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Will Xiaomi become a strong rival to traditional home appliance companies such as Gree, Midea, and Haier within 10 years?

A tall building rises from the ground, but it depends entirely on its foundation. It is impossible to occupy the traditional home appliance market by relying on OEM and cost-effectiveness. Any electronic product without independent research and development capabilities can only become a hit. Only products with brand and technology can be invincible!

It is unlikely, because Gree is much stronger than Xiaomi in all aspects.

Hello, my name is Ah Hui, and I want to tell you that the TVs made by traditional home appliance companies such as Haier, Hisense, TCL and Skyworth are great, and it is impossible for them to lose to Xiaomi in terms of "quality" of TVs. Xiaomi's sales advantage does not rely on the quality of its TVs. On the contrary, Xiaomi has taken advantage of the homogeneity, maturity and stability of aging products such as TVs, and used dimensionality reduction methods to gain competitive advantages through dimensional changes.

We often watch American science fiction blockbusters. The most powerful American army on the ground is often beaten to pieces by aliens, because the opponents are not in the same dimension as us, and our heavy weapons hit them like Tickle. Xiaomi TV uses this dimensionality reduction thinking to gain advantages over traditional TVs. Xiaomi TVs are not much different from traditional TVs in terms of quality and performance. However, through years of hard work, the Xiaomi brand has established brand characteristics such as Internet thinking, fresh fashion, and cost-effectiveness. At the same time, it has opened up retail channels that are different from traditional home appliances, coupled with content and intelligent service systems, thus avoiding the competition with traditional home appliances. The market platform realizes the dimensionality reduction attack on traditional TV from a higher dimension. Within three years, Xiaomi will become the biggest rival of traditional home appliance companies such as Gree, Midea, and Haier. There are several reasons.

1. Strategic advantages of ecological chain

Many people say that Xiaomi has only been in business for how many years? Are Gree, Midea, and Haier established players? Become a rival? Dream on. Sorry, the technology industry is really not based on seniority. The silver carp effect is that destructive subversion is often more lethal.

"Xiaomi has no core technology and is still too young." When Xiaomi was making mobile phones, many people said the same thing. Later, when Xiaomi made TVs, many people still said the same thing. As a result, they were beaten. Face.

Xiaomi TV, Xiaomi kettle, Xiaomi rice cooker, Xiaomi air conditioner... some of this series of ecological chain products are not manufactured by Xiaomi personally, but have become Xiaomi's biggest advantage through acquisitions. Whether it is strategic investment or strategic investment, Xiaomi has integrated the world's best superior resources through capital operations, including teams, capital, core key technologies, and supply chains. This ensures that each product can be made well, thereby forming stronger competitiveness.

You can dig deeper into the historical background of each ecological chain product company. All of them are outstanding and leading in this field. Through the ecological chain strategy, Gree has developed so fast that Gree , Midea, Haier and other traditional home appliance companies dare not take it lightly.

2. AIOT strategy

The intelligence of the Internet of Things is undoubtedly the development direction of traditional large appliances, and mobile phones are the control center of the entire Internet of Things equipment. Although Gree, Midea, and Haier have some advantages in traditional manufacturing, they are no match for Xiaomi in terms of intelligent equipment and IoT cloud platform services.

Xiaomi has become the second largest smart home equipment manufacturer in the world. In terms of major appliances, TVs, air conditioners, refrigerators, electric kettles... As long as Xiaomi is involved in almost all fields, it makes its competitors sad. With the accelerated arrival of the 5rG era, it is an inevitable trend for Xiaomi to accelerate the layout and advancement of its AIOT strategy and fully enter the home appliance market. It is certain that Xiaomi will become a strong rival of Gree, Midea, and Haier. Of course, given Xiaomi's tone, it is not ruled out. Join forces to achieve cooperation.

Hello, I'm glad to be invited to answer questions.

So within 10 years, will Xiaomi become a strong rival to traditional home appliance companies such as Gree, Midea, and Haier?

I feel that this question needs to be answered from two dimensions. Dimension 1: Sales volume

In recent years, the sales of home appliances such as Xiaomi TVs and Xiaomi air conditioners have grown rapidly. Relying on Xiaomi's best marketing methods and the Xiaomi eco-home system built by Xiaomi, the sales of Xiaomi home appliances are increasing day by day.

