Top of the big era

Lei Jun laughed and said: "Do you want Xiaomi to produce more electronic products? Adopt the OEM model?"

"The Internet of Everything, this concept has been around for 20 years, and now the opportunity has come." Zhou Buqi does not have much confidence in the future development of the Internet of Things, but this is a major trend after all, no matter whether it can be achieved in the future To make it happen, first lay the foundation and then go on to say, "When a mobile phone is connected to the Internet, it becomes a smartphone. There are many other ideas, including refrigerators, air conditioners, TVs, washing machines, rice cookers, microwave ovens, and even watches and glasses." , cars, bicycles.”

Lei Jun twitched his lips, "They are all big items!"

Zhou Buqi smiled and said: "You can also have small items. Make a connected lamp that can be controlled by a mobile phone, including the door lock at home. It can also be remotely controlled by a mobile phone and talk to guests through a camera. Large items are not difficult either. Except for automobiles, which are more complicated to OEM, other computers, refrigerators, washing machines, etc. are all very easy."

Computers, refrigerators, washing machines, air conditioners, etc. may seem like large items, but in fact they have little technical content. They are basically assembled according to the design drawings.

This all goes back to the early days of Silicon Valley decades ago.

At the time, HP was the dominant player in the personal computer industry.

Michael Dell also wants to start a computer company, but with Hewlett-Packard standing in the way, it is very difficult to do so. What should he do? This allowed Dell to take a completely different development path from HP and create a new business model - the Dell model.

HP computers are full-process.

From product design and development to subsequent manufacturing, production, assembly, and subsequent marketing, channels, sales, etc., it is all completed by HP personally.

This means supporting a lot of employees.

It's a huge company.

Dell has taken a different lightweight route, only doing design and sales, and outsourcing the middle links... It doesn't engage in any messy technology research and development, and just buy whatever accessories are available in the market.

The cost savings can lower the selling price of Dell computers.

Relying on this differentiated competition, Dell immediately stood out.

With Dell's strength at the time, it would be a dead end to compete with HP for technology and R\u0026D. The most taboo thing about business competitiveness was to follow the opponent.

Changing a business strategy, relying on this OEM model, taking a purely market-oriented route, and turning high-tech products into market-oriented products, the later Dell computer empire was established.

Lei Jun nodded, "Nowadays, people in China like to buy refrigerators and washing machines from Siemens, as well as razors and water heaters from Philips. There is really a gap in information."

Zhou Buqi smiled and said: "Yes, these companies have all withdrawn from the mainland market because they cannot compete with our local companies. They sell mainland brands to domestic companies. These products are produced by domestic factories and are labeled Foreign brands can be sold at a higher price than Gree, Haier, etc. Just like...just like Playboy. After I invested, I made a suggestion to them. This brand is very famous, and it can be used for brand licensing. According to the strategy, the current 'Playboy' products in China are all domestically produced products in the entire process, with the trademark purchased from Playboy and the brand affixed to them."

Lei Jun was a little surprised, "You still invested in Playboy?"

Zhou Buqi coughed and said, "Don't get it wrong. They encountered operating difficulties and wanted to delist, so I paid a sum of money. It's just bargain hunting anyway, so they won't lose money."

Lei Jun did not get entangled and said thoughtfully: "China is now the world's factory, and the global manufacturing giants basically have industries in the country. The market effect of this is that those foreign giants have cultivated a large number of people who understand manufacturing production for the country. talents, as well as a large number of assembly line workers who know how to produce. As you said, except for overly precise and complex products such as cars, aircraft, cameras, and large machine tools, there may still be some gaps in the country. Other products... Made in China are not at all comparable. Foreign affairs."

"Isn't that just mobile phones? BlackBerry doesn't have a factory in China, right? Look at the quality of BlackBerry's mobile phones, how is it different from our China Cool Union, Xiaomi and Asda? Even Apple and Samsung's mobile phones are not all made in China. ?”

Zhou Buqi quite agreed with some of Zhou Shaoning's previous statements.

Nowadays, there is a common thinking in China that foreign products are better than domestic products.

If it is a car, it must be made in foreign countries.

