One has thousands of stores across the country that want to vigorously expand online, and the other has set off a fan economy online to start the road of offline expansion. Recently, Gree and Xiaomi have accelerated their expansion speed online and offline respectively.
After Gree Electric Chairman Dong Mingzhu joined forces with Alibaba's leader Jack Ma to lock in the strategic goal of 10 billion yuan, there was news recently that Xiaomi Technology founder Lei Jun visited real estate tycoon Wang Jianlin, and the two sides may engage in cross-border cooperation.
In response, on September 13, an insider of Xiaomi said in an interview with a reporter from Securities Daily: "The two sides did meet, and the specific details are still uncertain. If any news is available, they will be announced in time."
Four years ago, when the economic figures were awarded, Wang Jianlin presented the award to Lei Jun and Jack Ma presented the award to Dong Mingzhu. Now, the two parties may join hands with the award presentation targets to launch a new round of expansion through all channels and jointly expand the market.
It is worth noting that Lei Jun and Dong Mingzhu’s 1 billion yuan bet was also made at that time. As the bet period approaches, both sides have brought their friends to help.
Lei Jun brought Wang Jianlin to expand the scale together
Lei Jun, who has been planning offline expansion, finally accelerated his actions.
Recently, it was reported that Wang Jianlin met with Lei Jun, the visiting chairman of Xiaomi Group, and his party at the Wanda Group headquarters, and may negotiate cooperation with Xiaomi Home.
In response to this news, the reporter confirmed from insiders of Xiaomi: "Mr. Lei and Mr. Wang did meet."
In fact, Lei Jun has always been interested in expanding offline physical stores. Previously, Lei Jun said in his speech: "In the future, when opening a Xiaomi Home self-operated store on Wanda, I hope Wanda can give you a good location."
In July this year, Lei Jun also said that Xiaomi’s offline retail store Xiaomi Home has opened 149 stores in the past year and a half, covering forty or fifty cities, and it is expected to open 1,000 in the next three years and the annual turnover of 1,000 Xiaomi Homes may reach 70 billion yuan. If Xiaomi's offline stores can reach 70 billion yuan in three years, it will mean that it can "create another Xiaomi" in terms of scale.
At the same time, Lei Jun has been trying to change Xiaomi's brand image and transform it to the high-end.
Recently, Xiaomi has just launched three new products, Xiaomi Laptop Pro, Xiaomi MIX2, and Xiaomi Note3, all of which are positioned at high-end. Lei Jun publicly stated that Xiaomi's mobile phone delivery volume is expected to exceed 10 million units for the first time in September, and Xiaomi's overall shipment volume is expected to exceed 70 million units this year.
However, some industry insiders believe: "Xiaomi has been relying on online channels before, and mobile phone sales have entered the ceiling. Judging from the new mobile phones launched by Xiaomi this time, the price is high and it wants to take the high-end route, and Lei Jun is also interested in transforming the Xiaomi brand into a high-end one. In this context, Xiaomi must find an incremental market by expanding into offline physical stores."
Xiaomi’s offline model will choose to cooperate or open a direct store, which is not yet clear. However, judging from what Lei Jun revealed in public, he may more of it opens a direct store.
Xiaomi's revenue scale may exceed Gree?
When Dong Mingzhu led Gree to expand madly into smart manufacturing, automobiles and other fields, Lei Jun has not stopped expanding.
In recent years, Lei Jun has been adjusting Xiaomi's marketing model to allow physical stores to undertake more sales tasks. He realized that "the online market is very limited" and planned to allow Xiaomi to open 1,000 retail stores in China in the next three years.
At the beginning of this year, Lei Jun said in an interview with the media that Xiaomi’s most difficult period may have passed. As the heavy investment in India begins to pay off, the company has achieved growth again, and global revenue may exceed 100 billion yuan this year.
Gree's revenue scale has been relatively stable in recent years. The 2016 annual report released by Gree Electric Appliances showed that last year, Gree Electric Appliances achieved operating income of 108.303 billion yuan, a year-on-year increase of 10.80%.
According to Xiaomi's current revenue situation, if Xiaomi's revenue exceeds 100 billion yuan this year, coupled with the expansion of its offline physical stores, it is not a dream that it will surpass Gree in revenue next year.
In recent years, Lei Jun and Dong Mingzhu 's 1 billion yuan bet has undoubtedly become a popular event in the industry and is often mentioned. At the end of 2013, Lei Jun and Dong Mingzhu argued against each other on the same stage. Lei Jun said, "Please testify to the people of the whole country. If our turnover defeats Gree within five years, Dong Mingzhu will lose one dollar to me." Dong Mingzhu responded: "It is impossible. If you want to bet, just 1 billion." At that time, Gree Electric Appliances and Xiaomi were both at a high level in recent years. Since then, both companies have experienced a low period.
In recent years, while Xiaomi has accelerated its conquest in the domestic and foreign markets, Dong Mingzhu has also led Gree to frequently cross-border in the fields of automobiles, mobile phones, etc., seeking scale expansion. Recently, Dong Mingzhu has "hands hand" with Jack Ma and set a goal of cooperation of 10 billion yuan.
Seeing that the "1 billion yuan bet" set by Dong Mingzhu and Lei Jun was approaching, the two bigwigs had already tried their best and pulled their friends into the group. And this contest gradually became a competition between the two camps.
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