On November 7th, a micro-chat chat screenshot of Xiaomi's founder Lei Jun (microblogging) commenting on LeTV's supply chain arrears triggered a new round of war of words between Xiaomi and LeTV.
The two companies that focus on the Internet ecology concept have once again smashed their guns: Xiaomi attacked the "LeTV mobile phone arrears", and LeTV responded to the irony of "the mobile phone was crushed and the TV was in name only".
In fact, it is precisely because of the positive competition in the mobile phone and TV business that the grievance between Xiaomi and LeTV has been long.
In the past two years, Xiaomi wants to burn the flames to the core territory of LeTV, TV. On the other hand, LeTV wants to burn the flames to the core area of ​​Xiaomi, the smart phone. From the model point of view, the two have certain similarities and are clearly distinguished from traditional manufacturers, so they encounter fierce competition.
Gao Lufeng, the founder of the ninebot belonging to the Xiaomi camp, believes that “the original gameplay of Xiaomi feels like being learned.†LeTV founder Jia Yueting claimed to sell the LeTV mobile phone at a price lower than the cost price (BOM), which is the price/performance ratio for Xiaomi. The concept brings a blow to the momentum.
From the perspective of price and brand, LeTV is rapidly competing for the low-end users of Xiaomi. Although the gap between shipments and Xiaomi is still relatively large, this contradiction has become more and more in the context of the tremendous pressure on Xiaomi’s mobile phone sales this year. protruding.
Similarly, both companies are working hard to develop smart TVs, and the war is as constant. "Millet TV has always been profitable. We are not pursuing sales. As far as I know, the current loss of LeTV is very obvious." Wang Chu, the head of Xiaomi TV, repeatedly criticized the competitors. Of course, because LeTV has its own content production platform, it has certain advantages in membership value-added service revenue and integration experience.
In many business sectors, both companies have sacrificed their tactics, but they don't give up, but all kinds of layouts, trials, and stories are ultimately regulated by business logic. Whoever is better and worse is hard to decide, but also accepts market and user testing.
Ecological confrontation
Both Xiaomi and LeTV have their own ecological layout. Xiaomi focuses on upstream and downstream enterprises and provides a large number of application services and hardware products.
In April of this year, Liu De, vice president of eco-chain and head of the ecological chain, explained the scope of the Xiaomi ecological circle to the media in more detail. He said that in 2013, he decided to seize the opportunity of the Internet of Things and use the investment method to make the Xiaomi ecological chain. Xiaomi's approach is quite radical, investing in a large number of start-up and medium-sized companies.
In the past two years, the Xiaomi investment team has seen more than 600 teams and eventually invested in 55 companies, of which more than 30 are start-ups, starting from scratch. Twenty companies have already issued products, and seven companies have annual revenues of more than 100 million yuan.
2014, 2015 is the stage of Xiaomi mobile phone constantly attacking the city. During this period of time, with the mobile phone hardware and software as the core, Xiaomi has laid out five circles in the order of ecology. The first circle is around the phone, including cell phone headsets, mobile power, Bluetooth speakers and patch panels. The second lap is a smart wearable device, like a millet bracelet, a millet watch. The third circle is the intelligentization of traditional white goods, water purifiers and air purifiers. The fourth is manufacturing resources, and the fifth lap is geek cool games, such as the ninebot balance car and drone.
However, in May and June 2015, Xiaomi mobile phones began to encounter growth difficulties. “In April and November last year, there were two slowdowns respectively, which made the entire ecological chain run slower.†Liu De revealed. Obviously, the real decision on the success or failure of Xiaomi is whether the mobile phone is prosperous or not.
In contrast, LeTV is completely endogenous to do ecology. “Ecology started very early. In 2008, LeTV Films was established. In 2009, it started to be LeTV Box and in 2012 to do TV.†Jia Yueting told Tencent Technology on November 6. Starting from the users who are surrounded by LeTV's content, Jia Yueting always wanted to do more.
Starting from the video content, LeTV moves toward the terminal along the content, one is the big screen TV, the other is the small screen mobile phone, and the content is expanded to the sports event and copyright purchase and production.
The launch of the super phone is a bold attempt. LeTV's mobile phone gameplay and the industry's mainstream trends are the opposite. The big killings for the entire mobile phone industry are lower than the cost of accessories for mobile phone pricing, and the gameplay of Xiaomi Internet mobile phone pursuing “price/performance ratio†is pushed to the extreme, claiming "Leading the mobile phone industry into the era of hardware free."
As LeTV entered the new energy vehicle and proposed the car ecology, it began to go further than Xiaomi, but it also encountered more questions from the outside world. There are naturally millet in it, Wang Chuan slammed, LeTV's core business has video, TV, mobile phones and cars, unless each business is the first place, in order to achieve strong alliance, otherwise it will drag down other businesses.
Leshi Eco is finally positioned in the content ecology, big screen ecology, mobile phone ecology, sports ecology, automobile ecology and internet financial ecology. Jia Yueting said that "LeTV's genes are cross-border."
The biggest test that LeTV faces is the lack of funds. Recently, Jia Yueting issued an internal letter stating that LeTV has completed the ecological layout, stopped burning money, and entered the second stage of development, emphasizing operating profit and creating positive cash flow.
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