Hurry up, Xiaomi’s home “thousands of stores open at the same time”, it is difficult to escape the fate of sinking

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On January 9, Xiaomi Home 1003 Xiaomi Homes opened at the same time, covering 30 provinces and 270 cities and counties across the country. The scale of this store opening is so huge, it can be seen that Xiaomi is determined to hit the offline market. At the same time, facing the competitive pressure of Apple, Huawei, oppo and vivo, Xiaomi has gradually expanded the offline store distribution network while stabilizing its own product characteristics, intending to develop a wider physical store layout.

Since Huawei’s failure in foreign markets due to “blockade”, Xiaomi has seized the opportunity and returned to the top three in the world, allowing people to see Xiaomi’s turbulent momentum again. However, it still takes time and continuous innovation and polishing for Xiaomi to return to the first place in China.

Market hegemony needs to be accelerated

Xiaomi Home “opens thousands of stores at the same time”, creating a pioneer in the new economic brand sales industry. However, Xiaomi’s “opening thousands of stores at the same time” is only the first step to open up the market. At present, OPPO has close to 300,000 offline stores in China, and vivo has close to 200,000 offline stores in China. Even with authorized stores, Xiaomi is also close to They are far apart.

The various stores of oppo and vivo cover almost all large and small cities across the country, but their stores mainly cover major areas in third- and fourth-tier cities, while Xiaomi Home is mainly distributed in first- and second-tier cities, mainly in business districts, and the flow of people is relatively concentrated The place.

From the coverage of the stores, it can be seen that the offline stores of oppo and vivo have a wider audience and more comprehensive consumer groups, which can better improve the offline sales rate. Therefore, in addition to grabbing the inherent consumer groups of oppo and vivo, Xiaomi’s dominance must also create its own market home. At the same time, expanding the market share of stores is the key for Xiaomi to increase offline sales.

Offline sales have always accounted for a large proportion of the total mobile phone sales. Xiaomi’s offline sales started late, and the number of stores currently opened is still relatively small. From the perspective of the proportion of users’ purchase channels, Xiaomi is in a disadvantaged state. Even if users choose to purchase mobile phone channels, the proportion of online sales in 2020 has increased by 4% compared with 2019, but it can never replace offline sales. Therefore, Xiaomi needs to speed up the construction of the offline market and use the advantages of offline sales to seize more multiple market shares.

Determined to make a comeback

Since losing the No. 1 spot in 2016, Lei Jun has been looking for opportunities to turn around and made a promise to return to No. 1 for ten quarters in 2018. In order to return to No. 1 in China, Xiaomi began to reform from the sales aspect. Xiaomi Home is the biggest breakthrough in sales channels. The combination of online and offline has broadened Xiaomi’s sales channels and can better open up market visibility. However, at the same time, Xiaomi initially The core concept of Internet companies has also been gradually assimilated by traditional mobile phone manufacturers.

However, assimilation is not a bad thing. On the one hand, it has achieved a larger sales share for Xiaomi, and on the other hand, it has allowed a wider user group to understand and be familiar with this cost-effective mobile phone. Since the “Explosion Gate” incident in 2016, Samsung has gradually faded out of the Chinese market, leaving huge competition space for domestic mobile phones. Xiaomi’s competitors are mainly concentrated on Huawei, oppo and vivo. At the same time, coupled with the suppression of Huawei by the United States, it has contributed to Xiaomi’s comeback.

Since the United States “blocked” last year, Huawei’s mobile phone business has almost been in a state of no water and no food, but it is an unquestionable opportunity for domestic mobile phone brands. Xiaomi took the lead in seizing this opportunity and continued to increase shipments to increase market share. In 2020, Xiaomi continued to gain momentum in China, and its growth performance was very impressive.

As the leading brand of domestic mobile phones, Huawei has occupied the first place in the domestic market for a long time. In the past few years, Huawei, which has been a strong leader, has made Xiaomi have a strong desire to catch up, and has conveyed this meaning implicitly and implicitly from major conferences, but it has never been successful. But for this sudden change, it can be seen that Xiaomi is trying to speed up the curve to overtake.

offline risk

Before 2020, for offline brick-and-mortar stores, manufacturers were more concerned with issues such as cost, traffic, location, etc. 2020 was a tough year for mobile phone manufacturers, and the sudden epidemic hit brick-and-mortar stores hard. Many stores were overwhelmed and closed or even closed, and Samsung, Apple, Huawei, etc. were also negatively affected to varying degrees. At the beginning of 2021, Lei Jun’s “Thousand Stores Opening Together” is still coming as scheduled, which shows Xiaomi’s determination, but more offline stores also mean more risks.

First, the epidemic is now spreading, so the entire industry is facing a greater risk of closing stores. If the epidemic repeats the mistakes of last year, and more offline stores of Xiaomi have to be temporarily closed, they will be closed accordingly. Costs will also increase, and offline channel sales will be significantly affected.

Second, Xiaomi opened more stores in the county area, which means that it went directly to the territory that originally belonged to OPPO and vivo. From the opening of the store, Xiaomi needs to always face the competitive pressure of OPPO and vivo.

In addition, although Huawei was very bad last year, it is also expanding the number of offline flagship stores. It has said that it will open 10,000 offline stores. Although the cost of opening a store is not low and it faces the most direct competition, it has become a consensus for everyone to cover a wider area and more core areas through more offline stores. Under such circumstances, the competition faced by Xiaomi’s offline stores will only become more intense.

sinking fate

Xiaomi’s initial positioning was in the low-end, and it entered the crowd’s field of vision under the banner of cost-effectiveness. However, in recent years, Xiaomi has always wanted to break through its own solidified label and enter the high-end market. From the Xiaomi Mi 10 at the beginning of last year to the Xiaomi Mi 11 at the end of last year, Xiaomi has been trying to sell its cost-effective high-end machine to the public.

However, the success or failure of Xiaomi’s impact on high-end has always been controversial. The main reasons are brand positioning and user groups. Xiaomi has always been known for its cost-effectiveness, and the consumption habits of most fans are relatively fixed. For the high-end mobile phones launched by Xiaomi, more High price points have locked some of them out.

It can be understood that the distribution of user groups is also the key to the tonal positioning of mobile phone brands. According to data analysis, Xiaomi user groups are distributed in cities below the third tier, accounting for as high as 50.97%. After the impact on the high-end has been controversial and faced resistance, Xiaomi’s accelerated store opening seems to suddenly realize that its base and its base are still in the sinking market, and there is still a market that Xiaomi can open up in the sinking market.

Especially as Honor, realme, and IQOO continue to play the same price-performance banner as Xiaomi, which poses a huge threat to Xiaomi. Therefore, Xiaomi needs to return to stabilize its original market and has to continue to sink itself.

But at the same time, it is undeniable that Xiaomi still has ambitions to hit the high-end market. In addition to the problem of its own brand positioning, Xiaomi also needs to constantly change its offensive and defensive state in response to external pressure, and accelerating the opening of stores may be an important signal for Xiaomi to pay close attention to both hands.

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