On March 13th, it was reported by the media that Xiaomi has undergone its biggest reform in the ecological chain model in the past decade, introducing the "SAN Graded Management Strategy" and corresponding organizational changes.
According to reports, Xiaomi will categorize numerous ecological chain product categories using the logic of S, A, and N. Among them, S-class will be the most critical category for the future ecological chain, encompassing four directions: speakers, routers, door locks, and cameras.
Previously, Xiaomi's IoT business division was primarily categorized by product categories, divided into seven sub-business units: smart connectivity, cleaning appliances, IoT products, kitchen and bathroom appliances, health and travel, digital consumption, and environmental appliances.
Insiders revealed that the S-class represents categories with the potential to reach market sizes of 5-10 billion RMB in the future, jointly managed by Xiaomi Ecological Chain and ecological chain companies.
The A-class represents categories with the potential to exceed 1 billion RMB in the future, including air fryers, rice cookers, water purifiers, kitchen appliances, and air purifiers. The operating mode remains similar to before, with no significant adjustments.
The most significant change is in the N-class, primarily targeting categories with market sizes below 1 billion RMB. Xiaomi will focus on quality control for these categories but will relax control over pricing systems and project standards, returning control to the ecological chain companies.
By reducing the original seven business units to three, Xiaomi essentially aims to "make the heavy heavier and the light lighter."
