Revolutionizing offline retail with our new retail dream

Over the past eight years, we continue to ask ourselves one question: “what has remained constant in the evolving world of business?”

Xiaomi’s answer is this: users have always expected amazing products at honest pricing. Over the past few years, we’ve created devices at accessible prices through our highly efficient online channels. But, we wanted to take on a new challenge of revolutionizing offline stores given their low efficiency, which adds unnecessary costs to products.

Since 2015, we set to revolutionize offline retail through our new retail model – a term that indicates a combination of the best in online and offline retail practices. We have significantly expanded our direct offline retail network, through our self-operated Mi Home Stores. Our direct offline retail capability allows us to broaden our reach and provides a better user experience, while maintaining similar efficiency and the same price point as our online channels.

The long lines at the opening of each new Xiaomi brick-and-mortar store across the world has become a recurring phenomenon and a testament to our new retail model. Our largest flagship Mi Home Store in Shenzhen that opened on 27 September 2017 marks another milestone for our new retail dream.


“It has become a tourist destination in Shenzhen these days,” said store manager Liang Chao. He was standing at the entrance of the beautifully designed 650 sq m, two-floor store, where several customers were trying Mi Electric Scooters, one of our bestselling products.



Liang said every month, the flagship store welcomes dozens of tourist groups from all over the country, with many new international customers. Located at City Crossing, a landmark shopping mall in Shenzhen, the flagship Mi Home Store features the full line of products from Xiaomi and Mi Ecosystem portfolio companies. Different from our previous offline stores, its second floor is a demo zone for users to experience what a truly connected home is like. By giving simple voice commands to Mi AI Speaker, users can control the TV, lamp and other smart devices connected to our IoT platform.


Products in the store also include items such as rice cookers, sofas, bedding, toothbrushes, pens, lithium batteries, and musical instruments – all of which have the same specifications of being quality products with low prices.





“Because we offer a rich portfolio and allow customers to experience products in stores, they have a stronger will to visit and buy repeatedly,” Liang said.

A special shopping wall made of five 80-inch screens.

To create a more efficient and pleasant shopping experience, the store also offers a special shopping wall made of five 80-inch screens, allowing customers to tap a product and instantly receive information on its features and capabilities and if desired, consumers can instantly add it to their shopping cart and pay via WeChat. Additionally, every shop assistant has a mobile payment device, allowing users to pay at anytime, anywhere in the store, without waiting in line.

Every shop assistant hasa mobile payment device.




Changing the perception of “made in China” products

In the past, in China, a single article of clothing that costs 100 RMB could be sold for 1000 RMB in a shop, a shocking markup of 10X. The list is endless, which was why Chinese citizens used to buy in bulk while travelling abroad to bring back to China.

“It has always been difficult for me to understand why consumers have to bear the costs of this inefficiency. This is why Xiaomi has the will and determination to revolutionize the industry’s cost-efficiency. We do this by putting in every bit of effort to create quality products and maximize value to users,” said Lei Jun at the Mi 6X launch event in Wuhan this April, where we promised our users that our hardware business, including smartphones, IoT and lifestyle products, will have an overall net profit margin that will never exceed 5%.

Our offline stores are changing people’s perception of “made in China” products. Some users have said that they can walk into a Xiaomi store, close their eyes and buy anything, because they are confident that our products offer the best quality and price. You can also spot many international faces at our offline stores. Just like Chinese travelers who bring home products made in the US, international customers now bring our amazing products back home.



“Can you imagine tourist groups come all the way to our store as a must-see place on their travel itinerary? They purchase so many things here and eventually buy our big suitcases to put everything in,” Liang said.

Shortly after the flagship Mi Home Store opened, we debuted our first Mi Home Store in the Shenzhen Bao’an International Airport in March. In addition to our bestselling smartphones, it brings a range of travel accessories including suitcases, neck pillows and power banks to travelers.


“We’ve been continuously making innovations in our offline stores for consumption upgrade, and our stores are becoming more commonplace, enabling users to buy better products at lower prices at their convenience,” said Eugene Chan, general manager of Mi Home Stores in South China.

Just as Lei Jun wrote in a recent letter to all Xiaomi employees, “nothing can surpass the feeling of hearing a user say that they can walk into a Mi Home Store, and buy any product with confidence, because they know that our items offer the best quality and price. When I hear this, I know that all our effort and energy has not gone to waste.”

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[News] Mi Max 3 makes a splash with 6.9” super-sized screen and 5500mAh huge battery

BEIJING, China, 19 July 2018—Global technology leader Xiaomi released its latest Mi Max today, which is better in every way with a larger screen, a bigger battery, a stronger SoC and a more powerful set of cameras compared to the last generation.

