Xiaomi, which has been making frequent moves, has once again launched a new strategy. Recently, Lei Jun announced at the Xiaomi Annual Meeting that in 2019, Xiaomi will officially launch the "mobile phone + AIoT" dual-engine strategy and make it the core strategy of Xiaomi for the next five years. In the next five years, Xiaomi will continue to invest more than 10 billion yuan in the AIoT field.
Xiaomi insiders said that AIoT means "All in IoT", which means that Xiaomi has officially entered the era of the "mobile phone + AIoT" dual-engine strategy.
Xiaomi has been planning this strategy. At the end of last year, after a round of integration, Xiaomi established the Sales Operations Department 2, which is responsible for the sales and operations of TVs and ecological chain products in China. At the same time, Xiaomi announced that it will really make efforts in the field of large household appliances next year and accelerate the layout of smart homes and artificial intelligence. Industry insiders believe that "Xiaomi's move is a signal that the scale and weight of its ecological chain IoT product business continue to rise. Xiaomi is deeply deploying the ecological chain IoT and wants to create a new empire."
Recently, Xiaomi has invested in TCL and continued to expand in the fields of TVs, refrigerators, panels, etc. Now it seems that behind the announcement of the new strategy, Lei Jun is planning a big game.
It is worth noting that this is the first time Lei Jun mentioned external pressure and internal conflicts. Lei Jun said that in 2019, Xiaomi mobile phones will implement a multi-brand strategy, while rapidly expanding in the field of large home appliances and replicating the model overseas.
10 billion yuan invested in AIoT to plan for home appliances
According to the industry report of Shenwan Hongyuan, AIoT has become the development direction of the new generation of industries after the Internet and mobile Internet. Now AIoT is becoming a hot spot for various technology and home appliance giants to seize.
After incubating an ecological chain centered on mobile phones, Xiaomi has spent five years to build an IoT empire of initial scale and become the world's largest consumer IoT platform. Lei Jun previously revealed that as of November 2018, the Xiaomi IoT platform has connected 132 million smart devices (excluding mobile phones and laptops) and supports more than 2,000 devices.
Xiaomi insiders said that Xiaomi also realized that AIoT is the intelligent interconnection of all things. If Xiaomi wins AIoT, it will win the future of "hardware + Internet". Therefore, Xiaomi will continue to invest 10 billion yuan in this field in the next five years.
Through a series of adjustments, Xiaomi reorganized its sales and service department into the China region, and carried out structural reorganization and personnel appointments in overseas markets, increasing the weight of the IoT product business in the ecological chain internally.
Xiaomi insiders said that this adjustment is another step in the advancement of a series of new plans by Xiaomi’s management led by Lei Jun, and it is not ruled out that there will be continued adjustments in the future.
To realize the comprehensive layout of AIoT, Xiaomi must also build on a mature terminal system including mobile phones and home appliances. Xiaomi is currently working on large home appliances in various ways. According to information from Xiaomi's internal sources, the air-conditioning business was still in the verification and testing stage in 2018, and will be fully launched in 2019, becoming Xiaomi's first breakthrough point in the field of white home appliances.
Xiaomi's recent move towards TCL has also shown its ambition in the AIoT field. Recently, Xiaomi made a strategic investment in TCL and the two parties reached an in-depth cooperation. Industry insiders believe that this will support Xiaomi's large home appliance business in terms of supply chain and OEM capacity, and help Xiaomi further expand in large home appliances such as air conditioners and washing machines.
In 2019, the mobile phone industry will enter more overseas markets and adopt a multi-brand strategy
However, Xiaomi insiders said that mobile phones are still Xiaomi's core business and this will not change.
Lei Jun believes that Xiaomi still has many problems. Under the background of external pressure, Xiaomi has two main contradictions after 8 years of entrepreneurship, namely the contradiction between the public's expectations of Xiaomi and the speed of Xiaomi's development, and the contradiction between Xiaomi's development speed and the existing organizational management capabilities.
He said that before the arrival of 5G, Xiaomi will fight a protracted war, and victory will come if its mobile phone business remains firmly in the top tier in the world. In 2019, Xiaomi will implement a multi-brand strategy for mobile phones.
Recently, Xiaomi Mobile launched a new independent brand, Redmi, and announced the arrival of the dual-brand era of "Xiaomi + Redmi".
Xiaomi insiders revealed that Xiaomi's two main brands will be independent. Xiaomi will focus on mid-to-high-end and new retail, while Redmi will focus on cost-effectiveness and the e-commerce market. Black Shark, Meitu, and POCO will make full efforts in the vertical tracks of gaming users, female users, and overseas users, and together with the two main brands, form a multi-brand matrix of Xiaomi. At the same time, Xiaomi intends to replicate its domestic experience model in overseas markets.
It is worth noting that in Xiaomi's previous adjustments, Xiaomi Group Vice President Wang Lingming was transferred to the International Department as Vice President. He has extensive experience in sales and service. Xiaomi may intend to transfer its proven experience in China overseas.
Xiaomi insiders revealed that Xiaomi will enter more international markets this year. At the same time, IoT devices such as smart TVs have begun to move towards the global market. Xiaomi's experience in popular products and new retail construction will be accelerated in overseas markets.
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