The sales volume of traditional home appliance manufacturers is relatively bleak. They have not created any ecosystem system, and they do not use the Internet for deliberate marketing. Even if they do market, it is not as good as Xiaomi's marketing. At most, it can be regarded as advertising, price reduction, etc. during e-commerce festivals such as 618.

So from this sales perspective, it won’t take long for Xiaomi to dominate the home appliance industry and become the number one in terms of sales.

In this era, whoever knows how to market will have more sales and higher efficiency, so Xiaomi is very successful. And in terms of sales, it has also attracted the attention of the traditional home appliance industry. It can also be said that Xiaomi is now their strong rival.

Dimension 2: Core Technology

Traditional home appliance companies such as Gree, Midea, and Haier have been established for a long time. They more or less have their own accomplishments in the field of home appliances.

They have also accumulated some of their own core technologies. For example, Gree uses its own technology in air-conditioning chips and other aspects. There is also the virus purifier developed by Gree some time ago, which has caused widespread concern. Hotly discussed, this purifier is the core technology developed by Gree itself.

In terms of user experience and product optimization, I believe these traditional home appliance companies are much better than Xiaomi.

Because these companies have been around for a long time, they already understand the development status of this industry, user experience and needs, etc.

Compared to Xiaomi, which is an Internet company that has only slowly developed into other home appliance manufacturing companies from its initial mobile phones, it does not necessarily have much core technology and does not necessarily have a thorough understanding of the industry.

So in this aspect, Xiaomi is completely defeated by the traditional home appliance manufacturing industry, and things like core technology cannot catch up in a short time.

So if within 10 years, Xiaomi will increase research and development, and other traditional home appliance companies will also increase research and development, so no one can say whether it will become their strong rival in 10 years. To summarize:

In terms of marketing and sales, Xiaomi is indeed a strong rival of traditional home appliance companies; but in terms of core technology, Xiaomi still has a long way to go.

They will become strong rivals, but they are not competitors on the same level.

Haier, Gree, and Midea are traditional home appliance manufacturing companies, while Xiaomi is an Internet company. It can be understood that the core of Haier, Gree, Midea and other companies is manufacturing and factories, while the core of Xiaomi is users. What Internet companies value is how to establish a good relationship with users and interact on this relationship, thereby creating more value for users and realizing the value of their own companies. Haier, Gree, Midea and other companies value my product capabilities and how excellent my products are. Therefore, they are fundamentally not competitors at the same level.

However, we are also pleased to see that some traditional enterprises, such as Haier Group, have been reforming along with the pulse of the times. They are also increasingly willing to get closer to and interact with users. If they wake up and realize the importance of user interaction, they may be able to kill Xiaomi in minutes. So, in this sense, they will be Xiaomi's strong rivals.

For consumer goods companies, especially for home appliance companies, the future competition is not only the competition of products, but also the competition of users. Who is willing to interact with users, who can occupy users’ time, and who Whoever is closer to the user will be more competitive.

Xiaomi Internet Air Conditioner was released. As a 1.5 HP, 0.1 precision temperature control, three-level energy efficiency, and voice-controllable smart inverter air conditioner, it is priced at 1,999 yuan, and the price/performance ratio is relatively good. High. However, air conditioners have always been a hot topic of competition among home appliance companies. Today, China's air conditioner market is dominated by home appliance manufacturing companies such as Gree, Midea, and Haier. The oligopoly market structure has long been formed. Whether Xiaomi air conditioners can find every opportunity to exploit, remains to be seen by time.

In fact, this is not the first time Xiaomi has entered the air-conditioning industry. As early as 2014, Xiaomi cooperated with Midea and jointly released an "i Youth" smart air conditioner. Although this air conditioner belongs to Midea's product line, Xiaomi's smart module is built into the product and can be remotely controlled through Mijia APP and Xiaomi bracelet. Unfortunately, the user experience of this air conditioner is too poor, and Xiaomi failed to break into the air conditioner camp with the help of major home appliance companies. Later, Xiaomi also cooperated with Oaks to launch an ultra-thin smart air conditioner, but the response was still mediocre.

