Secret Behind Xiaomi's Success in India
Many companies have come to take advantage of the increasing demand for smartphone owners with the rapid development and growth of China's mobile technology and communications industry. Around 1 billion individuals now own smartphone. This has contributed to the launch of many of the popular brands of cell phones in the world. Xiaomi was one of the big brands that debuted in 2010.
It has been observed in the last 5 years that the mobile industry has increased exponentially. The day is long gone when customers had to bring 2-3 kg of laptops for their everyday requirements. Large brands such as Xiaomi have indeed implemented hunger marketing strategy where the manufacturer's supply of the item is purposely limited to generate excess demand in the market.
The first MiUi android-based firmware by Xiaomi was released on 16 August 2010 and the first Mi1 smartphone was launched in China a year later. The device has been popular and newer models such as M2, M3 and Redmi phones on the domestic front have been launched ever since. In 2014, it became the biggest mobile phone company in China.
Deep dive into Xiaomi’s Journey in India
Xiaomi entered the Indian markets in July 2014 after successfully winning significant market dominance in the rest of Asia. Xiaomi initially partnered solely with the e-commerce powerhouse Flipkart to distribute its smartphones, but they modified their distribution strategy later on 7 April 2015 and declared a collaboration with Amazon and Snapdeal.
The company has also released numerous smart home devices, wellness products, TVs, tablets, drones, Wi-Fi routers, cloud services and instant messaging services, in addition to smartphones. In China, India, Malaysia, and Singapore, Xiaomi has 15,000 employees; it is now spreading to various nations, including Indonesia, the Philippines, and South Africa. Lei Jun, the CEO of Xiaomi, has over $12.5 billion in assets, as per Forbes magazine.
Introduction to marketing strategy
Penetration of any international market involves a range of marketing tactics that will influence any company's performance. You can either use the standard marketing mix or can customize their existing mix to meet your needs according to the country's specifications. Given the variety in its product catalog, apart from phones, the growth of this company is incredible.
Very early on, Xiaomi realized that it was more necessary to build brand loyal customers and embraced it as its marketing strategy. Xiaomi has developed and established itself as a reputable company which has led them to become the world's leading smartphone company. There are two fundamental strategies that the brand follows.
1. Creating goods with superior qualities and specifications but manufactured at a lower cost.
2. Creating some additional features in Xiaomi phones that push customers' interest to it.
Older and more known brands such as HTC, Samsung, Apple and many local players are making their products available to the customers. On the other hand, Xiaomi doesn't really follow this strategy and offers its products via online flash sales via third-party distributors and stores. A small amount of goods is available for purchase at a given time in these flash sales, and the offer continues until the stock lasts with the aim of entice the buyers to go for impulse purchasing.
Xiaomi focuses on its consumer acquisition and advertisement approach to ensure greater efficiency at a reasonable price. Xiaomi's business model involves a range of creative and enticing technological devices and internet services. Xiaomi's numerous additional services and products have a good share in helping the brand generate strong sales.
Business Growth of Xiaomi Corporation
Xiaomi has been one of the most successful start-ups, estimated at US $50 trillion at least. It achieved tremendous success in the Company sales of smartphones by introducing mixed market strategies that have proved highly competitive in both the global and domestic markets.