The Mi Max series is highly popular because of its amazing battery, touted to be “as powerful as a power bank”. Mi Max 3 features a 6.9-inch full screen display and a 5500mAh battery n. It is equipped with a 12MP+5MP AI dual camera, an 8MP front camera and the Qualcomm Snapdragon 636 SoC. Mi Max 3 will come in Black, Gold, and Blue, and will be available in China at RMB 1699 and RMB 1999 for the 4GB+64GB and 6GB+128GB versions, respectively.


6.9” super-sized screen offering great one-handed use

The 6.9-inch, 18:9 screen of Mi Max 3 has a 2160 x 1080 FHD+ resolution with a screen-to-body ratio of 85.19%—6.5% higher than Mi Max 2. This means Mi Max 3 offers a larger screen than its predecessor without significantly increasing the body size. The large screen is ideal for GPS navigation, stock trading, and office productivity apps—it’s especially convenient for tasks such as editing documents and spreadsheets.

Mi Max 3 has a metal body with hidden antenna lines for a clean aesthetic. The back panel is tapered naturally towards the four sides, giving the body a slim profile. Thanks to the 18:9 screen aspect ratio, Mi Max 3 can be held in one hand and is very pocketable.

Massive 5500mAh battery that can be used as a power bank

Mi Max 3 has the largest battery among all Xiaomi phones and offers extraordinary battery life. The 5500mAh battery can sustain up to 10 hours of non-stop gaming, 17 hours of local video streaming and 233 hours of music playback. Complementing the massive battery, Mi Max 3 supports Qualcomm’s Quick Charge 3.0 and parallel charging—which means multiple charging streams charge the battery at the same time—for a fast charging speed that also  avoids excessive heat. A 9V/2A 18W charger is shipped with every unit that can refuel the 5500mAh battery from 0 to 71% in just one hour.

With MIUI optimizations such as the Smart Scenes function, Mi Max 3 can learn user habits and automatically activate Sleep Mode at bedtime, which closes background apps and restricts unnecessary Internet connections, greatly improving the power mileage of Mi Max 3.

Moreover, Mi Max 3 can be used as a power bank, with an upgraded output of 5V/1.2A. This makes it almost twice as efficient as the previous generation when giving friends an emergency recharge.

14nm Snapdragon 636 platform provides AI gaming boost

Mi Max 3 is powered by Qualcomm’s Snapdragon 636 platform that is built on 14nm technology. Its four big Qualcomm Kryo 260 cores ensure an excellent gaming experience. Thanks to Xiaomi’s special optimizations for popular games, the platform can smartly detect game scenes and allocate system resources to maximize performance. Mi Max 3 can run popular games such as Arena of Valor and PUBG at high FPS without lag.

Meanwhile, Xiaomi further tweaked MIUI for better gaming with the Mi Max 3’s huge screen, including the detection of unintended screen touches, auto phone answering during gaming, one button hiding of screen notifications, and picture-in-picture display of instant messages.

Flagship-level AI dual camera and a soft Selfie light for front camera

Mi Max 3 is equipped with a flagship-class rear AI dual camera. The 12MP main sensor has 1.4µm large pixels that can capture more light, rendering better details and at the same time reduce noise. It is also powered by Dual PD autofocus technology that has two photodiodes per pixel to calculate the light hitting the sensor—resulting in much faster autofocusing, even in low-light conditions.

Mi Max 3 also sports the AI Scenario function, which can detect 206 scenarios in 25 categories, applying instant retouching on photos for great shots.

Even with a single lens, the front 8MP camera can create a realistic depth-of-field effect thanks to AI bokeh. The camera is coupled with a soft Selfie light for taking better selfies. Mi Max 3 also offers AI Face Unlock for fast unlock.

A new journey begins

The following is Lei Jun’s speech at Xiaomi’s listing ceremony at the Hong Kong Stock Exchange today.

To our distinguished guests, welcome!

At this moment, in this very room, I am excited beyond words!

Eight years ago, I had a crazy idea. I wanted to use “internet thinking” to create mobile phones and enhance the perception of Chinese-made products globally, to let everyone in the world enjoy the benefits of innovative technology. To be honest, almost nobody believed in this crazy idea at the time. Thankfully, when the company opened for business on the first day, we still had 13 people who believed in this dream and came together to drink millet porridge (called “xiaomi” porridge in Chinese). I still don’t know if they really believed it at the time. Today, they’re all here with us, so you can ask them directly.

There are also 175 Xiaomi employees who have come to witness today’s celebration on behalf of Xiaomi’s 19,000 employees. Thank you again to all Xiaomi employees and family members. Together, we have achieved amazing milestones at Xiaomi.

