Lei Jun responded to Meizu Huang Zhang’s "stealing the teacher’s theory" and "his family’s words"
Xiaomi is "off the chain"
Source: zebra consumption
If you are separated for a long time, you will be separated.
Since 2014, Xiaomi Group has spent tens of billions of yuan and invested in more than 300 companies, forming a strong ecological circle around it.
With the advantages of Xiaomi’s brand, channel, flow, capital and supply chain, Xiaomi eco-chain enterprises have grown rapidly and formed a strong relationship with Xiaomi.
However, when these enterprises grow up, they have gradually realized that it is difficult to be strong simply by relying on Xiaomi. Only by building their own brands can they master their lifeline.
So,"De-millet" has become a unified proposition for Xiaomi ecological chain enterprises.As a result, the contribution from Xiaomi has fallen sharply, and the rapid growth in the short term is no longer there.
For Xiaomi, the income from commodity trading in the past has been saved, and greater gains will be harvested from the secondary market after these enterprises go public.
Ecological chain
The feud between Lei Jun and Huang Zhang, the founder of Meizu, is almost a case-solving in the science and technology circle.
Huang Zhang didn’t have a prestigious school background and dropped out of high school, but he was obsessed with electronics and electrical appliances. At the end of 2002, he founded Meizu and set foot in the prevailing MP3 market at that time. With excellent products and operational capabilities, Meizu MP3 gained numerous fans.
At that time, mobile phones were still in the era of functional machines, and all mobile phone manufacturers were focusing on selling points such as color screens and chords. In January 2007, atIn San Francisco, USA, on the west coast, Apple released its first iPhone, which opened the era of smart phones.
Huang Zhang quickly noticed the changes in the industry. In 2008, he led Meizu to start imitating Apple and switch to the mobile phone industry. Meizu became the pioneer of smart phones in China.
At that time, Lei Jun had stepped down from Jinshan and became an angel investor with money and leisure.
Lei Jun and Huang Zhang once knew each other. At one time, Lei Jun wanted to invest in Meizu, and Huang Zhang wanted to invite Lei Jun to be the CEO of Meizu.
In Huang Zhang’s office in Zhuhai, they had a coke and had an in-depth discussion on the new iPhone products. Huang Zhang made no secret of Lei Jun, and told Lei Jun all kinds of "secrets" about Meizu’s mobile phone.
To Huang Zhang’s surprise, Lei Jun soon made a Xiaomi mobile phone and became his direct competitor. Since then, the two sides have made bad friends.
What Lei Jun learned from Huang Zhang is not only how to make mobile phones, but also the operation of "fan economy".Meizu’s fans are called "Charming Friends" and Xiaomi’s fans are called "Rice Noodles".
Winner and loser. Lei Jun’s "stealing the teacher’s theory" to Huang Zhang simply passed it by saying "his family’s words" and stopped responding.
When Xiaomi was born, it coincided with the transition period of China’s mobile phone market from functional machine to intelligent machine. With the extreme cost performance, superb market operation ability and the assistance of e-commerce, Xiaomi quickly changed from a silver carp to a giant crocodile.
In 2013, the annual shipment of Xiaomi has reached 60 million units, ranking first in the China market, completely disintegrating the era of "China Cool Alliance".
Behind every Xiaomi mobile phone, there is a "rice noodle". Many of them are Xiaomi’s diehard loyalists and regard Lei Jun as YYDS. Every new product launch of Xiaomi is as lively as a star concert, and it is hard to get a ticket.
Starting the brand and mastering the traffic entrance, it is logical to build the Xiaomi ecological chain.
The logic is simple. Users can use a Xiaomi mobile phone for a long time, increase ecological chain products, and maximize the value of traffic. In addition, the launch of eco-chain products enhances user stickiness and further strengthens the outside world’s awareness of Xiaomi’s ultimate cost performance. Of course, Xiaomi can make more money from this.
From charging treasures, headphones and smart speakers around mobile phones to household appliances such as air purifiers, televisions and rice cookers, as well as daily necessities such as towels, toothbrushes and suitcases, all of them are labeled as Xiaomi and enter its sales channels.
(of a bicycle chain) come off
With so many categories, Xiaomi can’t go off to do it himself. Exchange funds, channels and other resources to support a number of enterprises and turn them into "small rice", which will come faster.
In 2014, it was the first year of the Xiaomi ecological chain.In a short time, behind Xiaomi, a number of enterprises named after "rice" were born, such as Zimi, Yunmi, Huami and Zhimi.
This is an era when explosives fall out. In the early days, the categories selected by Xiaomi were mostly obscure electronic products. The market competition of these categories is scattered, "there are big markets but no big brands", and small and medium-sized manufacturers share most markets like countless ants, with opaque prices and uneven product quality.
Inside Xiaomi, these are called "ant markets". With a huge user base and cost-effective advantages, once Xiaomi enters, it can penetrate these markets in one fell swoop and seize market share.
The market price was as high as 200 yuan’s charging treasure, and Xiaomi went to 69 yuan; The air purifier, which costs four or five thousand yuan, hit 699 yuan; Six or seven thousand sweeping the floor, directly to the thousand yuan level …
With the expansion of categories and the growth of sales scale, a number of billion-level and billion-level enterprises have been born in Xiaomi’s ecological chain system.
Huang Wang, high flyers, Department of Physics, Chinese University of Science and Technology. In 1997, after graduating from college, he went south to Shenzhen, where he held a high salary of 100,000 yuan/year. After only one year, he resigned and returned to Hefei to start a business.
I have done tablet computers, smart watches, etc., and it is not successful.
