Where there are people, there are rivers and lakes, and where there are rivers and lakes, you need to lead the way. Xiaomi once claimed to be the largest IoT company in China, which used the high cost performance of its products to gain a large number of fans; while Huawei dominated the world's first communication technology, and its technology was the king. A battle between cost performance and technology, Xiaomi and Huawei's smart home overlord battle is about to start.
It is undeniable that after 3 years of accumulation, Xiaomi’s smart home ecological chain has formed a complete system of self-research, self-production, and self-sale. It is understood that Xiaomi’s hardware connected to the ecological chain has reached 60 million units. The latter, Huawei, is trying to use routers as the center to break through the barriers between home appliance manufacturers in order to carry out a new round of penetration. Companies fight their own way, and play in their own areas of expertise.
Core Competitiveness PK: Xiaomi has high cost performance, Huawei has technologyAs the saying goes, "Soldiers come to stand in the way, water comes to cover", Xiaomi embraces fans with its high cost performance, and Huawei uses technology to hold channel partners.
Previously, Xiaomi released a table of Xiaomi ecological chain products. It is understood that the prices of smart products in the ecological chain range from smart switches as low as about 30 yuan to Xiaomi TVs and refrigerators as high as 3,000 yuan. According to statistics, the price of Xiaomi's smart home "Family Bucket" does not exceed 40,000 yuan. Xiaomi takes the high cost performance of smart products as its marketing point, and has won the favor of many consumers with its affordable prices and relatively good product performance. Therefore, since the establishment of Xiaomi, high cost performance has always been Xiaomi's label.
Smart homes are characterized by interconnection, and connectivity is just Huawei's advantage. The difference between Huawei and Xiaomi is that Xiaomi's router is a product transformed from core hardware to an ecological chain, while Huawei regards the router as the center, and Huawei, the world's number one communication technology, chooses the router as the entry point.
It has been reported that Huawei routers can maintain an ecosystem with a plug-in application through protocol conversion, and each ecological smart device may become a part of Huawei's smart home. In this regard, Huawei's smart home ecosystem, which has won the seven major ecosystems, has obviously surpassed Xiaomi in terms of equipment types and models.
Judging from the current situation, Xiaomi's high cost performance seems to be slightly eclipsed compared to the mid-to-high-end market supported by Huawei's technology. In the long run, Huawei has the capability of sustainable development of the smart home ecological platform. The continuous expansion and open communication technology seems to be more courageous and strategic than Xiaomi's price/performance ratio.
Ecological PK: Xiaomi has formed an intelligent ecological chain, while Huawei is trying to build an intelligent ecological circleIt is understood that Huami Technology in the Xiaomi ecological chain was listed in New York, USA on February 8 this year. Since its listing, Huami Technology’s share price has increased by 2.7%, and the S&P 500 stock index has risen by 6.8%. . In the recently announced second-quarter financial report, its revenue increased by 54.8% year-on-year, and its net profit increased by 72% year-on-year. The achievements of Huami Technology undoubtedly added wings to Xiaomi's continued development of the intelligent ecological chain.
And the latest news shows that on August 29, Xiaomi’s other ecological chain company Yunmi Technology submitted an IPO application document to the US Securities and Exchange Commission (SEC). It is understood that Yunmi Technology was established less than five years ago, and Xiaomi has just listed its ecosystem. Chain companies can't hold back it. It can be seen that Xiaomi's ecological chain has an obvious intention to make things happen one after another, that is, it wants to be a unicorn in the industry.
It is reported that Xiaomi has invested or incubated more than 90 ecological chain companies. In addition to the continuous rise in the value of the listed stocks of the ecological chain companies, the current revenue of the Xiaomi ecological chain (IOT and consumer goods) has reached 23.447 billion yuan, accounting for 20.5%. Obviously, the ecological chain has become the most important part of Xiaomi's entire business layout. Important section.
Regarding how to describe Xiaomi’s ecological chain, some netizens once ridiculed, “If you are unsure of which brand to buy among similar products, choose Xiaomi. Almost all types of products are involved in Xiaomi.†Although the ridicule is not unreasonable. From the beginning of the layout to the formation of the current ecological chain, the intelligent ecological chain built by investment cooperation, equity participation and non-controlling methods has gradually stabilized.
Xiaomi's ecological chain is based on the mobile phone as the core, with three layers surrounding the mobile phone, smart hardware, and life consumables. Unlike Huawei, Huawei is trying to build an ecosystem surrounded by technology, platforms, and channels, and pursue the smart market from a broader perspective.
Huawei seeks common ground while reserving differences, and is keen to cooperate with channel partners such as the home furnishing industry to jointly develop first-class products. Huawei's olive branch with an open and cooperative attitude has been responded to by many manufacturers, and major manufacturers such as Op Lighting, Galanz, and Changhong have reached cooperation with Huawei. At present, the products of the ecological chain on Huawei's official website are rich and diverse, and the major appliances category does not lose to Xiaomi. According to Huawei's official figures, by the end of 2018, the HiLink ecosystem will introduce more than 500 smart home appliances in more than 70 categories, which will be sold in more than 1,000 retail experience stores nationwide. How recognizable is this message? For the time being, you can look forward to it.
