#头条创作挑战赛#
Everyone who has been on the Internet for so many years should have heard a sentence more or less: mobile phone manufacturers simply sell mobile phones do not make money, and some people even say that they lose money. Of course, the loss of money must be a minority, in fact, selling hardware is still profitable, but not much.
Last year's Golden Ten Data counted the money earned by each mobile phone manufacturer selling mobile phones during the reporting period (net profit * proportion of mobile phone revenue), and the mobile phone shipments during the reporting period, according to which it was estimated how much money each mobile phone manufacturer could make by selling a mobile phone.
The following is a list of the average profits of mainstream mobile phone manufacturers selling a mobile phone:
1. Apple: sell one to earn 1456 yuan;
2. Huawei: Earn 426 yuan by selling one;
3. Samsung: Sell one to earn 262 yuan;
4, vivo: sell one to earn 55 yuan;
5, OPPO: sell one to earn 48 yuan;
6. Xiaomi: Sell one at a loss of 22 yuan;
Just watch it for fun, not necessarily accurately. In fact, look at the hardware cost of a certain model of mobile phone manufacturer, look at the minimum specification price of this model, you can guess approximately, the lowest configuration is generally sold at the cost price
In those years, Xiaomi's hardware + new retail + Internet dimensionality reduction attack business model was indeed a dimensionality reduction blow for other manufacturers
At the 2017 Leadership Forum held by Yale Beijing Center, Lei Jun, Chairman and CEO of Xiaomi, delivered a keynote speech, analyzing Xiaomi's business model innovation, difficulties and solutions around its growth history in the past seven years.
This presentation explains why Android phone manufacturers add advertising
For Xiaomi's business model innovation, Xiaomi's model is defined as "triathlon", that is, hardware + new retail + Internet. Lei Jun believes that as a hardware company, Xiaomi is not sustainable if it does not do Internet services.
Xiaomi wants to make top quality and sell it for only half the price, which is commercially impossible. How did Lei Jun make this impossible possible? China does not lack the spirit of craftsmanship, nor the spirit of innovation, why can't the product be done well?
Xiaomi positioning: hardware + new retail + Internet
Xiaomi was founded in 2010, the purpose of founding Xiaomi is actually very simple, mainly to see how to use Internet thinking and Internet methodology to help China's manufacturing industry transform and upgrade.
Xiaomi may break through many of the previous thinking about business models, including positioning, and many people criticize Xiaomi as an unfocused company. What I want to say is that Xiaomi is a mobile phone company, a mobile Internet company, and a new retail company.
Xiaomi wants to do "triathlon", that is, hardware + new retail + Internet. We disassemble the problem: to make the world's coolest products, the best quality products, the most beautiful products, the premise is to spend a lot of money, you need to find the best designers, the best engineers, the top components and the best processing plants, the cost is very high. At the same time, Xiaomi wants to make the world's top quality products, and only sell half the price.
You sell half of it at such a high cost, is it possible? Not commercially possible. So how do we make this impossible possible? I think the core problem of Chinese business is that it is inefficient, and everything has to go through many layers and is extremely expensive when it is sold to consumers. The things you buy in the United States may also be made in China, and the quality and price are much better than in China.
In fact, this also makes me wonder, the products we make in China have only half of China in the United States, which is very crushing. Some people say that in the 15 years I have been back to China, I have never bought anything in a Chinese mall, and all the things I buy are bought in the United States and then transported back to China by plane, which really makes me very devastated.
The core problem of Chinese business: business inefficiency
I don't think Chinese lack craftsmanship, I don't lack innovation, I don't think we can't do things well, what's the problem? The core problem in the middle is business inefficiency. When business efficiency is low, in order to make the price of the product cheap, you must cut the cost, and when the cost is cut to the end, it becomes a copycat, which is such a simple problem.
You may not know how inefficient Chinese business is. For example, men's shirts, the most expensive production cost is 120 yuan, the cheapest is 15 yuan, when you enter the mall, you sell from 1500 yuan, women's shoes are added 8 to 10 times on average, cosmetics are 20 to 40 times, the cost of the things you buy is very low, won't this seriously affect everyone's happiness? Unfortunately, it seems that everyone does not make money, and it is strange that a ten-dollar thing is sold to consumers for hundreds or thousands of dollars, and in the end it does not make money.
What's the problem? Each layer is very inefficient, looking at the price of more than ten or twenty times, consumers do not pay, fewer people enter the mall, buy less things, amortization can not be lost, each layer does not make money, it requires a higher price, has become an endless cycle.
After I found this problem, I decided to compress all this process to the maximum, and after the compression, all the costs were used for product research and development, and the product itself, so I mentioned not to invest in any market advertising when I did Xiaomi in the early days. I set up a website to sell my own mobile phones, and all the advertising costs were saved, and I wanted to try to see if this model worked. Almost zero channel budget, then cost pricing, how much production materials I will set, to the end
So, that's why I do hardware research and development, and I also have to do retail. For example, ordinary mobile phones have to be sold twice or tripled in order for everyone to make money. The mobile phone industry is basically multiplying the cost of materials. How do you compress it? If I make a mobile phone, I open a website, you want to buy a mobile phone, the cost for me is the freight, in principle, I just pay the freight.
