Original title: summary of Lei Jun's 10-year entrepreneurial career: add the content of "Internet thinking" and reiterate the priority source of efficiency: Tencent News
In addition to the seven-character formula of "focus, extreme, word-of-mouth, and quickness", there is also a very important mass line in Internet thinking, that is, "go deep into the masses, trust the masses, come from the masses, and go to the masses." this is the model of the Internet open source community. The Internet has the lowest organizational cost and allows users to participate.
Source: Lei Jun public account (ID:leijunxiaomi)
On December 7, 2014, in the fifth year of XIAOMI's start-up, at the invitation of Zhu Linan, president of Junlian Capital (formerly Lenovo Investment), I shared some of my thoughts about the founding of XIAOMI within Lenovo Holdings, including several learning objects of XIAOMI before his founding. There are Tong Ren Tang.Haidilao International Holding, Walmart Inc and Costco Wholesale Corp (Costco), as well as our study and practice.
In the blink of an eye, in the past five years, XIAOMI is about to usher in his 10th year of entrepreneurship. Looking back, XIAOMI's 10-year road has been persisting in practicing these thoughts. I will add and revise this sharing as a summary of XIAOMI's ideas in the first ten years of his start-up.
01
Learn from Tongrentang
To make products, you need real materials.
And have faith.
Mr. Liu Chuanzhi recommended a book called Evergreen, which is about how to set up a hundred-year-old enterprise. So I asked myself, what about a hundred-year-old enterprise? The first thing I think about is, in China, who has done it for a hundred years.
The first thing I thought of was Tongrentang.
In the study of Tongrentang, I found that the most important thing of Tongrentang is its motto: "although taste is expensive, you must not dare to reduce material resources, and although processing is complicated, you must not dare to save labor." that is to say, to make products, materials should be used with the best even if they are expensive, and the process should not be lazy even though it is cumbersome. In other words, be authentic.
But it is easy to say and difficult to do. So the ancestor of Tongrentang said the second sentence: "there is no one to see Xiuhe, but God knows it on purpose." Only your own conscience and God knows what you do. This sentence is about how to ensure that the first sentence is carried out.
It shocked me. I was thinking, after decades of efforts, China has been the factory of the world, but why Chinese products were often considered inferior products before? Sometimes people joke that we Chinese are too smart, and there are always people who like to take shortcuts and "cut corners" to get such a stereotype. If we want the foundation to last forever, we must have the real material, and if we want to persist, we must turn the real material into faith.
In my opinion, if we want the foundation to last forever, we must achieve two things: first, the real material, and second, worthy of conscience.
After this thinking, when I worked for XIAOMI, I wanted to take a different path: we should use all the best materials in the world to make our products. It is an exaggeration to say that we "only buy the expensive ones, not the right ones", and the expensive ones must be reasonable. For a company founded from scratch, this is not easy, because it means that our cost is much higher than others. But we did it anyway. The processor was Qualcomm Inc, the screen was Sharp, and the final assembly was Foxconn, the largest contract factory in the world.
I find that what we Chinese need is first of all good things, not just cheap things.
It is not easy to make a good thing. The biggest problem we encountered when XIAOMI started his business was who wanted to work with a start-up company. Originally, I thought that making a mobile phone was the same as doing a PC, and then I found out that it was not. Most of the mobile phones are electronic components, which means that our partners need to invest in R & D resources and take huge risks. So every supplier is extremely careful when choosing a partner.
With regard to OEM, I talked about it from the first place to the fourth place, and no one paid any attention to me. Finally, I convinced Yinhuada, which ranked fifth, that is, a subsidiary of Yinyeda Group. We talked to their general manager in Nanjing three times, and he thought my idea was reliable, so he chose to gamble with us. Later, we mainly assembled from two suppliers, Invada and Foxconn (Now I have one.BYDMore cooperative suppliers, but Yinhuada is still one of our most important partners.）。
In 2011, when our first product was made, the cost was as high as 2000 yuan. At that time, the average price of domestic mobile phones was 600 to 700 yuan. How much was the mobile phone worth 2,000 yuan? We have no confidence at all inside. Originally, our price was 1499 yuan, but we never thought of compromising on performance and quality. According to our product definition goal, it is definitely not possible to pay 500 yuan for a mobile phone. A week before the product launch, I thought about staying up all night. The next night, I discussed with several partners and decided to set a price of 1999 yuan. We have to believe that what is good is worth 1999. We released it a week later, and it was a great success.
