On April 8, 2017, the Xiaomi Home World Trade Center Store opened, which is the fourth in Beijing and the 68th offline store in the country. Xiao Jun, founder and CEO of Xiaomi, once said that the goal of Xiaomi Home in 2017 is 200, and the target for the next three years is 1,000.
In fact, this is the first time that Xiaomi's home has entered the CBD area of ​​Beijing. The three Beijings were located in Zhongguancun Contemporary City, Colorful City and Longhu Daxingtian Street. Xiaobin, co-founder and president of Xiaomi, said in an interview with Caijing and other media that Xiaomi’s current model can support the top business district’s fees. The main reason is that Xiaomi’s home sales are high, and its six opened. More than ten stores each earn money. “In the future, the location of fashion stores in big shopping malls will continue to open.â€
Zhang Jianhui, general manager of Xiaomi Home, revealed that Xiaomi’s home is expected to open to 10 in Beijing in the future. There are currently five or six planned, three of which have already been confirmed. Its store location is roughly divided into three categories: fashion high street, community-style shopping malls, and the Century Business Circle.
Lin Bin repeatedly stressed that the core of Xiaomi's offline mode is efficiency. He said that the ultimate goal of Xiaomi's home is to open one or two thousand in the country, no more than three or four thousand, and OPPO and vivo have more than 200,000 offline stores. “How do I compete with others for two or three thousand? The core is whether I can achieve the efficiency of their 20 stores in one store.â€
In his view, the efficiency of the retail industry is affected by three factors: people flow, conversion rate and joint rate. If a store only sells mobile phones, the frequency of purchases of mobile phones is low, and the frequency of users entering the store is also very low. It can only earn money by pursuing the high gross profit of a single mobile phone, and the gross profit of Xiaomi's individual products is low. Xiaomi's approach is to attract users to the store through a variety of product combinations, to improve the flow rate of shoppers, purchase conversion rates and purchase of other products. At present, there are more than 200 products of Xiaomi Home, including its eco-chain enterprise products, and the purchase rate is 3.2, which means that users only want to buy a product in the store, and finally purchase 3.2 related products.
"I am not a mobile phone shop, I am a retail department store." Zhang Jianhui said. Lin Bin said with a joke that the Xiaomi home should be made into an "adult toy store", and adults come in to see a variety of consumer electronics can't stop.
For the key value of measuring efficiency - Pingxiao (sales per square meter), Lin Bin said that the efficiency of the Mi family is 260,000 yuan / month, second only to Apple's 400,000 yuan / month. Zhang Jianhui added that the Xiaomi home in the colorful city of Beijing during the Spring Festival in February 2017, the turnover of the store less than 300 square meters reached 12 million, and the efficiency was 280-290,000 yuan/month.
Lei Jun also said that the operation efficiency of Xiaomi's home is equivalent to 20 to 50 times that of the peers, and the efficiency is 20 times that of the domestic first-class level.
However, some people have questioned their high-efficiency. A person in the industry who has studied the channel for many years believes that the efficacies of Xiaomi’s opening of the store need further tests. Xiaomi’s home is mainly concentrated in the first-tier cities. Thousands of families are scattered to the third and fourth grade towns, and the efficiency may decline. Another senior industry practitioner said that Xiaomi Ping has been good, but the scale is still small. "Once the scale is big, there are more stores, and the efficiency can be high."
Lin Bin admits that how to maintain efficiency while expanding the volume is a real challenge. If two or three thousand companies can maintain this efficiency in the future, the ultimate goal of new retail can be achieved – online and offline. Lin Bin believes that by then, the sales of Xiaomi products may be half of the online and offline, but the current offline sales are still small.
Lei Jun’s goal is to open 1,000 homes in Xiaomi in three years, but so far, its expansion has been slow. Zhang Jianhui said that now, the expansion of Xiaomi's home is still not fast. Only after solid foundation, experienced team and stable system, it is possible to speed up the pace. It is expected that this turning point will occur in the second half of next year.
In addition to the efficiency revolution, another focus of Xiaomi's home is the brand. "The retail industry has developed to today, paying more attention to the influence of retail brands." Lin Bin said that the current store of Xiaomi Home is not enough "high on the", although it does not need to be a luxury brand of LV, but hope to establish a high The brand that sells electronic retail stores.
Zhang Jianhui said that the store layout of Xiaomi's house will not simply consider the customer's unit price, but also consider whether it is consistent with the theme of Xiaomi's technology route. "We want users to come in and feel cool, tech-savvy, and what I want to buy."
In fact, Xiaomi has been looking for a location for a super flagship store, but it has not found a suitable place for two years. Under the inherent impression of cheap and not good goods, how to build a high-quality technology brand has always been a major challenge for Xiaomi, the main price/performance ratio. For Xiaomi, the location of the super flagship store not only means super efficiency, but also means the identification and shaping of its own image.
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