Ask Xia Ogilvy about the current situation and future of Japan's development. Two SIM-free models with "confidence in COSPA" were released on June 2nd.

Xiaomi will unveil two free smartphones with SIM cards in Japan on June 2. One is the mobile phone promotion version "Mi Note10Lite" that was launched when he joined in December 2019. The other is the "Redmi Note 9s" of the Redmi series, a sub-brand launched for the first time in Japan. Free SIM card launch of two new products, will provide you with cheaper options.

This time Engadget interviewed key figures of Xia Ogilvy in Japan. I talked about the characteristics of the new product and the future strategy. The counterparts are Mr. Steven Wang (Stephen Wang) and Mr. Zhiyuan Zang (Tuyanzan) of Shaomi. In view of the influence of novel coronavirus's infection, the interview was conducted through an online phone call.

First of all, please tell me the mobile phone to be published this time.

Mr. Zan, sir.

Two free SIM cards will be released to Japan on June 2. The first is "Mi Note10 Lite". This is the sibling model of Mi Note 10, which was launched when he joined Japan in December last year. The appearance is the same as the design of Mi Note 10, and the back has a unique multi-layer coating in sparkling rainbow color, depending on the way it is illuminated. Equipped with a large screen organic EL display, but also has a customizable standby screen function.

There are two big differences from Mi Note 10. One is "color". "Nebla Purple", which is not available in Mi Note 10, is added to the lineup. In addition, the "camera" is also different. In Mi Note 10, 5-eye cameras are equipped with 100-megapixel sensors, while Lite is 4-eye cameras with 64 million-pixel sensors. Using the latest Sony IMX686 image sensor, it can be used in a wide range of scenes such as zoom, ultra-wide angle and macro.

What kind of product is the other model?

Mr. Zan, sir.

The second product is "Redmi Note 9s". The Redmi series is the best-selling muscle series in Shaomi's product group. This is the first time I have invested in Japan.

Redmi's DNA means "the amount of money you get for a high-specification product". The Redmi Note series shipped 100 million units worldwide, and the Redmi Note 7 became Shaomi's best-selling model in 2019.

This time, it will launch its latest model, the Redmi Note9S, to Japan. The screen is equipped with a large screen display with a punched inner camera, known as Shaomi's tiny point display (Tiny Dot Display). The symmetrical, stylish design and the thin shape of the 5020mAh high-capacity battery with a thickness of 8.8 mm are also key.

The rear camera has 4 eyes, and the 48 million-pixel main lens consists of an ultra-wide angle, depth sensor and a macro lens. We also put cameras in all kinds of scenes into low-cost models.

I think readers may also care, so I dare to ask, how much does it cost?

Mr. Zan, sir.

In terms of price, please wait for the online press conference on June 2. However, the new product is confident that it will become the best cost-effective product in the Japanese market.

Redmi Note9S looks very conspicuous in "cost-effective". What about Mi Note10Lite?

Mr. Zan, sir.

Right. Mi Note 10 Lite is also confident about the value for money. At that price, I think this is the most cost-effective model. Mi Note 10 Lite is a high-quality belt product, but it has the corresponding design and materials. Within the price range, the Snapdragon 730G (medium and advanced chipset) and 64 million pixel sensor cameras may be the only ones.

The Redmi Note 9s can also be compared in terms of functionality, which will be the cheapest in the price range. The Redmi Note has a punched display and, like the advanced model, uses gorilla glass 5 on both sides and has a good texture. This should be for the pursuit of cost-effective users to provide the best quality products.

-- is the new model for SIM-free?

Mr. Zan, sir.

We will launch a free SIM card in MVNO, which is sold directly to Shaomi. Communication operators, including Rakuten Mobile, conduct action verification on four domestic mobile phone operators.

Among some operators, we work with operators to verify connectivity, but there are also operators whose work is confirmed by Shaomi.

5G compatible SIM-free delivery is also under discussion.

-- Xia Ogilvy entered the Japanese free SIM card market in December last year and decided to use the 5G mobile phone "Mi10Lite5G" on KDDI (Au) in March this year. Please tell me how you feel about your career in the past six months.

Mr. Wang, sir.

You cannot share specific figures, but are at a satisfactory level in terms of sales and shipments.

Most importantly, I got a general sense of goodwill from users and the media, and I felt it. Amazon also has a high rating, and the return rate of the product itself remains good.

In addition, when entering in December, it only started from Xia Ogilvy's direct sales, and it also expanded the sales of MVNO (LINE Mobile, IIJmio, gooSimseller) in the past six months.

In the Japanese market, which is very difficult to enter, it is surprising to decide to sell as a large operator after half a year.

Mr. Wang, sir.

Shaomi is a company that is good at predicting market trends.

The trend of the Japanese market is entering a transition from premium phones to mid-range phones. The second factor is that the transition from 4G to 5G is beginning.

Focusing on this trend, Shaomi has developed a strategy to develop points of sale and sales. As part of Shaomi's corporate strategy, "provide high-specification products at low prices". The flagship also hopes to offer it at a mid-range price.

For Shaomi, its own SIM free mobile phones and MVNO are also a big market, but at this stage, 5G full support is very difficult. So first of all, it would be nice to start selling 5G smartphones from au and extend Shaomi's smartphones to Japan.

By the end of this year, we plan to launch 5G smartphones for the SIM-free market.

Shaomi's advantages are "technology" and "efficiency".

What do you think is the main reason why au has adopted "Mi10 Lite5G"? what are the advantages of Shaomi?

Mr. Wang, sir.

