alert! From the expansion of millet to see the toxicity of low-priced vicious competition
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However, in the recent past, it has revealed that the company refused to invest in Xiaomi. After meditation, it was discovered that the expansion of Xiaomi's borderless environment has brought devastating damage to the existing ecology, and its destructive power to its own ecology is also incalculable.
Malformed millet ecology
Lei Jun likes to call Xiaomi a pig standing in the wind. This kind of self-black compliment reflects the madness and morbidity of Xiaomi's ecology. For more than three years, Xiaomi has rapidly expanded into a company with a valuation of 50 billion US dollars, which is itself sick. Many people are amazed at the rapid expansion of Xiaomi. After the open letter of CEO Zhou Wei, "Why did I reject Xiaomi Investment" was spread by the media, Xiaomi's rapid expansion of the deformed ecology surfaced.
Starting from the mobile phone product, Xiaomi harvested the market that should belong to the cottage machine at a low price. More than three years of crazy expansion, the living space of the cottage is severely squeezed by Xiaomi. Because of this, Xiaomi believes that low prices are nuclear weapons that sweep the industry. Objectively speaking, Xiaomi mobile power supply is very competitive. However, behind the low price, it is replaced by sacrificing quality.
In this regard, Le Wei CEO Zhou Wei wrote in an open letter:
Low prices have become a sharp edge for Xiaomi's ecological expansion. When the price of the bracelet is generally above 300 yuan, Xiaomi uses the price of 79 yuan of cabbage to wash the bracelet market; when the average price of the air purifier is more than 2,000 yuan, the air purifier of Xiaomi only sells 899 yuan... Xiaomi Every product is washed with low-cost blood and subverted.
Under the low-price strategy of Xiaomi's self-satisfaction, many opponents have become cannon fodder, and Xiaomi's partners have also been hurt by low prices. After all, partners have to make money to survive. At the same time, the destructive power of low-cost on Xiaomi's own ecology has gradually emerged.
Toxic millet ecology
With low prices and excellent marketing, Xiaomi has built a huge ecological empire, involving multiple product lines such as smart homes and home appliances. In many people, Xiaomi is very great and has built a perfect ecosystem for more than three years. As everyone knows, Xiaomi's ecology is achieved through cooperation or equity participation.
In the case of the bracelet, this is the product launched by Huami Technology jointly established by Xiaomi and Huaheng Electronics. The market strategy of Xiaomi Bracelet is to expand the market at a low price by keeping product prices below industry standards. Obviously, low prices have become the nuclear weapons that Xiaomi has expanded.
After successfully attacking smart TVs, bracelets, routers and other markets with low prices, the low-cost damage to Xiaomi's ecology has also emerged. Le Wei network CEO Zhou Wei refused to cooperate with Xiaomi, the reason is that the low price damage to entrepreneurs. In addition to the music network, Ou Ruibo, Zhongtian Anchi and Dajiang Science and Technology have rejected Xiaomi.
In addition, Xiaomi is still threatening his opponent with his own influence. In this regard, Le Weiwang CEO Zhou Wei wrote in an open letter:
Throughout the process, Xiaomi will always emphasize that Xiaomi's influence is very big. I am enough to change the industry structure. If you don't, we vote for another one, and you are in danger. . . . Naked threat
When talking to Caijing, Lei Jun said such a passage:
Xiaomi is definitely not an investment company. Who can get out of this 100 companies? I don't care. Xiaomi’s attitude is that your profit is not profitable. There is only one truth in it. The ecological chain is to enhance the competitiveness of Xiaomi’s mobile phone. Eco-chain success and failure are their own things. We just play a good shareholder role. The biggest benefit we can get is that they support our strategy.
The implication is that the existence of partners is to increase the core competitiveness of Xiaomi. This expansion strategy has made Xiaomi Ecology a poison that is enough to make partners dead. Because of this, many partners began to wake up, which is the scene of Ou Ruibo and Dajiang Science and Technology rejecting Xiaomi.
The bottleneck of millet ecology
Tracing back to the source, the toxicity of millet ecology, the low price. The fans that Xiaomi gathers with low prices are becoming a poison for Xiaomi's ecology. To be precise, the low-priced poison has hurt partners and opponents, and it has also made the Xiaomi Ecology encounter a bottleneck that is difficult to break through.
When it was just established, Xiaomi’s slogan was born for a fever, and Xiaomi’s mobile phone is indeed worthy of this title. When the Xiaomi 2A and Red Rice series mobile phones were launched, the customer price of the Xiaomi mobile phone quickly dropped. In the double 11 promotion last year, the average selling price of Xiaomi mobile phone was about 1,800 yuan; this year's double 11 promotion, the average selling price of Xiaomi mobile phone fell below 1,000 yuan.
Behind the change in customer unit price is the change in the user base of Xiaomi, from the enthusiast to the silk user. When this user group has changed, Xiaomi is based on the ecology of smart homes, and the prospects are already doomed. Imagine that the silks are worried about their livelihood every day. How can they spend their money to play smart homes? Even if the price of the Lei Jun handle ring is hard to pull up to 79 yuan, can the air purifier not sell 899?
In fact, the influence of the silk user group on the ecology of Xiaomi was first manifested in the 2nd generation of Xiaomi TV. According to Liu Zongxi, founder of BroadLink, because the sales of Xiaomi TV 2 is not going up, the external speaker company that cooperates with Xiaomi has increased manpower and material resources, which is unspeakable.
In addition to the user group's constraints on the ecology of Xiaomi, Xiaomi's own layout also has bottlenecks. After focusing on smart phones, and involved in mobile power, wristbands, air purifiers and other products, Xiaomi has no expansion. Investing in beauty is more like seeking a breakthrough. However, Xiaomi and the United States have no real meaning except the story of smart home. At least, the addition of a remote control to the air conditioner, linked to the air purifier, is just a good idea, because the traditional home appliance manufacturers have not broken through the technical barriers for many years, Xiaomi is also difficult to break through.
Under the dual constraints of the user community and its own platform, the boundaries of Xiaomi's expansion are clearly visible. A very extreme example, the silk user does not play luxury goods, not dislike, but because there is no money. So, the crazy expansion of Xiaomi's eyes, on the surface, seems to be a big bureau, the essence is just a suicide redemption.