CHINA FASHION BUSINESS

▼The Following Discussion in the Lengyun Fashion Circle is a Collective Summary of Industry Issues. These insights represent collective wisdom and do not necessarily reflect Lengyun’s personal opinions. The goal is to benefit more industry professionals through this discussion!

Xiaomi’s Product Logic

1. Which product got you hooked on Xiaomi?

Looking back at Xiaomi’s brand development, the earliest user experience can be traced back to the 2011 launch of the first-generation Xiaomi phone. At that time, the mobile phone market was dominated by Apple, with the general view that Apple’s system was smooth while Android systems were prone to lag. However, the launch of the Xiaomi 2s changed this situation. The phone gained widespread recognition among university students and young office workers, becoming an important turning point in Xiaomi’s brand development.

2016 marked another critical juncture in Xiaomi’s development. The release of the Redmi 3 attracted more consumer attention, especially with its direct comparison of specifications with Apple during the launch event, leaving a “sincerely honest” impression. The “Born for the Enthusiasts” startup screen became a collective memory of users at that time. After this period, Xiaomi’s product line began to rapidly expand, from smart home devices to backpacks, razors, luggage, hair dryers, microphones, air purifiers, and power banks, gradually building a complete ecosystem.

2. What is the essence that continually attracts you to purchase Xiaomi products?

The recent release of Xiaomi’s car has been seen as another milestone in the brand’s development. The launch event followed the brand’s typical style, showcasing the advantages of the product over others in the same price range through precise parameter and performance comparisons. Notably, Xiaomi’s car paid particular attention to users’ pain points, such as sunscreen functionality, showing deep user insight. At the car show, Xiaomi’s test drive team was the most impressive, with a waiting period of over six months for car delivery. An interesting data point is the significant increase in the percentage of female users compared to the previous male-dominated customer base.

3. What have you learned about Xiaomi’s product logic?

Xiaomi’s success cannot be separated from Lei Jun’s personal image. In recent years, although many entrepreneurs have tried to build personal brands, few have been as involved in product research, production, and sales as Lei Jun. For example, during the phone development phase, Lei Jun would carry more than ten phones for comparison; during car development, he personally test-drove over 140 cars. This hands-on working style, combined with his calm and approachable image, aligns perfectly with Xiaomi’s product philosophy.

In marketing, Xiaomi uses a strategy of limited availability to extend product anticipation and attention. This strategy not only creates buzz but also helps gather user experience data and manage production line inventories. Even in a generally sluggish electric vehicle market, Xiaomi’s car has still achieved remarkable sales figures.

What is “Returning to the Essence of the Product”?

1. What is the essence of a product?

Industry insiders believe the essence of Xiaomi’s products is “efficiency.” As stated in the book True Needs, Xiaomi’s core strategy is “return to the essence, make the strongest basic model.” This approach contrasts sharply with Nokia, which once launched hundreds of phone models but was eventually phased out by the market. In contrast, both Apple and Xiaomi chose to focus on creating core hit products.

Another characteristic of Xiaomi’s product strategy is “simplicity and practicality.” Unlike Huawei, OPPO, and other brands that promote “black technology” (advanced but costly features that users may not frequently use), Xiaomi follows a different path: improving efficiency across various processes through labor-intensive methods, reducing manpower and material costs, and ultimately fulfilling its brand promise of “touching hearts with a reasonable price.”

2. We always talk about solving user needs and pain points. How do you distinguish true pain points?

However, some argue that while Xiaomi’s product line is wide, it lacks iconic products closely associated with their categories, such as Gree air conditioners or Joyoung soy milk makers. Xiaomi’s products often offer a range of choices that reach an 80% satisfaction level. When consumers have higher demands, they may turn to specialized brands that focus on a single category.

Another key to Xiaomi’s success is the creation of user involvement. In the early days, Xiaomi invested a lot of effort in finding and nurturing core users, especially enthusiasts. These early fans helped spread the word, attracting more users and creating a virtuous cycle. This internet-driven approach has become a model for others to follow.

In the current market environment, Xiaomi’s experience is particularly valuable. Facing a new generation of consumers who are knowledgeable about science, mathematics, and textiles, a sincere and pragmatic product philosophy is especially important. As Xiaomi’s product officer said: “All products in the world deserve to be re-done.” This statement highlights the importance of returning to the essence of the product. As a petroleum tycoon once said, “What we need are products that are almost free.” Although this statement may seem simple today, the core idea of pursuing high cost-performance ratios remains applicable. In an era of material abundance, consumers need products that provide an experience beyond expectations at a reasonable price.

