\n
Xiaomi<\/a> Corp. says it’s misunderstood. Once compared with Apple<\/a> Inc. for its sleek smartphones and charismatic leadership, the Chinese startup is seeking an image makeover as it tries to recover from a sales-growth slide.
\n
And the brand its billionaire co-founder Lei Jun<\/a> wants to be compared with: Costco Wholesale Corp<\/a>., the Issaquah, Washington-based warehouse retailer that sells everything from wine and diamond rings to bulging boxes of cereal and fruit at knockdown prices. Xiaomi’s revenue will probably reach $15 billion this year as the Beijing-based maker of products ranging from pens and air purifiers to TVs and smartphones adopts a new business model and fine-tunes operations, Lei, 47, said in a recent interview.
\n
\n\"We are not Apple,” Lei, clad in a black polo shirt and blue jeans, said at Xiaomi’s Bengaluru office in India, its biggest overseas market. \"We have the same value system as Costco. We want users to enjoy better products at an affordable price.”
\n
\nWhile Apple commands premium prices and enjoys the highest margins in the brutally competitive $425 billion global smartphone industry, Costco sells merchandise at razor-thin profits while fueling earnings from its 35 million annual memberships. As Xiaomi embraces a new strategy to fuel growth, Lei’s goal is to pull in more revenue from apps and services, which delivered $1 billion in sales from 10 million-plus monthly active users last year.
\n
\nIt’s a far different strategy than the one it used to claim the top spot among China’s smartphone makers and a valuation of $45 billion that made it, briefly, the most valuable startup in the world. Instead of the online flash sales and inexpensively-sourced components that it used to disrupt the mobile industry, Lei wants to bring internet-inspired efficiency to offline commerce. He’s also turning to India to revive Xiaomi’s fortunes as China grows more competitive.
\n
\n‘Make History’<\/strong>
\nHere, 20-something workers in denim jeans and T-shirts huddle in groups or sit behind shiny white desks separated by foot-high red, yellow and green partitions. Exposed-brick support columns and tube lights suspended below bare pipes and air-conditioning ducts make the office feel more like it’s inside a Brooklyn loft than an industrial park.
\n
\nDozens of circular mobiles swing from the lights, with phrases encouraging staff to \"Let’s make history together.” A scattering of motivational cartoons sketched on whiteboards promote Xiaomi’s aims and achievements. Now six years old, Xiaomi’s meteoric rise has been usurped in recent quarters by competitors replicating -- and succeeding at -- the very model that enabled it to vault ahead of Apple and Samsung Electronics Co. in its home market.
\n
The risk for Xiaomi in India is that it will go the same way as China: toppled by rival brands such as Oppo<\/a>, Huawei<\/a> and Vivo.
\n
\nTarun Pathak, associate director at Counterpoint Research, said Xiaomi is taking a risky approach. The company’s rivals have been able to sell the same number of phones in India, even though their products cost as much as three times more. As Xiaomi seeks to expand sales volumes, it will have to sell more of its high-end models. \"Their margins are thin and when they go offline, their expenses will shoot up,” he said.
\n
\nModi Meeting<\/strong>
\nDuring his third visit to India -- a week-long trip that included a meeting with Prime Minister Narendra Modi -- Lei summoned a town hall-style staff meeting to rally a team he praised for making Xiaomi the No. 1 online-selling smartphone company in the country the past two quarters. Their goal now, he said, was to the cement that position in the next three to five years.
\n
\nIn India, \"incomes are low and everyone wants good products,” Lei said in a glass-walled conference room, flanked by several of his top executives. Lei is trying to reignite the buzz in the offline or \"new retail” market, he said. \"Everyone realizes the online market is very limited.”
\n
\nIn China, Xiaomi accounts for only a 10th of total smartphone sales, Lei estimates, leaving bigger opportunities in the traditional bricks-and-mortar approach. Lei aims to have 1,000 so-called MiHome retail stores with sales topping $10 billion annually in next three years, he said.
\n
\nMiHome stores will offer just two dozen Xiaomi products, according to Lei. Pointing to a single line of $1 apiece writing pens, two types of air purifiers, and three kinds of smartphones, he says he envisages selling no more than 100 product types in coming years, versus the hundreds, or even thousands of stock-keeping units maintained by some manufacturers.
