Reborn multinational giant
Chapter 514
Fang Zhe\'s five reasons made Lei Zong and Xiaomi\'s executives fall into meditation. Although no one doubts Fang Zhe\'s foresight and authority, he raised his doubts from Lei Zong to other Xiaomi executives with a democratic and realistic attitude.
"President Fang, I\'m afraid it\'s not very good for us to choose a huge market like India at the first stop. In addition, the policies of various states in India are chaotic, and the problem of corruption is very serious. It\'s not like a unified big market in China.
In the past, when our domestic enterprises expanded into the Indian market, they basically fell into a quagmire for various reasons. I\'m afraid we chose India as our first stop. I\'m afraid it\'s very risky! "
The doubts of this Xiaomi executive have been recognized by most executives. Those present here are the elites of this industry and do not know nothing about the environment of the Indian market. The reason why we do not support the first stop in India is that in the past, there were few successful cases of Chinese enterprises going to India!
At this time, President Lei also said: "I also think it\'s too risky to choose India as the first stop. We should choose the countries and markets with high success rate as the first stop when we go to sea. If we think the overall market in Southeast Asia is too fragmented, we can choose Indonesia, which has the largest market.
Indonesia has a population of more than 200 million, ranking fourth in the population of all countries in the world. Its per capita consumption level is worse than that of China, but much stronger than that of India. Moreover, as long as the Indonesian market is opened, the relatively integrated market in Southeast Asia will be easily opened! "
Obviously, even if Fang zhe gave five reasons, Lei and Xiaomi executives still held a skeptical and negative attitude towards the first stop in India. Fang zhe smiled and explained their doubts one by one:
"The Indian market is indeed seriously fragmented and chaotic, and even the tax policies of various local states are not unified, which also makes it difficult for many large enterprises at home and abroad to enter the Indian market, but one key point is that we have completely different business models from these enterprises!
When other enterprises enter the Indian market, they basically rely on the offline sales mode, need to open up channels and sales chains in various local states, and have great requirements on the policy environment, transportation and logistics of local states.
And we don\'t need to have a good relationship with every local state government in India and sign a contract. Just choose to set up a branch in a city in India and sell mobile phones through online channels. In this way, the whole India is a unified market for us! "
The different business models mentioned by Fang zhe are like a blow to the head, which makes many Xiaomi executives feel that there may be a real play in entering the Indian market!
As for Indonesia mentioned by President Lei, it is still denied by Fang zhe with powerful data:
"Last year, Indonesia shipped less than 40 million mobile phones, including less than 7 million smart phones. Even if we can win 30% of the market in one year, it is only two or three million sales, which has little impact on the overall growth of our overseas market.
When we enter the overseas market, we should not only consider the success rate, but also consider the size and growth potential of the market. Now the overseas smartphone market is controlled by Korean brands such as Samsung and LG. We can\'t enter the developed countries temporarily because of patent policies. However, as the largest overseas developing country market, India, we must enter as soon as possible and accumulate experience.
Just like the domestic market, in the large market, there is a difference of tens of millions of mobile phone sales in one or two years, while in the small market, there is nothing more than a gap of millions! "
Fang Zhe\'s remarks made Lei Zong and Xiaomi executives fall into meditation. Both Lei Zong and other Xiaomi executives attach too much importance to the success rate of opening up overseas markets at the first stop. This is also a traditional concept and morale problem of the Chinese people. They pay attention to a good start!
However, according to Fang Zhe\'s thinking, the Indian market is a big market that must be entered sooner or later. If you enter early, you can seize many opportunities early. Whether it is success or failure, experience is the most important!
Moreover, as a reborn Fang Zhe, how can he fight a battle without certainty?
In previous generations, Xiaomi has made brilliant achievements in India, and even surpassed the old giant Samsung to become the first smartphone brand in the Indian market. The product competitiveness of Xiaomi in the Indian market can be seen!
