If you miss the current smart phone wave sweeping the world, Nokia and other established mobile phone manufacturers will be defeated, and the major mobile phone manufacturers will fight for the market. In two or three years, it may be even more difficult than it is now!

Next, Fang Zhe mentioned a key point that made all the executives realize that it seems that Xiaomi is not doing offline now, it will not work, that is, after-sales!

No matter how well Xiaomi sells online, a sufficient number of after-sales repair shops must be opened offline, because this is directly related to Xiaomi’s brand reputation and service quality. No matter how good Xiaomi phones are, no matter how high the cost performance is, if the phone is sold after sales If it doesn't, it will inevitably be criticized by consumers. Don't think about repeat customers buying Xiaomi products.

Therefore, since the official launch of the Xiaomi M1 last year, Xiaomi has opened an offline after-sales repair shop and the voice of opening an offline experience store has become louder and louder among Xiaomi's top management.

Because no matter in terms of logistics costs, user experience, business management, etc., Xiaomi cannot allow users who need after-sales and repair services to send their mobile phones to the government by mail, so it is imperative to open an offline after-sales repair shop. thing.

In that case, it seems that Xiaomi authorized stores or direct-operated stores that integrate experience and sales, after-sales service and maintenance, seem to be a very worthy consideration!

However, executives still feel a little confused about how Xiaomi’s entry into the offline market should grasp the balance between the core competitiveness of online cost-effectiveness and the increase in offline channel costs. It is still Hongfeng, and still speaks for everyone:

"President Fang, don't sell it. Since you are very supportive of Xiaomi's entry into the offline world, you should have an idea about what to do in this regard. You might as well say it for us to listen to. You have a bottom line.

Especially now that we are doing offline work, it is likely to shake the foundation of our core online competitiveness and cost-effectiveness, so we want to hear what you said about this scale, how to master it?"

Hearing Hong Feng's question, Fang Zhe turned his head and looked at Mr. Lei, then said with a light smile:

"There is no question about whether you think about it or not. I have to have an idea. I must first discuss it with Mr. Lei.

But now that I'm talking about it, I will also briefly say a few points: First. One of our current core competitiveness of Xiaomi is the cost-effectiveness of the cost conversion of online sales channels, so this point cannot be easily changed in any case , But it can be adjusted!

In business, business, business, if we can get the first place with 90 points, then we don’t have to do 100 points. This will not force ourselves too much, so that our products always have room for improvement, and can also be lowered. Part of the cost reduces the price gap with offline sales.

The second point is that offline and online prices are different, or to put it bluntly, offline is more expensive than online, because no matter how we save, the offline store channel cost cannot be saved. Whether we do our own direct-sales stores or authorize the sales rights to distributors and retail stores, everyone needs to be profitable.

The online Mi 1 can be sold for 1999 yuan, and offline we can give a guide price at most. As long as we can guarantee our competitive advantage compared with other manufacturers, we should give offline merchants enough independent pricing power!"

Just after Fang Zhe finished talking about two points, the executives in the conference room were speechless. Online is cheaper than offline?Although this is very common in the e-commerce industry, does it work in the mobile phone industry?

"If the online price is cheaper than offline, will offline mobile phones still be sold? Will there be channels and agents selling our mobile phones?" an executive asked with disbelief.

"Yes!" Unexpectedly, it was Hong Feng who had just asked Fang Zhe to answer him.

"Online is cheaper than offline. This is a cognition fact brought to everyone by the development of e-commerce for so many years, and there are a large number of fixed consumer groups in offline channels, even if you tell him that buying mobile phones online can be hundreds or even cheaper For thousands of dollars, he has to buy it offline and in a physical store. This traditional shopping concept cannot be eliminated every ten or eight years.

Some time ago, I wanted to buy a refrigerator for my mother on JD.com. She said that the things on the Internet were not reliable, and in the end she had to spend a thousand two extra money in a physical store!"

"Even so, I still feel that channel vendors and agents are unlikely to be willing to sell our mobile phones. There has never been a mobile phone manufacturer in the mobile phone industry that directly sells mobile phones. The purpose is to protect the profits of the channel vendors and agents. If we sell directly , That must offend them to death!"

"Aren't we just manufacturers selling mobile phones directly..."

"..."

There was a burst of laughter from the executive’s funny speech in the conference room. After the laughter ended, Fang Zhe continued:

"At the beginning, Xiaomi chose to do cost-effective and online channels because Xiaomi is a startup company with no connections, resources, and technology accumulation. It can't compete with the big manufacturers of China Cool Alliance. However, as time goes by, our shortcomings Slowly making up, and do you know what I am most optimistic about Xiaomi’s core competitiveness?"

The executives looked at each other, and I looked at you. They didn’t understand what Fang Zhe wanted to say. Fang Zhe didn’t sell it anymore. He said:

"I am most optimistic, it is Mr. Lei and our group of people, it is the original intention of Xiaomi!

A few years ago, when Xiaomi’s valuation was only 200 million U.S. dollars, I said that our Xiaomi entrepreneurial team was worth 100 million U.S. dollars. Many people outside thought that I was bragging, and some even ridiculed me as the chief consultant. Worth 50 million US dollars.

Now Xiaomi has grown up after nearly two years of development, and many new members have joined Xiaomi. The value and potential of our team is even more immeasurable.

What are the characteristics of the mobile phone made by our team?In addition to cost performance, we are doing our best from the operating system MIUI, to the process design, to any detail. We are all using the Internet mode and making mobile phones with the thinking of working hard with users.

The gross profit margin of our Xiaomi mobile phones is less than 5%. Can any mobile phone manufacturer on the market dare to say this?

These are our competitiveness and are our capital that is more expensive offline than online. I believe that even with the same price of mobile phones, the quality of our Xiaomi phones will surpass most of the mobile phones on the market today!"

Fang Zhe’s remarks were very encouraging to the morale of Xiaomi’s top executives. Although Xiaomi will face many difficulties when entering offline, Fang Zhe believes that with the capabilities of Lei and the Xiaomi team, these difficulties can be solved, not to mention, There is also his big boss of the domestic No.1 company plus the rebirth guide.

Fang Zhe remembered Xiaomi’s strategy of entering offline a few years later, new retail and online and offline prices were the same. The reason why Xiaomi played these banners and ways is nothing but because the traditional channels have been used by China Cool Alliance and the rising vivo. Mobile phone manufacturers such as oppo have cleaned up, and Xiaomi has no power to compete. As for now, if it can, why not?

This strategic meeting of Xiaomi basically established an important decision for Xiaomi to enter the low-end mobile phone market and offline in the next two to three years. With the continuous efforts of Xiaomi, Huawei and other mobile phone manufacturers in the low-end mobile phone market, domestic mobile The popularity of the Internet is getting deeper and hotter!

In this kind of enthusiasm, Momo, the star entrepreneurial project that took the top spot in the China Internet Entrepreneurship Competition some time ago, is officially launched in China!