On the eve of the one-billion-dollar gamble, Xiaomi and Gree have announced their achievements.
Recently, Xiaomi Group announced that the annual shipment of Xiaomi mobile phone has exceeded 100 million units, and the annual target has been completed two months ahead of schedule. At present, Xiaomi has established a new retail system of all categories and omnichannel.
Lei Jun, chairman of Xiaomi Group, revealed that using offline Internet to do offline retailing is equally efficient in online and offline, which is the significance of new retail. While the Xiaomi offline channel continued to expand rapidly, it maintained an efficient performance of the overall operation, with an operating expense ratio of 8.8%.
The third quarterly report released by Gree Electric Appliances shows that its revenue for the first three quarters of this year was 148.6 billion yuan, a year-on-year increase of 34%. At the same time, Gree has also entered the kitchen appliance market. Although Dong Mingzhu and Lei Jun’s gamble will take some time, the situation between Gree and Xiaomi is getting more and more tense. The gap between the two sides is getting smaller and smaller, and the outcome is difficult to determine.
Xiaomi “Double Eleven” sprint
After a year of online and offline rapid layout, the full picture of the Xiaomi Empire channel has emerged.
This time, Xiaomi announced the complete structure of Xiaomi’s new retail, and the development of offline channels is particularly eye-catching. The Xiaomi offline channel includes Xiaomi Home, Xiaomi Authorized Experience Store and Xiaomi Direct Supply Store, which correspond to different markets of cities, counties and townships, widening in breadth and sinking in depth.
In April last year, Lei Jun said that Xiaomi would open 1,000 Xiaomi homes in three years. However, up to now, the millet home has reached 515. As of October 2018, there were 1,183 authorized experience stores in Xiaomi, covering 567 districts and counties across the country. In November 2017, Xiaomi began to explore direct supply franchise points, and 36,256 have been opened in less than one year.
The industry believes that in recent years, Xiaomi’s performance has achieved rapid development, and its channels have gradually improved. At the beginning of its establishment, Xiaomi Mall was the only sales channel of Xiaomi Company. Now it has quickly established various channels and spread from online to offline. Xiaomi intends to accelerate its expansion on the scale.
Wang Lingming, vice president and general manager of the sales and service department of Xiaomi Group, said that this year’s “Double Eleven” is different. In the past, Xiaomi has built up coverage online and offline shopping on the basis of the original strong online channels. A new stereoscopic new retail scene. This year’s “Double Eleven” will conduct a comprehensive inspection of the comprehensive operational capability and service capacity of Xiaomi’s new retail system.
It is reported that Xiaomi’s “Double Eleven” this year will integrate the 7 online platforms with more than 5,000 stores, and invest more than 1,000 service stores, more than 3,000 delivery vehicles and over 100,000 delivery personnel.
Insiders of Xiaomi revealed that Xiaomi’s smart equipment has received huge shipments based on Xiaomi’s new retail system. Xiaomi built the world’s largest intelligent hardware IoT platform, connecting 115 million Xiaomi IoT devices worldwide. At the same time, the network effects generated by AI and IoT began to fully empower Xiaomi’s new retail. During the “Double Eleven” period, this effect is expected to help Xiaomi achieve a new high in sales.
The industry believes that the new retail as an important part of the millet channel is one of the key factors supporting the millet model, and will play an increasingly important role in the future. With the help of “Double Eleven”, Xiaomi has worked together through online and offline channels to accelerate the sprint on the scale of revenue.
Gree fully enters kitchen appliances
On the eve of the expiration of the bet, the two entrepreneurs were particularly low-key and seemed to be “fading” the bet, but there was no shortage of meaning.
Dong Mingzhu has not given up on the rapid exploration in the multi-field, while Gree has always maintained an oligopoly in the field of HVAC and home appliances. Gree Electric’s annual report for the first half of 2018 shows that Gree’s commercial air conditioner market share ranks first in the domestic market since 2012.
In addition to entering the field of mobile phones, automobiles and chips, Gree has just acquired the entire equity of Jinghong Electric and has grown its scale. At the same time, Gree has entered the kitchen industry and has accelerated the pace of the layout. At present, Gree has launched Gree Dasong kitchen “Three Musketeers”, namely Dasong range hood, gas stove, disinfection cabinet. These three products cover the smoke, stove and consumer goods of kitchen appliances. It can be seen that Gree is fully engaged in the field of kitchen appliances.
Judging from the semi-annual reports of the two parties, Xiaomi’s revenue in the first half of the year reached 79.6 billion yuan, while Gree Electric Appliances was 92 billion yuan. The gap between the two sides is only 9 billion yuan. From the performance of the two parties in the first three quarters, Gree’s performance growth rate is stable, and the growth rate of millet is rapid, and the gap between the two sides is still narrowing.
In the next peak season of sales, both sides also exerted omnipotence and rushed for their own scale. Now that the gambling period is approaching, the result will come out. Regardless of the outcome, this is a time to test the strength of both sides.