Huawei uses channels to find partners in the relevant industry chain in a win-win manner. It wants to leverage the power of more companies to build an open platform with its own communication technology and provide more efficient and faster solutions with its channel partners. , In order to prop up their ambitions to build a smart ecosystem.
The battle is getting more and more intense. Although Huawei has a broader vision and a wider range of coverage, from the perspective of the current ecological chain that Xiaomi has formed and is becoming more mature, it seems that the ecological PK seems that Xiaomi has the upper hand. However, the two armoured two seem to be majestic and dominate the industry, but in fact they have their own shortcomings.
Huami has its weaknessesWith armor, there are also weaknesses. Huawei uses technology and channels to arm itself, but the high price posture causes consumers to look away. Although Xiaomi has fans in power and cultivates its body with high cost-effectiveness, it has actually fallen into a dilemma in the marketing model.
Look at Huawei first. Huawei is well-known for its technology, but high-end technology is indispensable for financial support. In addition, Huawei and channel partners need to invest a lot of funds, so the price of selling mid-to-high-end smart products is naturally higher than that of peer products.
For example, the smart toilet cover recently sold on Huawei's official website for 3680 yuan. Don’t forget that Xiaomi launched the Zhimi smart toilet cover last year, priced at 999 yuan. And Haier launched the smart bidet V-135CK as early as 2016, priced at 1,499 yuan. Obviously, the first-launched brand may pose a big threat to Huawei, so the price disparity between Huawei and other brands inevitably prevents consumers from taking a wait-and-see attitude.
Look at Xiaomi. Xiaomi's smart ecosystem seems to be perfect, but the biggest pain point is its hunger marketing model that it can't get rid of. The nature of the fast-updated mobile phone market is completely different. Smart homes are just alternatives to traditional homes, not necessities. Xiaomi's hunger marketing strategy of copying mobile phones in smart home marketing will inevitably be "unacceptable."
For example, Xiaomi released the Mi Band 3 at the end of May and started to grab it at 10 am on June 5. Rebs’s old routine made consumers feel sad about grabbing train tickets during the Spring Festival. Yes, Mi Band 3 sold out in minutes, and many consumers can only sigh and wait for the next round of panic buying. However, repeated hunger marketing can easily lead to consumer fatigue over time. Pretending to be a gesture may be counterproductive. Losing ordinary consumers means that if they disappoint their fans again and again, Xiaomi, which is paving the way with fan effects, may not be worth the loss.
Father, like son. The price that Huawei has raised with technology may inadvertently make a wedding dress for Xiaomi, which brings out the advantage of Xiaomi's high cost performance. And Xiaomi did not have the last laugh. The hunger marketing model may attract many companies to follow suit, and competitors will continue to enter the market to grab market share. All in all, the smart home market is changing rapidly, and it is difficult to say who can rule the roost in the future.
User experience or decide who has the last laughSince smart homes have entered the masses' vision, there have been wars that have risen one after another. Despite this, the smart home market has not yet emerged a standard pattern. At present, Xiaomi has a large number of fans on the one hand, and Huawei has strong technology on the other. In addition, we must not ignore third-party forces, such as Ali, JD.com, Midea, Haier, etc. The presence of these giant companies and major capitalists will undoubtedly accelerate the burning of the entire smart home industry.
Fierce market competition is a sight, but it seems that consumers are not satisfied with current smart home products, as reported by Sohu.com. The development of domestic smart home is in its infancy, and some manufacturers abuse the name of smart in new products, causing users to misunderstand a certain degree. The disappointment of users with smart products has hindered the popularization of smart homes to a certain extent.
It can be seen that the quality of user experience is an important factor that affects consumers' purchasing decisions, and the quality of user experience may become the winning point for the two companies. But the two are not ignorant. Xiaomi has seized on this point, deployed Mijia experience stores on a large scale, and involved people's lives in the way of experience stores. So far, the number of Xiaomi Home stores nationwide has exceeded 400.
Although the number of Huawei experience stores is not as good as that of Xiaomi, Huawei is optimizing product functions from a technical perspective to allow users to experience a better experience from the product. The two are trying to understand the user experience in different dimensions. Are users willing to accept the pre-sales experience brought by the Xiaomi experience store, or are they more likely to accept the product features that Huawei integrates with its superb technology? It’s hard to say who is lighter than the weight in the minds of consumers.
Although in the 2018 smart home brand rankings, Xiaomi, which started at the top, was overtaken by Huawei, but from the perspective of Xiaomi's current influence, it is not lost to Huawei. The smart home ecological chain that has been formed still has considerable advantages. Times make heroes. In the future, who of the two companies will use wine as a song, and see who can maximize the user experience.
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