Behind the Magnificent Moment

Written by: Li Wenjie

Edited by: Li Ji

Typeset by: Annalee

"The past three years have been a transformative experience for me and Xiaomi."

In his "Courage"-themed "Annual Speech 2024" on July 19th, Lei Jun, the founder, chairman, and CEO of Xiaomi Group, shared the ins and outs of Xiaomi's auto venture and the stories behind it, continuously emphasizing the word "courage."

In fact, before the speech, Lei Jun also repeatedly tweeted about it as a warm-up, mentioning the source of "courage": More than three years ago, when Xiaomi was facing a tumultuous time with both internal and external challenges, a line from "When the Stars Are Out" inspired Lei Jun to make the decision to venture into automobile manufacturing. "'A man's belief in a miracle is always the first prerequisite for a miracle to happen.' During the three years of auto manufacturing, whenever I encountered setbacks and hesitation, I would think of those fateful moments and instances of courage recorded in the book."

This is not the first time Lei Jun has given an annual speech. For Xiaomi, midsummer is always hot and significant, as both the first-generation MIUI and Xiaomi phone were born in August. Since 2020, Lei Jun has held an annual speech every summer. From "Press Forward Fearlessly" in 2020, to "Always Believe That Something Wonderful Is About to Happen" after many setbacks, to "Courage" now, Lei Jun's golden lines never cease, and Xiaomi continues to seek change.

If the annual speeches are a microcosm of Lei Jun and Xiaomi's experiences, then 2024 can indeed be considered their "Shining Moment." From being known for phones to standing out with cars, Lei Jun is well-versed in marketing, especially standing at the forefront of traffic this year. However, those who have read "When the Stars Are Out" must know that "magnificent moments" are always similar, but the stories behind them are fascinating. Only by piercing through that aura can one taste the richer flavors, just as one must first see the dark night to appreciate the brilliance of the stars.

From "Press Forward Fearlessly" to "Courage"

"Behind the success of Xiaomi SU7 lies immense courage, not just the courage of one individual but the collective courage of over 40,000 employees of Xiaomi Group. Courage is not the absence of fear but unwavering determination in the face of fear. Courage stems from unwavering faith, relentless enthusiasm, and steadfastness in every step. Courage is humanity's greatest anthem." This is Lei Jun's summary of Xiaomi and his own past three years during his July 19th speech.

Perhaps this paragraph can be seen as Lei Jun's intertextual response to the line he quoted from "When the Stars Are Out." Following that line in the book is, "Precisely when scholars hesitate, the simple courage of a stubborn believer can push creative activities forward."

In fact, this latter sentence perhaps more accurately summarizes Lei Jun's auto manufacturing story over the past three years: from announcing that he would "bet all his reputation and achievements to fight for Xiaomi's auto venture" to deciding to "do it all by ourselves," to setting a starting price of 215,900 yuan... Amidst continuous doubts from the outside world, Lei Jun seems to have relied on a "stubborn" courage to finally bring Xiaomi SU7 forward smoothly.

Four years ago, "forward" was the keyword of Lei Jun's first annual speech. That year, Lei Jun recounted Xiaomi's journey from where it came and where it was going on the podium and expressed his belief in "trusting oneself and pressing forward fearlessly."

At that time, market changes brought rare opportunities for OPPO, vivo, and Xiaomi. Lei Jun took advantage of this to release Xiaomi's "Internal Letter for the New Decade," with the first major event being the announcement of Xiaomi's core strategic upgrade from "phones + AIoT" to "phones × AIoT." Along with upgrading its core strategy, Xiaomi also upgraded its organizational structure. On the ninth anniversary of Xiaomi phones and the tenth anniversary of MIUI, Lei Jun announced that Xiaomi would implement a partnership system and a new decade entrepreneurship plan.

