The chief executive of Chinese technology company Xiaomi has said that his company has been harmed by its fast rate of growth. In a message posted to his WeChat account, Lei Jun outlined a new strategy for Xiaomi, as he looks to the long-term expansion of the company.
Lei sees research in artificial intelligence and online finance, in addition to substantial retail growth, as playing a key role in the future of Xiaomi.
The Chinese company is planning a major increase in its retail operations, boosting its number of stores from 54 to 200.
Such a large growth in its retail business will represent a considerable change in strategy for Xiaomi.
Xiaomi played an important role in pioneering a direct-to-consumer sales model in China, which helped the company keep its costs low. But Xiaomi began to face problems as rivals emerged which replicated its sales strategy.
Lei believes that while Xiaomi was previously enjoying rapid growth, the company’s long-term development was not given enough focus.
“The worst is over,” Lei stated. “While creating a growth miracle in the modern history of business, we missed out on potential growth areas as well.
“That’s why we must slow our pace, and seriously learn from our mistakes.”