xiaomi case study

4. Xiaomi online brand community

Xiaomi has large online brand community that spreads e-WOM about the brand over different social networking sites. 

The company has on online MI brand Community App:

The community members ask questions, and help each other in solving the problems. The community provides a personal space to users where they can share their experiences and solutions. 

5. Xiaomi social media campaigns

Xiaomi frequently launches social media campaigns, and arranges contests and quizzes to generate e-WOM:

In 2019, Xiaomi launched its Mi 10 on Twitter in a live video . The video got close to 5 million views, and 50 million impressions, with 60% increase in conversion rate. 

6. Xiaomi hunger marketing strategy

Xiaomi adopted ‘hunger marketing strategy’ to achieve digital marketing objectives:

Hunger marketing required Xiaomi to:

• Understand target customers’ emotional needs

• Create an in-purpose supply shortage

• Create buzz and evoke desire to own Xiaomi smartphone

7. Xiaomi celebrity endorsement strategy

Xiaomi invests on celebrity endorsements, particularly in India to capture market share. 

In India, Ranveer Singh is the face of Xiaomi-Mi:

8. Xiaomi influencer marketing strategy

Xiaomi identifies and collaborates with tech influencers to reach the mass market. 

Xiaomi understands the importance of choosing the right influencer. It collaborates with three types of influencers:

• Professional talent (e.g. Hello-Mate TV- a property related YouTuber)

• Entertainment talent (e.g. Healo Diary- a food vlogger)

• Lifestyle talent (e.g. Ada Pong- Vlogger)

9. Promotional discounts

Xiaomi offers promotional discounts and flash sales to drive the sales. The purpose of offering flash sales is to keep brands under discussion, and grab the attention of potential customers by creating a sense of urgency.

Although, many smartphone brands offer flash sale offers, Xiaomi took it to extreme. In UK, Xiaomi grabbed everyone’s attention by offering $1 flash sale:

Source: BBC

Read full story here

10. Xiaomi marketing budget

In response to the rising competition and changing consumer behavior, Xiaomi is gradually increasing the market budget every year. 

Following graph shows the Xiaomi marketing and advertising budget from 2017 to 2021:

11. Key takeaways

Xiaomi blends traditional and digital marketing strategies to engage customers, and create brand awareness. The focus on digital marketing helps Xiaomi save costs, and expand the reach to target market. 

3. Recommendations

• Focus on related diversification to earn more revenue from services and accessories

• Expand the official outlets in and outside China

• Increase product variety to widen the price range, and ensure maximum coverage

• Continue investing on digital marketing activities to interact and engage with customers

• Increase marketing budget for traditional marketing activities as well to fuel the international expansion

• Expand the use of influencer and celebrity endorsement strategy in other emerging markets as well (other than India)

4. Conclusion

To sum up, Xiaomi presents a success case study of how brands can achieve enormous success through a well-integrated marketing mix. 

Xiaomi understands the market pulse, and acts accordingly. To know about Xiaomi, read our article on Xiaomi SWOT analysis . 

5. References

Zhou, K. (2018, April 22). Xiaomi CEO Lei Jun: How Xiaomi Turned the Tables . Pandaily.

Admin, & Admin. (2023a, January 10). Apple’s Marketing Strategy Analysis | Secret behind Apple’s Market Leadership . Strategy Finders.

Rox , R. (2018, January 30). Study in China shows age demographic of smartphone users . Notebookcheck.

Xiaomi Updates: Q3 2022 – Counterpoint Research . (2022, December 9). Counterpoint Research.

Admin, & Admin. (2023b, January 12). Microsoft SWOT Analysis 2023 – A Detailed Analysis by Experts . Strategy Finders.

Admin, & Admin. (2023b, January 11). Comprehensive Analysis Of Walmart Marketing Strategy . Strategy Finders.

Statista. (2023d, March 20). Market share of Xiaomi smartphones in APAC 2022, by country .

Admin, & Admin. (2023d, January 12). SWOT Analysis of Apple | Strengths and Weaknesses revealed . Strategy Finders.

Admin, & Admin. (2023n, March 20). Airbnb SWOT Analysis 2023 – Analysis by Marketing Analysts . Strategy Finders.

How Xiaomi achieved close to 5 million video views by launching its smartphone live on Twitter . (n.d.).

Kelion, B. L. (2018, November 12). Xiaomi criticised for UK smartphone £1 flash sale . BBC News.

Kelion, B. L. (2018b, November 12). Xiaomi criticised for UK smartphone £1 flash sale . BBC News.

Statista. (2022d, May 13). Xiaomi’s selling and marketing expenses 2017-2021 .

