Xiaomi President Lu Weibing: Reflections on Xiaomi's High-End Strategy and 300 Billion RMB R&D Investment

Xiaomi President Lu Weibing: Reflections on Xiaomi's High-End Strategy and 300 Billion RMB R&D InvestmentAt the WISE Conference, Lu Weibing, Partner and President of Xiaomi Group, delivered a keynote speech delving into Xiaomi's high-end strategy, AI investment, and its "people-car-home full ecosystem" global expansion. He directly addressed external doubts surrounding Xiaomi's high-end strategy, explaining its rationale for using the existing Xiaomi brand for its high-end transformation and the massive R&D investment underpinning it

Xiaomi President Lu Weibing: Reflections on Xiaomi's High-End Strategy and 300 Billion RMB R&D Investment

At the WISE Conference, Lu Weibing, Partner and President of Xiaomi Group, delivered a keynote speech delving into Xiaomi's high-end strategy, AI investment, and its "people-car-home full ecosystem" global expansion. He directly addressed external doubts surrounding Xiaomi's high-end strategy, explaining its rationale for using the existing Xiaomi brand for its high-end transformation and the massive R&D investment underpinning it.

Regarding Xiaomi's high-end strategy, Lu Weibing acknowledged the considerable skepticism. Many suggested Xiaomi create a separate high-end brand instead of leveraging its existing brand. He countered this with a unique perspective: "Brands themselves are not inherently high or low; it's the team behind the brand that determines its stature." He further emphasized that high-end and youthful branding is an ongoing challenge, not a one-time achievement. A brand considered high-end and youthful today might face the same challenges in ten years. "Should we change brands every decade?" he questioned.

Lu Weibing believes that brand innovation and upgrades are the norm for future development. Therefore, Xiaomi resolutely chose to pursue high-end transformation under the Xiaomi brand. He stressed that all Xiaomi products share the Xiaomi brand; only by elevating the Xiaomi brand to a high-end level can all products benefit. The success of this strategy is already evident in the performance of several Xiaomi product lines. For instance, sales of Xiaomi's high-end air conditioners exceeded their target by four times, clearly demonstrating the effectiveness of the high-end strategy. Several other product lines have also seen significant growth as a result.

Lu Weibing pointed out that Xiaomi's high-end success is not accidental but built upon years of increasing investment in technology. While much attention focuses on Xiaomi's R&D investment in smartphones, its investment in other areas is equally substantial. For example, Xiaomi opened a new over 10,000 square-meter laboratory in Wuhan last month just one example of its extensive R&D investment. This spans numerous product categories, reflecting Xiaomi's strong commitment to technological innovation.

Lu Weibing revealed that Xiaomi Group's R&D investment reached 24 billion RMB this year, with a planned 30 billion RMB investment for next year, representing a compound annual growth rate exceeding 30%. He emphasized that Xiaomi's success stems from its steadfast commitment to technology and its unwavering push towards high-end branding.

Lu Weibing also mentioned Xiaomi's "people-car-home full ecosystem" global strategy. While he didn't elaborate on specifics, this statement indicates Xiaomis proactive expansion into global markets and its ambition to build an ecosystem encompassing the entire "people-car-home" scenario.

In conclusion, Lu Weibing's speech clearly articulated the logic and foundation of Xiaomi's high-end strategy. He stressed that Xiaomi's high-end success relies not on brand changes, but on continuous investment in technology and a firm belief in brand building. Xiaomi will continue to increase R&D investment and steadfastly pursue high-end development of the Xiaomi brand to achieve its global strategic goals. Xiaomi's success offers valuable lessons for other companies: continuous technological innovation and long-term brand building are crucial for sustainable development. This is reflected not only in flagship products like Xiaomi smartphones, but also in the significant growth of other product lines like air conditioners. Xiaomi will continue to explore innovation to provide consumers with better products and services. This is not only Xiaomi's own development goal but also a positive response to the overall industry trend. The 30 billion RMB R&D investment demonstrates Xiaomi's unwavering commitment to technological innovation and signals its continued efforts in the high-end market. Xiaomi's "people-car-home full ecosystem" strategy shows its dedication to building a more comprehensive ecosystem, providing users with a full range of intelligent experiences. This will further consolidate Xiaomi's leading position in smart home and smart travel and inject new impetus into its future development. The success of Xiaomi's high-end strategy is not just Xiaomi's success; it provides valuable reference and experience for Chinese companies entering the global high-end market. Xiaomi's practice proves that Chinese companies are fully capable of competing and succeeding in the global high-end market, the key being continuous investment in technological innovation and long-term commitment to brand building. This not only boosts the confidence of Chinese companies but also injects new vitality into global technological development. Xiaomi's story will undoubtedly continue to unfold, contributing more to the development of China's technology industry. This is the core idea and profound meaning of Lu Weibing's speech at the WISE Conference.