I think Shaomi's 5G smartphone has two advantages. "Technology" and "efficiency".

Shaomi has been working on 5G technology for more than a year. Nine 5G smartphones have been launched to the global market. There is no doubt that 5G technology has become one of the world's leading manufacturers.

Efficiency is also an advantage. Generally speaking, the larger the scale of smartphone manufacturing, the higher the manufacturing efficiency of each phone, and "economies of scale" can easily play a role. Shaomi is the fourth largest manufacturer of smartphone shipments in the world.

At the same time, cost efficiency is also beneficial in research and development. Shaomi's low-cost brand Redmi Note series, for example, cost $10 million (1 billion yen) to develop one. However, if the product is shipped on a large scale, the cost of each car will be controlled. From parts procurement to R & D, we have the same awareness of efficiency and work.

Technology and efficiency improve the expertise of 5G smartphones, thus meeting the needs of Japanese operators.

Is there any company in the Japanese market that is aware of being a competitor to Xia Ogilvy's mobile phone manufacturer? For example, companies such as Apple and OPPO have taken the lead in global purchasing capabilities, with Japanese manufacturers such as Sony and Sharp providing products to meet the needs of the Japanese market. As Xia'omi, what kind of enterprises and competitors is it positioned?

Mr. Wang, sir.

The four companies now named recognize that, as smartphone makers, they are all based on the same business model. Shaomi adopted a different approach from its competitors and grew up. There is also a big difference between business models and work methodologies.

Founded in 2010, Shaomi is also a young company among mobile phone manufacturers. Among the competitors, many companies have gained a large market share through large-scale production.

Among them, the reason why Xia Ogilvy is unique is to position the smartphone as the center of the "ecosystem". Through cooperation with partner enterprises, Xia Ogilvy has developed more than 2000 ecosystem products in terms of household appliances and lifestyle products.

Ecosystem products have affordable wearable devices, such as Band. In addition, although it is not yet available in Japan, Xia Ogilvy ranks fifth in global sales share of flat-screen TVs in 2019. In addition, there are peripherals, such as portable battery's "Mi power library". These ecosystem products work with mobile phones in different ways.

At the same time, Shaomi is also a "user first" company.

Summer Ogilvy, for example, does not advertise on TV in Japan. TV commercials have a great sales effect, but they cost tens of millions of yen at a time. Instead of using thousands of yen in advertisements, but moving it to where consumers really need it, this is what Xia Oome thinks.

Even without large-scale advertising, it would be nice to increase the value of the product through cost-cutting efforts. I am confident that I can compare specifications and choose from above.

Ecosystem products will be expanded in the future

With a smooth increase in the number of smartphones for Japan, ecosystem products are limited to the release of rice cookers and suitcases released in December, and the launch in Japan does not seem to be making good progress. What are the prospects for the expansion of ecosystem products in the future?

Mr. Wang, sir.

With regard to ecosystem products, I would like to introduce them bit by bit. A smartphone-centric announcement was released on June 2nd.

In Japan, ecosystem products, especially household appliances and other products, have a very special situation, the actual situation is that the progress is not smooth. The various certifications and required technical specifications in Japan are very difficult, and the products need to be remade in order to meet the special standards in Japan. The length of time required for resources and inputs is a challenge.

For example, Shaomi has air purifiers in its ecosystem products. If you put this into Japan, the product evaluation will take about 8 months.

There are no specific plans for the development of ecosystem products, but we will continue to focus from the second half of this year to next year.

The launch of ecosystem products also gives people the impression that it is difficult to see a sales strategy in Japan. For example, Xia Ogilvy brand rice cookers sell home appliances directly in Amazon's Xia Ogilvy stores, and there are also import agents operating "ecosystem products".

In March, Rakuten Market opened the "Xiaomi Rakuten official Store", but there was no announcement on Shaomi official website at that time (it was later confirmed as certified by China Shaomi Corporation, but is now closed due to refurbishment).

If it is difficult to know whether it is an official market, it is also difficult for users to buy products. With regard to the sales method of the product, are there any changes to be discussed in the future?

Mr. Wang, sir.

Thank you for your feedback. On this matter, what adjustments should be made on the Mi.com of the official website, etc., to discuss.

For example, I would like to consider improvement measures, such as marking official stores on Mi.com.

Thank you very much. Finally, if you have any information about Engadget readers, please let me know.

Mr. Wang, sir.

Shaomi hopes to have a long-term development in the Japanese market. First of all, next week, June 2nd, be sure to watch the new mobile phone launch starting at 14:00.

In addition, in order to continuously improve the product, I hope to actively integrate into the voice of users. Including criticism, please be sure to send feedback to official Russian-American social accounts such as Twitter, Facebook, LINE, etc.

Thank you so much for today!

(the interview ends here.)

On June 2nd, Shaomi is scheduled to launch "Mi Note10Lite" and "Redmi Note9S" phones. They are all free SIM cards and are expected to be cheaper than the Mi Note 10 that has already been launched. For more information about the type of machine, please see the following report.

Because the details of the model have been roughly clear, so the most expected and concerned should be the "price" point. The price of Mi Note 10 was 52800 yen (excluding tax) when it was released, which is cheaper in terms of specifications, but it is a more expensive product for free phones with SIM cards.

Mi Note 10Lite maintains the texture of Mi Note10 while reducing camera performance, as well as the first use of Redmi Note9S in Japan, which will be a free SIM volume area and will cost more. From the prices of these two models, we can see how serious Xia Ogilvy is to the challenge of the Japanese market.

Related link: Xiaomi China

Related articles: