Lei Jun's new way to sell cars
Price-performance pricing strategy
Lei Jun has always been a marketing master, and the launch of Xiaomi SU7 this time is also the use of his unique marketing concept. The pricing strategy of the Xiaomi SU7 can be described as surprising the entire automotive industry. The standard version is priced at 215,900 yuan, which is a full 30,000 yuan lower than the Tesla Model 3. This is undoubtedly a great value for money, which is enough to make consumers excited.
Lei Jun is not simply driving down prices to attract consumers. He understands that the pure electric vehicle industry is generally in a state of loss, and Xiaomi is no exception. He admits that the pricing of the Xiaomi SU7 has lost money, but this is out of sincerity to consumers. As a mobile phone manufacturer, Xiaomi has a unique insight into battery navigation capabilities. They have spared no expense in battery and technology research and development, with the goal of creating a pure electric car with a stylish appearance, excellent driving and high intelligence within 500,000 yuan.
This cost-effective pricing strategy directly subverts the traditional price system of mid-to-high-end models. The arrival of Xiaomi SU7 will undoubtedly trigger a new round of price wars, forcing car companies of the same level to adjust and respond. Lei Jun implemented Xiaomi's consistent cost-effective concept and stirred up the pattern of the entire automotive industry.
Marketing tactics create "low price" expectations
Before the press conference, Lei Jun intentionally or unintentionally created the expectation of "low price" through various channels. For example, on social media, he released the design drawings of the Xiaomi SU7, which was jokingly called "the first Porsche for young people" by netizens. This has undoubtedly aroused great expectations for this "affordable Porsche".
Then, Lei Jun played the game of "guessing the price" again. This is an old routine, but Xiaomi has played it to the fullest. The discussion and speculation about the price of the Xiaomi SU7 on the Internet reached a frenzy, creating a wave of participation. This is no longer just speculation about price, but more like a big discussion about Xiaomi's new moves in the automotive field.
When the actual pricing of the Xiaomi SU7 was announced, although it was much higher than expected, it still seemed "surprisingly cheap" compared to other models in the same class. This triggered a frenzy of rush from Xiaomi fans, and the Xiaomi Auto App once topped the App Store charts. Through a well-designed marketing strategy, Lei Jun successfully built momentum for the Xiaomi SU7 and finally achieved explosive sales.
Subvert the pattern of traditional car companies
The emergence of Xiaomi SU7 is undoubtedly a subversion of the pattern of traditional car companies. Its low price directly penetrates the price system of mid-to-high-end models, forcing car companies of the same level to adjust and react. Once this kind of price war starts, it will inevitably affect the pattern of the entire industry.
The Xiaomi SU7 itself is a very cost-effective model. It not only has a stylish and dynamic design, but also is equipped with a powerful intelligent driving system and excellent power performance. For those young consumers who are looking for individuality and a sense of style, the Xiaomi SU7 is undoubtedly an attractive choice.
With the hot sales of Xiaomi SU7, other car companies will also be forced to launch more cost-effective models to maintain their market share. This kind of healthy competition will surely promote the development of the entire industry in the direction of paying more attention to cost performance and intelligence, and the ultimate benefit will be the majority of consumers.
Capacity and quality challenges
Despite the impressive sales results of the Xiaomi SU7, it also faces some serious challenges. The biggest challenge is capacity. As the order volume of the Xiaomi SU7 far exceeded expectations, the production capacity of Xiaomi cars soon could not keep up. The initial production capacity was only 5,000-6,000 vehicles per month, which was far from meeting the market demand.
Although Xiaomi is already stepping up to expand production capacity, for a brand new car company, this is by no means an overnight success. In order to truly achieve the planned production capacity, many stringent conditions need to be met, such as parts supply, production line operation, pass rate, etc. If the production capacity problem cannot be solved, it will inevitably affect the delivery progress of Xiaomi SU7, which will lead to a backlash in word of mouth.
In addition to production capacity, quality management is also a major challenge for Xiaomi Auto. The complexity of automotive products is much higher than that of mobile phones, and it is a difficult task for Xiaomi, which lacks experience in automobile manufacturing, to master quality management in a short period of time. If there are some common problems or quality problems, it will also seriously affect the reputation of Xiaomi SU7.
Xiaomi must attach great importance to the two major problems of production capacity and quality, and take effective measures to solve them. Only in this way can the Xiaomi SU7 really go to last, otherwise it could become a popular product overnight.
Decent marketing maintains word-of-mouth
In the face of the hot sales of Xiaomi SU7, Lei Jun did not stop there. He also employed a tactic known as "decent marketing" to maintain Xiaomi's brand reputation and image.
Lei Jun publicly recommended the car products of some friends to show respect for competitors. This approach not only eases the competitive atmosphere between brands, but also shows Xiaomi's humility and courtesy as a newcomer to the automotive industry. This has undoubtedly won Xiaomi the goodwill of the public.
Lei Jun also realized that Xiaomi needed to keep a low profile to avoid being eaten by public opinion. The success of the Xiaomi SU7 is just the beginning of Xiaomi's entry into the automotive sector, and there is still a long way to go before it can truly gain a foothold. Therefore, Lei Jun chose the method of "decent marketing" to reduce Xiaomi's popularity and continue to maintain the brand reputation.
This marketing strategy not only reflects Lei Jun's foresight, but also meets the needs of the development of the times. In today's society, a brand that is too ostentatious and self-ostentatious may cause public disgust. Xiaomi's "low-key style" is undoubtedly closer to the psychological expectations of the public.