A year later, at his second annual speech titled "My Dreams, My Choices," Lei Jun announced that Xiaomi would aim to become the global number one within three years. At that time, Xiaomi had just achieved its best-ever performance, surpassing Apple to become the world's second-largest smartphone vendor and even briefly surpassing Samsung to top the charts in June 2021. It was also in this year that Xiaomi embarked on an even greater challenge, with Lei Jun announcing that he would bet his entire reputation and tens of billions of funds on auto manufacturing.

However, since 2022, the global smartphone market has suffered significant setbacks, with sales declining sharply for two consecutive quarters. Xiaomi bore the brunt of the impact. Data from Canalys and Counterpoint Research both showed that Xiaomi's smartphone shipments declined by 25% year-on-year in the second quarter of 2022, the steepest decline among the world's top five smartphone vendors. Thus, the theme of that year's annual speech was "Always Believe That Something Wonderful Is About to Happen," the implication of which was self-evident.

Worth mentioning is that in 2022, Lei Jun's auto manufacturing plans were still relatively low-key, and there were many outside speculations. It was during that year's evening conference that Lei Jun finally officially announced Xiaomi's progress in autonomous driving technology research and development. This was also the first time Xiaomi officially disclosed some technical and personnel preparation details within 500 days since officially entering the smart electric vehicle industry on March 30, 2021.

In 2023, Lei Jun used the theme "Growth" to recall his university experiences, three entrepreneurial histories, and reflections on the failure stories of some Xiaomi products. Ultimately, Lei Jun said that cognitive breakthroughs lead to growth, which was his greatest gain in the past decade.

Looking back at Lei Jun's past four years of speeches from the perspective of "Courage" in 2024, the story + product speech model has never changed, and almost every year, Lei Jun would "look back" and metaphorically describe Xiaomi's journey through his own life.

In fact, these five speeches have indeed become a microcosm of Lei Jun and Xiaomi's trajectory. During this period, Lei Jun has faced ridicule and even "unpleasant memories," but he has still been determined to "press forward fearlessly," much like Cyrus F. Field in the book, who resolutely decided to devote "his entire being and all his wealth" to the cause of laying submarine cables.

Shining in the Spotlight of Traffic

Since 2020, the annual speeches have always been Lei Jun's traffic password. According to Caijing Daily, during the 2021 annual speech, Lei Jun was lectured by investors for an hour, and the story of "his shirt being wet" went viral, causing significant controversy, prompting Lei Jun's official account to even delete the speech transcript.

By 2024, the annual speeches have become just another routine for Lei Jun to stand at the forefront of traffic. After all, since starting auto manufacturing, Lei Jun has repeatedly become a traffic magnet, to the point that he himself tweeted before this speech, asking netizens, "Recently, I've become the subject of many people's research, saying that I'm good at generating traffic... For this annual speech, give me some ideas on how to generate even more 'overwhelming traffic'?"

As early as April this year, during the Beijing Auto Show, Lei Jun was the center of attention among the founders and executives of new auto forces. Photos and videos of Lei Jun surrounded by crowds frequently appeared on various social media platforms.

Lei Jun's previous live broadcast

Apart from on-site "spoilers," there were also constant online hot topics: Without delving into Lei Jun's past glories in livestreaming from 2016 to 2020, just from the Xiaomi Auto press conference on December 28th last year to the launch of Xiaomi SU7 on March 28th, Lei Jun's personal Weibo account frequently generated buzz.

Such is the case that many auto company founders have to admire Lei Jun's marketing abilities. He Xiaopeng, the chairman of XPeng Motors, one of the "NIO-Xpeng-Li" new auto forces, has publicly stated that Lei Jun has strong marketing abilities, but their technical capabilities are even stronger. Nezha Auto CEO Zhang Yong directly said, "It's not shameful to learn marketing from Lei Jun!" Zhou Hongyi, the founder and chairman of 360 Group, also said, "Everyone has seen the popularity of Xiaomi Auto. Lei Jun posts two short videos every day, which are very internet-savvy and influential, annihilating other traditional automakers. This is the power of internet celebrities."

