After Lei Jun donated 1.3 billion to Wuhan University, he was met with cold rumors of 4 billion, and some people questioned that his donation was just to promote Xiaomi mobile phones and Xiaomi cars. Why would anyone create such antagonistic pressure?I think it's because all the companies engaged in home appliances, mobile phones, and automobiles are afraid of confronting Xiaomi, and no matter how they try to spread rumors and create controversy, there must be a deep-seated reason. This deeper purpose is because of Xiaomi's advantages when entering these industries. So, what are the advantages of Xiaomi's entry into these industries?
After Xiaomi entered the home appliance industry, it has always pressed its profits to a very low level. Consumers are happy of course, but for other businesses, it's an absolutely unbearable blow. For example, taking Xiaomi mobile phones as an example, when Xiaomi did not enter the high-end market in the past, the ** of 1999 yuan suppressed the pricing of other domestic manufacturers all the way. Nowadays, although it has hit the high-end market, from the perspective of configuration and **, Xiaomi is still the most cost-effective brand among all domestic mobile phones. Not only mobile phones,In small household appliances、Major appliances and other fields,Xiaomi has also adopted the same strategy,The industry it enters will compress profits,This is also the best evidence of the color TV industry。
Xiaomi has occupied a position that cannot be ignored in the market with its price reduction strategy. On the one hand, by reducing profits, Xiaomi products are more accessible to the people, which really stimulates consumers' desire to buy. Consumers are happy to accept Xiaomi's products because they can get high-quality products at a lower price. On the other hand, the depressed profit has also brought Xiaomi's word-of-mouth communication and brand recognition to users. It can be said that Xiaomi provides users with real value with its excellent cost performance, so as to be invincible in the market competition.
Xiaomi's entry into any industry, whether it is Lei Jun's personal charm or Xiaomi's cost performance, will bring products with good sales. Whether it is with the help of Lei Jun's personal influence or with Xiaomi's cost-effective advantage, as long as it is equipped with the Xiaomi brand, the sales of the product will remain stable. When Xiaomi's sales are stable, other competitors will have a hard time and will have to compete with Xiaomi through price cuts. This kind of brand traffic effect has made Xiaomi a dark horse in the market.
With its distinctive brand image and excellent cost performance, Xiaomi has always been loved and sought after by users. As the soul of Xiaomi, Lei Jun has established a strong personal brand influence in the market with his elegant demeanor and excellent business acumen. Xiaomi mobile phones, home appliances and other products have successfully won the hearts of many loyal users with the help of Lei Jun's influence and high-quality user experience. This brand traffic effect not only drives the sales growth of Xiaomi products, but also promotes the word-of-mouth communication and recognition of the Xiaomi brand by users.
Xiaomi not only has the best and brand advantages, but also has the best chain and R&D advantages. No matter which industry Xiaomi enters, it can quickly cut in and occupy a place. We have already mentioned Xiaomi's strategy of driving down profits, which is precisely thanks to Xiaomi's ** chain advantage. Xiaomi's ability to not only control product costs, but also to quickly launch new products to consistently meet the needs of users, is a huge pressure on other competitors.
Xiaomi's advantages in the ** chain and R&D allow it to quickly cut into various industries and occupy a leading position. Relying on its own strong chain capabilities, Xiaomi can control the procurement cost of raw materials and reduce manufacturing costs, so as to provide more competitive products. At the same time, Xiaomi also has a strong R&D team, which constantly introduces innovative products and technologies, and always maintains a cutting-edge position in the market. This allows Xiaomi to quickly adapt to market demand and launch better and better products, further consolidating its position in the industry.
Xiaomi's advantages are self-evident, so how should companies engaged in home appliances, mobile phones and automobiles respond to Xiaomi's challenges?
For many small home appliance manufacturers, they choose to join the Xiaomi ecosystem and become their partners. Although it means a compression of profits, at least it will be supported by Xiaomi and share resources such as traffic. And those companies that have not joined the Xiaomi ecological chain will either stay away from Xiaomi and make some niche products, or they must have a higher level and launch more innovative and competitive products in order to compete with Xiaomi. However, there are very few companies that can reach this level.
Joining the Xiaomi ecological chain and becoming a partner of Xiaomi is a wise choice for small home appliance manufacturers. Although this means a compression of profits, it is able to share Xiaomi's brand traffic and resources, gain a wider user base and more stable sales channels. This can not only improve the market competitiveness of enterprises, but also increase the brand awareness and user reputation of enterprises. For those enterprises that have not joined the Xiaomi ecological chain, if they want to survive in the market competition, they must have higher R&D capabilities and stronger sense of innovation, and launch more competitive products in order to compete with Xiaomi.
Xiaomi's strength and competitive advantage are indeed beyond the reach of other companies. However, as mentioned above, as long as there is enough innovation and differentiation, other companies have a chance to compete and succeed with Xiaomi. This requires enterprises to continuously increase R&D investment and improve product quality and scientific and technological content to meet the diverse needs of users. At the same time, it must also be closely connected with the market, seize the pain points and opportunities of the market, and launch products that effectively solve problems. Only in this way can we maintain a certain competitiveness in the competition with Xiaomi.
In the face of Xiaomi's strong competition, other companies need to increase investment in innovation and enhance their core competitiveness, whether in the domestic or international markets. This means that enterprises must increase their R&D investment and continuously launch innovative, high-quality products to meet users' pursuit of quality and experience. At the same time, enterprises should also have an in-depth understanding of the needs of the market, dig out the pain points of the market, launch solutions, and provide differentiated products and services. It is only through innovation and differentiation that companies can find their competitive advantage in the competition with Xiaomi and compete with it.
Summary: Xiaomi, as a company with first-class chain and R&D advantages, has swept the home appliances, mobile phones and automobiles industries with excellent brand traffic and cost performance. As a result, other companies are feeling the pressure to either choose to join Xiaomi's ecosystem or find their competitive advantage through innovation and differentiation. In any case, Xiaomi's entry is a challenge for these businesses and requires constant effort to succeed in the competition.