Core Viewpoint - The article discusses the recent challenges faced by Xiaomi and its founder Lei Jun, particularly regarding the company's automotive division and the impact on its brand reputation due to a series of missteps [6][22]. Group 1: Xiaomi's Recent Challenges - Lei Jun's video content on Douyin has been paused for over a month, marking a significant change for a successful founder IP [1]. - In 2024, Lei Jun published 255 videos and held nearly 20 live broadcasts, significantly boosting Xiaomi's visibility and reputation [6]. - The automotive division faced a severe traffic accident in April, leading to a public trust crisis regarding its smart driving systems [6][22]. Group 2: Issues with Su7 Ultra - Xiaomi's handling of the Su7 Ultra's performance features raised concerns, as the introduction of a "ranking mode" limited the car's horsepower, creating dissatisfaction among users [7][9]. - The requirement for users to achieve certain track performance to unlock full power was seen as a high barrier, alienating potential customers [9][22]. - Xiaomi later canceled the "ranking mode," but the damage to user trust had already been done [11]. Group 3: Controversy Over Design Features - The introduction of a dual-channel front hood for the Su7 Ultra sparked controversy, as users discovered it was merely an aesthetic addition rather than a functional improvement [13][19]. - Xiaomi's initial claims about the hood's aerodynamic benefits were contradicted by user experiences, leading to further distrust [17][19]. - The compensation offered to dissatisfied customers, including points redeemable for shopping vouchers, did not satisfy many, prompting demands for refunds [22]. Group 4: Implications for Founder IP - The article emphasizes the importance of consistent internal and external communication for companies relying on founder IP, highlighting the need for clear messaging to avoid brand damage [24][26]. - It stresses that the strength of a founder's personal brand must be supported by the company's product quality and service capabilities to maintain customer loyalty [26]. - Establishing a robust crisis management mechanism is crucial for companies overly dependent on founder IP, ensuring a systematic response to negative events [27][30].

Core Viewpoint - Xiaomi's automotive division is facing significant challenges following the SU7 incident, which has affected its reputation and other business areas [1][20][45] Group 1: Incident and Response - The SU7 Ultra faced backlash after an OTA update required track performance to unlock its maximum horsepower, leading to customer dissatisfaction and a subsequent retraction of the restriction [5][6] - Customers expressed outrage over the advertised carbon fiber hood, which was found to be merely decorative and not functional as claimed, prompting demands for refunds and legal action [5][6][13] - Xiaomi issued an apology, attributing the issues to "unclear information," but the damage to customer trust was significant [6][20] Group 2: Leadership and Public Perception - CEO Lei Jun's social media activity decreased significantly in April, shifting from personal sharing to more formal announcements, reflecting a change in public engagement strategy [3][15] - The SU7 incident has led to scrutiny of Lei Jun's influence on the brand, as his visibility has been a double-edged sword, benefiting the company until the recent crisis [32][34] - The public's expectation for accountability from Lei Jun has increased, as his prominence in marketing has tied his reputation closely to the company's performance [30][32] Group 3: Market Position and Future Outlook - Despite the current challenges, the SU7 series is expected to remain popular, although production capacity may be a limiting factor [46] - The automotive industry is characterized by high risks, particularly for new entrants like Xiaomi, which must prioritize safety and customer trust in future developments [38][44] - The company is likely to resume its marketing activities and product launches in the latter half of the year, aiming to recover from the recent setbacks [47][48]