Where there are people, there are rivers and lakes, and rivers and lakes need to be guided. Xiaomi once claimed to be the largest Internet of Things (IoT) company in China, gaining a large number of fans with its cost-effective products. Huawei dominates the global communication technology, technology is king. Of cost performance ratio and technology fight and kill, the overlord that millet and Huawei intelligence lives in is on the verge of breaking out.
Undeniably, xiaomi’s smart home ecological chain after 3 years of accumulation, has formed a set of self-research, self-production, self-marketing complete system, it is understood that Xiaomi access to the ecological chain of hardware has been up to 60 million units. And the latecomer Huawei, try to take router as the center, through getting through the barrier between home appliance manufacturers, with this new round of penetration. Each company works for itself and plays to its own strengths.
Core competitiveness PK: Xiaomi has high cost performance, Huawei has technology
Xiaomi embraces its fans with its high cost performance ratio, while Huawei holds hands with channel partners with technology.
Previously, Xiaomi released a table of xiaomi ecological chain products. It is understood that the price of intelligent products in the ecological chain varies from 30 yuan to about 30 yuan of intelligent switches, to 3000 yuan of Millet TV, refrigerator and so on. Data statistics millet intelligent household “whole family bucket” the price does not exceed 40 thousand yuan. Xiaomi takes the high cost performance of intelligent products as its marketing selling point, and wins the favor of many consumers with its user-friendly price and relatively good product performance. Therefore, high cost performance has been xiaomi’s label since its establishment.
The smart home is characterized by connectivity, and connectivity is Huawei’s strength. The difference between Huawei and Xiaomi lies in that Xiaomi’s router is transformed from core hardware to a product in the ecological chain, while Huawei takes router as the center, while Huawei, the world’s no. 1 communication technology, chooses router as the entry point.
Baobao news channel once reported that Huawei routers can maintain an ecosystem with a plug-in application through protocol conversion, and each smart device in the ecosystem may become a part of Huawei smart home. In this regard, huawei has won seven ecological smart home ecology, in equipment types and models have obviously exceeded millet.
In view of the current situation, compared with Huawei’s technology to support the high-end market, Xiaomi’s high cost performance seems to be a little pale. In the long run, Huawei has the ability of sustainable development of smart home ecological platform, and the continuous expansion and open communication technology seems to be more ambitious and strategic than Xiaomi’s cost performance.
Ecological PK: Xiaomi has formed an intelligent ecological chain, while Huawei is trying to create an intelligent ecological circle
It is reported that Huami Technology, one of xiaomi’s ecological chain, was listed in New York on February 8 this year. Since its listing, the stock price of Huami Technology has increased by 2.7%, while the STANDARD & Poor’s 500 stock index has increased by 6.8%. In its most recent second-quarter results, revenue rose 54.8 percent from a year earlier and net income rose 72 percent from a year earlier. The results obtained by Huami Technology undoubtedly add wings for Xiaomi to continue to develop intelligent ecological chain.
And, according to the latest news on August 29, another chain company of millet cloud of rice science and technology with the securities and exchange commission (SEC) filed the IPO application documents, according to the established less than 5 years to understand cloud, millet just listed its chain company is unbearable, visible millet between iec have intention to make things clear, is to want to be the unicorns.
It is reported that Xiaomi has invested or incubated more than 90 eco-chain enterprises. In addition to the increasing value of listed eco-chain companies, the current revenue of Xiaomi eco-chain (IOT and consumer goods) has reached 23.447 billion yuan, accounting for 20.5%. Obviously, the eco-chain has become a crucial section of Xiaomi’s entire business layout.
As for how to describe the ecological chain of Xiaomi, a netizen once joked, “If you can’t decide which brand to buy among similar products, choose Xiaomi. Xiaomi is involved in almost all kinds of products.” Although it is a joke, it makes sense. From the beginning of xiaomi’s layout to the formation of the ecological chain, the intelligent ecological chain built by investment cooperation and equity participation without holding is gradually stable.
Xiaomi’s ecological chain takes mobile phones as the core, and consists of three layers of ecological chain with mobile phone peripherals, intelligent hardware and consumables. Huawei, on the other hand, is trying to build an ecosystem surrounded by technology, platform and channel, and pursue the intelligent market from a broader perspective.
Huawei seeks common ground while reserving differences and is keen to cooperate with channel partners in the home furnishing industry to jointly develop top-quality products. Huawei’s olive branch with an open and cooperative attitude has been responded by many manufacturers, such as Opex, Galanz, Changhong and other major manufacturers have reached cooperation with Huawei. At present, the products of the ecological chain on huawei’s official website are rich and diverse, and we do not lose our products to Xiaomi. According to huawei’s official figures, HiLink Ecology will introduce more than 500 smart home appliances in more than 70 categories by the end of 2018, which will be sold in more than 1,000 retail experience stores across China. How recognizable is this message? Let’s hope for a while.
