First: First, we can do some welfare promotion activities in the store, such as full reduction, increase coupons, half price for the second item, limited time discounts, package combinations, etc., first stir up the store, and then use some traffic to pay The platform increases the number of product clicks, Everyone can try a free platform like traffic supplement Haitao traffic. Of course, if you have other very good platforms, you can also recommend it to Xiaobian.

Second: Taobao products have a certain regularity in the time to go on and off the shelves. Generally, the closer to the end of the shelf period, the higher the ranking of the products and the higher the traffic. No matter if it is a new store or an old store, I suggest everyone Choose a 7-day cycle to remove the shelf time, so that it can be compared to a 14-day cycle. Of course, you will get one more traffic display opportunity, 4 times a month.

Third: When we launch new products, we must put them on the shelves in batches to maintain a continuous new rate in the store. Try to choose products on the shelves during the peak traffic period, usually between 11 noon and 10 pm, we can New products are released at intervals of half an hour, so that you can ensure that you have products on and off the shelves throughout the prime time period, and the traffic will definitely burst.

Fourth: You must often participate in platform activities, which is very helpful for the system to weight our stores, because only when your store weight is high, the comprehensive score will increase, the exposure opportunity will increase, and the conversion rate will follow increase.

Wave of closures expected in Europe Thousands of bank branches before the end

As of: June 8th, 2021 8:58 am

For many European private banks, running a tightly knit network of branches is no longer worthwhile. According to a new study, almost half of the stores will close in the coming years. A study by the business consultancy PwC predicts a wave of branch closings by European banks. According to this, up to 40 percent of the branches could be on the verge of closure by 2023. This means that drastic cuts are imminent for employees and customers of the branches. Study author Andreas Pratz and his colleagues looked at around 50 private customer banks and banking groups with a total of 690 million customers as well as estimated private customer deposits and loan volumes of 18 trillion euros. Banks from 15 countries in Europe and, for comparison purposes, also in North America and Australia were included.

Too little income from the branches

The main reason for the expected closure measures is the poor profitability of the branches for the banks. According to the study, the average profit per customer in the past year 2020 dropped again by eight percent to 193 euros. There is also less and less business being done in the branches. For example, fewer and fewer bank customers are making international transactions, and the demand for consumer credit has also continued to decline. The income per customer is below average in branches in Germany, it is 172 euros. In contrast, a customer in Switzerland brought an average profit of 444 euros, in Austria slightly above average 208 euros. In Italy and Spain, too, the yields are significantly higher than in Germany. According to the study author Pratz, higher bank fees are charged there or salary accounts are better linked to other bank offers such as construction financing. According to Pratz, there are also major differences in Germany. The “associations”, ie the Volksbanks and the savings banks, achieved better earnings than the branches of private commercial banks.

Cancellation programs launched

Only a quarter of European commercial banks managed to increase their sales in the past year. This increases the cost pressure considerably and directs the bank managers’ attention to their own branch networks. Many of the big banks have already launched job cancellation programs in recent months and in some cases tightened them again, including Deutsche Bank and the French Société Générale. Commerzbank and Postbank had also announced drastic branch closings in the past few weeks. The study assumes that bank branches in Europe will shrink from just under 60,000 to just 36,000 in 2023. More and more new sales channels are taking the place of the branches: “Instead of luring as many customers as possible into the branches through the best locations, customer contacts will in future be gained through targeted online marketing”, according to the author of the study, Pratz.

