Promoting High Quality Development of Enterprises through Management Innovation - Hong Hua, Founder and CEO of Xiaomi Ecological Chain Barn Academy

The "2018 National Enterprise Management Innovation Conference" hosted by the China Enterprise Confederation and the China Entrepreneurs Association was held in Beijing on March 29th, with the theme of "Promoting High Quality Development of Enterprises through Management Innovation". Hong Hua, founder and CEO of Xiaomi Ecological Chain Barn Academy, attended and gave a speech. At present, Xiaomi has expanded from its mobile phone business to more fields. Xiaomi Home has rice cookers, floor cleaning robots, and desk lamps.

Hong Hua, founder of Xiaomi Ecological Chain Barn Academy

Some people may think that Xiaomi is not focused on producing so many products. There are many comments online calling Xiaomi a department store. Hong Hua believes that those who say Xiaomi is a grocery store do not understand Xiaomi's model. We also focus, but we don't focus on the product. We focus on the user, which is the foundation of the Xiaomi model

The early users of Xiaomi were very clear, which were male engineers aged 17 to 35. When these users had new needs, Xiaomi developed new products. Xiaomi is not a mobile phone company, but a user company. Each product category has a lifecycle of three, five, or ten years, but only by focusing on users can we always explore new business opportunities and launch new products and services.

Many achievements in the Xiaomi ecosystem, such as mobile power banks, rice cookers, and Xiaomi wristbands, were not made by Xiaomi, but by Xiaomi incubating ecosystem enterprises. Behind every product category is a company, such as rice cookers and air purifiers called Zhimi Technology. Xiaomi has been involved in the Xiaomi ecosystem since 2013, and has incubated a total of 99 companies so far. Among them, 55 have released products, of which approximately 24 have exceeded 100 million, 7 have exceeded 1 billion, and a few have exceeded 2 billion.

Honghua introduced that Zhimi Technology sold 5.3 million air purifiers last year, occupying more than 30% of the market share. It is very difficult for these small and medium-sized enterprises to quickly climb from zero to billions of dollars in scale.

Why can it grow bigger, and what are the main reasons and experiences behind it?

Hong Hua believes that in order to achieve ecology, there must first be soil. Xiaomi's soil is its user base, with a range of 200-300 million user messages. Xiaomi also has a brand and popularity, not brand awareness or reputation, but popularity. Because of the characteristics of the Internet, some people scold you, some praise you, some black you, some pink you, you should adapt to this state. We should adapt ourselves to the confrontation between the positive and negative sides of Internet communication when we make the Internet.

Xiaomi and the companies on the ecological chain are sister companies. Xiaomi does not hold a controlling stake when investing, and all company teams are major shareholders, with Xiaomi accounting for 20% to 30%. Xiaomi invests without controlling, so the team has initiative.

We recommend that all employees of Xiaomi's ecological chain enterprises hold shares. Of course, we cannot engage in egalitarianism, and those who contribute more will have more shares. "Hong Hua pointed out that Xiaomi places great emphasis on maintaining its independence, even brand independence. Therefore, Xiaomi's ecological chain enterprises have both Xiaomi and Mijia brand products, as well as independent brand products. The future capital path is relatively good, and the revenue structure is also reasonable.

Article source: Electronic Enthusiast Network

He Yang/Organizing and recommending