Lei Jun's Tsinghua Speech: Behind the Miracle of Millet in Nine Years, Ten-fold Growth in the Next Decade

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Lei Jun's Tsinghua Speech: Behind the Miracle of Millet in Nine Years, Ten-fold Growth in the Next Decade

2019-04-07 08:02:43 282 ℃

On April 4, at the invitation of Zhu Min, Dean of the National Institute of Finance of Tsinghua University and former Vice President of IMF, Lei Jun gave a speech at Tsinghua University on the theme of "Nine Years of Millet: Innovation, Change and Future", mainly introducing the process and development model of millet, and discussing the future 5G, Internet of Things and artificial intelligence with the teachers and students, alumni and people from all walks of life of Tsinghua University. Development. Lei Jun said that millet was founded in the hope of changing China's manufacturing industry and making a good product that touches people's hearts and benefits everyone in the world.

" Some big brands are above all. They are God. We are not , We treat users sincerely and treat them as friends . The result is that we are a rare company in the world with huge fan support, "Lei Jun said. Lei Jun also revealed that he had set an internal goal of < strong > increasing ten times in the next ten years and that mobile phone + AIoT is the logic behind the growth plan.

The following is the transcript of Lei Jun's speech at Tsinghua University:

I am honored to participate in the series of lectures presided over by President Zhu Min. I am the first Chinese to be invited to lecture. President Zhu Min gave me a title "Nine Years of Millet: Innovation, Change and Future". When you listen to me, you will find that millet is different from your previous knowledge. < p > < strong > 01, the origin of millet < / strong > < / P > < p > Nine years ago, there was a small office in Yingu Mansion near Baofu Temple Bridge in Zhongguancun, where 10 people drank a bowl of millet porridge with 7 or 8 guns and started a "revolution". We have never done manufacturing or hardware before. We mainly come from Jinshan, Google and Microsoft. We see a big problem that can't be solved. What's the problem? China is the world's manufacturing factory, but there are no really good products, the streets are full of Shanzhai mobile phones, this is what happened in China.

To be honest, the biggest difference between 40-year-old and 20-year-old entrepreneurship is that we don't think we will succeed at first. I think the probability of success is very low. If we try hard, we will lose nothing. At least we will not regret losing. I started my business in the first year and a half anonymously, because I was afraid that I would work in this company, and the whole world would pay attention to it. I had a lot of pressure on myself. I told you to do it secretly, so that I had less pressure and did nothing wrong. Why is millet

? Originally we wanted to call rice, but later we went to Gaoda and became millet. After the name millet, we decided to inherit the spirit of millet plus rifle and start a hard business. In the early days, like tens of thousands of ordinary start-ups in Zhongguancun, we rented a small office, which stipulated that we could only stay in a hotel for business trips and fly economy class. At the beginning, I invested 10 million yuan, 10 million yuan registration is a big number for many entrepreneurs, but if you make mobile phones, 10 million yuan is really a pitiful little money. The founders of millet are a group of very good people in their respective fields. They are gathered together for a unique dream, that is, to change China's manufacturing industry with our abilities, to make a moving and good product, and to benefit everyone in the world. This is our first intention. The first industry we entered nine years ago was smartphones. There were Apple, Samsung and China Cool Alliance, all of which were Big Macs. A small company with more than 10 people in Zhongguancun killed one of the most competitive battlefields in the world. Miracles happened. It took only two and a half years to make millet the first in China and the third in the world.

However, we have maintained the first position in China for two years and then declined. The reason is simple. Internet thinking alone is far from enough. If we lack awe for the experience of traditional manufacturing industry and a willingness to learn, we will not win the battle. No matter how advanced weapons we have, we will lose without a good foundation.

Starting from 2016, millet emphasizes making up lessons, learning from traditional industries, putting down body position and matching targets one by one. As a result, the second miracle happened. Historically, no big company in the mobile phone industry can survive a decline in sales. Once it loses confidence, it will accelerate the decline, which is basically the abyss of death. Millet slipped to the bottom in 2016, sold 94 million units in 2017 and 118 million units in 2018. In 2017, we returned to the fourth place in the world, breaking through 100 million units last year.

We recently published last year's earnings report. In the eighth year of its founding, revenue was 174.9 billion yuan, up 52.6%, profit was 8.6 billion yuan, up 59.5% year-on-year. This achievement was created on the premise that the downward pressure of Sino-US trade frictions intensified further last year. Last year's pressure on manufacturing industry was tremendous, but under such great pressure, millet's achievement sheets presented 50% and 60% respectively. Growth, and Millet, a company for more than eight years, accounts for more than 40% of international revenue, entering more than 80 countries and markets, ranking the top five in the smartphone market in 30 countries.

