Accumulated 120 million yuan! Xiaomi issued "epidemic subsidies" for offline stores to shoulder the social responsibility of leading enterprises

Source: Financial community

Financial Circles April 25 News The big man is for the country and the people; the little one is the friend and the neighbor!

Since March, due to the overall economic situation and the rapid spread of the domestic epidemic again, the electronic product market dominated by mobile phones has been greatly impacted. Especially for offline business, due to the double plague of the epidemic and the economic situation, the customer flow and sales of stores have been seriously affected, and it is difficult to maintain the normal opening of stores in different regions, and the overall decline in the market has far exceeded the industry's expectations. According to the latest Canalys data, global smartphone shipments fell 11% year-on-year in the first quarter of 2022 due to poor economic conditions and seasonally sluggish demand.

Accumulated 120 million yuan! Xiaomi issues "epidemic subsidies" for offline stores

In view of the difficulties encountered in the offline market, Xiaomi decided to tide over the difficulties with offline partners, and Xiaomi recently released a subsidy policy for the epidemic in stores:

First, for all Xiaomi Home stores and authorized stores, according to the proportion of store sales, the epidemic inclusive subsidy will be issued.

Second, for the main store (excluding satellite stores) that have been suspended due to the epidemic, the epidemic subsidy will be issued according to the corresponding rent ratio or the number of days when the store is closed.

Due to the repeated epidemics affecting the normal operation of stores, Xiaomi has issued subsidies to stores 5 times, with a cumulative amount of 120 million yuan. Xiaomi related people said that in difficult times, Xiaomi Group should set an example in a timely manner, actively assume social responsibility, and escort the development of the real economy.

The new retail business empowers the 4A-level shopping experience" to be successfully landed

In the face of industry pressure and the impact of the epidemic, Xiaomi has actively integrated online and offline resources to alleviate the pressure of reducing the flow of customers in offline stores.

Lu Weibing, partner of Xiaomi Group, president of China and International Department, and general manager of Redmi brand, recently proposed to provide consumers with a "4A shopping experience", that is, users can conveniently experience and purchase any products and services of Xiaomi through any channel at any time and in any place. This means that in addition to purchasing products in stores, users can also place orders through the Xiaomi Mall APP, WeChat Mini Program and third-party takeaway platforms, and can enjoy the door-to-door delivery services of nearby stores without leaving home, and the fastest half an hour can be delivered, thus greatly alleviating the pressure of reduced customer flow in stores.

Lu Weibing said that Xiaomi's new retail business has currently precipitated a private domain traffic pool with a volume of 20 million users, creating a more sticky traffic position and online shopping guide for offline stores. At the same time, Xiaomi uses online staff marketing tools such as Xiaomi Cloud Store and Shopping Guide Treasure to attract intended users to buy products online or in-store, bringing new increments and vitality to store sales, and empowering front-line store staff.

It is worth noting that the "4A-level shopping experience" proposed by Lu Weibing has been successfully landed.

At 11:30 a.m. on March 22, Lu Weibing, partner of Xiaomi Group, president of China and International Department, and general manager of Redmi brand, tweeted, "Meituan searches for Xiaomi Home, and the new product arrives at the fastest half an hour!" The microblog is regarded by the industry as the official announcement of the cooperation between Xiaomi and Meituan Flash Sale.

It is understood that the two sides have launched a cooperation pilot as early as October 2021, and there are currently more than 3,000 Xiaomi Home stores that can do "takeaway" business, covering 276 cities in the north, upper, Guangzhou, and Shenzhen. The "takeaway" business can provide instant purchase services that include mobile phones, smart wearables, smart homes, personal care and other categories of goods "delivered to home in the fastest 30 minutes".

The relevant person in charge said that the smart life-related products provided by Xiaomi Home have attracted much attention as soon as they are launched, especially in scenarios such as The New Year and gifts, and the sales volume has grown rapidly. After the Xiaomi Home launched the Meituan takeaway last year, the average month-on-month growth rate remained at about 5 times, in addition to mobile phones, tablets, Bluetooth headsets, smart bracelets and other smart wearable devices, fascia guns, electric toothbrushes, electric screwdrivers and other life appliances, as well as rice cookers, health pots and other small household appliances have also had very good sales. It is worth noting that in the New Year, gift-giving and other scenarios, sales have grown rapidly, such as Valentine's Day in 2022, Xiaomi has become one of the most popular digital 3C brands, and its sales volume ranks in the top three in the entire digital brand.

Industry analysis believes that this is a major step in Xiaomi's new retail strategy, from the passive "1.0" upgrade of online diversion to the store to the "2.0" front warehouse model of the store's active attack, and the Xiaomi version of "Hema Fresh" is officially released. This has completely changed the sales strategy of offline stores in the past, making electronic products the same as buying vegetables, saving time and effort, safety and efficiency.

In 2021, R&D expenditure will reach 13.2 billion yuan to shoulder the scientific and technological responsibilities of leading enterprises

Xiaomi Group actively shoulders the scientific and technological responsibilities of leading enterprises through product iteration and innovation, and Xiaomi's R&D expenditure will reach 13.2 billion yuan in 2021, an increase of 42.3% year-on-year. The five-year compound growth rate from 2017 to the present is 43%. At the same time, it will continue to increase R&D investment in the next five years, and it is expected to exceed RMB100 billion. In 2021, Xiaomi's self-developed professional image chip Surging C1 and charging chip Surging P1 were put into use, in addition, Xiaomi set up a robot laboratory and launched the Bionic Quadruped Robot CyberDog Engineering Exploration Edition.

In the face of the dual pressure of the economic situation and the epidemic, Xiaomi Group is extremely resilient. In 2021, Xiaomi Group's total revenue reached RMB328.3 billion, an increase of 33.5% year-on-year. Adjusted net profit reached RMB22 billion, up 69.5% year-on-year. According to Canalys' data, Xiaomi's smartphone shipments rank third in the world in 2021, and its mobile phone market share ranks in the top five in 62 markets in the world, ranking first in 14 markets. In addition, Xiaomi has shipped more than 24 million high-end smartphones worldwide, doubling from 2020.