This incident makes me more convinced that what we Chinese need is first of all good things, not just cheap things. Today's China is already an era of overcapacity, if you do not seriously do a good job of products, that is not a hoax?
In order to ensure this, XIAOMI did not send a single public relations draft in the first year and a half of his founding, and asked everyone to keep it a secret. He could not even say that the company was run by Lei Jun. We don't want to borrow any exposure resources outside the product itself.
At first, we started with the software we were good at and made an Android-based MIUI. We founded the company on April 6, 2010, and released the first version of MIUI on August 16. There were only 100 users when the product was launched, but it grew to 200 in the second week and 400 in the third week, doubling every week. In October, we were recommended by XDA, a global developer forum, and became an international hit, and we were nominated for best Android product that year.
Therefore, to seriously do a good product, to believe in word-of-mouth, and word-of-mouth is a part of faith.
Every model of our mobile phones, even thousands of yuan phones, also use the top domestic suppliers. And I guarantee that I have used every mobile phone for six months and a year. I know what's good about this phone, and I know what's wrong with my product.
I've been working on technology for 30 years, and if I haven't used it myself, I don't feel good myself, can I stand here and sell it to you?
XIAOMI, it's me.40A company founded after financial freedom at the age of 20. The biggest advantage of this point is that I will not do anything for money. This is something I like and I am satisfied with. So the first thing XIAOMI needs to do is to get the real thing.
It is possible that many people, including the vast majority of people here, used to use Apple Inc Samsung, but now I believe that many people here already use domestic mobile phones. Three years ago, almost no domestic mobile phones were used. Today, driven by XIAOMI, more and more domestic mobile phones are getting better and better.
This is the first story I share with you, the story of Tongrentang.
02
Learn from Haidilao International Holding
Word of mouth comes from exceeding expectations.
The second story I want to share is Haidilao International Holding.
Many years ago, I bought a book in the bookstore at the airport, "Haidilao International Holding, you can't learn", but after reading it for three or four hours, I found that I had learned it. I found that Haidilao International Holding's secret actually has only two words: word of mouth.
How can word-of-mouth be done well? Many people quickly think of word-of-mouth marketing, but once you think of marketing, this matter dies, you have to think first, what kind of things have word-of-mouth.
After I finished reading this book, I went to Haidilao International Holding. Like other hot pot restaurants, Haidilao International Holding's environment is very noisy. But to my surprise, Haidilao International Holding's waiter has a heartfelt smile.
In other service-oriented industries, although many practitioners are prettier and have better uniforms than Haidilao International Holding's waiters, they often do not smile. By contrast, Haidilao International Holding's waiter's smile can really move people.
The essence behind the smile is value identity, which is the consensus between employees and the company based on values. A few years ago, there was a joke on Weibo Corp that was very good. After Haidilao International Holding finished his meal, a guest wanted to take away the unfinished watermelon. Haidilao International Holding said no. But when he finished checking out, the waiter took an uncut watermelon and said to him, "you want to pack up. We have prepared a complete watermelon for you to take away. It is unsanitary to take the cut watermelon back."
Wow, the customer was moved at that moment. So at this point, do you know what word of mouth is?
In fact, I went to the Yacht Hotel in Dubai later, and I went to Dubai with great respect. As soon as I entered the Yacht Hotel, I felt resplendent and resplendent. It is said that it was really pasted with gold, but the aesthetic appreciation of modern people will not think that this is luxury, but dirt.
So I feel very disappointed, is this the best hotel in the world? I think it's because my expectations are too high. In retrospect, the Sailing Restaurant was amazingly good, but my expectations were so high that I was really disappointed.
The core of word-of-mouth is to exceed users' expectations. The service of the Galleon Hotel is certainly better than Haidilao International Holding's, but he did not exceed users' expectations. Compared with the former, Haidilao International Holding is even shabby and noisy, but including the smile of the waiter, many details have conquered every customer, so Haidilao International Holding's reputation is invincible.
With such an invincible reputation, do you still need to advertise? I believe in word-of-mouth, I think the best product is marketing, the best service is marketing, good things we will be willing to help you promote.
In the early days, people didn't believe it, and we did MIUI and put it into practice, which was a great success. To this day, MIUI has been updated to the 11th major version, and it has always been considered the best system to use in various user votes. Therefore, advertising is half effective and half ineffective, but word-of-mouth is more effective than advertising.