The causes of extinction come from population growth, pollution and deforestation. Therefore, in the past time, the “apocalyptic vaults” to store the seeds of the world began to be built. In South Korea, the Baekdudaegan National Arboretum Seed Conservation Center currently preserves nearly 100,000 seeds from 4,751 plant species to ensure they are not affected by “apocalyptic events”. Outside the Baekdudaegan National Arboretum Seed Conservation Center, North Gyeongsang Province. Photo: AFP. Mr. Lee Sang-yong, head of the center, said that this is one of two places to store seeds in the world today. Unlike conventional seed banks, where samples are regularly taken out for different purposes, the seeds in the vault will stay there permanently, only to be used for the purpose of preventing extinction. The safest place in Korea The seed vault was designed by South Korea’s National Intelligence Service as a heavily guarded security facility, surrounded by a wire fence and dozens of cameras. Police regularly patrol the area and filming and photography are limited. Inside, an elevator will lead underground with a depth of about eight floors, to the concrete tunnel in the cave, where heavy steel doors guard the storage room. The storage room will be kept at -20 degrees Celsius with 40% humidity to preserve seeds. Mr. Lee said the bunker was built in “the safest place” in South Korea, designed to withstand a 6.9-magnitude earthquake and even a nuclear attack. “Geographically, it’s very safe,” Mr. Lee said. “We have opened a tunnel 46 meters deep underground to ensure the seed is safe from war and nuclear threats.” The seed samples in the cellar were mostly plants from the Korean peninsula. In addition, with a capacity of 2 million seeds, many countries such as Kazakhstan and Tajikistan also accept requests, sending seeds to this reserve. Countries that send seeds here will have title to those seeds and can receive them back when needed. A researcher is doing experimental planting at the wild plant seed research department. Photo: AFP. However, Mr. Lee said: “The purpose of the seed vault is to prevent their extinction. So the best-case scenario is that the seeds never have to be brought out.” “Run with time” The conservation of the seeds of wild plants – the original source of the crops we eat today – should not be overlooked, the researchers say. However, according to a recent United Nations report, many plants that help people ensure food security are “lacking effective protection.” The report warns against crops that are less resilient to climate change, pests and pathogens, and emphasizes: “The biodiversity of ecosystems, where humanity lives, is declining faster than any other any time in human history”. In its 2020 report, the Royal Botanic Gardens, Kew, UK, said many species of plants in the wild hold promise for future medicine, fuel and food. However, about two-fifths of them are threatened with extinction, largely due to habitat destruction and climate change. It is a “race against time” to determine which seeds are in danger of extinction before they completely disappear from the world, the report added. However, Na Chae-sun, a senior researcher at the Baekdudaegan National Arboretum, said studies on seeds of wild plants were “very much lacking”. “One might ask why riverside wildflowers are important,” she says. “In fact, the crops we eat today may have descended from this unnamed flower.” A researcher is examining a ‘black box’ containing seeds in a storage room. Photo: AFP. Besides the vault in South Korea, another seed warehouse was also built in the heart of the mountain near the city of Longyearbyen on the island of Spitsbergen in Norway’s Svalbard archipelago, about 1,300 km from the North Pole. Dubbed the “Noah’s Ark” of food crops, the Global Seed Vault is the largest and most famous vault in the world. The facility is focused on preserving agricultural crops and related crops, storing more than a million seed samples from nearly every country on the planet.

