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What is Xiaomi Auto’s biggest advantage?Lei Jun said that intelligence and ecology are Xiaomi’s core advantages. Xiaomi SU7 can be interconnected with Xiaomi mobile phones, tablets, computers, home appliances, etc. “Full ecology of people, cars and homes” connects all smart terminals together like never before. With the launch of Xiaomi cars, a group of automotive ecological supply chains with science and technology as the core are gradually taking shape.
Recently, the first phase of Xiaomi Group’s East China headquarters project was completed, and it is expected that 5,000 people will work there after it opens in April. Xiaomi Group’s East China headquarters is located in Jianye, Nanjing, just across the street from Alibaba’s Jiangsu headquarters. It will become the largest R&D center in the country besides Xiaomi’s Beijing headquarters, dedicated to breakthroughs in new technologies and new business formats and the development of smart hardware and the Internet of Things. It will create a Xiaomi ecological chain by integrating upstream and downstream industries and enterprises. In addition, Xiaomi has also opened a large-scale “Xiaomi Auto Delivery Center” in Nanjing’s southern new city.
It is worth mentioning that in order to “move” talents from Beijing to Nanjing, Xiaomi’s wages are basically unchanged. Talent apartments will also be provided, and employees will immediately be eligible to purchase houses and other high benefits. Many Xiaomi technicians are happy to receive such generous “migratory bird” treatment. After all, compared to Beijing, Nanjing’s housing prices, prices, transportation, education, and ecological environment are all more livable. With the advantage of cultural tourism resources, the Weibo topic “You must visit Nanjing” has been popular many times. Many tourists come to Nanjing because of its convenient transportation and countless beautiful scenery that can be encountered everywhere.
A friend from Xiaomi said that buying and living in Nanjing at the same level only costs 6 million, while Beijing requires 30 million.
Of course, Xiaomi’s move to Nanjing is not just to provide “benefits” to employees, but more importantly, to expand progress at the research and development level and promote the improvement of Xiaomi’s ecological chain.
Looking at East China, Nanjing is undoubtedly the best choice.
Because any city where Internet companies develop relatively quickly cannot do without the most core factor – the support of talents. Xiaomi has placed its largest headquarters in the country in Beijing. One of the most important reasons is the support of many universities. Placing the largest R&D center outside Beijing in Nanjing is also based on this perspective.
What many people don’t know is that many major international and domestic manufacturers have their R&D headquarters in Nanjing. As a science and education highland, as of June 2023, Nanjing has 51 universities including Nanda University, Dongda University, Nanjing University of Posts and Telecommunications, Nanjing University of Science and Technology, Nanjing University of Science and Technology, and Hohai University. This point is second to none in the entire East China region. Moreover, R&D costs are relatively low compared with Shanghai and Beijing, and the price/performance ratio is excellent.
As a hidden boss in China’s investment community, Lei Jun is well versed in strategic layout. As a technological innovation enterprise, Xiaomi’s core competitiveness is actually its talents. Where do these talents come from? Naturally, it comes from top universities.
Both Nanyang University and Dongda University have been on the hot search list because of their “alumni IPOs”. According to incomplete statistics, since 2020, the Department of Photochemistry of Nanjing University has acquired 6 listed companies with a total market value of more than 150 billion yuan, including Aidi Pharmaceutical, Legend Biotech, Trina Solar, Heyu Pharmaceutical, and Huahaicheng Kohe Tenya Seiko. Southeast University on the other side is no less generous. Zhihu founder Zhou Yuan, Tuniu.com CEO Yu Dunde, Ucommune founder Mao Daqing, chip unicorn Xinchi Technology Qiu Yujing and others also came from Southeast University. from.
Boston in the United States has always been known as “Athens of America” and “The Cradle of the American Industrial Revolution.” Because there are more than 250,000 college students here, and there are famous schools such as Harvard, MIT, Tufts University, Boston University, and Northeastern University. At the same time, Boston’s population composition has a high proportion of people with college degrees or above, which is consistent with Nanjing.
Nanjing is to the Yangtze River Delta what Boston is to the New York metropolitan area.
Because of the gathering of talents, Nanjing has not only attracted a number of major scientific research companies, but also driven by these scientific research forces, Nanjing’s manufacturing industry has also long been famous.
For example, Invicta, the main foundry of Xiaomi mobile phones, is located in Nanjing. Xiaomi had just entered the mobile phone market in 2010, and many major manufacturers were unwilling to help with OEM production. In the end, Xiaomi found Inventa, which customized a highly cost-effective design and supply chain for Xiaomi. Five years later, Xiaomi mobile phones ranked first in the country with annual sales of 70 million units. Lei Jun has feelings for the city of Nanjing.
In addition, according to Wind statistics, there are currently 50 listed companies that have entered the “Xiaomi Auto Concept”. In terms of cities, Jiangsu Province leads the way, with 15 Xiaomi Auto suppliers located in Jiangsu, accounting for 30% of the total. Xiaomi Auto relies on ecology, and the integration of ecology often requires the support of software technology. As a city shortlisted for “China’s Famous Software City” and a national-level advanced manufacturing cluster (software and information services), Nanjing’s industry continues to develop vigorously and has brought together many gaming, scientific research, and commercial software companies. Such an atmosphere is an important pillar for an Internet company to rely on. It is very convenient to place software research and development in Nanjing.
Of course, there are also very pragmatic elements in this. The employment cost of Nanjing’s IT industry is lower than that of Shanghai and Hangzhou in East China. Land prices are also relatively cheap. The government also provides support, which is very cost-effective for companies to start their own businesses. According to Xiaomi’s financial report, Xiaomi’s R&D personnel account for 52%, and more than half of its employees are engaged in R&D. It is expected to invest more than 100 billion in R&D in the next five years.
The development of technology companies mainly relies on two major factors, talent and capital. Putting the R&D headquarters in Nanjing not only has a source of running water, but also saves costs. Why not do it?
Nanjing not only has a talent gathering effect, but also has industrial manufacturing support. Compared with other non-first-tier cities, Nanjing has great advantages in intellectual research and development. It is not an exaggeration to call it a “city of scientific research”. As China’s scientific and technological highland, Xiaomi has invested heavily in Nanjing in order to use its advantages in intelligence and supply chain to quickly push the development of Xiaomi’s ecosystem onto the fast track.
This is the second half of Xiaomi Motors, and it is also a leap forward for Xiaomi Motors from “manufacturing” to “intelligent manufacturing”.