Why we think that health products are annoying to people is because they brag every day, there are so many advertisements that consumers are gradually reluctant to believe them. Without advertising dependence, you will treat every user sincerely and do everything more than expected.
For example, in the first generation of XIAOMI's mobile phone, I saw a user in Weibo Corp.Complaints"the battery won't charge after two weeks of use." just as I was about to reply, I found that a colleague had already answered his question. The next day I found that the user had sent a message to Weibo Corp saying that he had "received a new battery from a colleague of XIAOMI for free."
It is impossible to make a large number of industrial products without mistakes, but when users complain, most people will only suggest repairs, but our staff will send him a new battery, and the feelings of users are completely different.
Or, for example, the order placed at more than one o'clock in the morning on Singles' Day was delivered at six o'clock the next morning. Users said that XIAOMI's logistics was insane and that the goods had been delivered just a few hours after the purchase. This is a small detail that can move users.
So the core of word-of-mouth is to exceed expectations. When you run word-of-mouth, I believe your products and services will certainly be improved, and with these unremitting efforts, word-of-mouth will come naturally.
Word-of-mouth is not new media marketing, its essence is to seriously think about how products and services can move consumers, I think this is the key.
This is the second company I refer to.
03
Learn from Walmart Inc and Costco
Low gross profit and high efficiency are the king.
After talking about Tongrentang and Haidilao International Holding, the third company I want to talk about is Walmart Inc.
52 years ago, old Sam set up a grocery store in his hometown. He found that the average gross profit margin of the American circulation industry at that time was 45%. Old Sam thought, can I only earn half of other people's money and only make a gross profit margin of 22%? If the price is parity every day, the sales volume can be several times that of others, and it will certainly make money.
So he turned "Tiantian parity" into a slogan founded by Walmart Inc.
But think about it carefully. When other chain stores earn 45%, Walmart Inc only does 22%. In theory, he definitely doesn't make money, and he loses a lot. This is the principle of market competition.
Old Sam thought for a long time that Americans would be willing to drive ten miles away as long as it was a hundred dollars cheaper. So instead of doing it in the city center, he found an old warehouse to minimize all costs, and even if the gross profit margin was cut in half, he still had a few points of net profit.
As a result, it took Walmart Inc 30 years to become number one in the world, which is called high efficiency.
Our business schools sometimes teach a lot of stereotyped ideas, including us investors, who are always asking, "can we have a higher gross margin?" Of course, you can either reduce the cost of the material or increase the price. Is there any other way to increase the gross profit margin?
When I invest, I don't like the high gross profit margin. I always think that for large-scale industrial products, chasing high gross margin is a road of no return. Everything in the Chinese market is ridiculously expensive, and something a little better is very expensive.
In 2011, I went to the United States with a group of Jinshan executives. At that time, our CEO, as soon as we got off the plane, rented a car and went straight to Costco (Costco Wholesale Corp, the largest chain membership warehouse store in the United States.Later, seven or eight of his colleagues also went there, and they were all very excited when they came back.
I was very surprised that a colleague gave me an example. Two large boxes of Samsonite brand usually sell for more than 9000 yuan in China, while Costco costs only US $150, or 900 yuan.
Houses, land and labor in the United States are all expensive, but the price of these two boxes is only 10% of that in China. What is the reason why our people have to pay 10 times the price when they are paid 10 times the wages of the United States 1Compact 6 and 1Compact 10?
I later studied Costco and found that the company was really good. Costco's store is only about Walmart Inc's 1ax 4, and there are only two or three brands for each item, all of which are super good and super cheap. Their credo is that all goods are priced at a gross profit margin of 1% to 14%.
The price of anything is more than14%The gross profit margin is about to pass throughCEOApproval, which has to be approved by the board of directors, is very troublesome. I read their financial statements.7%The average gross profit margin in the United States to do large chain retail, which is not profitable. So they make a profit through membership fees, and those who want to buy things must become members. More than 20 million members, $100 per person per year. As a result, we all became members of Costco.
So one of the questions I want to explore is, the higher a company's gross margin, the better it really is? A company with a high gross profit margin must be very inefficient.
In the case of low gross margin, how to work efficiently is the most important thing.
XIAOMI started with zero gross profit. Relying on large-scale production, he can have a gross profit margin of more than ten percent. Our key is to keep XIAOMI's overall operating cost at an astonishingly low level.At present, XIAOMI's revenue field has expanded from hardware to the Internet, e-commerce platform, finance and other fields. Our OPEX, that is, the operating expenses rate is between 8% and 10%.To put it immodestly, we are the most efficient company in the world.
