China Business Daily (reporter Jiao Likun trainee reporter Zhao Yiru) Xiaomi Youpin ended its independent operation and merged into the retail business sector of Xiaomi China, in the context of opening 8,000 stores in the next year, what does Xiaomi mean?
Xiaomi Youpin was merged into the retail business in China
Recently, Xiaomi announced the integration of its independent e-commerce platform "Xiaomi Youpin" with Xiaomi China's retail business, and in the future, Xiaomi Youpin and Xiaomi Mall will end the different situations of independent settlement and operation policies, and serve the new retail goals of Xiaomi Group together.
In this adjustment, Bai Fang, general manager of Xiaomi Youpinyuan, and Shang Jin, vice president of Xiaomi Group and head of the regional management department in China, reported to Lu Weibing, president of Xiaomi China.
Xiaomi told the China Business Daily reporter that through several years of incubation, Xiaomi Youpin has matured its business scale and platform attributes from a product crowdfunding platform to a boutique e-commerce platform to a new lifestyle e-commerce platform. After being incorporated into China, Xiaomi Youpin and Xiaomi Mall will serve different consumer groups respectively, and their business forms and audiences will not change. This also avoids the emergence of two sales ports, with separate billing and operational policies for each other. When incorporated, it can operate more efficiently.
The predecessor of Xiaomi Youpin is Xiaomi Smart Home. In October 2014, Xiaomi Smart Home was launched; in March 2016, Xiaomi Smart Home was renamed "MiJia"; in April 2017, "MiJia Youpin" was officially launched, and then renamed "Youpin"; in May 2018, "Youpin" was renamed "Xiaomi Youpin".
Xiaomi accelerates the integration of online channels
"Xiaomi's decision to incorporate Xiaomi Youpin into the retail business in China is precisely to help Xiaomi connect and interact with the offline Xiaomi home online channels." Ke Zhuangbin, a researcher at the China Research Institute Puhua, told the China Business Daily reporter.
Mo Daiqing, director of the online retail department and senior analyst of the e-commerce research center of the network economic society, said that the business integration is the need for the development of millet, and the rapid expansion of millet's offline channels has prompted online channels to keep up with the pace. Online and offline complement each other and go hand in hand, which is conducive to the healthy and sustainable development of Xiaomi as a whole.
"On the one hand, Xiaomi sells its own and affiliated company products, on the other hand, it integrates third parties and upstream and downstream, and achieves profit growth by creating an increase in GMV (website transaction amount) and revenue increment." If there is a strong online sales channel, combined with the offline sales terminal, it will play a very good effect. Zhang Yi, CEO and chief analyst of Ai Media Consulting Group, told China Business Daily reporter.
It is worth noting that this year, Xiaomi made efforts to lay out the offline market, opening 8,000 offline stores within one year. As of the end of October this year, the number of Xiaomi Home stores has officially exceeded 10,000, and the coverage rate of the county market has exceeded 80%. Lu Weibing said that he hopes to achieve 30,000 stores in two or three years. "30,000 stores can fundamentally complete the coverage of the Chinese market, and we hope to use the scope of 30,000 stores to surpass the coverage effect of 200,000 stores in the offline market of friends today." Lu Weibing said that Xiaomi's new retail model has gone through. The core of new retail includes new thinking, new models and new tools. Among them, the new model refers to the integration of online and offline, breaking the boundaries between online and offline and the information gap.
Zhuang Shuai, a special researcher of the E-commerce Research Center of the Network Economic Society and the founder of Bailian Consulting, said that new retail is first of all a high degree of integration of offline and online, and the user experience can be effectively improved. Secondly, new retail can further reduce the pressure on inventory, improve efficiency and reduce costs. It can be seen that Xiaomi Youpin and Xiaomi Mall already have a certain online user base, and if combined with offline, it can effectively reduce costs and improve efficiency. Zhuang Shuai also said that at present, Xiaomi's online and offline channels are separated, and the core model of new retail is still through business, services, products, online and offline highly integrated.
Pacific Securities said in a recently released research report that the efficient retail model and the strategy of integrating online and offline built by Xiaomi Home are very correct from the general direction, but at present, it will take time to verify the specific effect.
Xiaomi mobile phone shipments are under pressure in the short term
The "return" effect of Xiaomi Youpin remains to be further observed, while at the same time, Xiaomi's main mobile phone business is currently struggling to climb the slope. In the second quarter of this year, Xiaomi surpassed Apple for the first time to win the second place in the first global quarter. Then on August 10, Lei Jun, founder, chairman and CEO of Xiaomi Group, rang the signal gun of Xiaomi mobile phone "three years of global first". However, in the third quarter of this year, the performance of Xiaomi mobile phones in china and globally has declined.
From the perspective of the Chinese market, according to the data of market research institute Counterpoint, the sales share of xiaomi mobile phones in the third quarter of this year was 14%, down 14% from the previous quarter, ranking down to fourth place; from the perspective of the global market, according to the data released by market research institute Canalys, Xiaomi was overtaken by Apple in the quarter and fell back to the third place in the world, and the market share fell from 17% in the second quarter to 14% in the third quarter.
Ma Jihua, a senior telecom industry analyst, told China Business Daily that due to the impact of chip shortages and the epidemic, coupled with the lack of attractiveness of 5G applications, the overall shipment of smart phones is declining. And with the restart of honor, Xiaomi's market share has declined due to the impact, and it is necessary to consider more ecological integration and get out of the siege that relies too much on smartphones. In the future, the status of smart phones in various terminal companies will decline, and more and more abundant smart terminal products will form a comprehensive product array, and Xiaomi is also adapting to this general trend.
Pacific Securities said in the research report that in China, the return of glory has brought greater pressure to the shipments of Xiaomi's domestic business, and the impact of the shortage of superimposed chip supply chain has led to shipments that are less than previous market expectations. But observing Xiaomi's gradual advancement in high-end strategy, as well as the continued hot sales of blockbuster products such as RedmiK40, pushing up its ASP (average selling price) and gross margin, the agency estimates that ASP in the third quarter of this year will increase by 5.3% year-on-year to 1076 yuan.