Crossing the epidemic economic cycle requires the entire industry in China to work together to overcome the difficulties.
Editor’s note: This article comes from ” Deep Web .
Original title “Talk to Xiaomi Lu Weibing: Technology has not lost Huawei, Xiaomi 10 released to increase confidence in the mobile phone industry”
Author | Ma Guanxia
Edit | Kang Xiao
Regarding the impact of the epidemic on Xiaomi, Lu Weibing admits that in terms of channels, because stores cannot be opened, offline channels have a greater impact, and online channels are mainly affected by logistics and distribution, but overall The impact is not too big; in terms of production, more and more factories are slowly returning to work. If the supply side has an impact on delivery, according to the characteristics of the epidemic, Xiaomi is also actively organizing a response.
On February 13, the online conference of Xiaomi Mi 10 was held as scheduled during the epidemic. As the first flagship product released by Xiaomi in its tenth year of establishment, Lei Jun has high hopes for Xiaomi Mi 10. He stated at the conference site that Xiaomi Mi 10 is the first high-end mobile phone that has hit the high-end market. “This is a special press conference under special circumstances. We look forward to the entire industry returning to normal production as soon as possible.” Lei Jun said, “Life can be affected by the epidemic, but we must not be defeated by the epidemic.”
Lu Weibing, President of Xiaomi China, accepted an exclusive interview with Deep Web before today ’s press conference. Lu Weibing told Deep Web that after the outbreak, Xiaomi executives have repeatedly discussed whether or not Xiaomi 10 ’s press conference should be held and how. In the end, we reached a consensus that the impact of the release on society and industry was positive, so we decided to adopt a pure online release.
The resumption of the company and this press conference after the resumption of work is only part of the work of the entire Xiaomi Group during the epidemic. Lu Weibing stated that starting from the 29th day of the lunar month when Wuhan closed the city, the Xiaomi Group began to mobilize a large amount of manpower and material resources to support Hubei and Wuhan front lines . “We started to collect materials on the 29th. In the early morning of the new year, the materials arrived in Hubei and delivered to the hospital. We donated three batches of materials in the past, which involved the entire company’s global procurement, transportation, and arrival. , And we were not only sent to a certain place, we were sent to the hospital, but also to several cities in Hubei in addition to Wuhan. “
Lu Weibing revealed that Xiaomi executives now discuss the situation during the epidemic every day. There is an epidemic working group inside Xiaomi. The main work of the epidemic working group includes collecting information from all aspects and judging the progress of the epidemic; it also includes understanding the internal situation of the company, discussing the adjustment of the company’s various strategies, ensuring the safety of employees, and caring about when the park can resume work. And communication with government departments.
Regarding the impact of the epidemic on Xiaomi, Lu Weibing admits that in terms of channels, because stores cannot be opened, offline channels have a greater impact, and online channels are mainly affected by logistics and distribution, but the overall impact is not too great; In terms of production, more and more factories are slowly returning to work. If the supply side has an impact on delivery, according to the characteristics of the epidemic, Xiaomi is also actively organizing a response. Lu Weibing said that Xiaomi will continue to increase investment in online channels. He believes that there are still many places to dig online. At the same time, Xiaomi is also communicating with various suppliers. After the resumption of work, Xiaomi will give more tilt and support to Xiaomi to minimize the impact as much as possible.
Lu Weibing estimates that China’s mobile phone shipments will be less than 300 million units this year. Previously, many mobile phone manufacturers were expecting the 5G mobile phone replacement wave to come this year, but 5G networks have not yet become widespread, 5G terminal prices have been high, and 5G killer applications have not yet appeared. arrival.
