XIAOMI AN EMERGING MARKET LEADER

Xiaomi

Chinese tech company Xiaomi, which started as a startup phone manufacturer by Lei Jun, is now amongst the leading smartphone brands in the world. Eleven years since its inception in 2010, Xiaomi has already made its mark. The idea or the concept by which the brand deals with its customers is straightforward; high-quality products at affordable prices. They aim to create branded products accessible to a larger audience. Moreover, Xiaomi has expanded and penetrated other markets, including IoT, wearables, innovative home systems, etc. 

There are several reasons for such rapid growth, listed as follows.Chinese tech company Xiaomi, which started as a startup phone manufacturer by Lei Jun, is now amongst the leading smartphone brands in the world. Eleven years since its inception in 2010, Xiaomi has already made its mark. The idea or the concept by which the brand deals with its customers is straightforward; high-quality products at affordable prices. They aim to create branded products accessible to a larger audience. Moreover, Xiaomi has expanded and penetrated other markets, including IoT, wearables, innovative home systems, etc.  To illustrate, there are several reasons for such rapid growth, listed as follows.

ASIAN DOMINATION

Xiaomi has been able to grab such a large consumer base quickly because of its insights into the Asian market. Customers in Asia, predominantly in China, India, and Pakistan, are price-sensitive. They love low-priced products: Xiaomi’s USP. Moreover, the Chinese company manufactures phones comparable to Apple and Samsung in quality but much less in price. The Asian market is one of the largest globally, and stamping a mark means you have already won the half-game.

DTC MODEL

Xiaomi’s Direct to Customer Model has reduced a lot of redundant costs. They have just recently started building their brick-and-mortar stores; otherwise, the leading distribution channel has been e-commerce. It facilitates transportation, manufacturing, and storing costs—those savings are used on R&D to make more high-quality products. To decrease inventory costs, Xiaomi uses the flash sale technique. Limited sets are made available online, which engages more audience and awareness is created. Limited products also reduce real estate costs.

PROMOTION STRATEGY

Xiaomi doesn’t go for conventional mainstream advertising. Instead, it relies on social media marketing. Social media influencers, YouTubers, Instagrammers are hired to advertise their products. Periodic flash sales also play a role in creating awareness and promoting their products. The company is active on social media and posts updates regarding launches, promotions, etc. The Mi fan base, consisting brand’s most loyal fans, is given sessions to communicate with engineers and leading men of the organization. Xiaomi’s digital promotion strategy draws more consumer engagement and is one of the reasons for its success.

AN IoT AFFILIATION

Xiaomi did not limit itself to smartphones only, but it diversified its portfolio. One of the primary reasons for their success is their investment in the Internet of Things. Now here’s the thing, Xiaomi did not go all in manufacturing products involved in the IoT category. Instead, they invested in companies manufacturing different types of IoT products. These investments gave about 20% ownership to Xiaomi.

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