\n
\nNew Beginning?<\/strong>
\n\"Our toughest times have passed starting this year, and our main strategy now is to bring the internet way of thinking to offline in China,” Lei said. The plan is to integrate multiple links in offline commerce and avoid the bottlenecks that can occur as products move along the supply chain through manufacturing and repair to logistics and sales.
\n
\nBut even the \"new retail” strategy risks being copied. Lei spoke publicly about it one morning and the head of an e-retailing behemoth used the same term hours later, he said. Competitors have in the past paid the ultimate price of copying Xiaomi’s approach, Lei said, declining to give names. \"One company lost $1 billion last year, maybe even more,” he said. \"Game over.”
\n
\nMicrosoft<\/a> Rival<\/strong>
\nLei’s ideas were shaped by past ventures. He previously ran Kingsoft Corp., a software maker that competes with Microsoft Corp.’s enterprise software sales in China, and his e-commerce company Joyo.com was acquired by Amazon.com Inc. and renamed Amazon China. Lei is convinced his retail plan will revive the growth prospects that helped earn Xiaomi its lofty valuation.
\n
\nSales began to stagnate in 2015 and shipments plummeted in China last year, with the company refusing to release 2016 numbers. In January, former international head Hugo Barra left for Facebook Inc., raising questions about Xiaomi’s ability to navigate its way through what Lei had described as \"unforgettable” challenges.
\n
\nIn India last week, Lei insisted that revenue never slowed during the past two years, and that \"Xiaomi has resumed rapid growth.” Suggestions that the company’s value had sunk to $4 billion \"hurt us a lot,” he said, refusing to be drawn into a discussion on its current value.
\n
\n\"It was never as bad as it was made out to be,” he said. \"Our investors are not worried. I have explained to them clearly. And to our users, we say, ‘It takes 10 to 15 years. We need time. Trust Mr. Lei.’”
\n
\nEnough Cash<\/strong>
\nThere is no pressure on cash flow and no need to raise funds, he said, adding: \"We have more than enough cash.” Lei declined to comment on whether Xiaomi has any immediate plan for an initial public offering. Right now, he’s focusing on India, including the potential to open physical stores in the nation with the world’s largest youth population.
\n
\nXiaomi is planning a third factory in India, where Lei says he’s prepared to take more risks, including doubling investments to $1 billion over the next few years.
\n
\n\"In the next two years, we want more and more influence in India,” Lei said. How he will do that plays on his mind constantly he says, as he reaches for a black backpack and fishes for one of 10 phones inside.
\n
