Xiaomi Celebrates Its Mi Fan's Festival
On April 9, 2019, Xiaomi celebrated its Mi Fan’s festival and the total revenue was CNY 1.9 billion in one day.
On April 9, 2019, Xiaomi celebrated its Mi Fan’s festival and the total revenue was CNY 1.9 billion in one day. The 2019 Mi Fan’s festival is the first Mi Fan’s festival after Xiaomi’s IPO, and also the one after Xiaomi announced its “mobile phone + AIoT” strategy on Jan 11, 2019. In 2018, the Mi Fan’s festival lasted 8 days and the total revenue generated from the festival was CNY 1 billion. However, in 2019, one day’s revenue of Mi Fan’s festival could exceed that of 2018, which proves the success of Xiaomi’s mobile phone + AIoT strategy.
Prior to the Mi Fan’s festival, Xiaomi has published more than 20 products, most of which are IoT-related ones. On April 1, 2019, WANG Chuan (王川), the co-founder of Xiaomi Group said that the total shipment of Redmi Note 7, by the end of March, was more than 4 million, and the shipment of Xiaomi 9 was more than 1.5 million. Both Redmi Note 7 and Xiaomi 9 are high-end models with prices more than CNY 2000. In the Mi Fan’s festival of 2019, the total revenue of the high-end mobile phone occupied 52% of the total revenue of the mobile phone. However, in the 2018 annual report of Xiaomi Group, that ratio was 31.8%.
The increasing revenue of the high-end mobile phone shows the consumption trending of the customers, and also proves that people could recognize Xiaomi’s products. LEI Jun (雷军), the founder and CEO of Xiaomi, said that Xiaomi would keep pursuing the more advanced technology while Redmi would focus on the price-performance ratio. With better technology, Xiaomi may increase its price in the future.
In terms of IoT, Xiaomi showed a great performance on its Mi Fan’s festival. The wireless cleaner raised more than CNY 30 million and the Mijia smart locker gained a sales revenue of more than CNY 10 million. The sales revenue of Mi + air cleaner exceeded more than CNY 10 million, so did the Mi+ floor cleaning robot. Xiaomi also sold a lot of major appliances. On April 9, the sales volume of Xiaomi’s major appliances was 223 thousand, while the sales volume of Xiaomi TV was 144 thousand, Mijia air conditioner was 55.1 thousand, and the Mijia washing machine was 24 thousand. The increasing sales revenue proves the success of Xiaomi’s mobile phone + AIoT strategy, and also shows the updating of people’s consumption structures.
LEI Jun said that in the next 5 years, Xiaomi will keep investing CNY 10 billion to develop Xiaomi’s AIoT business. In early 2019, Xiaomi reorganized its group structure and established the AIoT committee, all of these actions show that the AIoT’s importance to Xiaomi. The Mi Fan’s festival can be regarded as a parade of Xiaomi’s strategy, and according to the sales revenue of the first day of Mi Fan’s festival, Xiaomi did a good job definitely.