Therefore, we must not hire a lot of people or do a lot of things. Our philosophy is: less is more, we must focus. Our model looks too complex, and simplicity is our core competitiveness. First of all, we are complicated, and then we make complex things simple.
The experience of retailing like Walmart Inc and Costco is that low gross margin is the king. Only a low gross margin can force you to improve your operational efficiency. And XIAOMI wants to close to the cost to set the price, high efficiency is king, without high efficiency, the company will lose a lot of money.
I don't remember reading a sentence somewhere that it is a crime if an enterprise does not make money, and that the social mission of an enterprise is to make money and improve efficiency. Since we do not want to cheat users, and want to make money, we can only use all our ingenuity to improve efficiency.
So we are attracting top talent from all sides at all costs. People, for an efficient company like ours, are our most important asset. In the early days of the company, we try to hire as few people as possible, but we have one requirement for these people: all more than ten years of experience. Because only with such experience can a company develop at a high speed without turning over.
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Finally, the overall summaryWhen I was XIAOMI, what I really studied were these companies: Tongrentang, Haidilao International Holding, Walmart Inc and Costco.
First, we make products like Tongrentang, which are authentic and have faith. Everything is a good thing I have used by myself. I beg your pardon if it is not done well, because we have only been working for three years.Since the release of the first generation of mobile phones in 2011), it will take more time.
The second point is to serve the users of salvage and make word-of-mouth that exceeds expectations.
Third, learn operational efficiency from companies like Walmart Inc and Costco. We are e-commerce, we are industrial, when it comes to industry, I think efficiency still wins. Of course, there are two ways to improve efficiency, one is to twist towels, mainly to reduce internal costs, I agree, but I mainly use another, model optimization-as much as possible to compress the middle links in the field of business circulation and do less work. simplify the process with the smartest people.
XIAOMI used a lot of model innovation to improve efficiency. Only in this way can the cost be greatly reduced. In the consumer electronics industry, from manufacturing costs to retail costs, the fixed multiplication rate is basically two to three times. Coupled with the profits of channels and retail stores, the price customers buy is two to three times the manufacturing cost.
Why are traditional mobile phones so expensive? In other words, why are all traditional services so expensive? It's not efficient. The reason why China's e-commerce has such a rapid growth rate is mainly because our traditional business lags behind. Costco is also all brick-and-mortar chains, but efficient. JD.com 's financial report shows that JD.com himself spent 10% of his turnover. If Costco is only 7%, do you think Costco will be affected by JD.com? I don't think it's a big problem if it has an impact.
So the key is how to improve efficiency, e-commerce (Including the new retail we proposed later, in order to introduce and sell our products to the wider public, we have officially entered the offline market since 2016, but we have guaranteed the same price as e-commerce and the same efficiency.) the core is efficiency. This model is advanced and superior, but if you don't manage the cost well, it's hard to make money.
These are the companies I have referred to.
04
The True Scriptures outside the "Seven-character Formula" of the Internet:
"Mass Line"
Finally, I would like to talk about Internet thinking.
I have talked about the seven-character formula of the Internet: "focus, extreme, word-of-mouth, fast", but I won't talk about it today. There is another very important thing in Internet thinking.——The mass line is“Go deep into the masses, trust the masses, come from the masses, go to the masses”Is the model of the Internet open source community. The Internet has the lowest organizational cost and allows users to participate.
What is XIAOMI's biggest selling point?
I have always had a dream to be a good mobile phone. If users have good opinions, I can change them right away. So I designed this model: to establish a XIAOMI community, where millions of people visit and make all kinds of suggestions every day. After taking the advice, our operating system is updated weekly. This is actually a world-class problem, because the operating system is more complex, especially to consider what to do if something goes wrong, which requires high reliability.
Give me an example. For example, a celebrity friend mentioned to me earlier that many fans had trouble calling them and asked if they could only answer address book calls. Later, XIAOMI had this function. For another example, a user said that his phone should be turned on 24 hours a day because his job requires him to turn on his phone 24 hours a day, but he couldn't sleep well if a phone call came in after 12:00 at night. Later, we set up a VIP phone, and only VIP could get through 24 hours a day.
Functions like this were invented by the people, because we were not in that scene and could not have imagined it. In fact, XIAOMI mobile phone launched a mass movement.
