The biggest change of Xiaomi ecological chain in ten years! Abandoning product categories and embracing ＂SAN hierarchical management＂

Recently, according to relevant reports, Xiaomi has comprehensively reformed its ecological chain model and launched a new organizational change measure called "SAN hierarchical management strategy". This strategy aims to divide many ecological chain categories through three classification logics: S, A and N. Under the implementation of this strategy, class S products will become one of the core ecological chain categories in the future, including speakers, routers, door locks and cameras.

Prior to this, Xiaomi’s IoT business was divided into seven sub-divisions according to product categories: intelligent connection, cleaning appliances, IoT products, kitchen and bathroom appliances, healthy travel, digital consumption and environmental appliances. However, in this reform, these business divisions have been reduced to three: S-level, A-level and N-level. Among them, the S-class represents the categories that may reach the market scale of 5-10 billion yuan in the future, and they will be jointly responsible by Xiaomi Eco-chain Company and its partners; Grade A represents categories that may exceed 1 billion yuan in the future, such as air fryers, rice cookers, water purifiers and kitchen utensils. These products operate in the same way as before, but there will be no major adjustments; The N-level represents products with a scale of less than 1 billion yuan in the future. Xiaomi will focus on quality and relax the control over pricing system and project standards, so that eco-chain companies can have more autonomy.

The core goal of this reform is to achieve "heavy weight, light weight", that is, to give priority to those products with great market potential in the product line, and at the same time to relax the control of those products with small scale and limited potential. This is undoubtedly an important adjustment and optimization of the Xiaomi ecological chain model.