2, hardware as the basis of revenue, but not hardware profitability as the goal. Xiaomi cell phone, IoT and consumer goods gross margin are less than 10%, only the Internet service gross profit as high as 60%-65%, the comprehensive gross margin is only 11%-13%. Reflecting on its historical development trajectory, we believe that millet's values, marketing concepts *** with the formation of its product power, hardware product power and fan culture constitute the cornerstone of its brand value, relying on the brand value of the positive feedback on the hardware products, and the formation of Internet services profit value-added.
3, the launch of new series in response to the times, the formation of three major categories including millet MIX, millet series and red rice series to cover the high, medium and low-end market. 2015 launch of the red rice series to boost its share in the emerging market; since 2016Q1, China's cell phone market has become a stock market, and consumers in mature markets are more in pursuit of innovation and upgrading of the selling point, so the MIX is an important millet innovation force Outlet.
4. Accelerate the internationalization process. As of March 31, 2018, the company's smartphones have entered 74 countries and regions around the world, with China, India, and Indonesia as the main shipping regions. In terms of shipments in the fourth quarter of 2017, the Company ranked among the top five smartphone brands in 15 countries and regions.
5, low-end product shipments high growth, the initial completion of the layout of high-end models, the overall average price still has room for improvement. In the past two years, through the continuous application of millet on cell phone black technology, making millet cell phone from the traditional low-end image gradually become a high medium and low-end production line complete Internet ecological enterprises. However, mid-range and entry models were still Xiaomi's main models in 2017, while shipments of high-end flagship models above 3,000 yuan were still less than 10 million units, and year-on-year sales of flagship models at the 2,000 yuan price point did not see a significant increase. In the Chinese market, Xiaomi's share of sub $100 models remained at 18% in 2018Q3, while the mainstream demand in the Chinese market is $100-400, with sub $100 demand accounting for only 5.9%. In the Indian market, the low price helped to further increase the share.In the first three quarters of 2018, Xiaomi's average price in the Indian market decreased slightly year-on-year, but it was lower than the overall average price of the Indian market in the same period.
Table of Contents
1. Starting from cell phones, standing on three legs
2. Characteristics of Xiaomi's cell phone business strategy
2.1 Launching a precise and differentiated brand at the right time
2.2 From price-performance ratio strategy to focusing on black tech
2.3 Capital-light marketing concepts and sales strategies
2.4?Achieving internationalization strategy with Localization to achieve internationalization strategy
2.5?Consumer electronics platform enterprise
3. A brief history of Xiaomi's cell phones: different positioning, the same fever
3.1 Flagship series, the era of the ultimate price-performance ratio
3.2 Redmi series, make the branding of the thousand-dollar machine
3.3 MIX series, with the innovation of countless awards
4. Product structure still has room for optimization