Li Nan Criticizes Xiaomi: What Kind of Consumer Group Creates What Kind of Brand

Recently, former Meizu executive Li Nan expressed some doubts about Xiaomi’s pricing strategy on social media. He believes that Xiaomi relies on China’s cost advantages to sell high-end smartphones at low prices, which he considers to be “anti-consumerism”.

As an industry insider, Mr. Li Nan is entitled to express his views on industry phenomena. However, we should also understand that any evaluation inevitably carries subjective biases, and it is necessary to distinguish between facts and opinions. Here are some of my thoughts. First, the low-price strategy of brands like Xiaomi does indeed rely on China’s advantages in the industrial chain, but it also allows more consumers to enjoy smartphones with higher configurations. This has a positive impact on expanding domestic demand.

Second, the added value of a smartphone is not only in its performance, but also in its quality, design, and localized services. All major brands are making efforts in these aspects. Xiaomi is also constantly improving its ecosystem and enhancing the user experience. Third, the consumer base does influence brand positioning, but dividing them into “high-end” and “low-end” groups is too arbitrary. Consumer choice should be respected. Brands should adapt to different levels of consumer demands.

In general, maintaining an open and inclusive mindset and objectively and rationally viewing industry phenomena are beneficial for brand development. Just as we should not overlook any consumer, we should not unfairly judge any brand without sufficient evidence.

These are some of my thoughts on this matter, and I welcome any corrections for any shortcomings. I believe that reflection and mutual learning can promote progress in the entire industry, and I hope Meizu continues to promote the spirit of independent innovation and create new brilliance.

In summary, maintaining an open and inclusive mindset and objectively and rationally viewing industry phenomena are beneficial for brand development. Just as we should not overlook any consumer, we should not unfairly judge any brand without sufficient evidence.

These are some of my thoughts on this matter, and I welcome any corrections for any shortcomings. I believe that reflection and mutual learning can promote progress in the entire industry, and I hope Meizu continues to promote the spirit of independent innovation and create new brilliance.

Intense commercial competition is a normal occurrence, and we should not simply complain about it. Meizu used to be a leading company in the industry, but later made mistakes in products and channels, resulting in a continuous decline in market share. I hope that Meizu, when reflecting on its success and failures, will abandon emotional complaints, analyze its own shortcomings rationally, and strengthen innovation in research and development and management.

The development of any brand or company depends on its own efforts. Meizu should not excessively attribute its situation to Xiaomi or consumer preferences. Xiaomi’s rapid growth in the past decade is not solely based on pricing strategies, but also on its unique “Mi Fan Culture” and advantages in supply chain management. Facing the gaps and moving forward is the correct attitude for competitors.

The consumer market is becoming increasingly diverse and segmented. Different consumer groups and individuals have their own rational judgments. Brands need to provide choices that suit different consumer preferences. The terms “high-end” and “low-end” are subjective in themselves. Dividing consumer groups actually limits their own market space to some extent.

The new year has already arrived, and let us hold an attitude of mutual learning, mutual benefit, and win-win cooperation, and contribute to the high-quality development of the Chinese economy. I believe that continuous efforts will eventually bear fruit, and everything will get better!

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