In yesterday’s content, Lei Jun emphasized the importance of focusing on consumers’ core needs, product performance, design, and quality. He stated that neither pure low price nor pure ease of use could exceed expectations. Only by creating products that are comprehensively excellent and have one aspect that is extremely outstanding, can they have the opportunity to exceed expectations and form a reputation.
Applying this framework to the Xiaomi SU7, we can see that the same principles are being followed, albeit in the context of a car instead of a mobile phone. By prioritizing the core needs of consumers, delivering outstanding performance, implementing excellent design, and ensuring top-notch quality, Xiaomi aims to create a product that surpasses expectations and establishes a positive reputation.
Now, let’s explore how these principles can be implemented in various operations of the Xiaomi SU7.
To create a hit product, there are several key factors to consider based on Lei Jun’s understanding:
- Identify user needs: Understanding the needs and preferences of your target audience is crucial. Conduct market research, gather feedback, and analyze consumer behavior to identify the pain points and desires that your product can address.
- Products that exceed expectations: Aim to create products that go beyond meeting basic requirements. Focus on delivering exceptional performance, innovative features, and unique value propositions that differentiate your product from competitors.
- Surprising pricing: Pricing plays a significant role in consumer decision-making. Offering competitive and attractive pricing can help generate interest and drive sales. Lei Jun’s strategy of providing surprising pricing, such as Xiaomi’s aggressive pricing strategy in the mobile phone market, has been successful in capturing market share and attracting customers.
- Efficiency wins: Efficiency in operations, manufacturing, and supply chain management can contribute to the success of a hit product. By optimizing processes and achieving economies of scale, companies can lower costs, improve profitability, and offer more competitive pricing to consumers. This, in turn, can lead to increased sales and market share.
It’s important to note that creating a hit product requires a holistic approach that considers various factors, including product quality, marketing, branding, and customer experience. By focusing on these principles, you can increase the chances of creating a successful product.
Remember, each industry and product category may have its own unique considerations, so it’s essential to adapt these principles to your specific context and target market.
Lei Jun has formulated four major precautions to create a hit product. Let’s take a closer look at each of them:
- Products must have future attributes: Future attributes refer to products that embody future trends and make customers feel that they cannot go back to using their previous products once they experience the new one. These products create a refreshing feeling that captures customers’ attention and makes them eager to own it. For example, Lei Jun mentioned how a black and white TV in the past represented a product with future attributes because it brought a new and exciting experience to households.
- Precise selection of functions: When creating a product, it is crucial to meet the unmet needs of consumers and exceed their expectations. By focusing on delivering the best possible product and addressing core customer needs, companies can create products that stand out from the competition. Xiaomi’s approach of meeting 80% of the core needs of 80% of users with their air purifiers, offering top-notch quality at a competitive price, is an example of precise function selection.
- Reorganize technology and supply chain: To create a hit product, unique innovations are often required. This may involve reorganizing technology and supply chain resources to achieve breakthroughs and exceed expectations. For instance, when Xiaomi developed their power bank, they reorganized low-end battery cells from laptops and integrated an aluminum alloy process, resulting in a product that quickly gained popularity due to its innovative features and affordable price.
- Directly reach target users: Once a product has been developed, it is essential to directly and effectively showcase it to the target audience. Xiaomi has successfully built user communities and leveraged them to reach their target users. By directly engaging with the target audience and creating a strong brand presence, companies can generate interest and drive sales.
By following these precautions, companies can increase their chances of creating hit products that resonate with consumers and achieve success in the market. It’s important to note that these precautions should be adapted to the specific industry and target market, as each context may have its own unique considerations.