At this point, we actually have a completely different design idea from iOS. We are "easy to use", look as simple as iOS, but "difficult to master", a lot of functions, integrated. Even in design, we have a famous saying“Let users have the fun of discovery.”。
My deepest understanding of Internet thinking, in addition to the seven-character formula, is the mass line, that is, the open source community. The Internet is a kind of thought, a kind of advanced productivity and advanced guiding ideology. If you can think this model through and apply it to any business, that business will be different.
Today, I will mainly share with you my four thoughts on being XIAOMI. XIAOMI still has a long way to go. We have made some achievements this year, mainly thanks to your support. More importantly, we have caught up with the time when smartphones broke out in China, which is why we have the "flying pig theory". (Many people misunderstand the flying pig theory and think that it is speculation, but in fact it is not. Flying pig first talks about a pig. Even if a pig is ready to welcome the tuyere, it can also make good achievements.）。
But for what we have to do, XIAOMI has only just begun. I want to bring the Chinese products we make according to this philosophy to the world, so that everyone in the world can enjoy the fun of scientific and technological innovation from China.At this point, we later summarized the upgrade as our mission:Persist in making good products with touching and generous prices, so that everyone in the world can enjoy the good life brought about by science and technology.）。
I believe that in the next 10 years, XIAOMI will lead China's industrial reform and progress, just like Sony Group Corp in the 1970s and 1980s led the entire Japanese industry, just as Samsung led South Korean industry in the 1990s and 21st century.
XIAOMI's goal is to become a national brand in China, to promote made in China and Chinese design to become a world-famous world-class brand. XIAOMI's dream will eventually become the future of China.
Thank you!
Postscript
This sharing five years ago was mainly about thinking about building business models and operating models. Due to time constraints, I omitted a learning object that I did not talk about, that is, learning design from MUJI.
Who is MUJI? In China, you may think MUJI is a little expensive, but MUJI is an out-and-out civilian brand in Japan. At the beginning of its establishment, MUJI meant "no trademark, but also very high quality".
At that time, after the era of bubble economy, Japanese consumers returned to pragmatism and no longer grandiose, hoping for high quality products and superior prices. At this time, MUJI simply did not paste the trademark, relying entirely on the product itself to gain consumer recognition, and the result was very popular.
If a product, we do not look at the trademark, that is, to remove the impact of any brand premium, what else can we rely on to attract consumers? I summarize three points: high quality, high performance-to-price ratio, and good appearance.
So I think that if Chinese brands are to survive in the world, innovation is very important, quality is very important, and design is also very important.
Once I was with ZhongguancunEntrepreneur discussion, I said you can take a look at the plug board on the table, is it all ugly, why can't we do it beautifully? A breakthrough electric was not convinced on the spot, I was very happy, so XIAOMI cooperated with Breakthrough to set up an ecological chain enterprise, and the product is the plug board. After this plug board came out, we found that the design of the plug board in China has become more beautiful, and the actual use experience has also reached a big step.
In particular, I would like to say that learning from MUJI is not just the pursuit of good appearance, but the use of innovative ways to achieve design, design for experience.
For example, XIAOMI MIX, who pioneered the era of full-screen mobile phones. In order to achieve the ultra-high screen share of the front and bring a greater sense of vision and immersion, engineers have made a lot of innovations, canceling the handset on the front, reducing the size of the front camera, and innovatively adopting an all-ceramic structure. Many people only noticed that XIAOMI MIX led the overall screen trend, but did not know that XIAOMI MIX's screen sound technology and camera miniaturization have also made a huge boost to the industry.
In fact, XIAOMI has attached great importance to design since its inception, and two of our co-founders are designers. After 2014, XIAOMI produced more and more products. At that time, they all said that we were "XIAOMI grocery store". Later, we set up a new brand called "Mi Jia", which made it clear that we wanted to "do works of art in life."
That's what we say, and that's what we do, winning nearly 300 top global design awards in five years. In 2017, XIAOMI won the highest awards of German iF design, German red dot design, American IDEA design and Japanese fine design within one year, realizing the grand slam with the highest award in the world.
XIAOMI MIX series mobile phones are collected by three top museums in the world, including the National Art and Cultural Center of Pompidou in France, the National Design Museum of Finland and the International Design Museum in Munich, Germany.
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The previous thinking is at the origin of XIAOMI's start-up, nothing more than two directions:
1、Provide higher value for more users
2、Continuously improve efficiency, and promote the whole industry to improve efficiency.