\n\"I keep thinking about how to perfect my products,” Lei says, clutching a phone with a metallic, pale blue finish. \"For instance, how come Indians don’t like this ‘Tiffany blue’ colored phone?”
\n
\nThat’s just one of many things that perplexes Lei about the India market. But he’s determined to figure it out: \"This is what keeps me awake at night.”\n\n<\/body>","next_sibling":[{"msid":58021293,"title":"Lenovo-Motorola looks to set up factory in India","entity_type":"ARTICLE","link":"\/news\/lenovo-motorola-looks-to-set-up-factory-in-india\/58021293","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":58021792,"entity_type":"ARTICLE","title":"Forget Apple. Xiaomi CEO Lei Jun now wants to be more like Costco","synopsis":"\"We are not Apple,\u201d Lei, clad in a black polo shirt and blue jeans, said at Xiaomi\u2019s Bengaluru office in India, its biggest overseas market.","titleseo":"telecomnews\/forget-apple-xiaomi-ceo-lei-jun-now-wants-to-be-more-like-costco","status":"ACTIVE","authors":[],"Alttitle":{"minfo":""},"artag":"Bloomberg","artdate":"2017-04-05 10:11:24","lastupd":"2017-04-05 10:11:52","breadcrumbTags":["Lei Jun","Microsoft","Apple","Huawei","Costco Wholesale Corp","Devices","Xiaomi","Oppo"],"secinfo":{"seolocation":"telecomnews\/forget-apple-xiaomi-ceo-lei-jun-now-wants-to-be-more-like-costco"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2017-04-05" data-index="article_1">
由Saritha拉伊
小米公司说,这是误解。一旦与苹果公司对其造型优美的智能手机和有魅力的领导,中国公司正在寻找一个形象,因为它试图从销售额下滑中恢复过来。
品牌创始人亿万富翁雷军想成为相比:好市多公司Issaquah,华盛顿仓库零售商销售从葡萄酒和钻戒到低廉的价格膨胀箱谷物和水果。小米的收入今年可能会达到150亿美元,北京的制造商的产品从笔和空气净化器到电视和智能手机采用一种新的商业模式和回馈都操作,Lei, 47岁,在最近的一次采访中表示。
“我们不是苹果,”雷,穿着一件黑色马球衬衫和蓝色牛仔裤,在小米说在印度的班加罗尔办公室,其最大的海外市场。“我们有相同的价值体系是Costco。我们想让用户享受更好的产品以一个合理的价格。”
苹果价格溢价和享有最高的利润率在全球智能手机行业竞争残酷4250亿美元,Costco销售商品,微薄的利润而加剧收入从3500万年的每年的会员。小米拥抱一个新的策略来推动增长,Lei的目标是吸引更多的收入从应用程序和服务,它提供10亿美元的销售额从去年的10个多月活跃用户。
这是一个比一个不同的策略用于声明榜首的中国智能手机制造商使其450亿美元的估值,简单地说,世界上最有价值的公司。而不是在线flash销售和inexpensively-sourced组件用来破坏手机行业,Lei想把internet-inspired离线商务效率。他还向印度重振小米的命运随着中国更具竞争力。
“创造历史”
这里,粗斜纹棉布牛仔裤和t恤衫蜷缩在20多岁的工人团体或坐在闪亮的白色桌子由英尺高的红色,黄色和绿色的分区。砖墙支持列和管灯光暂停下面裸露的管道和空调管道让办公室感觉更像在布鲁克林阁楼的一个工业园区。
几十个圆形手机摇摆的灯光,与短语鼓励员工“让我们一起创造历史。“散射励志漫画画在白板上促进小米的目标和成就。现在六岁,小米的迅速崛起已经被竞争对手复制近几个季度篡夺——和成功的模型,使其超越苹果和三星电子(Samsung Electronics co .)在其本土市场。
小米在印度面临的风险是,它会像中国一样:推翻等竞争对手品牌相对应的人,华为和体内。
塔伦帕沙克对比研究副主管说,小米正在危险的方法。公司的竞争对手已经能够卖出相同数量的手机在印度,尽管他们的产品成本高达三倍。随着小米寻求扩大销售量,它将不得不出售更多的高端车型。“他们的利润薄,离线时,他们的费用将飙升,”他说。
莫迪会议
他的第三次访问印度期间进行为期一周的访问,包括会见总理纳兰德拉·莫迪,Lei召见城镇员工会议团队集会他称赞让小米1号安永的智能手机公司在过去两个季度。他说,现在他们的目标是水泥,在未来三到五年的地位。
在印度,“收入很低,每个人都想要好的产品,”雷说,玻璃幕墙的会议室,在他的几个高管。Lei试图重新点燃buzz在脱机或新零售市场,他说。“每个人都意识到在线市场非常有限。”
在中国,小米只占智能手机总销量的第十,Lei估计,留下更大的机会在传统实体的方法。Lei旨在1000年所谓MiHome零售商店在未来三年内每年销售额超过100亿美元,他说。
MiHome商店将提供两个打小米产品,根据雷。指着一行1美元写笔、两种类型的空气净化器,和三种智能手机,他说他设想在未来几年销售不超过100的产品类型,与数百,甚至数千的库存单位由一些制造商。
新的开始?
