On December 12th, Xiaomi staged a cordless vacuum cleaner, Deami brushless vacuum cleaner that sold for 799 yuan in a crowdfunding way.
This price is quite appealing. In shortly three days, 18,888 units with an amount of more than 15 million yuan were sold in a crowdfunding way, which is a fruitful result. However, some friend working at Dreami complained that the product is sold at a “friend price”, leaving the producer little margins. Other friends in the vacuum cleaner industry also mourn that the low pricing comes unexpectedly early.
For specific configuration, please refer to the page of details at youpin.mi.com.
Https://youpin.mi.com/detail?gid=104701
Brushless motor of 100,000 rpm, fluff brush and other accessories are all complete, representing the best configuration of the kind made in China except Dyson. PC and ABS are also applied to the main host. Has PC plastic become a symbol of high configuration in the vacuum cleaner industry?
It is also worth mentioning that the brushless motors are designed and produced independently, earning the maker an edge compared with rivals. There is a hearsay that Dreami is contemplating a presence in the field of Dyson-style hair dryers with the use of high-speed motors.
It is also said that this product uses a precision mold that costs several million yuan (6 million yuan as rumored). Perhaps only products staged at Xiaomi platform can be priced so favorably at such a high cost.
As Tianyancha.com shows, Dreami founder Yu Hao directly holds 47.97% shares, amid investments of Xiaomi series and Gucang MBA. Yu Hao himself proves a legend. Graduating from Tsinghua University, he has realized financial freedom before the foundation of Dreami. Aside from the thriving family business in electric tools, he proves a winner in every aspect after winning investments of Xiaomi and entering a fast-growing industry.
In case the Dreami product is available at a price of 999 yuan, the following companies are to be affected at first:
- Xiaomi series, including Roidmi, Roborock, LEXY Jimmy, SWDK.
- E-commerce players in vacuum, such as PUPPY, TEK, Midea, etc.
Now the cordless vacuum cleaners mainly sell for 1300-1600 yuan, a sharp contrast with 999 yuan of Dreami product. With 40%-50% costs in traffic acquisition and marketing, other makers can’t follow up to cut prices.
Will Xiaomi’s low-priced vacuum prevail? Now it seems not. Thanks to Xiaomi’s huge traffic acquisition, ultralow deduction points and gross margins, players involved in the Xiaomi ecological chain sees great sales in the short term. However, it is noticeable that Xiaomi’s traffic acquisition has basically stabilized, showing no big rise, while SKU of the Xiaomi ecological chain keeps increasing. In such a case, it remains to be seen if the sales of single products will be good, without traffic recommendation.
Xiaomi’s investment in the ecological chain is like this: invest in multiple businesses and make them in the same ecological chain compete with each other, to pick over one winner. In terms of vacuum cleaners, Roborock, Roidmi, SWDK and Dreami are chasing in the racing track, as well as JIMMY. The key to survive and grow for enterprises in the ecological chain is to win Xiaomi’s main recommendation.
What is more, given the ultralow gross profit, products in Xiaomi ecological chain are not welcomed outside the Xiaomi system. No wonder Tmall and JD.COM keep the best positions to products that benefit them most. Roborock also relies on the product priced at 2499 yuan to stand firm in all major channels. Now it sells models priced at 1499 at Xiaomi platform online, and products priced at 2499 yuan at Tmall and JD.COM.
The problem of the Xiaomi system can actually be noticed in another field. Xiaomi cellphones ranked No.2 in China at the beginning by virtue of its high cost effectiveness, yet soon outpaced by VIVO, OPPO and Huawei that excel in offline channels. The reason for this is that its low gross profit could barely support the dealer system and marketing expenses.
As shown in the official website and recruitment information, Dreami pursues more than cordless vacuum cleaners. They recruit a large number of engineers in the research and development of VSLAM and high-speed motors. It can be simply inferred that they will also make a difference in robot sweepers.
If so, another question pops up: “Which robot sweeper maker is the best?”