Three years later, in 2017, Xiaomi chose to go it alone. Its ecological chain enterprise Zhimi Technology released a 1.5 HP variable frequency smart air conditioner product targeting the high-end market, priced at 4,399 yuan, and was OEMed by Changhong of. This high price directly breaks Xiaomi's cost-effectiveness label. Netizens complained that Xiaomi is crazy about money and treats consumers as fools with too much money? This air conditioner still failed to arouse market response, and even Xiaomi has not announced the sales volume of this product.

The first youth route, the second high-end route, both attempts had high hopes, but both ended in regrets. This year, the third time we tried, we returned to Xiaomi The usual way to make products is to use your own "extreme cost-effectiveness" model and directly use the price to massacre the city. The success of Xiaomi mobile phones is the best example. Xiaomi wants to copy the model of mobile phones and shake up the air-conditioning pattern in the Chinese market with price. Xiaomi’s Mijia air conditioner is priced at 2,199 yuan this time. The price was already very attractive, but in order to attract attention, it was changed to 1,999 yuan, plus an installation fee of 200 yuan, giving consumers the illusion that a smart inverter air conditioner is priced under 2,000 yuan. . Xiaomi is indeed a master of the Internet.

However, the price of 2,199 yuan does not seem to have much advantage on e-commerce platforms such as JD.com, because there are many products with the same functions at the same price, including well-known brands such as Midea, Chigo, and Haier. Some small brands even have lower prices than Xiaomi. I don’t know whether Xiaomi’s price war is good or bad. It is reported that Xiaomi's air conditioners this time are also manufactured by Changhong, and Changhong is also responsible for installation and maintenance services. It is also appropriate to say that it is a Xiaomi brand Changhong air conditioner.

China's air-conditioning industry has developed for nearly 30 years, especially in the past 10 years since the 21st century. It has developed extremely fast. The already fully mature air-conditioning market may not be something Xiaomi wants to enter. The previous two attempts also proved that Xiaomi’s model does not seem to be suitable for air conditioners. Xiaomi has entered the air-conditioning industry three times in the past four years and is eager to subvert the structure of the air-conditioning market. I wonder if it is because of the 1 billion bet between Lei Jun and Dong Mingzhu. No matter what the future results are, I just want to say to Xiaomi: Have a good journey!

Personally, I feel that Xiaomi’s strength is software technology, but it does not master the core technology of air conditioning. What Xiaomi does is to combine software technology with hardware to make it smarter. Xiaomi’s core philosophy It means "price is kind", but the core technology is not mastered, and the price intelligence is decided by others. This year is Xiaomi's 10th birthday. Xiaomi has grown from scratch, grown from existence to strength, and has become one of the first-tier Internet industries in China. The next Xiaomi The next 10 years are worth looking forward to. If Xiaomi wants to make a breakthrough in air conditioners, it must master the core technology. Similarly, Gree, Midea, and Haier will also make progress. If Xiaomi can master the core technology of air conditioners in 10 years and price it at a reasonable price, it will still be able to compete with others. Gree, Midea, and Haier compete.

In the next 10 years, will Xiaomi become a strong competitor to domestic home appliance brands? Before answering this question, we must first take a look at the current status of domestic home appliances

At present, the domestic home appliance industry chain is very mature. There are large and small home appliance OEMs everywhere. As long as a brand can With good design and quality control, and adding some smart modules, the factory can produce products quickly and the quality is very stable. At present, domestic home appliances generally do not require much investment in research and development and upgrades, and the initial investment is relatively small.

Moreover, judging from the current home appliance market, the mid- to low-end market is highly homogeneous, consumers are more price-sensitive, and brand stickiness is low. The models of traditional home appliance manufacturers are complex, the operation is not simple enough, and the intelligence is relatively low.

Generally speaking, the traditional home appliance market is already a Red Sea market. Xiaomi’s entry through its own advantages can make competition in this market more intense. What are the advantages of Xiaomi entering the home appliance market?

At present, China's home appliance market has a mature supply chain. Xiaomi can use its current brand effect and its advantages in online channels to quickly develop in a single home appliance with strong products.

We can see that Xiaomi’s main home appliances are TVs and air conditioners, while a large part of other home appliances are companies in Xiaomi’s ecological chain, not Xiaomi itself. Xiaomi's home appliance model is essentially a model of copying between single products, building a platform, and deploying AIoT.