“我们今年开始艰难的时刻已经过去了,现在我们的主要战略是将互联网的思维方式在中国离线,”雷说。线下商务的计划是将多个链接,避免可能出现的瓶颈产品沿着供应链通过制造和修理物流和销售。
但即使是“新零售”战略风险被复制。Lei公开谈论这一天早上,一家电子零售巨头的头用相同的词数小时后,他说。竞争对手过去支付的最终价格抄袭小米的方法,雷说,她拒绝透露姓名。“一个公司去年亏损了10亿美元,甚至更多,”他说。“游戏结束”。
微软竞争对手
Lei的想法是由过去的企业。他以前跑金山公司,软件制造商与微软(msft . o:行情)竞争。”年代企业软件销售在中国,和他的电子商务公司亚马逊Joyo.com收购Amazon.com inc .)和重命名。Lei确信他的零售计划将恢复增长前景,帮助获得小米其崇高的估值。
销售开始停滞在2015年和去年在中国出口下降,与该公司拒绝释放2016的数字。今年1月,前国际头雨果Barra留给Facebook Inc .,质疑小米导航的能力通过Lei所描述为“难忘”的挑战。
上周在印度,Lei坚持收入从未放慢在过去的两年里,,“小米已经恢复快速增长。“建议,公司的价值已降到40亿美元”对我们来说是很大的打击,”他说,拒绝被卷入讨论它的当前值。
“它从来没有那么糟糕,”他说。“我们的投资者并不担心。我已经向他们解释清楚。为了我们的用户,我们会说,‘它需要10至15年。我们需要时间。信任雷磊。’”
足够的现金
没有现金流的压力,不需要筹集资金,他说,并补充道:“我们有足够多的现金。“雷拒绝评论小米是否立即首次公开发行(ipo)的计划。现在,他的关注印度,包括可能在全国开设实体店与世界最大的青年人口。
小米正计划在印度第三工厂,Lei说他准备承担更大的风险,其中包括投资10亿美元在未来几年内翻倍。
“在未来两年内,我们希望越来越多的影响在印度,”雷说。他会怎么做,他说,在他的脑海里不断地当他伸手去拿一个黑色的背包和鱼类的10个手机里面。
“我一直思考如何完美的我的产品,”雷说,抓着电话与金属,淡蓝色的完成。“例如,为什么印度人不喜欢这的蒂芙尼蓝颜色的电话吗?”
这只是一个关于印度的许多事情困扰Lei市场。但他决心弄清楚:“这就是让我彻夜难眠。”
小米公司说,这是误解。一旦与苹果公司对其造型优美的智能手机和有魅力的领导,中国公司正在寻找一个形象,因为它试图从销售额下滑中恢复过来。
品牌创始人亿万富翁雷军想成为相比:好市多公司Issaquah,华盛顿仓库零售商销售从葡萄酒和钻戒到低廉的价格膨胀箱谷物和水果。小米的收入今年可能会达到150亿美元,北京的制造商的产品从笔和空气净化器到电视和智能手机采用一种新的商业模式和回馈都操作,Lei, 47岁,在最近的一次采访中表示。
“我们不是苹果,”雷,穿着一件黑色马球衬衫和蓝色牛仔裤,在小米说在印度的班加罗尔办公室,其最大的海外市场。“我们有相同的价值体系是Costco。我们想让用户享受更好的产品以一个合理的价格。”
苹果价格溢价和享有最高的利润率在全球智能手机行业竞争残酷4250亿美元,Costco销售商品,微薄的利润而加剧收入从3500万年的每年的会员。小米拥抱一个新的策略来推动增长,Lei的目标是吸引更多的收入从应用程序和服务,它提供10亿美元的销售额从去年的10个多月活跃用户。
这是一个比一个不同的策略用于声明榜首的中国智能手机制造商使其450亿美元的估值,简单地说,世界上最有价值的公司。而不是在线flash销售和inexpensively-sourced组件用来破坏手机行业,Lei想把internet-inspired离线商务效率。他还向印度重振小米的命运随着中国更具竞争力。
“创造历史”
这里,粗斜纹棉布牛仔裤和t恤衫蜷缩在20多岁的工人团体或坐在闪亮的白色桌子由英尺高的红色,黄色和绿色的分区。砖墙支持列和管灯光暂停下面裸露的管道和空调管道让办公室感觉更像在布鲁克林阁楼的一个工业园区。