Under Fang Zhe\'s persuasion and the prestige established in the past, Lei Zong and Xiaomi finally chose to follow Fang Zhe\'s advice and choose India as Xiaomi\'s first stop abroad.
Of course, for the sake of prudence, in addition to India, several countries, including Indonesia, Russia, Vietnam and Thailand, are also included in the option.
Fang Zhe and President Lei went to India this time to investigate the difficulty and investment environment of developing the Indian market. If the situation is really unsatisfactory, Xiaomi can only choose alternative countries as the first stop to go to sea.
On the afternoon of October 12, New Delhi time, the plane taken by president Fang zherei and his party landed at Bangalore International Airport in the southern Indian city.
Bangalore is not only the industrial and commercial center in southern India, but also the high-tech center of India. It is the fifth largest city in India. Its status in India is equivalent to that of Shenzhen in China.
Bangalore has the most developed it information industry in India and even Asia. In some aspects, it is even more developed than China\'s Shenzhen market. It is known as "Silicon Valley in Asia".
Therefore, Bangalore has the largest number of IT practitioners in India. If you ask Xiaomi where it is easiest to open the market in India, there is no doubt that this place is the Indian code farmer and otaku capital that likes to pursue mobile phone performance and cost performance, Bangalore!
The reason why Fang Zhe and others chose Bangalore as the first stop of their trip to India instead of India\'s larger and more prestigious cities such as New Delhi and Mumbai is to investigate the market environment and investment environment here.
Long before Fang Zhe and Lei Zong came to India, Xiaomi\'s newly established international marketing department, together with many international and Indian information consulting companies, had conducted detailed market research on major Indian cities such as New Delhi, Mumbai and Bangalore and the entire Indian mobile phone market.
Now, Mr. Fang Zhe and Mr. Lei come by themselves, one is to personally touch the market environment, the other is to prepare for the establishment of an Indian branch and discuss investment cooperation with the local government.
For a mobile phone manufacturing company like Xiaomi, it is almost necessary to enter a country\'s market on a large scale, invest and build factories locally, and talk about preferential policies and conditions with the local government. Otherwise, whether it is import tariff cost or tax cost, it will greatly reduce the competitiveness and profit of Xiaomi\'s mobile phone!
"President Fang, I\'m afraid it\'s not very good for us to choose a huge market like India at the first stop. In addition, the policies of various states in India are chaotic, and the problem of corruption is very serious. It\'s not like a unified big market in China.
In the past, when our domestic enterprises expanded into the Indian market, they basically fell into a quagmire for various reasons. I\'m afraid we chose India as our first stop. I\'m afraid it\'s very risky! "
The doubts of this Xiaomi executive have been recognized by most executives. Those present here are the elites of this industry and do not know nothing about the environment of the Indian market. The reason why we do not support the first stop in India is that in the past, there were few successful cases of Chinese enterprises going to India!
At this time, President Lei also said: "I also think it\'s too risky to choose India as the first stop. We should choose the countries and markets with high success rate as the first stop when we go to sea. If we think the overall market in Southeast Asia is too fragmented, we can choose Indonesia, which has the largest market.
Indonesia has a population of more than 200 million, ranking fourth in the population of all countries in the world. Its per capita consumption level is worse than that of China, but much stronger than that of India. Moreover, as long as the Indonesian market is opened, the relatively integrated market in Southeast Asia will be easily opened! "
Obviously, even if Fang zhe gave five reasons, Lei and Xiaomi executives still held a skeptical and negative attitude towards the first stop in India. Fang zhe smiled and explained their doubts one by one:
"The Indian market is indeed seriously fragmented and chaotic, and even the tax policies of various local states are not unified, which also makes it difficult for many large enterprises at home and abroad to enter the Indian market, but one key point is that we have completely different business models from these enterprises!
When other enterprises enter the Indian market, they basically rely on the offline sales mode, need to open up channels and sales chains in various local states, and have great requirements on the policy environment, transportation and logistics of local states.