Regarding the current growth of the mobile phone industry under special circumstances, Lu Weibing said, “Is there a stimulating policy for the 5G market to allow users to switch from 4G mobile phones to 5G mobile phones as soon as possible? I believe that the growth of the entire industrial market should be Helpful. “
Lu Weibing is not worried about the future of the mobile phone industry. He believes that after the epidemic, the mobile phone market will usher in a rebound. “We analyzed SARS in 2003. There should be a rebound in consumer consumption in addition to mobile phones. Home appliances are facing home installations, and now home installations have stopped, so many demands are being squeezed there. “
Lu Weibing said, “Like Lei Jun said, life can be affected by the epidemic, but it must not be defeated by the epidemic.”
For the pattern and competition of China’s mobile phone market this year, Lu Weibing judges that the market share of friends and merchants has entered a downhill channel, and Xiaomi will unswervingly follow the high-end line on the Xiaomi brand.Benchmarking Huawei and Apple and benchmarking glory on the Redmi brand is a long-term strategy.
The following is a record of the conversation organized by Deep Web: Lu Weibing:
I. Work of Xiaomi during the epidemic
Deep Web: The online launch of Xiaomi 10 is the focus of Xiaomi’s recent work, and it is also the first time that the mobile phone industry has held a pure online new product launch. What is the significance of this new period of Xiaomi 10’s online new product launch to the entire industry and Xiaomi company?
Lu Weibing: In fact, we have discussed the launch of Xiaomi Mi 10 many times. When is it open? How to drive? Wait for these questions. Later we discussed and we reached a lot of consensus.
First, we think that the epidemic situation is having an impact. We also find that more and more people are very anxious on the Internet and are surrounded by various information every day. We think that everyone needs to come out of the anxiety of this epidemic, or to face life. And we also communicated with some rice noodles and with some partners. Everyone felt that we should not bring too much emotion into the epidemic, and life should continue.
Second, we want to get on track as soon as possible. This is very important. Because China is a closed loop of the global industrial chain, it is hard to come by and everyone needs to maintain it. In addition, we are in the industrial chain, we are consumer goods, we are the leader, we move, and the entire industry will move. More and more suppliers find us, we also communicate with the suppliers, they also hope that we will still release Xiaomi 10.
At the same time, we also communicate with major customers of e-commerce companies such as Tmall and JD. They also think that it is not possible to shrink back at this time, and the more signals are sent out at this time. In addition, everyone also knows that this product is very important for our Xiaomi. It is a product that has been in use for more than 10 years. We originally set up an offline conference venue for 3,000 people. We also want to make it very grand. At this time, we feel that using a pure online conference is like a conviction for society and industry. The impact is also positive, and in the end we decided we were going to do such a conference.
Deep Web: Will there be a similar conference in the future?
Lu Weibing: After we explore this time, it may be that some of our non-strategic products will be adopted later. In the future, strategic products will still be released offline. Because the offline release will involve media friends and Mi Fan, it is still different from online.
“Deep Web” : Will Xiaomi and Redmi make any adjustments to the rhythm of the next product release?
Lu Weibing: We will not make too many adjustments in the big rhythm. Although the epidemic situation has some impact on some of our projects, we are working hard to keep the progress of the original project. Make too many adjustments.
Deep Web: How did the entire Xiaomi Group work during the epidemic?
Lu Weibing: There are two sections. The first phase is before the Spring Festival. Because our staff is on vacation from the 29th of the lunar month, the day of the 29th of the lunar month was Wuhan announced the closure of the city, so starting from the 29th of the lunar month, the entire group is doing things, the first how to support Hubei and Wuhan front lines, we Material collection began on the 29th. On the morning of the New Year’s Day, the materials arrived in the local area of Hubei and were delivered to the hospital. We donated three batches of supplies in the past, which involved the entire company’s global procurement, transportation, and arrival, and we were not only sent to a certain place, we were sent to the hospital, but also to the entire Hubei except Wuhan In addition to several cities, this is the mobilization of strong human and material resources to do this. At the same time, we are also concerned about the impact of our employees in the epidemic situation, which is probably the case.