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Xiaomi invades the smartphone market in India

• Published: 27 May 2020
• Volume 47 , pages 215–228, ( 2020 )

Cite this article

• Rahela Tabassum 1 &
• Shehbaz Ahmed 1  

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The case study is based on Xiaomi Corporation, a Chinese Public company, headquartered in Beijing, China. Xiaomi (the word Xiaomi means millet which means a “grain” that is a staple diet in various parts of the world) is the world’s fourth largest smartphone (a smartphone is a mobile phone with various functions of a computer) company based on total shipments. It produces low-cost but high specification smartphones. Xiaomi which has emerged as the top smartphone brand in India also manufactures consumer electronics and mobile apps. Currently, Xiaomi revenue comes from the sale of products like smartphones, Iot, lifestyle products, advertising services and internet value-added services (which include online games). According to IDC India, Xiaomi has 29.7% of market share at the end of Q218. The organization has achieved an astounding growth. Xiaomi’s India revenue jumped 175% in 2017–2018 to Rs. 230.6 billion year on year. The firm that sells smartphones under the brand Redmi and Mi had a net profit of Rs. 2.93 bn in 2017–2018 (according to IDC, Counterpoint Research). Xiaomi Corporation which was founded in April 2010 was listed in the Hong Kong stock exchange on July 9, 2018. Xiaomi being the “Coolest Company” in the heart of its users is committed to continuous innovation. Xiaomi has launched its first smartphone in August 2011 and became the largest smartphone company in China by 2014. Xiaomi the Bengaluru headquartered firm has entered the Indian market on July 15, 2014, in partnership with Flipkart to sell its smartphone with a concept of Flash sales. It has become a global player from a startup company in smartphone market in a span of not even a decade. Samsung of South Korea and Xiaomi of China are expected to continue their fight for top slot in 2019. The study aims to analyse the Indian smartphone market with the business model, marketing mix and innovative strategies of Xiaomi in order to identify its strengths, weaknesses, opportunities and challenges. The finding indicates that the company needs to focus on improving its product quality, advertising and distribution network to face fierce competition. Through the innovative strategies of Xiaomi, it is likely to become a game changer in the near future.

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Xiaomi’s Mission Statement:

At Xiaomi, we strive to create the highest quality products at the lowest possible prices to provide people with access to the necessary tools and services that connect them to the world and, ultimately, their dreams.

Introduction

The use of smartphones has seen spectacular growth in the recent past. Most users have shifted from simple phones to smartphones. IBM was the first company to introduce smartphones in the year 1990. Later, it was followed by Nokia, Ericsson, Apple, Blackberry, Samsung and others. The smartphone market has plenty of new players who manufacture and sell smartphones. Xiaomi popularly known as “Apple of China” was founded 7 years ago on April 6, 2010, by a serial Entrepreneur Lei Jun in Beijing and became the leading smartphone brand in the first largest market China and the second largest market India. Later, it expanded its business in other countries like Malaysia, Singapore, Indonesia, Philippines and South Africa. It has entered the Western market but couldn’t catch enough attention. The founder of Xiaomi has an estimated net worth of US$ 12.5 billion which makes him the 11th richest person of China and 118th richest person of the world. The market valuation of Xiaomi is more than the US $ 46 billion.

Initially, Xiaomi was a startup technology-based company and in a span of fewer than 5 years has become a global player in the smartphone market. Xiaomi has launched its first smartphone in August 2011 and became the largest smartphone company in China by 2014. It is the world’s fourth largest smartphone manufacturer after Samsung, Huawei and Apple. Its target market is the price-sensitive lower middle-income group of customers and millennials who prefer smartphones in a lower price range.

The serial entrepreneur Lei Jun has founded Xiaomi in 2010 based on the vision “Innovation for everyone”. According to the Wall Street Journal, Xiaomi awarded the founder and CEO Lei Jun about $1.5 billion in stock. In July 2019, Xiaomi was listed in Fortune Global 500 companies and became the youngest Global 500 companies of 2019. It ranks 468th among all categories and ranks 7th in the internet services and retail category (Xiaomi Team-Aug 20, 2019).

It entered the Indian market on July 15, 2014, in partnership with Flipkart to sell its smartphone Mi 3 whose price was Rs. 13,999. It was an exclusive sales tie-up with Flipkart, and the Mi phones were sold within 30 min on the very first day. Xiaomi India’s focus is to design high-quality products and make it available at accessible prices to the world.

To understand the business strategies and competitiveness of Xiaomi India in the smartphone segment.

To evaluate the marketing mix model which provides guidelines to Xiaomi India to put the right product in the right place at the right time and price.

To analyse the major challenges faced by Xiaomi India in the arena of smartphones.

To conduct a SWOT analysis to assess Xiaomi India’s current position and how the company capitalizes its opportunities in the Indian market

Xiaomi: an overview

Xiaomi Corporation which was founded in April 2010 was listed in the Hong Kong stock exchange on July 9, 2018. Xiaomi being the “Coolest Company” in the heart of its users is committed to continuous innovation.