And we don\'t need to have a good relationship with every local state government in India and sign a contract. Just choose to set up a branch in a city in India and sell mobile phones through online channels. In this way, the whole India is a unified market for us! "
The different business models mentioned by Fang zhe are like a blow to the head, which makes many Xiaomi executives feel that there may be a real play in entering the Indian market!
As for Indonesia mentioned by President Lei, it is still denied by Fang zhe with powerful data:
"Last year, Indonesia shipped less than 40 million mobile phones, including less than 7 million smart phones. Even if we can win 30% of the market in one year, it is only two or three million sales, which has little impact on the overall growth of our overseas market.
When we enter the overseas market, we should not only consider the success rate, but also consider the size and growth potential of the market. Now the overseas smartphone market is controlled by Korean brands such as Samsung and LG. We can\'t enter the developed countries temporarily because of patent policies. However, as the largest overseas developing country market, India, we must enter as soon as possible and accumulate experience.
Just like the domestic market, in the large market, there is a difference of tens of millions of mobile phone sales in one or two years, while in the small market, there is nothing more than a gap of millions! "
Fang Zhe\'s remarks made Lei Zong and Xiaomi executives fall into meditation. Both Lei Zong and other Xiaomi executives attach too much importance to the success rate of opening up overseas markets at the first stop. This is also a traditional concept and morale problem of the Chinese people. They pay attention to a good start!
However, according to Fang Zhe\'s thinking, the Indian market is a big market that must be entered sooner or later. If you enter early, you can seize many opportunities early. Whether it is success or failure, experience is the most important!
Moreover, as a reborn Fang Zhe, how can he fight a battle without certainty?
In previous generations, Xiaomi has made brilliant achievements in India, and even surpassed the old giant Samsung to become the first smartphone brand in the Indian market. The product competitiveness of Xiaomi in the Indian market can be seen!
Under Fang Zhe\'s persuasion and the prestige established in the past, Lei Zong and Xiaomi finally chose to follow Fang Zhe\'s advice and choose India as Xiaomi\'s first stop abroad.
Of course, for the sake of prudence, in addition to India, several countries, including Indonesia, Russia, Vietnam and Thailand, are also included in the option.
Fang Zhe and President Lei went to India this time to investigate the difficulty and investment environment of developing the Indian market. If the situation is really unsatisfactory, Xiaomi can only choose alternative countries as the first stop to go to sea.
On the afternoon of October 12, New Delhi time, the plane taken by president Fang zherei and his party landed at Bangalore International Airport in the southern Indian city.
Bangalore is not only the industrial and commercial center in southern India, but also the high-tech center of India. It is the fifth largest city in India. Its status in India is equivalent to that of Shenzhen in China.
Bangalore has the most developed it information industry in India and even Asia. In some aspects, it is even more developed than China\'s Shenzhen market. It is known as "Silicon Valley in Asia".
Therefore, Bangalore has the largest number of IT practitioners in India. If you ask Xiaomi where it is easiest to open the market in India, there is no doubt that this place is the Indian code farmer and otaku capital that likes to pursue mobile phone performance and cost performance, Bangalore!
The reason why Fang Zhe and others chose Bangalore as the first stop of their trip to India instead of India\'s larger and more prestigious cities such as New Delhi and Mumbai is to investigate the market environment and investment environment here.
Long before Fang Zhe and Lei Zong came to India, Xiaomi\'s newly established international marketing department, together with many international and Indian information consulting companies, had conducted detailed market research on major Indian cities such as New Delhi, Mumbai and Bangalore and the entire Indian mobile phone market.
Now, Mr. Fang Zhe and Mr. Lei come by themselves, one is to personally touch the market environment, the other is to prepare for the establishment of an Indian branch and discuss investment cooperation with the local government.
For a mobile phone manufacturing company like Xiaomi, it is almost necessary to enter a country\'s market on a large scale, invest and build factories locally, and talk about preferential policies and conditions with the local government. Otherwise, whether it is import tariff cost or tax cost, it will greatly reduce the competitiveness and profit of Xiaomi\'s mobile phone!