So because of such high efficiency, we quickly killed all the cottage machines in China, and in turn forced domestic mobile phone manufacturers to progress. If you can't improve quality, efficiency, and design, you will all be eliminated. So in this way, we are forcing the entire Chinese mobile phone industry to progress.
Xiaomi Business Model: Internet Service Dimensionality Reduction Attack
We spend so much money on products, spend so much money on controlling efficiency, and selling products, and a new problem arises: after doing this, the company does not make money, and even loses money if it is not done well.
We strictly limit our gross profit margin, hoping that the lower the gross profit margin, the better, which is different from the business school, our entire company culture is to control greed, because only in this way, this company is a great company that is sustainable in the long term. So when there is such a culture, the company does not make money, it is difficult to hire good people without making money, it is difficult to find investment, it is difficult to sustain.
So what to do? I asked if we could tip like American restaurants, but in fact, the hard-working hardware industry has a basic net profit margin of only 1%-2%. I said go to the United States for a meal, a 15% tip, what a business.
When I started Xiaomi seven years ago, I went to dinner at an American restaurant with a friend, and he paid for it. I said you "why do you pay a 20% tip, this restaurant service is very average", he said, he was paid a 20% tip when he studied in the United States, he was very happy, and he couldn't sleep all night when he was excited. He thought, when we have money, we will give a 20% tip. So I believe that people all over the world are the same, as long as you really do well, everyone is willing to tip. So I think it's not sustainable for a company not to make money commercially, so we do a whole bunch of internet services to tip.
Without Internet services, Xiaomi, like a standard hardware company, is unsustainable, has no $45 billion price, and does not have excellent Yale graduates to join us.
So don't simply accuse Xiaomi of "messing around" and doing everything, but it's not.
These three models are known to everyone, I am used to solve social problems, improve efficiency, and use all the money to make products, so these two modules I must do, I don't do it, can't do high efficiency, after high efficiency, the company does not make money, I must also make money, so this is a very complex business model. But it is high-dimensional, so when it competes with traditional industries, it uses dimensionality reduction attacks, which is a crushing effect, which is the greatness of the business model.
Today, Xiaomi began to do a little advertising, but the advertising fee was not even 1%, the main purpose was to infiltrate people who did not know us well in the past. For example, boys know a lot about electronic technology products, but how to let girls understand Xiaomi in a faster way? Asking Wu Yifan to speak for it is definitely a move. We are also thinking about more efficient marketing, so that Xiaomi can penetrate more families and let more people understand, which is a process.
Take Xiaomi's financial report data as an example, you can see how profitable Internet advertising is (who let domestic mobile phone manufacturers check the data of Xiaomi as a listed company)
Although Xiaomi's Internet services seem to be less profitable than mobile phones and IOTs, their gross margins are much higher than both
I believe everyone has heard of the three-zero system of the Meizu 18 series, what is the result? The "three-zero system" overturned.
Due to the behavior of pushing advertisements to users in the Meizu 18/18 Pro system, it was fined 25,000 yuan by the Zhuhai Market Supervision Administration.
Although Zhuhai's small factory has a congenital disadvantage in size, it is enough to show how profitable the advertising business is
All talked about this, put a few ways to close the advertisement
MIUI off advertising tutorial
OriginOS new machine to hand optimization suggestions - Wen Mei article - Zhihu https://zhuanlan.zhihu.com/p/627671890
Private goods with a MIUI skill, other mobile phone users can also take a look, and many functions can also be used by themselves
What are the MIUI tips? How to play MIUI?
Is Apple really ad-free? This may have been the case with Apples in the past, but sorry Apple is not now
Apple's iOS system, which relies almost non-existent on advertising revenue, is now also beginning to see ads on the App Store.
It's just that Apple has its own set of development standards that can control third-party app advertising. That's all
The software profit of domestic mobile phone manufacturers is roughly divided into two parts, one part is advertising, the other part is the paid commission of channel service game players, the domestic side is generally three or seven, too much one and a half open, the glory of the king can achieve a small goal of Wang Jianlin in one day, and the share of this part is also quite a lot
Apple used to have no ads, in fact, because the system was closed to exploit users and developers.
Users can only download apps from the App Store, apps don't pay and can't find alternatives, and they must pinch their noses and use them obediently. By the way, Apple users spend more money on recharging than Android users
Developers must pay an Apple tax to Apple for paid apps, as long as the app on the App Store, whether it is a first-hand buyout or users continue to consume, must pay Apple a 30% commission.
How big is this cake, Apple's total revenue from the "Apple tax" alone last year was almost $70-85 billion, and of all the apps, games are the most profitable, according to Verge, games account for about 70% of the entire App Store revenue and 98% of in-app purchase revenue.
Although the three-year lawsuit between Epic and Apple had a result some time ago, Apple can still appeal, and the final result is not yet available
Every manufacturer is not a good person