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Re-adjustment of Xiaomi Architecture: Strengthening China's Market Position and Enhancing IoT Business Weight

via:新浪科技     time:2018/12/14 1:01:54     readed:384

With this adjustment, Xiaomi intends to further strengthen the investment in the Chinese market and consolidate overseas markets; at the same time, it will increase the weight of TV and IoT services. This is particularly important in the context of the increasingly fierce competition in the Chinese smartphone market.

Strengthening the business status of China

In this adjustment, Xiaomi reorganized the sales and service department into China, and appointed senior vice president Wang Chuan as the president of China to report to the CEO. Xiaomi said in the internal mail to strengthen investment in the Chinese market.

Xiaomi’s third-quarter earnings report released recently showed that Xiaomi Group achieved revenue of 50.846 billion yuan, an increase of 49.1% year-on-year. Among them, mainland revenue increased by 20.9% year-on-year to 28.5 billion yuan, while international market revenue increased by 112.7% year-on-year to 22.3 billion yuan. In the third quarter of 2018, international market revenue accounted for 43.9% of total revenue.

In contrast, in 2015, 2016, 2017, the first quarter and the second quarter of 2018, Xiaomi's overseas market revenues were 4.056 billion yuan, 9.154 billion yuan, 32.081 billion yuan, 12.47 billion yuan and 16.4 billion yuan respectively. The proportion of the company's total revenue was 6.07%, 13.38%, 27.99%, 36.24% and 36.3%, respectively. This quarter's 43.9% also achieved a new high in overseas business.

Xiaomi's overseas market is undoubtedly making rapid progress, but the domestic market cannot be taken lightly. In the context of the saturation of the Chinese smartphone market, the battle between the Huami OV Big Four is even more intense.

In February of this year, Lei Jun proposed in the domestic market the slogan of comprehensive counterattack and preparation for the 2019 local victory. And set a new goal: within 10 quarters, the domestic market returned to the first. According to IDC's recently released China's smartphone market data for the third quarter of 2018, Xiaomi ranked fourth in terms of shipments.HuaweiAfter, vivo and OPPO.

The strategy adopted by Xiaomi in the Chinese mobile phone market this year is to optimize the product architecture and strengthen the performance of the high-end flagship market. According to the data released by Xiaomi, the shipment of Xiaomi 8 series exceeded 6 million units as of October 6.

In addition, Xiaomi has further accelerated in the construction of new retail. Lei Jun has previously said that this year is the first year of Xiaomi's new retail scale. It will continue to promote the new retail system of online and offline integration. In fact, Xiaomi has tried online and offline channel discounts and experience consistently in this year's Double 11 Fusion linkage. In this adjustment, Zhang Jianhui was appointed as the vice president of China, responsible for offline sales; Li Mingjin was appointed as the vice president of China, responsible for online sales. The new retail of Xiaomi may be further accelerated.

In the international market, Xiaomi will transfer Wang Lingming, vice president and general manager of the sales and service department, to the vice president of the international department, and report to Wang Xiang, head of Xiaomi International Business. To a certain extent, it also helps to export the experience of the Chinese market and further consolidate and expand overseas markets.

Enhance business weights such as TV and IoT

In this adjustment, the original sales operation was part of sales and operation and sales and operation. Sales and operation department, responsible for mobile phone sales and operation in China, appointed Shuai Shuai as general manager, reported to Wang Chuan; sales and operation department 2, responsible for sales and operation of TV, eco-chain and other products in China, appointed Jiang Cong as general manager Report to Wang Chuan.

The establishment of a dedicated sales and operation department for TV and eco-chain products also means that the weight of Xiaomi IoT products has been improved. Xiaomi intends to further accelerate the development of ecological chain IoT products in addition to the mobile phone business.

The overall decline of the smartphone industry in China and the global market has become a consensus, and Huawei, OPPO and vivo have also increased their investment in IoT. For example, Huawei's HiLink platform has also launched Huawei's smart selection brand with third-party manufacturers; OPPO and vivo have established IoT with a number of manufacturers including Midea, TCL, Dahuale Orange, Cobos, Sunlight and Extreme Technology. Open ecological alliance.

In addition, more categories beyond the mobile phone have become the consensus of manufacturers. Recently, OPPO CEO Chen Mingyong revealed that OPPO will enter more mobile terminal fields in the future, such as smart watches and smart homes. One plus has previously announced that it will enter the smart home field, starting with TV products.

For Xiaomi, it is the early IoT of smartphone manufacturers. Xiaomi’s previously released data shows that its IoT platform has connected more than 132 million smart devices (excluding mobile phones and laptops) and processes up to 80 billion requests per day.

Xiaomi's IoT products have also contributed a lot to Xiaomi's earnings. In the third quarter of 2018, Xiaomi IoT and consumer goods business revenue was 10.8 billion yuan, an increase of 89.8%. Global sales of smart TVs increased by 198.5% year-on-year, including 5 million units worldwide in the first three quarters, and the first monthly sales in October 2018 exceeded 1 million units. In addition, Xiaomi Smart TV entered the Indian market in February 2018. According to IDC data, Xiaomi has become India's leading smart TV brand.

Sina Technology has learned that Xiaomi will make a contribution to the field of electricity in the next year. The millet air-conditioning business is still in the test and verification state in 2018, and will fully exert its efforts in 2019, trying to find a breakthrough point in the field of white goods. At the same time, Xiaomi is exploring the strategy of brewing “Explosive 2.0”, and the ecological chain field will be one of the main battlefields.

After the restructuring of the structure in September this year, Lei Jun said at the time that this was only the beginning of the adjustment of the Xiaomi structure. “The company has nearly 20,000 people. This adjustment involved more than 4,700 employees in the original four departments (MIUI, mutual entertainment, eco-chain, TV). The mobile phone department, sales and service department only received some spun off teams. Not within this adjustment."

This time, Xiaomi's sales and service department has also made adjustments. At present, only the mobile phone department has not been adjusted and optimized. The Xiaomi mobile phone business has also made new progress in the near future. When it announced its third-quarter earnings report, it announced that it has reached a strategic cooperation with Meitu Mobile. Xiaomi will obtain the brand and video technology license of Mito mobile phone. At this point, Xiaomi already has five smart phone brands, namely Xiaomi, Red Rice, POCO, Black Shark and Mito.

Lei Jun also revealed that in the next two years, Xiaomi will certainly carry out a series of adjustments and optimizations.

Sina Technology Zhang Jun

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