3. How to avoid creating self-satisfying products?

When discussing global market development, despite numerous challenges, these issues are faced by companies worldwide. For example, in the case of Xiaomi’s car, Lei Jun admitted that the actual difficulties were many times greater than expected, but he remained determined, saying, “Once the bow is drawn, there is no turning back.” This attitude is also reflected in other innovation areas, such as the development of AR try-on technology. Currently, the open-source cost of AR try-on technology starts at six figures, prompting companies to consider independent development routes, using back-end revenue models, and even considering free open-source solutions for industry cooperation.

Combining Xiaomi’s Product Logic with Our Work—What Points Are Worth Learning?

1、Which brands emphasize the essence of the product?

In the apparel industry, true cost-effectiveness is far from just low prices; it requires exceptional comprehensive strength. Uniqlo and Xiaomi are prime examples of achieving true cost-effectiveness. The core competition among today’s apparel companies lies in operational capabilities, including cost control, inventory management, material selection, advertising, and other aspects of detailed management. Specifically, if a piece of clothing priced at 89 RMB is managed through refined operations to keep the total cost at 59 RMB, it will yield an additional profit margin of 30 RMB compared to competitors. This reflects a company’s competitiveness.

Domestic apparel companies generally suffer from inefficiency in operations. Even with e-commerce platforms, many companies are still stuck at the initial stage of manual operations, not fully digitalized. The market is no longer lacking in sources of supply, and the simple mindset of selling goods can no longer meet market demands. Companies without cost-effectiveness, efficiency, and design innovation will be eliminated by the market, and this trend will become even more apparent over the next decade.

With the disappearance of the demographic dividend and the aging population, the introduction of AI and smart devices for industrial upgrades is imperative. However, many businesses still tend to “endure” rather than “change” in response to challenges, focusing excessively on immediate benefits. This phenomenon partly arises from low barriers to entry in the industry, which leads to a shortage of deep thinkers. Many decision-makers are merely followers in the industry, and insufficient market research causes them to stray further down the wrong path.

The essence of a product should be to meet consumer needs, evolving from functionality—“useful and easy to use”—to emotional satisfaction—“loved and preferred”—and finally, to visual aesthetics and emotional joy. This is particularly evident in the intimate apparel industry, where the body is the most loyal perceiver, and the relationship between materials and the body is a core area requiring in-depth study. This aligns with the two key terms of the 2025 consumer outlook: truth-seeking and practicality.

In identifying true pain points, aside from relying on market data and user feedback, complete logical reasoning is necessary. Product development is a continuous process of overturning and optimizing. No amount of market research and logical reasoning is too much. Many products go from simple to professional, reflecting the industry’s development rule that “money is harder to earn because things are becoming more specialized.”

2、How can we apply these product logics to our own industries? Can you provide examples of products you use?

Regarding emotional value, from Popmart and Jellycat to products like “Einstein’s Brain,” different consumer groups perceive value very differently. Some believe that certain emotional purchases may be a marketing gimmick; for instance, low-priced fun products are more readily accepted, but once the price increases, they lose market appeal. However, there are successful cases, such as Pang Donglai, which has gained recognition by conveying the value of “great value and reliability.” This reflects that once material needs are met, consumers turn to spiritual value.

In terms of brand development, Huawei focuses on the software side, while Xiaomi’s differentiation lies in its focus on hardware, which is worth noting. Brands like Cotton Era and Bosideng choose to deeply cultivate niche areas. After being sanctioned, Huawei independently developed chips and systems, coupled with excellent user experience, shaping a brand spirit of self-reliance and resilience. These examples affirm the saying, “If you love the work you do, you can do it well,” just as Lei Jun said, “You must understand and love cars to make good cars.” During the car development process, he also discovered the new joy of working in the automotive industry, which was different from his indoor experiences when developing phones.

Looking to the future, apparel retail may follow an integrated online-offline route, with offline stores transforming into experience centers offering added services like aesthetic styling and photo opportunities. Deepening expertise in a familiar industry is more advantageous than blindly switching fields because, “if you switch industries, you’re a rookie and can’t outcompete the veterans in the new industry—just like switching swimming pools doesn’t make you a better swimmer.” The key is to expand your horizons while staying focused, ensuring that “a broad enough perspective leads to enough depth,” and achieving the effect of learning from others’ strengths.

PS: The translation is done by AI.