Mr. Hoang Van Hanh sells all kinds of products made by his family. Photo: Nguyen Dung. In the past, the local people did not know how to trade in agricultural products and their products, because they brought goods from Dong Khe commune to the central market of Van Chan district by a far distance, so people set up small stalls right at the market. along Highway 32 for sale. The owners of the goods sold at the market are relatives of the Mong, Thai, and Tay ethnic groups living in Dong Khe and Suoi Bu communes, many of whom cannot speak Mandarin. Initially, they sold with different high and low prices, so Mr. Hoang Hiep Cuoc was the first person to trade in the market and told everyone to sell the same price for all items, which is 5 thousand. Because it has no name and has not been planned as a people’s market, people around and passersby call this place a market of 5,000, or a market for one price. In the market, I saw Ms. Sung Thi Dong selling vegetables with her son on the roadside. She is a Mong ethnic living in Ba Cau village, Suoi Bu commune, recently she went to the market to sell vegetables. Her customers are passersby and people in the surrounding communes. Because the price is only 5 thousand, the vegetables are grown in the high mountains and are always fresh, so each customer usually buys a few at a time. Ms. Nguyen Thi Thao sells specialty rice. Photo: Nguyen Dung. Sitting selling goods in the sun, the road is full of cars, so it is very dusty, but it helps her earn a little more money to cover her life. Sitting next to her are elderly Mong and Thai people selling wild vegetables, bamboo shoots and specialty rice. These old women do not speak Mandarin well, but they also bring goods to the market to sell, because the items have only one price and do not need to be bargained like other normal markets. Mr. Hoang Van Hanh, living in the market, he has just brought cucumbers, pumpkins, bamboo shoots, bitter melons, vegetables … for sale right at the door. Mr. Hanh said: My wife and I, Lo Thi Thuy, bring our family’s things to sell to passersby. My vegetables and herbs do not use pesticides, so you can rest assured that you use them… He added that in the bamboo shoot season, he and his wife can sell nearly 2 tons per month and a few kilograms of other agricultural products, thanks to which the family can make a small amount of income. Some people around here also bring goods to sell, many of which are herbal products exploited by people in the forest, at this time the items are not the same price of 5 thousand as before. Ms. Nguyen Thi Thao specializes in selling specialty rice such as black brown rice, brown rice, plain rice, etc., with prices ranging from 20,000 to 30,000 VND/kg. She said, her buyers are mostly tourists and passersby, many in Yen Bai city, Hanoi… buy a few dozen pounds to eat and give as gifts. Ms. Nguyen Thi Xoan sells wild pineapples to customers to buy as medicine. Photo: Nguyen Dung. The large stalls in the market of 5,000 sell precious herbs and many types of herbal medicine. In which, Ms. Nguyen Thi Xoan’s stall has nearly 100 different products, including: forest shiitake mushrooms, forest seed bananas, forest myrtle, mousse, dan den, hummus, honeydew tea – red ginseng , fenugreek, Jiaogulan, dried squash, string tea, hemp, wild pineapple, medlar, jade crane… Many items are mined by her mother-in-law, Mrs. Ha Thi An, who knows how to collect and exploit drugs in the forest. bought from people, in addition, she also sells medicines for postpartum women, kidney medicine, special medicine for bones and joints, medicine for stomach pain … The herbs she buys from local people, her husband, Mr. Loc Duc Huynh, helps her daily to chop, dry, sieve, and then pack them for sale. Mr. Loc Duc Huynh closes goods to sell to customers far away. Photo: Nguyen Dung. In the past, Huynh worked as a worker on Dong Khe quarry and many other places. His hard work did not earn much, so he went back to help his wife and mother buy and sell medicinal herbs. Each month, Ms. Xoan and her husband sell nearly 1 ton of medicinal herbs of all kinds to tourists, pharmacies everywhere from Lao Cai, Hanoi to Dong Nai. Another stall owner in the 5,000 market is Ms. Hoang Van Nga from Thai ethnicity who has lived here for a long time, her family also sells male medicines that have the effect of tonic kidney, yang, liver, liver detoxification… Besides, She also sells it online and carries it by post or passenger car. Ms. Hoang Van Nga at the family drugstore. Photo: Nguyen Dung. Over the past ten years, the 5,000-dollar market is not only commercially significant, but also a cultural address that attracts tourists near and far because of the simple, rustic and genuine human element here.