Starting from the origin, XIAOMI continued to evolve in the process of starting a business, and the most prominent things were as follows: first, he created XIAOMI's ecological chain model, second, he built the world's largest IoT platform, and third, he devoted himself to AI. These things seem unrelated, but in fact, none of them can be separated from these three words: openness, connectivity and empowerment.
Let's talk about opening up first. Before I founded XIAOMI, I had a dream to change China's manufacturing industry. However, I am well aware of such a thing: XIAOMI cannot make a forest on his own, and everyone is in high spirits when they gather firewood. I don't think there is such a company in the world that can get everything done and do it well.
So we adopted the ecological chain model, looking for like-minded partners. We open up XIAOMI's design capabilities, supply chain capabilities and channel capabilities to help us grow together. Over the past five years, we are gratified by the results. XIAOMI's ecological chain has incubated a large number of outstanding enterprises, providing users with thousands of excellent products of "three high quality, appearance, and cost performance", several of which have landed in US stocks and Science and Technology Innovation Board.
Similarly, without opening up, XIAOMI could not have built the world's largest IoT platform in just a few years. Over the past few years, XIAOMI has actively embraced open source technology and opened XIAOMI's IoT and AI capabilities a long time ago. In the future, we will continue to uphold the open spirit of the Internet and work with our partners to build a new era of the AIoT Internet of everything.
The nature of the Internet is also connected. We have long predicted that the Internet of everything must be the direction of the future after the era of PC and the mobile Internet. The goal of XIAOMI's ecological chain is to capture the tuyere of the Internet of everything. According to the latest data, XIAOMI's IoT platform has connected more than 210 million devices (No smartphones and laptops), is the world's largest consumer-grade IoT platform, and is still growing rapidly. I believe that in the future, the Internet will become ubiquitous, and we will be connected to the world all the time. Of course, this requires the joint efforts of everyone.
I think the best thing about the Internet is that it can empower industry, organization, and each and every one of us. When a person is connected to the Internet, he can pick information from the world at will, and he can also contribute his ability to the world, regardless of the limitation of space and time. What is this not empowerment? And the next generation super Internet of 5G+AI+IoT, which we are doing our best to lay out, is to see the opportunity of real integration between people and the world.
XIAOMI model is the product of the Internet. In the past few years, through the way of ecological chain, we have proved that the greatest thing about XIAOMI model is that it can be copied. Also because of XIAOMI model, we can get through the online and offline, run through the new retail. In the final analysis, this is all the empowerment of the Internet. With the approaching of the next generation of super Internet of 5G+AIoT, the opening and connection of the Internet will be deeper, and the energy it can give may be far beyond our imagination.
Based on these thoughts and from our two origins, we have constantly summed up XIAOMI's vision and goals on the road of development, and formed programs and resolutions to ensure implementation. Our vision is to "persist in making good products with touching and generous prices, so that everyone in the world can enjoy the good life brought about by science and technology".
The essence of XIAOMI's struggle is equal rights in science and technology. At IPO in 2018, I published an open letter in the first chapter of the prospectus, "who is XIAOMI and what is XIAOMI fighting for?" this is a program highly summarized by XIAOMI. We are clearly proposing that everyone in the world, no matter what color he or she is, what beliefs he or she comes from, where he or she has received education, can easily enjoy the good life brought by technology.
In order to ensure that our management can firmly implement this vision even 20, 50, or even 100 years later, we passed a special board resolution before IPO: XIAOMI's comprehensive after-tax net interest rate on hardware (Because XIAOMI's hardware product line is wide.), never more than 5%, if there is more than part, all will be returned to the user. We are also faithfully implementing this resolution. Our annual report for 2018 shows that our figure was less than 1% that year, and it proves that sticking to this resolution does not affect our continued value creation for shareholders.
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These are some of my thoughts before and after I founded XIAOMI. XIAOMI persisted in fighting for ten years because of his belief in the Internet and his ideal of promoting a revolution in business efficiency. Next year, XIAOMI will usher in a new journey of the second decade, and our thinking has never stopped, and some have begun to show, such as the new dual-engine strategy of "Mobile + AIoT", the value core of 5G+AIoT 's next-generation Internet, and so on.
In the face of the new future, how to adhere to the ideal so that this young company can bring more value to the lives of the public, we should also pay attention to the macroeconomic and demographic trends of the world and China, as well as the subsequent changes in social culture and consumption trends, so as to truly enter the wider world, enter the lives of more people, and welcome the next decade that is more different.