At a time when the mobile phone and home appliance market pattern is becoming increasingly stable, finding new growth space has become the top priority of head manufacturers. In recent years, the mainstream consumption concept has gradually shifted from "impulsive" to "rational", which has become an important variable that businesses cannot ignore, and has also brought new market opportunities.
Xiaomi, which has always had a keen insight into consumer trends, has recently carried out in-depth cooperation with Vipshop, and the sales of multi-category products have soared. With the increasing call for rational consumption, consumers are eager for both high quality and value-added prices, and Xiaomi, which is known for its functional innovation and generous price, may usher in new opportunities.
Pictured: Xiaomi K50 Pro
Xiaomi and Vipshop cooperate to expand the category, and high-value products are popular
As a consumer electronics and intelligent manufacturing company with smart phones, smart hardware and IoT platform as the core, the products on the Xiaomi ecological chain can form a complete set of closed-loop experiences. Since the beginning of this year, the cooperation between Xiaomi and Vipshop has expanded from mobile phones to all categories.
At vipshop's Xiaomi Super Brand Day in March this year, Xiaomi's overall sales soared 12.5 times year-on-year. In addition to Xiaomi mobile phones, Xiaomi's tablets, hair dryers, smart bracelets, hanging irons and other commodity sales also ushered in a multiplier growth on the same day.
From the perspective of the age group of users who buy millet products, the proportion of post-90s consumers is the highest, and the sales from post-90s consumers increased by up to 16.7 times year-on-year. It is worth mentioning that the sales of "high-value" products with outstanding cost performance and popular with female users have also increased significantly year-on-year, such as Xiaomi Civi mobile phones, Mijia no-clean sweeping and dragging robots, Mijia pressurized steam hanging ironing machines, Mijia water ion hair care hair dryers, etc.
Some insiders believe that Vipshop's pursuit of ultimate cost performance coincides with Xiaomi's product concept of "touching people's hearts and generous price", and the two sides have a natural sense of closeness; at the same time, Vipshop, which has a huge scale of high-value users and continuously increases user stickiness, is a rare channel partner for Xiaomi.
According to the financial report, in 2021, the number of vipshop core SVIP active users increased by 50% year-on-year, and its online net transaction volume accounted for 36%. SVIP users have about 8 times the ARPU of non-SVIP throughout the year, which has the characteristics of high repurchase rate, high purchasing power and high retention rate.
Under the wave of rational consumption, the pricing of thick roads is still the trump card of millet
As the concept and behavior trend of mass consumption continue to change, the wave of rational consumption is driving market change. For Xiaomi, the opportunities outweigh the challenges.
Xiaomi first shouted out the slogan of "born for fever" and quickly occupied the domestic mobile phone market through the price advantage of thick. Among smartphones with the same configuration, Xiaomi is usually the best price choice. In the fierce competition, Xiaomi has achieved considerable market share and reshaped market perception - the performance of domestic mobile phones can be comparable to or even surpass foreign brands.
At the same time, thanks to technological innovation, leading product experience and good user reputation, Xiaomi has grown rapidly in the domestic market and has vigorously entered overseas markets. According to the report of consulting firm Canalys, in the second quarter of 2021, Xiaomi became the world's second largest smartphone manufacturer for the first time. The recent hit Redmi K50 series has once again proved its market appeal, and some models have even been difficult to find.
As a young company, Xiaomi proposes to "let everyone in the world enjoy the good life brought by technology". Under this vision, Xiaomi has implemented "touching people's hearts and generous prices" to its various product lines, from tablet computers to 4K ultra-high-definition TVs, to smart door locks, electric toothbrushes, and even microwave ovens.
Nielsen executives have pointed out that there are three key points in the new trend of tomorrow's consumption: rational consumption, interest-led, and technology empowerment. For Xiaomi, this may mean a broader market prospect. The successful cooperation with Vipshop has also made the market look forward to Xiaomi's next move in the retail channel.