At this critical moment in Sino-US trade relations, the global capital markets are in constant flux. I would like to thank our 100,000+ investors for their recognition and support for Xiaomi, including Li Ka-Shing, Jack Ma, Pony Ma, and many others. Thank you all! Although the macro-economic conditions are far from ideal, we believe a great company can still rise to the challenge and distinguish itself.

I am especially grateful to our Mi Fans worldwide. Eight years ago, we developed MIUI, which was our first product. The first edition only had 100 users, and with the support of these 100 users, we were able to grow step by step, and we now have over 190 million monthly active users. Today, we have invited 6 Mi Fans who have been strong supporters of Xiaomi since 2010, to attend our IPO ceremony in person. In a moment, I would like to invite Mr. Hong Jun on stage as a Mi Fan representative. We work hard to earn the recognition and trust of our Mi Fans, because we couldn’t have succeeded without their support.

We would also like to thank the Hong Kong Stock Exchange and the Hong Kong Securities Regulatory Commission. We are an internet company, and from day one we have set up a weighted voting rights structure with dual-class shares. Without the innovation of the Hong Kong capital markets, it would be difficult for us to have a chance to list publicly in Hong Kong. I believe that in the future, there will be more high-quality internet companies coming to Hong Kong.

From day one, innovation has been an integral part of Xiaomi’s DNA. However, true innovation has never been easy to come by. Every innovation requires huge investments of effort, as well as overcoming countless setbacks, misunderstandings and criticisms. The more we understand this point, the more we count our blessings. We are grateful for everyone’s understanding, trust, encouragement, and support!

We believe that the best way to express our gratitude is to continue going the extra mile. We will relentlessly build amazing products to demonstrate our sincerity to Mi Fans around the world. We will continue to improve our company, to demonstrate our sincerity to our employees and investors. Our stock will begin trading shortly, and this will be a brand new start for Xiaomi.

Thank you to everyone once again! Thank you!

Tomorrow, let us witness a great milestone together!

To all Xiaomi employees:

Tomorrow will be a historic day. After 8 years of hard work, we will list on the Main Board of the Hong Kong Stock Exchange.

Since its establishment, Xiaomi’s journey has been a miracle underpinned by courage and trust. Looking back, I can vividly recall the past eight years of trials and tribulations. We founded Xiaomi in a small office in Zhongguancun in Beijing on April 6, 2010. I can still remember that there were only 13 employees at the time. The team included Bin Lin, Ali, KK and me as four cofounders, in addition to nine other members of the original founding team, including Fan Dian, Liu Xinyu, Wang Haizhou, Li Ming, Qu Heng, Qin Zhifan, Li Weixing, Sun Peng and Guan Yingzhi, who are all still active in important roles at Xiaomi today. On that first day, we drank a bowl of millet porridge (called xiaomi porridge in Mandarin) and went straight to work. No one expected that this unremarkable, small company would go on to have such an epic and exciting entrepreneurial journey.

We have relentlessly moved forward, undeterred by the challenges involved in entering the smartphone industry, arguably one of the most competitive industries in the world, especially for a young start up. When we started, Apple and Samsung were colossal companies on the global stage, while Huawei and Lenovo had a big lead in the China market. In contrast, Xiaomi was a small company with only 10-20 employees with no hardware industry experience. We depended entirely on our courage and innovation to beat all expectations to reach No. 1 in China within three years. Thereafter, it only took us 3.5 years to become No. 1 in India.

In the past eight years, we have experienced countless highs and lows, and have consistently proved that we are an unyielding and indomitable team. We charge forward relentlessly, never giving up, constantly creating miracles.

In these eight years alone, China’s inferior-quality copycat phones have been completely eliminated, in large part due to Xiaomi’s contributions. The quality of China’s smartphones and smart hardware is constantly improving, while prices continue to lower. Chinese companies are expanding rapidly across the world, with an increased emphasis on design and user experience, winning over hearts and minds of consumers. The rapid spread of mobile internet applications has deeply penetrated our daily lives. Xiaomi has also become the world’s fourth-largest smartphone manufacturer, and has changed more than 100 industries through our ecosystem of consumer IoT and lifestyle products. Xiaomi has comprehensively improved business efficiency, entering 74 countries and regions worldwide, and built the world’s largest consumer IoT platform. In addition to phones, more than 10 of our other product lines have also become No. 1 in China, including Mi TVs, Mi Bands, Mi Power Banks, electric scooters, and more. In each category, we have continuously validated the advanced nature of Xiaomi’s model.

