'The biggest adjustment in ten years', it is reported that Xiaomi's ecological chain department proposed a hierarchical management strategy

News from this site on March 13, according to 36 Krypton Today’s report, Xiaomi’s ecological chain department recently proposed a “SAN hierarchical management strategy” and made organizational changes accordingly. According to people familiar with the matter, this is also the biggest reform of Xiaomi’s ecological chain model in ten years.

The report mentioned that Xiaomi will divide numerous ecological chain categories into three classification logics: S, A, and N. Among them, S category will be the most critical category in Xiaomi’s ecological chain in the future. Xiaomi has sorted out four directions: speakers, routers, door locks, and cameras. Sources familiar with the matter said that the S category is a category that "has the opportunity to achieve a market size of 5-10 billion" in the future, and is jointly responsible for Xiaomi Ecological Chain and Ecological Chain Company.

A category is a category that has the potential to exceed 1 billion yuan in scale in the future, includes air fryers, rice cookers, and water purifiers , kitchen appliances, air purifiers, etc.. The operation mode of this category of products is similar to the original ecological chain model, and there is no major model adjustment.

The model of category N has changed greatly, mainly targeting categories with a scale of less than 1 billion yuan. According to reports, Xiaomi will focus on quality in this category in the future, but will loosen control over pricing systems, project approval standards, etc., and return control to ecological chain companies. For comparison, before this, the division logic of Xiaomi IoT (this site’s note: Internet of Things, Internet of Things) business was mainly based on product categories-divided into

smart connections, cleaning appliances, The seven subdivisions of IoT products, kitchen and bathroom appliances, healthy travel, digital consumption, and environmental appliances

seem relatively complicated. According to reports, at a recent meeting, Xiaomi said that the previous classification model led to "inevitable distraction and lack of business priority" during the implementation of ecological chain projects. An insider explained that the reduction from the original seven business divisions to the three "SAN" business divisions is essentially to make "

heavy ones become heavier and light ones become lighter

".

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