Lei Jun, founder of Xiaomi Group, said on Thursday that 2020 is a key year for Xiaomi to creat the "mobile phone + AIoT" dual engine and on the "5G + AIoT" battlefield, at least 50 billion yuan will be invested in the next five years.
On the afternoon of January 2nd, the founder of Xiaomi Group Lei Jun issued a new year's letter to all Xiaomi employees, announcing three major things.
For one, Xiaomi became the first TV brand in China's domestic TV history to exceed 10 million units in China's TV history in 2019.
Secondly, 2020 will be the offensive year for Xiaomi's 5G business, and it will be a key year for Xiaomi to promote the "mobile phone + AIoT" dual engine. At the beginning of 2019, Xiaomi had proposed All in AIoT, and invested 10 billion yuan in 5 years. Now Xiaomi is upgrading the code: On the "5G + AIoT" battlefield, we will invest at least 50 billion yuan in the next 5 years.
Third, Chang Cheng, the former vice president of Lenovo Group, officially joined Xiaomi as the vice president of Xiaomi Group, responsible for mobile phone product planning and other work, reporting to Lin Bin, the group's vice chairman and president of the mobile phone department.
Lei Jun said that in 2019, Xiaomi formed a series of major adjustments and breakthroughs in branding, market development, product lines, and organization and management systems. Xiaomi officially launched a dual-brand strategy in 2019, and Xiaomi and Redmi will split and operate independently. As of the first three quarters, the Redmi Note 7 series has sold well over 20 million units worldwide.
The following is the full text of Lei Jun's letter to employees:
A letter from Lei Jun to all members in the New Year 2020
Happy New Year everyone!
2019 has just passed. For Xiaomi, this is a year of steady operation and a year of aggressiveness. The global mobile communications industry is at a critical moment in the transition from 4G to 5G. We have adopted a stable business strategy, continued to consolidate the foundation of capabilities such as quality, innovation, and delivery, and carried out a series of major initiatives such as brands, product lines, organizational structures, and management systems. Adjustments have laid a solid foundation for future development.
Our mobile phone business officially launched a dual-brand strategy, and Xiaomi and Redmi's dual-brand spin-off and independent operation achieved gratifying success. We have consistently ranked among the top four in the world, while operating steadily, achieving the world ’s rarest extremely healthy inventory level in the industry, enabling us to lightly enter the battlefield and open the 5G strategic curtain. 2019 is a year of great progress in our internationalization process. Almost half of the revenue from overseas markets has become Xiaomi's a truly global company. The Internet business is more dynamic and diverse. Our AIoT business has always maintained a global leading position, becoming the industry-recognized "smart life leader".
In this year, Xiaomi entered the Fortune Global 500 for the first time, becoming the youngest 500 company on the list. More important is the foundation of Xiaomi's organizational management. The organizational structure has gradually been smoothed out. The rotation mechanism starting from the group executives has been launched. We have promoted a large number of young cadres. The construction of the talent team and the training system of Qinghe University have also begun to operate. A solid talent and team foundation is the foundation of Xiaomi's 100-year plan!
Thanks to all Xiaomi people! Thank you all for showing blood, resilience and hard work during the year when the industry has encountered severe challenges! Everyone has worked hard! At the same time, I also want to thank all Xiaomi family members for your understanding and support!
2020 is the year of Xiaomi ’s 5G business, and it is a key year for Xiaomi to promote the “mobile phone + AIoT” dual engine.
We have clarified the strategic direction of "5G + AI + IoT Next Generation Super Internet". 5G is not just the network performance of mobile phones; AIoT is not just AI technology or IoT platform. "5G + AIoT" The platform and full-field service capabilities are the "eyes" of Xiaomi's Internet Gene in the new era, and the key to truly bringing a smart technology to our users. At the beginning of last year, we proposed All in AIoT, and invested 10 billion yuan in 5 years. After this year's practice, we have fully verified the feasibility, correctness, and necessity of strategic investment of the strategic direction. Therefore, we are now upgrading:
On the "5G + AIoT" battlefield, we will invest at least 50 billion yuan in the next 5 years! We must transform the sustainable advantages of AIoT and intelligent life into the absolute victory of the intelligent full scene and thoroughly establish the king position in the intelligent era.
Today is the first working day of 2020 and the 10th year of Xiaomi's entrepreneurial journey.
There are two good news for the new year. The first was a celebration ceremony held by the Xiaomi TV team to celebrate Xiaomi TV's first place in China and the top five in the world. At the same time, it also set a new record for the unprecedented: Xiaomi became the first Chinese TV in history to ship in China. TV brands that exceeded 10 million units!
The second thing, just now, a newly recruited executive of our group also joined our family. Chang Cheng has extensive experience in the field of consumer electronics. He will be the vice president of Xiaomi Group, responsible for mobile phone product planning. As long as we truly agree with Xiaomi's values, as long as we have outstanding abilities, we are all eager for hunger, and will continue to recruit more top talents in the industry in a global manner.
In addition, I ask all Xiaomi students to do 5 persistences: We must persist in being friends with users, adhere to cost-effective strategy, adhere to scientific and technological innovation, adhere to real materials, die-hard quality, adhere to entrepreneurial mentality and struggle spirit.
We will celebrate the tenth anniversary of the founding of Xiaomi in April this year. At that time, we will also hold a celebration to celebrate this memorable moment with all Xiaomi people, all our friends who have helped us, and our fans. More importantly, we must constantly remind ourselves why we set off and what we have today. Xiaomi is still a young company. Because of ideals, it has come to today. It is also because of youngness and ideals that Xiaomi has a long journey but has a wider future!
We have incredibly firm confidence and unrivaled toughness. Xiaomi's new decade will be better!
January 2, 2020