Xiaomi, our favorite Chinese brand and a consumer electronics startup. Today we are going to discuss the brand story of Xiaomi. Xiaomi China with its child companies like Mi, Redmi and many others are expanding in different parts of the world.
This startup launched its first smartphone as a product in August of 2011 and showed us how quickly they can gain huge market shares. Xiaomi is the Chinese language means “millet”, a food grain that humans grow in different parts of the world.
We can relate the meaning of the brand name to its goals and scaling strategies. Xiaomi first dominated the Chinese electronics market and then expanded to other Asian countries like India, Bangladesh, and Pakistan. In 2014 Xiaomi became the largest smartphone selling company in China.
Currently, Xiaomi, China is expanding its reach at a very high pace and currently has about 0.5 lakh employees in China, India, Singapore and also expanding in other continents like America and Africa.
Xiaomi was just a small consumer electronics startup in the beginning and now they are serving us as the world’s 4th most valuable technology-based startup. Recently, they raised about $1.1 billion from different investors.
Now, the combined valuation of this company or smartphone brand is about $50 billion. Xiaomi itself invests in other consumer electronics startups like smartphone gadgets, security systems, and Smart Home devices ecosystems.
Expansion of Xiaomi in INDIA
Xiaomi’s first headquarters were in Singapore, but Xiaomi pushed its boundaries beyond the home i.e., Xiaomi, China. After Singapore, the company started its sales and productions in other Asian countries like Malaysia, the Philippines, and India. Xiaomi launched its child brand MI in India at first.
MI 3 was the first product that was launched. At that time Xiaomi India opted for online-only sales in partnership with Flipkart. At that time Flipkart was the leading Indian e-commerce platform and that helped Xiaomi in supplying huge demand in Indian markets. They used a new technique of flash sales at that time.
We still see Xiaomi and other big brands use this technique to create more demand. They marketed their new products as ultimate value-for-money products. A flash sale was helping with short-duration sales time with discounts and promotions. Interested customers are supposed to register for sale to buy Xiaomi’s latest smartphones.
Xiaomi only made available some limited stocks of their new smartphones. The reputation of Chinese brands in the Indian market was not good before Xiaomi phones came. Xiaomi India changed that perception about Chinese brands as cheap and low-quality product makers by selling high-quality products at an extremely low price.
The quality of Xiaomi phones was better than local brands like LAVA and Micromax at that time. The best decision for targeting the mid-range smartphone market in India was a game-changer for Xiaomi. Mi got an instant hit on their smartphone lineup and gave a high-quality device for low-end phone users at an affordable price.
Xiaomi is still in the game with its mid-range Redmi note series. The latest Redmi note 9 pro is going to be a big hit as they are providing unbelievable features at an extremely low price tag. We all remember the Mi 4 smartphone, at that time also Xiaomi phones were highly affordable and well welcomed in the smartphone market.
Xiaomi’s MI 4 competed with Samsung’s Galaxy S5 at that time with a price tag of 20k INR whereas Galaxy S5 was selling at 50k INR. The price difference was huge and the quality of both smartphones was similar. Xiaomi India understood the needs of the Indian market and delivered its best smartphones in mid-range.
Budget offerings helped the company to expand its user-base and establish itself as a well-known brand in the Indian smartphone market selling value for money products.
Success Strategies of Xiaomi
Initially, Manu Kumar Jain was the head of operations for Xiaomi in India. Now he works as the Managing Director for Xiaomi India and also serves as a Global vice president. According to Manu Kumar Jain, the main factor of success that we should include in the brand story of Xiaomi is the offering of High-quality products at an amazing price.
The company mainly innovates in the software and the electronic hardware industry. They have their version of Android OS known as MIUI. The MIUI has a huge developer group and Xiaomi itself updates the OS regularly. Currently in India, Xiaomi has 800+ service centers and factories in different parts of the country.
The company focuses mainly on an all-round device rather than focusing on any specific feature of a smartphone. The top-selling smartphone includes Redmi Note 8, Redmi Note 8 Pro, Poco X2 and Redmi Note 9 pro.
The processors and ram that Xiaomi is offering are next to impossible in this price range. They work at a minimum profit business structure to provide better value for money.
Also, Poco is another sub-brand of Xiaomi that launched Poco f1 with a flagship processor and a mid-range price. Now they have launched Poco X2 which is another great deal for buyers. Mr. Jain is outstandingly guiding Xiaomi India. Xiaomi is climbing the ladder of success by providing better camera, battery, process, display, and ram in every smartphone launch.
By analyzing market needs and build the strategy around that is the key reason behind Xiaomi’s brand success. Currently, Xiaomi has a more 25% market share that is more than the market share of Samsung, Lenovo, and Oppo.
Other than telecom devices, the company is now launching its new smart TVs. Unlike Samsung and Sony, Xiaomi is providing amazing quality at a very low price tag. They are offering much more than what other players in the television market are providing like smart features, Android OS and thin form factor.
Xiaomi is again successful in blurring the quality be affordability dilemma by implementing an aggressive market strategy of providing high-quality products at a low price.
Recently they have launched their flagship TV in the market. Everyone was very surprised as they priced their flagship product at the same price that Samsung and sony would charge for their lower range options.
In conclusion, I would say the company still has more potential to capture the market. The way they innovate, price their products and understand the needs of the market-place and customers is the basis of the brand story of Xiaomi.