How one small tech company got smart about social media and became "China's new smartphone king" (CNN)
In this exclusive inside look at the phenomenal rise of Xiaomi--the new smartphone company that's giving Apple a run for their money--cofounder Li Wanqiang shares the secrets behind the viral marketing techniques, R&D innovations, and user-driven excitement that turned a small tech start-up into a world-class player. You'll
How Xiaomi became the third largest smartphone maker in the world--in just 4 years' time How the cofounders landed their first million users--without spending a dime on advertising How Xiaomi used social media to build exceptional brand recognition and word-of-mouth momentum What every business can learn from Xiaomi's proven success in customer engagement, viral marketing, and cutting-edge product development Already an instant bestseller in China, Wanqiang's eye-opening book provides an exciting new business model for today's flatter, faster world of Internet marketing and user-inspired innovation. No matter how big or small your business, The Xiaomi Way can show you how to even the playing field, develop products people will love, spread the word through social media, and turn customers into passionate, lifelong fans.
I'm not sure I would call this a general history of the company. Usually, when people write about a company that is still in operation (or a living person), they emphasize the fact that they were unbiased/had access to all papers/didn't have to give final approval to the subject/etc.etc. I recently read two books about Alibaba and Jack Ma, and both of them dedicated the entire preface/first chapter to emphasizing this point. Anyway, this book doesn't pretend to have any of this. However, it is also probably the only place we can find a history of Xiaomi in English, so it is interesting nonetheless.
I don't have too much experience with this brand, but when I lived in China, in 2014, it was certainly pervasive. We used the Xiaomibox (小米盒子)and still do on occasion, and I also still use mi-fit, and I definitely saw the cell phone around a lot. The last chapter was odd. Mostly about his love for art. I imagine as an explanation for their style (maybe to counteract the accusations of copying?). Still, it was pretty interesting and made me want to read more about Muji. Also, it was written in 2014. Since the company started in 2010, this means it basically covers the 1st half of the company's existence. Curious about the second half.
Bad points: They NEVER did anything wrong. This is odd, but they don't mention one mistake they've made. An example: An employee wanted to leave, so whenever he mentioned this, the boss would take him drinking until 5am, and do so for several nights in a row, until the employee felt guilty about wanting to leave. This is an interesting anecdote, but I doubt it would work with all employees. Anyway, I very much doubt any company of that size got by without any missteps. Alibaba certainly had plenty. The quote: "Motorola invented the smartphone, but Nokia popularized it"(p. 15). I'm guessing this was a typo and was supposed to say "mobile phone". But this is a book about a smartphone company, so it stuck out. Illustrations were not translated. So some of them are diagrams all in Chinese (p. 131, many others). Some illustrations were just weird. (Figure 5.1, 5.2, etc.). Not sure what they mean. Some contradictions, including two on one page (p.92: "we wanted to reach a mass market through conventional media" and then "This ad was for Xiaomi employees, Mi Fans and our partners."). Not that bad, but still made it confusing. I do wish they had addressed the whole "copying Apple" issue (Lei Jun, Xiaomi's CEO, being called a "counterfeit Steve Jobs"). They seem to sidestep it, and just mention other inspirations (user input, Art, Muji).
Good points: Very interesting to have an inside look at Xiaomi. I liked the analogy of using "air, ground and naval forces" to "attack the market". Very interesting to see how they opened R&D to users and proceeded with their input. This seems to be the opposite of Apple. This could also account for the flak they get for being accused of "copying" other companies. Maybe their users just want better versions of whatever's out there. Interesting to see how they tested their e-commerce on their own employees first, to see their reactions. Interesting to see how they styled their customer service after Haidilao hotpot, since I'm a big fan of that chain --> Make employees love their job, and this will show. Like the idea of "Mi homes". Like Apple stores, but not for sales, just after-sale service. So they're located in offices inside buildings, but very welcoming.
There are 3 fundamentals I've carefully considered after delving into the book.
1. Technological backwardness or perhaps too early technological advancements that users didn't find truly necessary! There's a saying by Lao Tzu that perfectly describes this point! "Going one step ahead is progress, going three steps ahead is hell." Previously, I only superficially understood the first half of this first fundamental. Indeed, passionate engineers or major technological leaps are just a small aspect.
2. Continuous and undiversified supply chain disruptions, it seems. The difficult times when no phones could be produced for the launch of the Note 2 or Note 3... Winter: a raw material supply and assembly partner suddenly went bankrupt. Samsung refused to continue supplying LCD screens. Qualcomm produced faulty chips, production plans were mistaken or interrupted. ... All these seemingly small events caused Xiaomi immense hardship. Finding Apple's Cook - a master in supply chain management - also has a famous thought: Inventory is one of Apple's greatest enemies. This probably illustrates the tremendous pressure on smartphone manufacturers when production plans are disrupted.
3. Poor product quality management leading to loss of trust. Phone or smart device explosion incidents were very noisy at times. Especially, with the Samsung Note 7 (if I remember correctly), there were battery fires while charging, leading to terrible consequences. Or, in different climate regions, phone hardware also needs to be used differently. The hot and humid climate of India easily causes rust and corrosion of the phone's outer shell.
Indeed, there are many more special details. Chinese businesses are accumulating crucial experience in the process of going global. Besides, there are many other interesting details such as admiration for the profile of the 5 Xiaomi founders or pioneering, persistent in building an open-source platform for product feedback for MiFans,...
The 8th book about Chinese businesses. This curiosity probably still can't be satisfied.