Lei Jun has been telling a story about the ecological chain of Xiaomi. As early as the beginning of 20 13, Lei Jun began to put forward the concept that the Internet of Things is the next 100 billion market, and gradually formed an integrated ecosystem of hardware+software+cloud storage around this Xiaomi mobile phone. Finally, on 20 19 and 1 month, Xiaomi defined the development of this ecosystem as a company's dual engine.
How powerful are many businesses of Xiaomi? At least 20 19 Q 1 financial report shows that the revenue of a beat business reached120.43 million yuan, accounting for 22.4% of the total revenue. The operating income of this business increased by 56.5% year-on-year, much higher than the 16.2% of the mobile phone business. This shows that Xiaomi's A lot business has been independent for many years.
Thanks to Lei Jun's angel investor experience, Xiaomi Company mainly seeks for growth companies that can match Xiaomi's ecological chain by setting up Tianjin Jinxing Investment Co., Ltd., a wholly-owned subsidiary. The investment strategy revolves around Xiaomi's ecological chain for industrial layout, and the product line is cultivated with the concept of non-holding investment and non-intervention. The equity share of most target companies does not exceed 30%, which not only keeps the products or services produced by the invested companies closed in the platform of auction and loan, but also maintains the independence and autonomy of all R&D teams and participants through a positive and open attitude. Finally, an intelligent product line from mobile power supply to air purifier, sweeper, rice cooker, notebook computer, TV, washing machine and even air conditioner was formed. The complexity and richness of its products under the ecological chain exceed the traditional influence of the public on Xiaomi, and Xiaomi Company is no longer simply equated with mobile phones. This method of building an ecological chain through investment can be seen from the map of Xiaomi's investment.
The quiet rise of Xiaomi Mall, Xiaomi Youpin and Mijia not only means that many Xiaomi are rapidly maturing, but perhaps Lei Jun said that "Xiaomi should be a MUJI in science and technology" will soon be realized.
1. Define the strategic objectives of enterprise development. Xiaomi mobile phone is only the foundation and carrier, and realizing the ecological chain of artificial intelligence Internet of Things is the ultimate goal of Xiaomi. Lei Jun should have established the development strategy of Xiaomi Company when he saw the development potential of the Internet of Things on 20 13. In fact, this development strategy runs through the development process of Xiaomi Company in the past six years, so you can see from the financial data of Xiaomi Company q 1 20 19 that although the revenue contribution rate of Xiaomi mobile phone is declining, thanks to the rapid development of lot business, Xiaomi has gradually got rid of the right.
2. Correct technology-driven development model. Although MUNI system has played an important and key role in the development of Xiaomi, under the influence of Xiaomi's early limited sales model, more people think that Xiaomi is an excellent marketing innovative company, and it is hard to say that it is a technology-driven enterprise. Xiaomi may have realized long ago that the core of many (artificial intelligence Internet of Things) lies in AI rather than hardware. After all, any hardware products of Xiaomi have more mature competitors than Xiaomi on the road. To this end, Xiaomi made efforts in the AI field early. At present, the global ranking of the total number of patent applications in the AI field is 1 1. As of the first quarter of this year, Xiaomi has applied for more than 1000 patents related to many things.
Interestingly, compared with many smart products in the Xiaomi ecological chain, Xiaomi seems to have a differentiated competitive advantage. Compared with traditional hardware manufacturers, it has an AI advantage that they can't understand. In the eyes of competitors in the AI industry, Xiaomi also has geometric leading hardware design capabilities.
To become a millet empire, the road to millet has a long way to go and there are countless challenges.
The first thing to face is the peak effect of mobile phone business. Before the full commercialization of 5G, it can be expected that the domestic mobile phone market will stabilize, and it will remain at around 450 million for a long time. Under the killing of mobile phone brands such as Huawei, Apple, vivo, oppo and Yijia, Xiaomi mobile phone will face the peak effect, and it is difficult to have more room for growth; However, the overseas market is restricted by patents, and the market is relatively single, more concentrated in the Indian market. With the decline in the contribution rate of mobile phone business, it may drag down the development of Xiaomi's overall business.
Secondly, Xiaomi's A lot business lacks a core layout, chip, chip or chip, which is the key core competitive content. Xiaomi Company tried to make efforts in the field of chips, but after the release of S 1 in February 20 17, Xiaomi's chip business disappeared. In business, the chip is indeed a high-input, high-risk, high-barrier industry with late return. Under the background of Sino-US science and technology war, Huawei time proved that the chip is equivalent to the neck of enterprise development, and it is destined to be only a worker in the industrial chain in the hands of others for a long time, but it is just right.
Finally, the intensification of competition risk may lead to the decline of Xiaomi's fault tolerance rate. Whether it is hardware or software, with the rapid improvement of domestic scientific and technological capabilities and manufacturing capabilities, the homogenization competition trend will become more obvious. To some extent, the competitive advantage and gap of Xiaomi products in consumer experience are gradually narrowing. At present, the development of the Internet of Things is still in its infancy, and the Xiaomi ecological chain is far from complete. For Xiaomi, the fault tolerance rate on the development road is decreasing, and the competition risk is obviously intensified.
To sum up, Xiaomi's imperial road is destined to be an extraordinary and arduous road.