Online warehouse trading forged many famous brands in Thach Cau Street, Long Bien District. Frequently changing warehouse locations, using social networks and forms of livestream to sell goods, deliver goods via delivery services, that is the way that objects dealing in contraband, counterfeit and poor quality goods. show in recent times. Although the competent forces have discovered and destroyed many groups of counterfeit and pirated goods, but in reality, this activity is still very active. When the warehouse at 30, lane 139, lane 56, Thach Cau street (Long Bien district) was opened, the Market Management Team (QLTT) No. 16 – Hanoi Department of Information Management coordinated with the Economic Police Team – District Police. Long Bien rushed into an inspection, causing the owner of the establishment not to return in time. At the time of inspection, the authorities discovered that thousands of fashion footwear products with signs of counterfeiting famous brands such as Versace, Gucci, Adidas, LV, Burberry, Chanel, Dior … were stored. , divided in an area of ​​more than 100 m2. The owner of the goods cannot present any documents to prove the origin of the goods. Team leader of Information Management Team No. 16 Nguyen Sy Binh said that the functional forces had to reconnaissance and monitor for months. This business operates mainly in the form of online sales, livestream through social networks Facebook and some e-commerce platforms. They set up a separate room for livestream. In order to evade the inspection of the competent forces, the owner often closes the door, only when there is a commodity transaction, the owner of the goods will open the door, deliver the goods to the customer. In a similar manner, the warehouse is hidden in Phu My A village, Phu Son commune (Ba Vi district) by Nguyen Van Ngoc (born in 1992, with a permanent residence in Bang Y village, Son Da commune, Ba Vi district. ) owner, every day to deliver more than 3,000 orders. When the information management force inspects, this warehouse contains tens of thousands of products from clothes, household appliances, blankets, to cosmetics, functional foods … Worth mentioning, a large number of goods have signs forging trademarks registered for protection in Vietnam, along with thousands of illegally imported household products such as induction cookers, stoves, rice cookers, electric pans … Through investigation, one of the methods is This facility uses is through a software system called TPOS, dozens of other Facebook accounts will simultaneously share livestreams to close orders. Recorded on the establishment’s sales system, in the past six months, more than 655 thousand orders were closed for sale and then sent through the fast delivery service system. The leader of the E-Commerce Working Group (General Department of Information Management), Nguyen Ky Minh, said that the most difficult thing for authorities to access pirated goods sold online is to verify Facebook’s IP address. Online sellers have a lot of experience dealing with authorities, shipping is also mainly through express delivery. In order to avoid inspection, shippers often move and change warehouse locations continuously. Along with the rapid development of the e-commerce sector, the smuggling and trading of counterfeit and poor quality goods on the Internet environment have also increased. Director of Department of Information Management of Hanoi Chu Xuan Kien said that almost every day, Hanoi Information Management Department also receives information about complaints from consumers about online purchases because the quality of goods on the website and in fact is not the same. The common tricks used by the objects are: setting up multiple Facebook accounts, running ads, posting photos of products, but only the phone number or the general address, when customers ask, only receive inbox (message private news). Every day, employees at the facilities perform livestream and close the order to deliver goods across the country through express carriers. Facing this situation, from the beginning of 2020, the General Department of Information Management has set up a specialized division in charge of anti-fraud in the in-line environment, thereby handling and destroying many smuggling lines and groups. and trading in counterfeit and poor-quality goods on the network environment. However, the information management force is short of specialized and highly specialized forces to locate warehouses, demonstrate tricks … Therefore, besides creating conditions for e-commerce to develop, it is also necessary to strengthen anti-smuggling solutions online to ensure the interests of consumers and help businesses do business in accordance with the law.

