Why does Xiaomi emphasize "cospa and quality" (Junya Ishino)

Xiaomi held an online conference for the Japanese market on August 31.In addition to the appeal of "MI 10 Lite 5G" released by KDDI on September 4, we announced the smart band "MI Smart Band 5", two wireless earphones, and air purifiers for IoT products.

In accordance with this, Steven Wan, a general manager in charge of East Asian, who leads the company's Japanese business, responded to a single interview.He talks about how to launch MI 10 lite 5G in Japan and his efforts with Xiaomi's career.He emphasized that Mi 10 lite 5g was a more valuable terminal than the price.

"The quality is very high and the design is excellent. The camera wants to create the best system in this price range. Using 5g -compatible Snapdragon 765g, it has a high performance."It is a feature.The display is "the component (components) is also a premium", such as using "Gorilla glass 5" on both Samsung, and "Gorilla glass 5" on both front and rear.

Nevertheless, the Mi 10 lite 5G is reasonable at 42,740 yen.In the KDDI lineup, it can be said that it is an unusual low price for a 5G smartphone including SIM free.I heard the reason and the background of Japan's introduction.The questions and answers are as follows.

─ ─ ─ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ ざ を をPlease tell me the background.

Mr. Wan: Currently, there are more than 10 5G terminals in the portfolio.Among them, I thought that this terminal fits the market most and is a good product in terms of timing.The high -end 5G was not because there are already considerable high -end models on the market as a consumer option.However, Xiaomi believes that every person needs to be able to use 5G in order to move 5G more.To do so, I thought it would be a little more affordable, so I chose a price range that was easy to buy.

If you talk a little further on the technical side, the first 5G chipset that you can use is Snapdargon 865, followed by Snapdragon 765G.Among them, Snapdragon 765G is selected to get the fastest and cost -effective product.Mi 10 Lite 5G is a very well -balanced product among our devices, and all components used are premium.The design is excellent and lighter than other 5G terminals.The camera and performance are good.

で す ね That means according to market trends.Does that mean that there is a possibility that high -end models will be launched as the market expands?

Wan: That's right.In the future, we will give you more devices.

I think that it is an exceptional price for a 5G compatible model, but where is the reason for being able to realize it?

Wan: Xiaomi wants to use all means to provide the best price.The background we succeeded is that we have provided high -quality products at a lower price than competition.

The reason for this is that one is a low profit margin and a commitment to keep the net income ratio of the hardware business from being 5%.It was 2018 that made the promise in 2018, but since then, net income has been less than 1%.If you subtract the development and sales costs, the price you can actually buy will be close to the factory shipment.We believe this is the only cost.

The optimization of prices is the same in factories, which is possible because of the large scale.In one example, if other companies develop a 5G smartphone and the terminals sold each year are 1 million units, the development costs must be 1 million units.On the other hand, we have more than 10 5G terminals, and each sells quite a few, so the cost per device is much lower than the competition.In that form, we will continue to optimize costs.

In terms of products, there are many IoT -related products as well as smartphones.Does this have an effect on cost reduction?

Wan: It helps to optimize the scale.Because of the large number of products, there is no need to rely on one product, and the supply chain is common.For example, smart bands are the world's number one, and the wireless earphones are the second most sold in the world.This means that the largest manufacture is made not only in smartphones but also in many categories.When these are combined, the scale is even larger, making it a virtuous model.

──It, for example, I think Apple has a certain amount of enclosure effect by putting Apple Watch and AirPods to increase the value of the iPhone.How about your company?

Wan: Something is happening.IoT products are also effective in terms of brand awareness.If you buy a smartphone once, you will continue to use the same thing for about two years.The price is higher than the IoT product.Earphones and smart bands are available for a good meal once.This means that the hurdle for experiencing Xiaomi products goes down.If you are surprised at the cost performance of the product, you will be glad to buy this product.

Interestingly, if you become a Xiaomi fan, you will have the effect of buying Xiaomi products one after another.And if you like it, you buy it without looking at the price tag, like UNIQLO or MUJI.I know that if you buy it, it will always be worth the price.From the viewpoint of branding, it is more effective to lower the price and provide it.I think it is the most honest promotion.

The second is an ecosystem and has not been launched in Japan yet, but if the user -based user is created, the MI Home app will be alive.This is an app that can control all the products in the home, and the more you buy an IoT product, the more convenient your life will be.

── MI 10 lite 5G is handled by KDDI.What was the deciding factor in recruiting career?

Mr. Wan: I have never talked about why KDDI was selected (with KDDI), but from the Xiaomi perspective, the KDDI approach and our approach from the start of the discussion and our approach.It seemed to be high.KDDI seemed to be aware that it needed to be reduced in price to develop a wider range of 5G.As a result, it was decided to provide high -quality products at a low price in partnerships.

On the other hand, this product is not compatible with Osaifu -Keitai.There are many models that are compatible with carrier models, but what will happen to this function in the future?

Wan: Osaifu -Keitai is a unique feature of Japan.It will take about a year to learn, develop and implement.However, I would like to support you in the future.

─ Despite its unique functions, looking at the market size of smartphones, it is true that Japan is smaller than China and the United States.What does the Japanese market mean for Xiaomi?

Wan: That's a good question.Xiaomi has started expanding global expansion for about four years.Initially, it has entered a market with a large population and has a low entry barrier (barrier to entry).India, Southeast Asia and the Middle East.However, given the global scale, Japan is still a world -class investment.As a brand, Xiaomi must succeed in Japan, one of the top class countries, to grow into a really global brand.

In addition, Japanese consumers may have a high level of liking and understanding of our own and our business models.In that sense, Japan is a very good market, and I think Xiaomi is a necessary country to take the next step.

Related article: Xiaomi, "MI Smart Band 5" and 2490 yen complete wireless earphones, including in Japan