Online channel-small millet shipments plummeted 38%

Xiaomi mobile phone, which is celebrating its fifth birthday with live broadcast and promotion, received an unpleasant "birthday gift" - a report from data consulting agency IDC showed that Xiaomi's smartphone shipments in the second quarter totaled 10.5 million. , a drop of 38% from 17.1 million in the same period last year.
Xiaomi, who once sat in the first position of the Chinese smartphone market, is now behind Huawei, OPPO and vivo.
This triggered Xiaomi's response - based only on the data released by IDC, it does not reflect the actual shipment of Xiaomi Q2. However, Xiaomi official did not announce its shipments in the second quarter.
Behind the controversy of shipments, the rapidly changing competitive environment in China's mobile phone market has already pushed Xiaomi to a rather subtle position. In five years, Xiaomi has become a challenged target from the challenger of the mobile phone industry.
At one time, Lei Jun’s “Focus, Extreme, Reputation, Fast” seven-character and Xiaomi models became the industry benchmark, but after the rapid expansion period, the marathon run between capital valuation, market share and core competence. Fighting is not just a sprint, but also endurance.
For the current millet, is the best era over?

The wind stopped?
The "First Financial Daily" reporter learned that compared with the first quarter, IDC data shows that the top five mobile phone manufacturers are still Huawei, OPPO, vivo, Xiaomi and Apple. The difference is that Xiaomi surpassed Apple, from the fifth row to the fourth in the first quarter, and both experienced a sharp decline in sales in the second quarter.
Among them, the number of Huawei mobile phones ranked first reached 19.1 million, with a market share of 17.2%, an increase of 15.2% year-on-year; the OPPO ranked the fastest, with 18 million mobile phone shipments and a market share of 16.2. %, an increase of 124.1% year-on-year; vivo shipments were 14.7 million units, with a market share of 13.2%.
In contrast, millet shipments were 10.5 million units, down 38.4% year-on-year, with a market share of 9.5%; Apple's shipments were only 8.6 million units, down 31.7% year-on-year.
According to IDC statistics, the marketing information conveyed by Huawei and OPPO ranked in the top two is focused on one or two key performances and helped them successfully capture the market. The former is a Leica lens for mobile phones and the latter is a fast charging technology. In addition, the offline channels of OPPO and vivo continue to exert their strength, and the marketing methods that invite celebrity endorsements are being followed by other manufacturers.
Behind the volatility of the smartphone market, Xiaomi’s Internet mobile phone and e-commerce channel sales model, which is known as “cost-effective”, is under increasing market pressure.
Since 2016, domestic mobile phone manufacturers have experienced some significant changes in their marketing channel strategies. After a period of Internet e-commerce, an online channel storm, the influence of offline channels began to slowly emerge.
At present, the highly competitive mobile phone market is not only a product technology patent, but also a channel resource competition. What can be seen is that, for example, Huawei’s e-commerce brand “Glory”, which once marked “Xiaomi”, has already turned the battlefield to the offline channels where OPPO and Jinli are located. The fast-rising brands such as vivo and OPPO have already passed. The agent system covers the country's fourth- and fifth-tier cities.
"The wind stopped, who is still?" The head of a domestic mobile phone manufacturer once wrote this sentence in his WeChat circle of friends.

What happened to Xiaomi?
"This time period is one of our bottoms. This year we have a three-month supply chain that is extremely out of stock, and there are many negative reports." In June this year, Xiaomi’s experts closed the meeting, Lei Jun revealed, and this also revealed Xiaomi’s The worry about the control of mobile phone supply chain.
An obvious example is that Lei Jun recently broadcasted the "Black Rice Experiment" protagonist "Xia Mi 5" on the five platforms of Xiaomi Live, Xiaomi Mall, QQ Space, Live Broadcast and Billbill. It was originally expected to be released in 2015, but ultimately from research and development. Released in February 2016, lasted 19 months.
However, an internal adjustment of Xiaomi in May this year has released a signal: Lei Jun personally coached the R&D and supply chain team to solve the supply problem.
In Yin Yuan’s view of the value line, in addition to “not being able to make a difference in the industrial chain layout and improving the influence of the industrial chain in time”, Xiaomi’s problem lies in relying too much on price and a competitive dimension, ignoring quality and personalization. "Dimensions", and "not enough paranoia, failed to make the 'hardware free + application service charges' model to the extreme." However, this is not to say that those companies that grab the share from Xiaomi, is the final winner.
"The Internet is a tool, not a panacea." As a competitor of Xiaomi, Zhao Ming, president of Huawei Glory, told the reporter of China Business News.
In fact, from the perspective of business models, the advantages of Internet mobile phones have not changed since their inception. But when hundreds of brands are joining the Internet mobile marketing force, and even Internet mobile phone companies have turned the marketing model into a form of publishing BOM prices, listing mobile phone configurations, and simply comparing running points, it actually caused confusion among users. As a result, Internet mobile phones today have encountered bottlenecks to further expand market share, and users have returned to offline choices.
But Lei Jun is not convinced. In his view, although Xiaomi has done a lot of innovation in the past, it has been concealed under Xiaomi's subversive business model, or Xiaomi's innovation is not enough to impress everyone. "Either product sales, business scale, or business model improvement, including the various technologies that Xiaomi has accumulated over the past two years, will show a brand new millet in the next six months to a year." Lei Jun said.

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