The second stage is the resumption of the company and the release of Xiaomi 10 after the resumption of work. At present, we still have a small number of employees return to work, most of the employees are still working remotely, and we still have to stick to this Thursday The development conference is about these two stages. While doing the work, we must do a good job of epidemic prevention.
Deep Web: Did Xiaomi’s senior management discuss the special situation during the epidemic?
Lu Weibing: That must be there. Xiaomi has an epidemic working group. The epidemic is the biggest thing. The epidemic in each company is now the highest level thing to discuss every day.
Deep Web: What did Xiaomi ’s epidemic working group do?
(Supplement): Xiaomi’s earliest epidemic working group has been running since the night of January 20. The main work is to collect information from all aspects, make judgments on the progress of the epidemic, and understand the internal situation of the company. In China, we will also first look at the major parks and office parks in China, except Beijing, in Wuhan.Han, Nanjing, Shenzhen, and Shanghai all have our working team, who pays attention to these matters every day, the situation of colleagues in each place, and the situation of office work. For example, Wuhan was the first to evacuate.
In addition, we will discuss the adjustment of the company’s various strategies, and also care about when the park can resume work, how to ensure the safety of employees and the office of the park, communicate with the government, and internally connect each Functional departments, HR executives must promptly inform and care for employees. We also need to participate in the evaluation and support of public welfare-related projects, and then we need to understand the evaluation with the relevant business departments, the impact on the business, and whether we need to adjust our business planning.
Second, how to deal with the impact of the epidemic situation
Deep Web: What impact did the epidemic have on Xiaomi’s sales channels and supply chain? How did Xiaomi respond?
Lu Weibing: Offline market stores are difficult to open during the epidemic. The impact of the online market is good. The online impact is mainly the impact of logistics and distribution. On the whole, we think it is good because our e-commerce ratio is higher than offline. On the production side, we are seeing more and more factories starting to resume work. In response to the possible delivery impact on the supply side, first, we communicate with various suppliers. After the resumption of work, is it possible for Xiaomi to carry out work in the short term? More tilt and support. Today, Xiaomi’s cooperation with our suppliers and other aspects, I think it is still good, to minimize this impact as much as possible, and then continue to increase our online investment.
Deep Web: What specific measures does Xiaomi have to invest in the online market?
Lu Weibing: We think there are still many places to dig online. To tell you the simplest truth, such as our Xiaomi network, our Xiaomi network for example, Xiaomi network has more than 1,000 SKUs, our Xiaomi home has only a few hundred SKUs, you will find when you shop Many things can’t be bought, can we connect online and offline? I went to Xiaomi’s House. Can I buy Xiaomi’s items directly at Xiaomi’s House.
Second, normally, users buy an item on Xiaomi.com and arrive in two days. We will reach the next day in 30 cities. Many people say whether I can buy my things in two hours. Can I place an order on Xiaomi.com, and the home of Xiaomi can be used for distribution. I just give an example, in fact, there are many such ideas.
III. Situation of Xiaomi in China
Deep Web: What did you do over the past two months when you took over Xiaomi China?
Lu Weibing: I am the president of China, the firstI feel that the responsibility is great, and China is still a very important strategic market in the Xiaomi Group. In addition, we are also facing very large external pressures. Of course, we also have very good opportunities. This is how we feel mentally.
Deep Web: You mentioned earlier that the Xiaomi brand will go high-end in 2020. What are the specific measures?
Lu Weibing: As the president of China, I first felt a great responsibility. China is still a very important strategic market in Xiaomi Group. In addition, we are also facing very large external pressures. Of course, we also have very good opportunities. This is how we feel mentally.