However, compared to generating overwhelming traffic, Lei Jun's greater success may lie in turning traffic into sales. During the Beijing Auto Show, Lei Jun disclosed Xiaomi SU7's booking data, with 75,723 orders locked in as of April 24th, setting a new record for the number of orders locked in the first month of launch for a new energy vehicle brand's first model. This was less than a month after the official launch of Xiaomi SU7.

In early July, Xiaomi Auto's official Weibo account announced that Xiaomi SU7's delivery acceleration was progressing smoothly, with double-shift production starting in June and monthly deliveries exceeding 10,000 units.

It can be said that Lei Jun's marketing strategy has influenced the marketing path of the entire auto industry. According to a report released in March 2024, nearly 200 auto industry executives have joined Weibo, with the number of auto industry executives added in 2023 accounting for 30% of the total.

However, as executives flock to livestreaming, Lei Jun still seems to be at the top. The annual speeches are the most intuitive proof. Before Lei Jun officially started his speech, the related Weibo topic had already received over 9 billion views and millions of discussions. As of July 19th evening, the topic had received nearly 10 billion views. Last year, Lei Jun's annual speech was viewed by over 200 million people across the internet.

Behind the "Magnificent Moment"

In a way, "When the Stars Are Out" is not only about those magnificent moments that are rare in history but also about setbacks and failures. Perhaps it is for this reason that when Lei Jun stands under the spotlight in Beijing Shougang Ice Hockey Arena, as he relives the past thousand days and nights, the flavors are so rich and complex. Everyone knows the stories of success, but the setbacks suffered and challenges to come are more intriguing.

Lei Jun clearly knows that the long march has just begun, and he and Xiaomi will face even more severe competition.

Recent data shows that during the 28th week of 2024, from July 8th to July 14th, among China's new auto forces, Li Auto sold 11,300 vehicles, AITO sold 9,400 vehicles, NIO sold 3,400 vehicles, ZEEKR sold 3,300 vehicles, Deepal sold 3,300 vehicles, Xiaomi Auto sold 2,300 vehicles, Denza sold 1,900 vehicles, XPeng sold 1,700 vehicles, and IM Motor sold 1,500 vehicles.

For reference, during the 27th week of 2024, Li Auto sold 8,000 vehicles, AITO sold 7,900 vehicles, and Xiaomi Auto sold 3,700 vehicles.

Although sales have slightly declined, as a new auto force, fluctuations in Xiaomi Auto's sales figures are normal. However, the competitive pressure on this track cannot be ignored.

According to each company's sales targets, data shows that from January to June this year, Li Auto delivered a cumulative total of 188,981 new vehicles, achieving a completion rate of 33.7% towards its minimum annual sales target of 560,000. AITO delivered a cumulative total of 181,197 new vehicles, achieving a completion rate of 45.3% towards its minimum annual sales target of 400,000. NIO delivered a cumulative total of 87,426 new vehicles, achieving a completion rate of 38% towards its annual sales target of 230,000. Since its launch in March, Xiaomi Auto has delivered a cumulative total of 25,688 new vehicles, achieving a completion rate of 25.7% towards its annual sales target of 100,000.

Amidst such competition, Lei Jun revealed at the new product launch following his speech that Xiaomi SU7's annual delivery target of 100,000 units is expected to be completed ahead of schedule in November.

In addition, Lei Jun officially unveiled the peak-performance pure electric vehicle - Xiaomi SU7 Ultra Prototype, announcing that it will officially compete in the Nürburgring in October 2024, with the goal of "becoming the fastest four-door electric car on the Nürburgring within ten years," continuing to challenge Porsche.

This seems to be another controversial and questionable goal, but if we count the starry moments in human history, which one did not begin with incredible courage? Don't forget, "A man's belief in a miracle is always the first prerequisite for a miracle to happen."