Tencent Venture | ID: qqchuangye “The “materials” of smart phone hardware have been piled up to the extreme. Cameras are co-branded and technology firsts are everywhere, and the competition on all channels of land, sea and air is becoming more and more intense.” The source of this article is “Eleven People in Finance” (ID: caijing), reprinted by Tencent Ventures with authorization. Author/ Liu Shuqi Editor / Xie Lirong The changing flag of Chengtou is a constant proposition in the mobile phone market for more than ten years. Xiaomi has taken over a beautiful banner this year. According to data from Counterpoint, a market research organization, in the second half of last year, Xiaomi’s market share reached the third place in the world, with year-on-year growth rates of 46% and 31% in the third and fourth quarters, making it the strongest among the world’s top five manufacturers. In February of this year, Xiaomi maintained its advantage and once again won the third place in the world, ranking second only to Samsung and Apple. After temporarily gaining an advantage, Xiaomi began to make up lessons. The expansion of offline channels has been talked about for many years and many things have been done, but there has been no substantial breakthrough. In the mobile phone industry in the past, online and offline channels were divided into three to seventy percent, while Xiaomi’s situation was completely opposite to that of the broader market. In early April, Gao Ziguang, vice president of Xiaomi Group and head of new retail business in China, summarized the multiple reasons why Xiaomi is strong online and relatively weak offline at a media communication meeting. “We are not very good at business models (problems), The attention and results are not very good.” Xiaomi’s offline channel reform is very dynamic. Beginning in November last year, Xiaomi’s offline store “Xiaomi Home” has maintained a rapid expansion of about 1,000 new stores every month, and now the total number of stores has exceeded 5,000. Xiaomi offers about 7% of rebates to offline channel vendors, but it lacks direct competitiveness compared with other leading vendors’ points that often exceed 20%-30%. In order to make up for the shortcomings of stand-alone rebates, Xiaomi has cooperated with a series of incremental policies. In terms of goals, Xiaomi intends to take this round of channel construction in two steps: the first step is to catch up with the offline share of the online market, and the two will be the same; the second step, the share ratio is consistent with the broader market, with 30% online and 7 offline. to make. However, the reality lies in front of Xiaomi: OPPO and vivo have more than 200,000 offline sales points, and Xiaomi has opened stores at a rate of 1,000 per month, and the number of stores is still far behind its peers; Xiaomi has repeatedly reiterated the red line and the comprehensive hardware net profit margin. No more than 5%, how can we feed back the distributors and stimulate the prosperity of the channels? This will be the key to whether Xiaomi can get rid of channel jams and sit firmly in the third place in the world. 1 Open more stores? The main players in offline channels are Huawei, OPPO, and vivo. According to the Orient Securities Research Report, in the first three quarters of 2020, Huawei’s Android market share in first-tier cities accounted for nearly 50%, and its share in other tier cities was more than 30%. OPPO and vivo both accounted for about 20% of the Android market share in third-tier cities and below, and the two together accounted for nearly half of the sinking market. The three companies have only 20%-30% of space left to other manufacturers. In the cracks, Xiaomi only has a market share of about 10% in major cities, and has very little voice in third-tier cities and below. After Huawei’s chip ban, market share shrank sharply, and distributors began to lose. At this time, it is extremely important to seize more channel space. Among the four major domestic mobile phone manufacturers, Xiaomi has the least accumulation in the past, but is now the fastest. At the Redmi press conference in November last year, Lu Weibing, President of Xiaomi China, stated that the home of Xiaomi will be opened to every county in the next year. Since then, the number of Mi Homes has increased by leaps and bounds. The financial report shows that as of the end of 2020, Xiaomi has more than 3,200 retail stores in mainland China, adding more than 1,000 stores in one quarter. Gao Ziguang said that in fact, since November last year, it has maintained a monthly increase of about 1,000, and now it has reached 5,000. Compared to the past, this speed is amazing. From the opening of the first Mi Home in 2015, to the end of 2019, the number of Mi Home stores was only 630. In an interview with Caijing reporter at the end of