Seem like Xiaomi’s CEO ‘Lei Jun’ is busy in promoting the latest Xiaomi products and it doesn’t include smartphones only. Thus, along with promotions he also explained Xiaomi plan to the foreign lands. He even clarified many misconceptions on Xiaomi’s acts.
Today, China E-commerce Development Summit 2016 was held in Mianyang, Sichuan Province. In the summit, Lei Jun (Xiaomi’s CEO) at the beginning of his speech said that the world outside China has many misunderstandings` about Xiaomi, which even spread to one of his friends. He further explained one of the biggest misconceptions that people see Xiaomi as smartphones manufacturer. Some don’t even know other products by Xiaomi also exist. He said:
is known not to focus selling smartphones only, but also fans, televisions and other 20 kinds of different products. I think that Taobao is the (line) shopping Mall, Jingdong supermarket, Xiaomi is a store brand or eletronic produtcs supplier. Selling smartphone only is limited, require intervals, and in the next 12 years, there will be a lack of smartphone traffic in an infinite loop. So more electronic products should be sold to the users.
Lei Jun justified that he was in his 40s and financial free when he discovered Xiaomi. As the founder of Xiaomi, he explained that the original intention of Xiaomi. It was to give the most affordable, premium products to the world. But, people have no knowledge about Xiaomi, so they say consider it as other ‘Made in China’ products which they think as cheap and low-quality products. They should know that Xiaomi is a brand, China’s national brand, and one of the best smart products manufacturer. He gave an example of shirts. He said that people buy $50 to $100 shirt in America from expensive malls. They think that as it’s expensive and branded, so it’s good. But in reality, the cost of the best shirt is only 100 yuan ($15).
In Lei Jun view, this phenomenon is the most fundamental reason for inefficiency:
To sell things, Chinese brands spend that much to the market, shops, promotional money that they desperately compress the manufacturing cost. That is why the efficiency of American manufacturers was a lot higher than us.
Lei Jun believe that consumers buy things very often based on money, not the commodity. He thinks he has found the secret, namely the transformation efficiency, how to spend the cost of manufacturing, with sales close to the price of expensive technology.
Currently, Xiaomi is trying to enter the retail line. According to the plan, in the future will there be 1000 Mi Stores and Xiaomi will become a retailer company, worldwide.