The numbers speak for themselves. In 2017, we achieved annual revenues of 114.6 billion RMB, with 67.5% year-over-year growth. It only took us 7 years to cross this major milestone of 100 billion RMB. In Q1 2018, we achieved over 85.7% year-over-year growth, with our e-commerce and new retail platforms accounting for 63.7% of revenue. Last year, our internet services accounted for 8.6% of revenue, reaching an astonishing number of 9.9 billion RMB, while our Q1 2018 internet service revenue increased to 9.4% of revenue. This fully validates our ability to monetize internet services, proving that we can convert the traffic generated by our hardware and e-commerce channels into revenue and profit.

Tomorrow, Xiaomi will become a public company. At this historic moment, together with all my colleagues, we are excited beyond words.

  1. First, given the recent fluctuations of the capital market, the Xiaomi’s IPO is itself a great success.

The IPO price of Xiaomi is 17 HKD, with a valuation of 54.3 billion USD, which has already become one of the top three IPOs in the history of global technology stocks. Moreover, this is the first example of a weighted voting rights structure with dual-class shares in the Hong Kong capital markets. This success belongs to all Xiaomi employees and shareholders!

After eight years of hard work, all Xiaomi entrepreneurs will soon enjoy the fruits of our labors. As of today, we have more than 7,000 employees holding stocks or options, and after the IPO, we will soon see the response from the capital markets.

This huge success also belongs to the investors who trusted and supported Xiaomi along the way. Our earliest VC investment, which was 5 million USD at the time, has now earned a return of over 866 times!

I believe that Xiaomi’s story will inspire and encourage even more entrepreneurs. When people evaluate Xiaomi 100 years from now, I hope that their perception is that the most important value from Xiaomi is not how many devices we sell, or how much profit we make. Rather, I hope they see our value in changing people’s lives and exploring new ways of doing business, including being friends with our users, and making sure that our business goals are fully aligned with those of our users. We have proved that we can be successful if we have the courage to relentlessly innovate, diligently persevere, and be generous and steadfast in our values.

2.Second, our IPO also comes with huge challenges and heavy responsibilities.

At this critical moment in Sino-US trade relations, the global capital markets are continuously changing. We still have more than 100,000 investors who have actively participated in the purchase of Xiaomi stock, including Li Ka-shing, Jack Ma, Pony Ma, and other industry leaders. This is a validation of the trust they have in Xiaomi’s management team and employees. We can only repay this trust if we continue to relentlessly forge ahead.

In the future, we will always insist on being friends with our users, and relentlessly focus on building amazing products with honest prices, always placing the highest standards on both innovation and quality. Innovation determines how high we can fly, and quality determines how far we can go, and will always be our lifeline. We are fully committed to building a world-class and respected Chinese brand around the globe.

  1. Third, the listing is only a new beginning in Xiaomi’s journey.

The world will ultimately reward people who are diligent and generous. Tomorrow, Xiaomi will be a public company, but this is just a new beginning in our journey, and a public listing has never been our ultimate goal. We work tirelessly not because we want to become a public company. Instead, we have become a public company because it allows us to strive more to achieve our mission. A successful listing is only the first chapter of Xiaomi’s story, and the second chapter will be even more splendid and dazzling.

Our management team has gone through multiple rounds of discussions, and we believe we still have nearly limitless room for growth in the future. First, our smartphone business ranks fourth in the world, and the smartphone market is still an enormous opportunity. We must strive to ensure sustained high-speed growth and enter the top three in the world as soon as possible. Second, we will systematically expand our product categories, as there are still many market categories with over 100 billion RMB in value waiting to be unlocked by Xiaomi. Third, the vast potential of our global markets is promising beyond measure. In Q1 2018, our global business accounted for 36% of total revenue. We must further promote the globalization of our business, and make sure that global revenues surpass 50% of total revenue as soon as possible. By focusing on these 3 strategies, we can ensure Xiaomi’s future growth potential.

Great companies are born during great times, and new companies arise during times of great change. Today, China has entered a golden era for entrepreneurs, and has created a group of leading global companies. As a new breed of internet services company, Xiaomi is quite fortunate to be able to thrive in this environment and create a rarely seen combination of e-commerce, hardware and internet services. We have big ambitions for the future, and are excited to allow everyone to enjoy a better life through innovative technology.

At this moment, I am excited beyond words. A phrase from one of our creative campaigns from a few years ago keeps resonating in my mind.

“Our name is ‘youth.’ As we pursue our dreams, we keep moving forward fearlessly. We explore, we change, and we strive, so the world can see us for who we are. Our time is now!”

I love Xiaomi, and I’m proud of Xiaomi!

I also love our Xiaomi employees, and I’m proud of all of you!

Tomorrow, let us witness this great milestone together!

Lei Jun

July 8, 2018

Hong Kong

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