Xiaomi mainly enters through Internet channels and brands. Through the foundry solution, Xiaomi only intervenes in the appearance and app, and enters through the advantages of hardware advantages, big data advantages and rich ecological chain layout. Home appliance market. In addition, Xiaomi has a huge customer base of young and middle-aged people, who have great purchase demand for home appliances. Will Xiaomi have an impact on the traditional home appliance market in 10 years?

At present, Xiaomi is already a force worthy of attention in the home appliance market. However, apart from TVs, Xiaomi's share in other home appliance markets is still inconspicuous, making it difficult to challenge traditional manufacturers.

In addition, although Xiaomi home appliances have certain advantages in sales, standards and system construction are not considered in quality control and manufacturing.

In summary, Xiaomi has been continuously developing its own ecological chain in recent years. Xiaomi's TVs have also developed well in recent years, and TV sales have also ranked first. However, Xiaomi still cannot compare with traditional home appliance brands in other home appliances.

I think it will take less than 10 years, and I estimate that it will take at most 3 years. If traditional home appliance companies do not innovate, even if Xiaomi fails, rice will appear. However, judging from the current situation, Xiaomi will become an unavoidable and strong competitor in all home appliance industries in the future. 1. Current status of Xiaomi’s home appliances

Throughout 2019, Xiaomi TV sales exceeded 10 million, becoming the first domestic TV brand with annual sales exceeding 10 million. Although some competitors later came to pry into Xiaomi TV's history and complained about the poor accessories, subsequent sales were basically not affected.

In addition to TVs, Xiaomi’s rice cookers, sweeping robots, fans, refrigerators, lights, and air purifiers are all selling very well. But air conditioners have not yet reached the point of challenging Gree and Midea. This is because air conditioning is an industry that relies heavily on channels, and the installation of air conditioners is relatively complicated. Xiaomi does not have such a team and can only rely on terminal stores.

However, at present, traditional air-conditioning companies basically control terminal channels, so if Xiaomi wants to sell air conditioners well, it will take some time. 2. Why Xiaomi can disrupt

There are two main reasons for this. First, it is cost-effective, and secondly, it is intelligent and Internet-based. The two are related. Why does Xiaomi dare to sell its products so cheaply? Because Xiaomi has no intention of making much money from hardware. It can be seen from Xiaomi's financial report that more than half of Xiaomi's profits come from Internet services, that is, the Internet attributes attached to these hardware. For example, TV startup ads, APP ads, driving traffic to other apps, purchasing memberships, purchasing movies, etc.

Then there is intelligence. This is the biggest trend in the future, so hardware products will be intelligently transformed. Currently, Xiaomi’s home appliances can communicate with each other. You can use Xiaomi speakers to control all Xiaomi devices. For home appliances, you can use your mobile phone as a remote control, set intelligent lights and colors for lights, and set the functions of each Xiaomi home appliance.

This is something traditional companies are unwilling and unable to do. Because no one wants to buy a TV and an APP, an air conditioner and an APP. If you buy Xiaomi’s home appliances, you can control them all with one app, and you can even control their switches using the speakers. This is the advantage of Xiaomi. .

Lao Zhang is here to answer this question. Although Lao Zhang is not a professional in finance, I personally feel that Xiaomi is developing very fast, and Xiaomi is helmed by Lei Jun. Lei Jun himself has been in the industry for a long time. As early as the 1980s and 1990s, we have already been engaged in this field of the Internet!

Lei Jun himself is very charming, and as an angel investor, the funds he invests in and the companies he invests in are still very successful

At the same time, Xiaomi The development speed of Xiaomi is very fast. I remember the billion-dollar bet between him and Dong Mingzhu a few years ago. It was actually very interesting. Xiaomi's development time is relatively short. Although there are rumors from the outside world that Xiaomi does not have its own core innovation capabilities. Without its own core team, there is no technology patent that truly belongs to it, but Xiaomi's rapid development is obvious to everyone, and everyone can see it

So I believe Xiaomi will definitely succeed in the next few years. It will become a very competitive corporate brand. Of course, Midea and Gree are both very powerful and have a complete production industry chain. If Xiaomi wants to surpass Gree, Midea still needs a lot. Well, work hard!

Lao Zhang hopes that all Chinese brand companies can develop better and better

I hope my answer can bring you a little help!