The level of the domestic automobile industry is not enough.

However, the computers, mobile phones, refrigerators, hair dryers, water heaters and other products manufactured do not have high technical content, so domestic products will only be better.

There are also factors of scale and cost control here.

The most typical example is the mobile phone.

In order to compete in the low-end market, mobile phone manufacturers have launched thousand-yuan models. The profits of this kind of mobile phone are too thin. If you go from design, development, production and sales, it will be difficult to make any money.

At this time, a new strategy emerged - OEM.

It is an unknown manufacturer that can produce mobile phones, such as Wingtech Technology. They will make a mobile phone model and then produce a large number of low-end phones based on this model.

If Samsung wants it, it will put the Samsung label on it; if Huawei buys it, it will put the Huawei brand on it; Xiaomi and OPPO can also follow up on the purchase and launch their own OEM machines.

At first glance, there is a dazzling array of mobile phones. There are so many styles.

Actually it's all the same thing.

Different manufacturers just put different brands on them. When selling in the market, it all depends on whose brand is more appealing and more popular among consumers.

Samsung and Huawei can set higher prices because of their higher brands; Xiaomi and OPPO can only set lower prices because of their more sophisticated brands.

In the final analysis, what sells products is the brand.

Siemens' refrigerator business has been overrun by domestically produced products, and it can no longer survive but has to withdraw.

Later, a domestic businessman discovered the business opportunity, bought the Siemens trademark, and found a domestic refrigerator factory to manufacture it. They did not engage in a price war. Instead, they raised the price and focused on the advantages of a large foreign brand. Instead, the market was opened up immediately. .

Zhou Buqi said: "In the past few years, domestic manufacturing had to rely on the help of foreign manufacturers, and the market replaced technology. This is 2013, and times have changed. We have already learned the technologies that need to be learned. At least in In the field of mass products, China has already accumulated a lot of experience."

Lei Jundao: "I know a little about Vanke. Many products...the reason why foreign products are more competitive is related to design. From the perspective of product quality alone, there is no difference between domestic brands and foreign brands. But foreign manufacturers The more money you have, the better designers you can hire, and the products you design will be more beautiful.”

Zhou Buqi smiled and said: "Yes, so those factories that can manufacture and produce can only do the most downstream production links and some OEM business. They can't build a brand, and they don't understand product design and production. Market operations. But Xiaomi can do it. As long as Xiaomi grows up, which competitors will it be afraid of? Can't it beat Apple and Samsung? Can't it beat Panasonic and LG?"

"Adding chips, the Internet of Everything?"

"right!"

"Well, it's the same logic as Internet mobile phones."

Lei Jun nodded.

Smartphones are "Internet + mobile phones", which have changed the entire mobile phone industry.

If mobile phones can do it, why can’t other industries do it?

The concept of "Internet + Cars" is already being implemented in the United States, and Tesla has already been launched. In fact, more products can be added.

The ultimate form of mobile Internet must be the Internet of Everything.

Zhou Buqi said with a smile: "As for design, it is actually not difficult. We have to have confidence in the young people in the country. In the past few years, we have been doing basic hard work and training a large number of engineers. Engineers are enough After using it, product manufacturing is guaranteed, and I will definitely upgrade in the direction of designers. I am currently planning to start a new startup company in the United States."

"Oh, new investment."

“It’s not investment, it’s entrepreneurship.”

"ah?"

Lei Jun was slightly startled, a little unbelievable.

Zhou Buqi said: "I will start a business again, make a design tool, and develop a better and more convenient design tool for designers around the world. When the time comes, you must use my product to design Everything is connected to speakers, TVs, door locks, washing machines, etc. The use of tools has promoted the rapid development of human productivity. Now domestic design seems to be a little worse than foreign countries. As the gap in the manufacturing industry is leveled, the next step is the development of the design industry. Big explosion. Domestic products should strengthen themselves."

Lei Jun couldn't laugh or cry, "Aren't you tired?"

Zhou Buqi felt a little strange, "What's so tiring about starting a business? You're so motivated!"

Lei Jun slapped his forehead, he really couldn't understand this person, "One millet is enough to keep me busy."