For example, India ranked first after three years. Now India ranks first for eight consecutive quarters. We have a 30% share in India. In the global market, China is the first largest market, the United States is the second largest, India is the third largest, the United States put aside first. After we set up the Indian market, the main direction of attack is Europe recently. In the past year, our sales in Europe have increased 10 times, and in Spain and other countries ranked in the top three. This shows that millet model has been fully verified. Behind Millet Miracle of

02, Where are the innovative points of millet driven by innovation

? In fact, Premier Li Keqiang said a word "Internet +", we are the most typical Internet +, using the Internet mode to do hardware is a high dimensional innovation. How did we do it? Because today's time is limited, I will only talk about a few key points:

First, make friends with users sincerely. This is very simple, but it is not easy to do, because there is an old saying in China called "no business, no adultery", so you said that you sincerely make friends with users, it is very difficult to do in China. But the Internet has one of the greatest benefits. At the beginning, I took the lead in listening to users'voices in the community. I collected 210 million posts' suggestions and information. We introduced the Internet rapid iteration into the development of hardware products, and made the mobile phone system iterate every week. Many people were surprised when it was made. We insisted that today is the main thing. Weekly upgrades for two or three million die-hard fans.

I personally took the lead in microblogging. One week before the release of Xiaomi 9 this year, I counted 97 microblogging posts. So rice noodles kindly commented that I was the first digital blogger of millet company. I made them all by myself. In fact, I am very busy every day, with all the fragments of time to communicate with users, and every user's feedback has seen, this is a huge workload, but I think this is my main work in millet. This morning, we held a three-hour meeting on user opinion improvement. More than 100 senior executives were together. I said what we are doing now is to stick to our original intention, make friends with users and improve according to users'opinions. Don't think we are big, don't think how we are. It doesn't matter. What matters is whether we do what users want.

Some big brands are high above all. They are God. We are not. We treat users sincerely and treat them as friends. As a result, we are one of the few companies in the world with huge fan support.

Last May, when the first millet shop in France opened, hail broke out, and many people insisted on queuing. Especially in Spain, the Spaniards are crazy about millet. I think this model is valuable to everyone all over the world. As I mentioned earlier, let everyone in the world enjoy the good life brought by technology, and everyone can feel it. The core of this set of models is "touching and generous price". In fact, every company has a period of generous price when it comes up, and every company has used a period of price war when it comes up. It has grown up step by step, but these companies do not regard cost-performance ratio as a tactic as a value. I am also particularly afraid that in 10 years or 20 years, millet will become a company I hated. So before going public, we put forward a "constitution". Millet has a permanent commitment to users. The comprehensive net interest rate of millet's hardware business will never exceed 5% per year. If it exceeds that, we will give it back to users. We make this provision and ask the auditing company to audit our profit margin every year.

I have studied what is innovation, including how to innovate. There are only two things called innovation: one is to do what no one else has done. The second is to do something that others have failed to do. Such things are certainly not easy to do. 99% of the results of such things are lost. Our country encourages innovation. Everyone of us should innovate. But we must realize that the consequences of innovation are that most of us will lose. An innovative atmosphere should be a culture that embraces failure, mistakes and these things. We can't be a king or a scoundrel. If we become a hero, if we lose you, we will be foolish. If we lose you, we will be foolish. Then no one will innovate.

We make friends with users in order to reach a state where users are willing to buy millet products with their eyes closed. This requirement is actually very high. As long as it needs, I don't care about its design, its quality, its experience, and its price, because it's the best. Millet's goal is that one day this user will be able to close his eyes and buy my things, and I will win. On the first hand, I promise that I will earn only 1 or 2 points, which is an extreme practice, but when a company has tens of thousands of people, how can you guarantee that everyone thinks the same? < p > < p > I have been saying internally that < strong > good companies make profits and great companies win hearts and minds < strong >. I think millet is on a great road, and if we do, it could be the greatest company on the planet. We should not dwell on the high and low profits. What we should care about is whether users support us or not, like us or not, like us more or less, which is what we care about.

Second, be a good product that touches people's hearts.

Wanting to make friends with users is not only an attitude, not only a profit margin, but also a good product that touches people's hearts. At the beginning, 100% of our founders were R&D engineers, with an average of 20 years of industry experience. When we started this company, everyone had a technical background and was thinking about how to make a good product all day. Innovation and R&D are the core of a good product. Millet's innovative ability has been evaluated by world-renowned organizations and media. Innovation in China is top-notch. Fortune magazine recently selected Millet's innovation in China.