March, Zeng Xuezhong, the senior vice president of Xiaomi Group and president of the mobile phone department, said that one of Xiaomi’s current challenges is to cover the channels of the primary market in the vast towns. In the past few years, Xiaomi offline channels were concentrated in major cities, and the sinking market was quite weak. Before this year, Xiaomi’s channel system from top to bottom included Xiaomi’s home (direct-operated stores), specialty stores, authorized stores, and franchised stores. The latter three types of stores were operated and managed by partners. The difference lies in store size, geographic location, and quantity of stocks. Wait. But now, Xiaomi has unified all offline stores into Xiaomi’s home, which is no longer just synonymous with directly-operated stores, but includes directly-operated and cooperative stores. The cooperative stores are divided into city-based specialty stores and township-based authorized stores. Smaller franchise stores, earlier direct supply points, and millet shops have already withdrawn from the stage of history. Millet offline channel system mapping: Liu Shuqi The reason for the unified name is that all kinds of stores are required by consistent standards. “You must meet Xiaomi’s standards if you call Xiaomi’s home, otherwise you will smash the brand of Xiaomi.” Gao Ziguang said. Among the current 5,000 Mi Homes, about 1,000 are the stock of original direct-operated stores, specialty stores, and authorized stores, and about 4,000 are newly-added stores. To drastically sink, the strategy is correct, but the path must have a strategy. OPPO and vivo channels are well-known for deepening their hinterland, and they can be seen in business halls and small stores in many villages and towns. This road is suitable for OPPO and vivo’s strategy of “surrounding the city from the countryside”, and may not be suitable for today’s Xiaomi. At present, Xiaomi’s strategy is to sink in the form of Xiaomi homes with higher specifications and thresholds, and the location is mainly in the shopping malls and communication streets in the county. Gao Ziguang revealed that among the existing 5,000 Xiaomi stores, about 50%-60% are in shopping malls. “There must be a trade-off,” he explained to a reporter from Caijing. “You can sell Xiaomi by posting a few posters and logos of Xiaomi, which does not meet Xiaomi’s standards.” A channel dealer in a fourth-tier city in Henan opened two Xiaomi homes in the local area. He told the Caijing reporter that at the beginning of this year, Xiaomi cancelled its franchise stores and changed its authorized store pickup mode, which caused many small merchants to withdraw from Xiaomi. Channel system, but after Xiaomi has improved in the sinking market, some more powerful merchants have started to do Xiaomi. An owner of a Xiaomi franchise store in Nanchang, Jiangxi, told the Caijing reporter that after Xiaomi announced the closure of the franchise store at the beginning of this year, his store was unable to meet the upgrade conditions and eventually closed at the end of March. Due to the strong structure of OPPO and vivo, Huawei and Honor opened stores in good locations, and his business can hardly go on. Recently, he decided to change his career. Xiaomi’s channel thinking is very clear: the focus is from online to offline, from high-tier cities to low-tier, from small stores to large commercial districts, from cooperation with a low threshold to cooperation with certain capital and operational capabilities. But even when opening stores at the current speed, Xiaomi still has a gap that cannot be ignored compared with other mobile phone manufacturers. According to various official data, OPPO currently has about 200,000 sales points in China, and vivo also has about 250,000 offline sales and after-sales outlets. 5000 Xiaomi homes are only one fortieth of OV. Next, opening more stores will still be the core task of Xiaomi. The question is, how do you control the rhythm? Gao Ziguang’s judgment is that the share of the number of stores must match Xiaomi’s market share. “If stores have less market share, business opportunities will be lost; if stores have more market share, they will lose money.” Grasping this balance will be the key, Xiaomi It is expected that this time point will come within 3-5 years. 