几十个圆形手机摇摆的灯光,与短语鼓励员工“让我们一起创造历史。“散射励志漫画画在白板上促进小米的目标和成就。现在六岁,小米的迅速崛起已经被竞争对手复制近几个季度篡夺——和成功的模型,使其超越苹果和三星电子(Samsung Electronics co .)在其本土市场。
小米在印度面临的风险是,它会像中国一样:推翻等竞争对手品牌相对应的人,华为和体内。
塔伦帕沙克对比研究副主管说,小米正在危险的方法。公司的竞争对手已经能够卖出相同数量的手机在印度,尽管他们的产品成本高达三倍。随着小米寻求扩大销售量,它将不得不出售更多的高端车型。“他们的利润薄,离线时,他们的费用将飙升,”他说。
莫迪会议
他的第三次访问印度期间进行为期一周的访问,包括会见总理纳兰德拉·莫迪,Lei召见城镇员工会议团队集会他称赞让小米1号安永的智能手机公司在过去两个季度。他说,现在他们的目标是水泥,在未来三到五年的地位。
在印度,“收入很低,每个人都想要好的产品,”雷说,玻璃幕墙的会议室,在他的几个高管。Lei试图重新点燃buzz在脱机或新零售市场,他说。“每个人都意识到在线市场非常有限。”
在中国,小米只占智能手机总销量的第十,Lei估计,留下更大的机会在传统实体的方法。Lei旨在1000年所谓MiHome零售商店在未来三年内每年销售额超过100亿美元,他说。
MiHome商店将提供两个打小米产品,根据雷。指着一行1美元写笔、两种类型的空气净化器,和三种智能手机,他说他设想在未来几年销售不超过100的产品类型,与数百,甚至数千的库存单位由一些制造商。
新的开始?
“我们今年开始艰难的时刻已经过去了,现在我们的主要战略是将互联网的思维方式在中国离线,”雷说。线下商务的计划是将多个链接,避免可能出现的瓶颈产品沿着供应链通过制造和修理物流和销售。
但即使是“新零售”战略风险被复制。Lei公开谈论这一天早上,一家电子零售巨头的头用相同的词数小时后,他说。竞争对手过去支付的最终价格抄袭小米的方法,雷说,她拒绝透露姓名。“一个公司去年亏损了10亿美元,甚至更多,”他说。“游戏结束”。
微软竞争对手
Lei的想法是由过去的企业。他以前跑金山公司,软件制造商与微软(msft . o:行情)竞争。”年代企业软件销售在中国,和他的电子商务公司亚马逊Joyo.com收购Amazon.com inc .)和重命名。Lei确信他的零售计划将恢复增长前景,帮助获得小米其崇高的估值。
销售开始停滞在2015年和去年在中国出口下降,与该公司拒绝释放2016的数字。今年1月,前国际头雨果Barra留给Facebook Inc .,质疑小米导航的能力通过Lei所描述为“难忘”的挑战。
上周在印度,Lei坚持收入从未放慢在过去的两年里,,“小米已经恢复快速增长。“建议,公司的价值已降到40亿美元”对我们来说是很大的打击,”他说,拒绝被卷入讨论它的当前值。
“它从来没有那么糟糕,”他说。“我们的投资者并不担心。我已经向他们解释清楚。为了我们的用户,我们会说,‘它需要10至15年。我们需要时间。信任雷磊。’”
足够的现金
没有现金流的压力,不需要筹集资金,他说,并补充道:“我们有足够多的现金。“雷拒绝评论小米是否立即首次公开发行(ipo)的计划。现在,他的关注印度,包括可能在全国开设实体店与世界最大的青年人口。
小米正计划在印度第三工厂,Lei说他准备承担更大的风险,其中包括投资10亿美元在未来几年内翻倍。
“在未来两年内,我们希望越来越多的影响在印度,”雷说。他会怎么做,他说,在他的脑海里不断地当他伸手去拿一个黑色的背包和鱼类的10个手机里面。
“我一直思考如何完美的我的产品,”雷说,抓着电话与金属,淡蓝色的完成。“例如,为什么印度人不喜欢这的蒂芙尼蓝颜色的电话吗?”
这只是一个关于印度的许多事情困扰Lei市场。但他决心弄清楚:“这就是让我彻夜难眠。”
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