Until 2013, Lei Jun found him and asked him to "leave everything behind and do a big thing together." Huang Wang personally hid all the original projects of the company, and jointly invested in the establishment of Huami Technology with Xiaomi to concentrate on developing bracelets for Xiaomi.
Boarding the big ship Xiaomi, Huang Wang finally got a long-lost pleasure. Once the first generation of Xiaomi bracelet in 79 yuan was launched, it quickly detonated the market, and its sales volume exceeded 10 million in one year.
In 2017, Huami’s revenue exceeded 2 billion yuan, of which more than 80% came from mi band. In February of the following year, Huami Technology successfully registered on the New York Stock Exchange and became the first listed company in the Xiaomi ecological chain.
The rapid growth of the company did not make Huang Wang lose his mind. He didn’t want to be only the foundry of Xiaomi, and he was planning to "go to Xiaomi" very early.
Since September, 2015, Huami has successively launched its own brands, Amazfit and Zepp, and has been involved in many categories of products, such as smart bracelets, watches, sports headphones, treadmills, weighing scale and body fat scales.
With the growth of independent brand income, Huami’s dependence on mi band has gradually decreased.The direct consequence of this is that the rapid growth that has lasted for many years is no longer. In 2021, the company’s revenue even fell by 2.8% year-on-year.
The same story happened in the balance car for Xiaomi.Do sweeping robots.On me.
Since the beginning of this year, Xiaomi has sharply reduced the amount of cooperation with No.9 company. In the first half of the year, it dropped by 59.18%, and Q3 dropped by 58.47%, which directly led to the end of the high growth of No.9 Company.
The same is true in Roborock. In 2020, the company’s sales to Xiaomi were still 420 million yuan, which dropped to more than 69 million yuan in 2021, and only 10 million yuan in the first half of this year.After Roborock’s solo flight, Xiaomi introduced Yunmi and Zhui, two eco-chain enterprises, to fill the vacancy, and found another Shenzhen Yinxing intelligent OEM Xiaomi brand sweeping robot.
Big harvest
In the process of building the Xiaomi ecological chain, there is another invisible hand of capital. According to Xiaomi’s 2021 financial report, the company has invested in more than 300 companies with a total book value of 60.3 billion yuan, a year-on-year increase of 25.7%.
In the investment in related enterprises, Xiaomi and its related parties often join hands with Shunwei Capital to expand the market and make profits in commodity trading, while promoting the listing of eco-chain enterprises and obtaining more considerable investment income.
After Huami Technology, the Xiaomi ecological chain has successively produced Yunmi Technology, Roborock and No.9 Company.And many other listed companies.
However, not all Xiaomi eco-chain enterprises have the same luck as these brother enterprises.
Sushi Technology is an enterprise specializing in oral care, hair care and hairdressing care. It was established in June 2015. One year later, it got the investment from Xiaomi and became a member of Xiaomi’s ecological chain. The company’s revenue consists of its own brand and Xiaomi’s customization. From 2019 to 2021, the related transactions between the company and Xiaomi contributed more than 50% to the company’s total revenue.
In November last year, Sushi Technology submitted a prospectus to launch an impact on the Growth Enterprise Market. Xiaomi holds 8.57% equity of Sushi Technology through Tianjin Jinmi, and its related party Shun Shun holds 10.90%.
The exchange made a key inquiry on the issue that Xiaomi is not only an important shareholder of the company, but also the largest customer. On August 3 this year, Sushi Technology suddenly withdrew its listing application documents, and the Shenzhen Stock Exchange decided to terminate its listing review.
In July last year and March this year, Easy Smart, smart commercial equipment for Xiaomi’s customized intelligent lighting products, and Shangmi Technology, a corresponding supporting "terminal and cloud" integrated service enterprise, successively won science and technology innovation board.
Even so, the pace of listing of eco-chain enterprises may have exceeded Lei Jun’s expectations, and Xiaomi ushered in the harvest period of investment. In 2021 alone, Xiaomi gained a net income of 3.3 billion yuan after tax by disposing of the investment. According to incomplete statistics, Xiaomi Heshun has cashed in more than 2 billion yuan and 3 billion yuan respectively by reducing the holdings of No.9 company, Roborock and other eco-chain listed companies.
The harvest continues.
According to Company No.9, from November 18th, 2021 to June 5th, 2022, People Better controlled by Xiaomi reduced its holding of 17,269,900 custody certificates by RMB 35.01-69.56, and cashed in RMB 965 million. Shunwei completed the reduction of 21.1407 million depositary receipts before May 12 this year, and cashed in 1.18 billion yuan.
On June 21st, People Better and Shunwei have disclosed the new reduction plan, which is even more fierce.
On February 21st, 2020, Roborock landed in science and technology innovation board with the aura of Xiaomi Eco-chain Enterprise, and the issue price was 271.12 yuan/share, which set a new record for the highest issue price in science and technology innovation board at that time. Just 16 months later, on April 30, 2021, the company’s share price exceeded 1,000 yuan, becoming the second 1,000-yuan stock in Shanghai and Shenzhen stock markets after Maotai.
Shun took the lead. From March 16th to April 14th, 2021, the company reduced its holdings and cashed in 594 million yuan at an average price of 954.8-1,205.01 yuan. Tianjin Jinmi followed closely, cashing in 1.65 billion yuan at an average price of around 1,000 yuan. In June this year, Shunwei disclosed a new reduction plan of no more than 6%.
In mid-2021, Roborock’s share price once approached 1,500 yuan, and its market value approached 100 billion yuan. After that, all the way down. At the close of November 1, the company’s share price has fallen to 244.50 yuan/share, with a market value of less than 23 billion yuan.