2 earn more money? In the past, Xiaomi misfired offline, and the small number of stores was just the appearance, and the narrow profit margin was the root. Xiaomi’s 7% rebate, compared with other leading manufacturers’ points of more than 20%-30%, lacks the most direct competitiveness. “Doing Xiaomi doesn’t make money” has been the consensus of many mobile phone distributors for a long time. For this reason, allowing channel operators to earn more money has become the key to Xiaomi’s offline expansion. Since the comprehensive hardware net profit rate cannot exceed 5%, the most direct way is to give more goods to the channel. Under the global chip shortage, Xiaomi 11 and Redmi K40 are already in a hurry online, but there are still stocks offline. Gao Ziguang said that offline is currently a period of strategic support, and the ability of offline stores will be greater than offline stores. The aforementioned Henan Xiaomi distributor told the Caijing reporter that due to the serious shortage of the mobile phone supply chain this year, the supply of other brands is scarce, but the supply of Xiaomi is relatively sufficient. Merchants who are willing to invest can only choose Xiaomi. In addition, Xiaomi’s ecological chain products can also support part of the business, so that the mobile phone is out of stock and the store cannot be operated. Another measure is to improve efficiency and speed up turnover. Mobile phones are like seafood, fast iterations and fast obsolescence. Popular models will cool down in only half a year. Unsold goods are a major concern for distributors. Due to performance pressure, mobile phone manufacturers often pass on the pressure to the channels and move downwards. When the goods are delivered to the channel vendor, it means that they are sold and recorded as income in the financial statements. However, sometimes the goods are just backlogged in the channel’s warehouse, and the channel is responsible for the loss. As for how to solve the inventory turnover problem, Xiaomi’s idea is to upgrade the original simple back-office settlement system to a self-developed retail link, and digitally control the flow of goods, passengers, conversion, and personnel, thereby controlling the flow of goods between different regions and stores. Distribution. On the other hand, the backlog of inventory is recorded in Xiaomi’s account, and the channel cannot bear the loss. At present, this model is mainly implemented in Xiaomi specialty stores in urban areas, and has not yet covered authorized stores in counties and townships. Xiaomi’s internal calculations value the rate of return on funds, which is calculated by multiplying the gross profit after subtracting expenses by the turnover. The gross profit is the rebate given by Xiaomi, and the cost is the cost of rent, water, electricity and manpower of the store. Turnover time is the most important. At present, the purchase of 1 million Mijia can be sold out within three weeks on average, which means that it can be transferred 17 times a year. The aforementioned Henan channel business believes that Xiaomi’s combined actions to support offline channels have indeed standardized the previously chaotic settlement system and dealer system, and improved efficiency. But it does not mean that all problems have been solved. The three-week turnaround time may be possible in stores with good locations and strong sales capabilities, but his two stores cannot be reached for the time being. Best-selling mobile phones such as Redmi K40 have a fast turnover. Chain products still have the problem of easy backlog. There is an implicit tension between intensively opening stores and ensuring channel profitability. He believes that in the past, Xiaomi has regional protection, that is, it cannot reopen stores within a certain range to avoid competition between the two stores. But now the regional protection has been cancelled, the number of nearby stores has begun to increase, and the original gross profit was not high. For Xiaomi, this has increased the density, but for the distributors, this is not a good thing. Xiaomi’s mainstream rebate model is quite controversial in the channel. This is Xiaomi’s special delivery method. The purchase price of the merchant is the same as the selling price. After the sale, Xiaomi will give a rebate of about 7%. This part is counted as the merchant’s gross profit. The advantage of this model is that it is not easy to chaotic prices and the rights of goods belong to Xiaomi, but the disadvantage is that it requires merchants to deposit more funds on Xiaomi’s account, which requires higher cash flow. A channel source from another leading mobile phone manufacturer in China told the Caijing reporter that now that Xiaomi’s home is opened in a direct or similar-direct mode, it is to a large extent the test of Xiaomi’s own operational capabilities. According to a reporter from Caijing, Xiaomi will send a store manager to each store, and the store manager is an employee of Xiaomi. As the root system continues to expand, Xiaomi’s investment in offline channels will inevitably increase. On the one hand, Xiaomi started with Internet mobile phones, pursuing low profit margins and asset-light operations; on the other hand, expanding the sinking market requires intensive manpower and greater investment. How to effectively reconcile this inherent contradiction will be the sinking energy of channels. The key to achieving expectations. 