In the past two months, we have done several things. First, we have reorganized and determined our strategy in the Chinese market. This strategy is our dual-engine strategy of mobile phone + AIoT. If this strategy is better implemented and implemented in the Chinese market, this is the first thing;
Second, we streamlined the relationship between our two brands. In the past year, I have been managing the two brands of Xiaomi and Redmi. When these two brands were independent from the Redmi brand, the most important point in 2019 was to use the Redmi brand to inherit the original Xiaomi brand. Products and crowds will allow the Xiaomi brand to go high-end in 2020. Starting from Xiaomi 10, everyone can feel that Xiaomi brand is relatively quiet in 2019, and Xiaomi brand will start to exert force in 2020;
Thirdly, to sort out the channels, we must continue to increase investment in e-commerce, and at the same time we must accelerate the offline expansion of Xiaomi Home. And we think that the new offline retail represented by Xiaomi House is definitely the future direction. We believe that in the past few years, the pace of Xiaomi House’s offline expansion has been slow. We must speed up and continue. Through AI + big data advanced tools and technologies, we can improve the accuracy of our decisions and improve our efficiency;
Fourth, upgrade services. We believe that Xiaomi must serve our customers well and our customers well. We have done a lot of content on the service, to give you the simplest example, we made a Xiaomi website a year ago from the original 159 yuan package to 99 yuan, which is very popular with rice noodles And we try to benchmark Jingdong in 30 cities. Jingdong’s service is a benchmark in the industry, and 30 cities can reach the next day, which is very welcome.
Deep Web: This year, you encountered a special situation such as the epidemic. How do you plan to go for Xiaomi China?
Lu Weibing: The Chinese region will also follow this direction throughout the year, just to implement this matter. We also have a very important talent team and the introduction of excellent talents. This is what we need to do throughout the year. We need a lot of excellent talents in the future.Show talent.
Deep Web: What do you think of the competition between Xiaomi and your friends?
Lu Weibing: First, this is a long-term, everyone is very strong, this is a long-term battle, it must be a long time;
Second, Xiaomi will unswervingly benchmark Huawei and Apple on the Xiaomi brand and honor Glory on the Redmi brand. This is a long-term strategy and unwavering;
Third, the market share of friends and merchants has come to an end, and it has entered a downward trend. Friends are not asking for 50% of the market share. At present, it is up to 37%, and we see a continued decline. p>
Fourth, in the strategy of mobile phone + AIoT, they are seriously behind us and are plagiarizing us. As long as we don’t make mistakes ourselves, they must be behind, and we will increasingly see our lead.
Four, Xiaomi 10’s online conference and follow-up planning
Deep Web: From a veteran industry perspective, what do you think is the most needed support for the mobile phone industry during the epidemic? What kind of support is most valuable?
Lu Weibing: First, the market for mobile phones in the Chinese market has already fallen in the fourth quarter. At its peak, the Chinese mobile phone market shipped 480 million units a year. I estimate this year will be low. 300 million units. With the release of 5G, we have all switched to 5G mobile phones. The cost increase of 5G mobile phones compared to 4G mobile phones is very large.
For 5G, it should be said that the strong application that drives users to switch phones has not yet come out, so under such circumstances, is it possible to have a stimulating policy for the 5G market, allowing users to switch from 4G mobile phones to 5G as soon as possible? Mobile phones, I believe it should be helpful for the growth of the entire industrial market. Of course, for Xiaomi, we hope our users can appreciate the Xiaomi 10 product.
The impact of mobile phone consumption is so great, and 5G is invested so much. If everyone uses 5G mobile phones less, the tariff will be difficult to come down, a vicious circle. With fewer people, the application will be slower, and the application will be slower, and the popularity will be further slowed down. As soon as possible, the more people use it, the tariffs will be applied, and 5G can be truly commercialized.
Deep Web: Do you think the mobile phone market will have an explosive rebound after the epidemic has passed?
Lu Weibing: There should be a rebound. In addition to mobile phones, there is a home appliance. Every home appliance is facing home installation. Now home installation has stopped, so many consumer demands are currently under pressure. Over there.
Like Lei said, “Life can be affected by the epidemic, but it must not be defeated by the epidemic.”