By taking advantage of channels and seeking partners of relevant industrial chains in a win-win way, Huawei wants to build an open platform by opening its own communication technology with the help of more enterprises and provide more efficient and fast solutions with channel partners, so as to bolster its ambition of building an intelligent ecosystem.
The war is getting fiercer and fiercer. Although Huawei has a broader vision and extensive scope, xiaomi seems to have the upper hand in ecological PK with the current ecological chain that has been formed and tends to mature. However, the two armor looks like a mighty scene and occupy the limelight of the industry, but in fact, each has its own shortcomings.
Warmi each has a soft spot
You have armor, you have weakness. Huawei armed itself with technology and channels, but the high price stance caused consumers to look away. Although Xiaomi has fans in power and uses high cost performance to improve itself, it is actually in a marketing mode dilemma.
Start with Huawei. Huawei is famous for its technology. However, high-end technology requires financial support. In addition, Huawei needs to invest a lot of money in cooperation with channel partners, so the price of high-end smart products is naturally higher than that of its peers.
For example, huawei recently sold a smart toilet seat for 3,680 yuan on its official website. Let’s not forget that Xiaomi launched the Smart Rice toilet seat last year for 999 yuan. And As early as 2016, Haier launched intelligent body cleaner V-135CK, priced at 1,499 yuan. Obviously, the brands launched first may pose a great threat to Huawei, so the price gap between Huawei and other brands cannot avoid consumers’ wait-and-see attitude.
Look at Millet. Xiaomi’s smart ecosystem seems perfect, but the biggest pain point is that it can’t get rid of the hunger marketing mode. With the nature of the mobile phone market that updates quickly is completely different, intelligent household is traditional household only can substitute, rather than necessity, millet is in intelligent household marketing copy the hungry marketing strategy of mobile phone hard to avoid meeting “acclimatize to soil”.
For example, Xiaomi released the Mi Band 3 at the end of May and launched the device at 10 am on June 5. Rebus’s old trick brought consumers back to the heartbreak of buying train tickets during the Spring Festival travel rush. Yes, the Xiaomi band 3 sold out in minutes, leaving many consumers sighing and waiting for the next round of buying. However, repeated hunger marketing over time is easy to cause consumers to buy tired, posturing way may be counterproductive, losing ordinary consumers is said, if its fans are disappointed, to fan effect paving the way xiaomi may gain more than the loss.
The lookers-on see most of the game. Huawei to raise the price of technology may inadvertently do millet wedding dress, set off millet’s advantage of high cost performance. And Xiaomi is not the last to laugh, hunger marketing model may attract many enterprises to follow, competitors will continue to enter the market to seize market share. All in all, the smart home market is changing fast, and it’s hard to say who will take the lead in the future.
User experience or deciding who has the last laugh
Since intelligent household enters masses field of vision, the war that rise one after another, although such intelligent household market still did not appear standard pattern up to now. So far, xiaomi, with its legions of fans, has been pitted against Huawei, with its technology. In addition, third party forces must not be ignored, such as Ali, Jingdong, the United States, Haier, these giant enterprises and each big capitalists have to go to the field, will undoubtedly accelerate the fire of the whole intelligent home industry.
The market is highly competitive, but it seems that consumers are not satisfied with the current smart home products, as Sohu.com reported. The development that domestic intelligence lives in is in primary stage originally, together with a few manufacturers abuse the name of intelligence on be being tasted, let the user cause certain misunderstanding, the disappointment that the user is opposite intelligence product certain degree hindered the popularity that intelligence lives in.
It can be seen that the quality of user experience is an important factor affecting consumers’ purchasing decisions, and the quality of user experience may become the winning point of the two companies. But they are not unknown. Xiaomi seized this point, large-scale layout of Mijia experience store, in the way of experience store into people’s life. So far, mi Home has more than 400 stores nationwide.
Although the number of Huawei experience stores is not as good as Xiaomi’s, Huawei is optimizing product functions from the perspective of technology to make users feel better experience from products. The two companies try to understand user experience from different dimensions. Are users willing to accept the pre-sales experience brought by Xiaomi’s experience store, or are they more willing to accept the product functions integrated by Huawei’s superb technology? It’s hard to say who weighs less than what consumers have in mind.
Although in 2018 smart home brand rankings, leading the starting millet was overtaken by Huawei, but the current influence of Millet is not lost to Huawei, has formed a smart home ecological chain or a considerable advantage. Which of the two companies will be singing wine as a song in the future depends on who can maximize the user experience.
Article/Liu Kuang public number, ID: Liukuang110, this article first kuang Venture capital network