3 Close hand-to-hand combat This round of offline channel reform by Xiaomi is almost the most radical in 11 years. Nothing else, in the era of stock competition, breaking through the comfort zone and fighting against competitors has become the inevitable choice for manufacturers to seek development space. OPPO’s dominant position is sinking the market, but since last year its channel strategy has been highly focused on e-commerce and core cities and core business districts. OnePlus and Realme used to be online as their main battlefields, and are now laying more offline channels. The power of Glory is also accelerating its penetration into offline. It is planned that the proportion of online and offline sales in 2022 will reach 46%. The market is iterating rapidly and competition is getting fiercer. Xiaomi first needs to give enough attention to manpower. At present, Xiaomi Beijing headquarters has about 500 employees responsible for offline channels, including 200 operators and 300 engineers. In addition, there are branches in various provinces, with a total of tens of thousands of employees. Sources from the aforementioned head phone manufacturers told Caijing that since last year, Xiaomi has been vigorously “digging people” in various cities, mostly channel managers who are familiar with the local water temperature. Leading this battle are two “newcomers” from Xiaomi’s offline channels. Lu Weibing was born in Gionee, known as the “King of Offline”. After joining Xiaomi in 2019, he took up the post and served as the President of Xiaomi China from the end of that year. In April of the following year, Gao Ziguang, general manager of Xiaomi Youpin’s e-commerce department, was promoted to vice president of Xiaomi Group and transferred to China to manage new retail business. Last year, Lu Weibing led the team and spent half a year traveling to all provinces across the country with a clear goal: not only research, but also to attract more dealers to join the Xiaomi system. In September last year, Xiaomi, which had obvious shortcomings offline in the past, re-established an offline sales model and goals that emphasized digitization and high efficiency. This offline battle is not only about channels, but also about Xiaomi’s future. Chang Cheng is the vice president of Xiaomi Group, responsible for the product planning of the mobile phone business. He told the reporter of Caijing that high-end is a systematic strategy of Xiaomi, including product and technology upgrades, channel upgrades, and brand logo changes at the press conference. Tell brand stories, etc. Among them, sinking in the form of Xiaomi’s home is also a crucial part of Xiaomi’s high-end strategy. For its high-end strategy, Xiaomi has made continuous moves recently, not only releasing 3 new flagship phones, Mix Fold, 11 Pro, and 11 Ultra at the same time, but also releasing the surging chip again four years later. According to a reporter from Caijing, the smart factory that Xiaomi built in Yizhuang, Beijing last year, also serves to meet the confidentiality needs of high-end devices. The newly released Mix Fold is produced in this factory. Lei Jun said at the spring conference that Xiaomi has “preliminarily established itself in the high-end mobile phone market.” The financial report shows that in 2020, the global sales of Xiaomi’s high-end smartphones will be about 10 million, including some products of Xiaomi 10 and Redmi K40. However, the high-end defined by Xiaomi here is a mobile phone priced at 3,000 yuan or more than 300 euros, which is still far behind the industry’s 4,000 yuan or more than 600 US dollars. According to data from Canalys, a market research organization, Xiaomi shipped approximately 150 million mobile phones worldwide last year, and sales of high-end phones accounted for less than 10% of the total shipments. Xiaomi still has a long way to go if it wants to truly stand on top of high-end mobile phones. According to data from Counterpoint, a market research organization, Xiaomi ranked third with a global market share of 13% in February this year, next to Samsung and Apple. OPPO and vivo followed closely behind, with a share gap of less than 3% with Xiaomi. The pattern may change at any time, and Xiaomi cannot relax its vigilance. The “materials” of smart phone hardware have been piled up to the extreme. Cameras are co-branded and technology firsts are everywhere, and the competition on all channels of sea, land and air has become fiercer. With the continuous evolution of products and the continuous iteration of the system, how to continue to surpass the existing flagships, this will be the ultimate question that continues to test Xiaomi and other manufacturers. END What is your opinion on Xiaomi’s offline strategy? Welcome to leave a message in the comment area and share with you.