Chen Xudong: I have repeatedly asked myself what it takes to be successful at Magic Factory

Earlier this month, Zhou Hongyi gave Lenovo's Chen Xudong an "ammunition box" to promote the launch of the 360 ​​mobile phone. To show his respect, Chen Xudong gave Zhou Hongyi a full metal pistol in return, on which was clearly written "The First Shot of the Chinese Revolution."

The sound of gunfire means the beginning of a "revolution". As the pioneer of Lenovo's transformation to the Internet, Chen Xudong frankly said that Magic Factory is "making a revolution". "I hope Magic Factory can make some explorations for Lenovo in the Internet field and fire the first shot of success."

So, how can this first shot be considered a beautiful and loud one? Chen Xudong explained to the audience his "standard for the success of the magic factory".

Good reputation is essential

At Lenovo's global rally in Beijing, Lenovo CEO Yang Yuanqing emphasized that Lenovo must shift from being product-centric to being user-centric when planning Lenovo's future development strategy. "The various Internets may seem complicated, but they are like a big tree. No matter how luxuriant and intertwined it is, it has only one root and one main thread, which is the user... We must transform from a product-centric company to a user-centric company, and from selling products to managing customers. This is our new mission."

Good reputation comes from users' recognition and trust in the products. Magic Factory's main business focuses on mobile Internet and the exploration of the Internet of Things that combines software and hardware services, and in the field of the Internet of Things, it focuses on building a smart home ecosystem.

At present, Xiaomi, Haier, Meizu, JD.com and Internet giants BAT are actively developing smart home ecosystems, but smart hardware products are still more about hype than content. Problems such as unstable product performance, complex connections, and poor practicality harm the user experience. So far, there is no successful model that can be replicated in the smart home ecosystem around the world, let alone a "good reputation".

Chen Xudong believes that the main reason for this problem is that companies have not found the most accurate user group. Smart products should be aimed at users with real needs, not just geeks who use them for fun. The development of the entire smart home still needs a gestation period, and eventually the product will gradually shift from functionality to ease of use.

Take the newifi mini magic version recently launched by Magic Factory as an example. Its main feature is that it does not require installation, breaking the vicious circle that smart routers are "geek toys" that are exclusively for technology experts. When users use it for the first time, they only need to connect the old and new routers with an Internet cable, and the Internet configuration will be automatically migrated to the new router. It has grasped the core demands of current users when replacing smart routers and has won a good reputation among consumers.

"The most important thing is word of mouth from users. Because when sales targets are not important at the beginning, we hope that users will say that the product is good to spread the word and bring in better sales." Chen Xudong explained the importance of good word of mouth to the entrepreneurial process of Magic Factory.

High sales and profits are necessary

In Lenovo's sales targets for fiscal years 2015 and 2016 announced by Yang Yuanqing, there was no mention of Innovation Works. Regarding the development of Magic Works, Yang Yuanqing once made it clear that no specific sales targets were set for this new business company, and Magic Works was more responsible for incubating new products and new businesses.

Although he seems to have gotten rid of the burden of KPI, it does not mean that Chen Xudong does not have pressure on himself. "I think sales volume will be an indispensable goal. For example, whether this machine can sell over a million units, or even a single machine can sell over a million units is also a very important goal. Another very important indicator is profit, because the ultimate goal of doing business is to make money. I never think that it is just to burn investors' money."

At present, Internet companies have been refreshing their sales figures in the field of Internet of Things. Faced with competitive pressure, Chen Xudong remains full of confidence in traditional companies. He believes that if traditional equipment manufacturers can complete the Internet transformation, their chances of success will far exceed those of Internet companies making smart devices.

For example, when intelligent home appliances become the norm, consumers are more willing to choose old-brand products with accumulation, mature technology and guaranteed quality.

Chen Xudong has the same attitude towards the K9 mobile phone that Magic Factory will release in the second half of the year. He believes that a successful product should bring more profits to the company: "The entire smart home or smart device is in the incubation period of one or two years. It is difficult to support the business growth or profit of any company. Now it is more of a waste of investors' money. In fact, I have advised many manufacturers to start from the mid-to-high-end. If they rely on low prices, there is no hope at all."

Whether Magic Factory's entrepreneurship will eventually succeed is still an unknown. Lenovo has been developing for 30 years from 1984 to today. This "thirty-year-old" Lenovo "uncle" urgently needs to use the innovative spirit of the Internet to reshape its genes, so there is not much time left for Chen Xudong and his team.

In addition to the above three criteria for entrepreneurial success, Chen Xudong also set a time limit for himself. "If it still doesn't work in three years, I guess the Internet won't give us that much time."

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.