Xiaomi has launched its first smartphone in August 2011 and became the largest smartphone company in China by 2014. Xiaomi India the Bengaluru headquartered firm has entered the Indian market on July 15, 2014, in partnership with Flipkart to sell its smartphone with a concept of Flash sales. It has become a global player from a startup company in the smartphone market in a span of not even a decade. Samsung of South Korea and Xiaomi of China are expected to continue their fight for the top slot in 2020.

In a developing economy like India, the smartphones are unable to reach the masses due to its high prices. Mr Manu Jain, the CEO of Xiaomi India who acts like a nimble startup, maverick Footnote 1 in risk taking, nimble in decision-making but aggressive in execution is aiming to make its foot stronger in the Indian market by targeting people who have been untouched by the telecom revolution. Xiaomi popularly known as “Apple of China” entered the Indian market with an exclusive sales tie-up with Flipkart. In a very short span, the company has acquired the number one position in the Indian smartphone market surpassing even the Korean giant Samsung (Fig.  1 ).

Source : Economic Times, Mar 17, 2019

Journey of Xiaomi India from the time of its inception.

Penetration of Xiaomi in the Indian smartphone market

Xiaomi India has started its operations in India in 2014 and had a meagre share of 3% in 2015.

However, in 2016 it has clocked a revenue of $1 billion and became profitable (Fig.  2 ).

Source : IDC Counterpoint Research

Xiaomi revenue and net profit (in Billion Rs) in recent years.

Xiaomi India’s revenue jumped 175% in 2017–2018 to Rs. 230.6 billion year on year. The firm that sells smartphones under the brand Redmi and Mi had a net profit of Rs. 2.93 bn in 2017–2018 (according to IDC, Counterpoint Research).

The documents available at the Registrar of Companies show that in 2016–2017, Xiaomi India had a net profit of Rs. 1.64 bn and sales of Rs. 83.8 bn. According to Canalys (research agency), Xiaomi smartphones continued to experience high growth in the Indian smartphone market and ranked first in terms of market share by shipments in the second quarter of 2018.

India is an emerging market for smartphones. According to Counterpoint Technology Market Research and Cyber Media Research, although the global annual sales of smartphones have declined, the Indian smartphone market has grown by 12% approximately from about 134 million to 150 million in 2017.

According to International Data Corporation (IDC), in 2018, Xiaomi shipped 11.7 mn smartphones and became the top brand in the Indian market with 27.3% in the third quarter of 2018. Xiaomi India was able to grow to a new height with its successful Redmi 5A and Redmi Note 5 Pro series. It also has refreshed it Redmi 6/A/Pro portfolio.

The smartphone segment is the major growth driver in India. According to the ET report, Xiaomi’s smartphone shipments in India are going to register a 22% CAGR Footnote 2 in 2018-20E with market share gradually rising to 34% in 2020E from 30% in 2018. Among the emerging markets, India enjoyed the strongest growth of 14% YoY in 2017 to 8% of global market share, up from 7% in 2016 (Fig.  3 ).

Annual growth and market share of smartphone manufacturers in the Indian smartphone market in 2017–2018

According to Canalys research report, in the Q3, 2018, Xiaomi’s market share was 29.8% with an annual growth of 31.5%. Samsung market share was 23% with a negative annual growth of 1.6%. The market shares of Vivo and Oppo were 11.1 and 8.8%, respectively. The annual growth rate was 12.3% and − 2.0%, respectively (Fig.  4 ).

Source : Canalys smartphone analysis, Jan 2020

Annual growth and market share of smartphone manufacturers in the Indian smartphone market in 2018–2019.

According to Canalys Smartphone Analysis, Jan 2020 Xiaomi India was able to maintain its top position in 2019 with an annual growth of 5% and a market share of 29%.

Xiaomi’s smartphone shipments across the globe

According to Macquarie Research, July 2018, Company model has 15% CAGR for unit smartphone shipments in India in 2018-20E, driven by rising population and smartphone penetration rates. When compared to the rest of the globe, Xiaomi’s popularity is incredibly high in India (Figs.  5 , 6 ).

Source : Macquarie Research, July 2018

Xiaomi’s Global smartphone shipment.

Source : Canalys Research

India’s smartphone market Q3 2018-top 5 vendors.

The performance streaks of Xiaomi have shown no signs of abating. The company has cemented its lead in the country by shipping more than 12 million smartphones in Q3 2018. Samsung was able to ship 9.3 million smartphones in Q3 2018. Vivo and Oppo came the third and fourth with 4.5 million and 3.6 million shipments, respectively.

SWOT analysis of Xiaomi

Growing market Growing market for smartphones in developing countries is a major strength of Xiaomi, especially in the Asian market. India, China and Pakistan are the largest consumers in the Asian market. Currently, Xiaomi products are available in more than 80 countries around the world and have a leading foothold in many of them.

Pricing strategy The pricing strategy adopted by Xiaomi is penetrative pricing. It prices its product very reasonably. It offers the right quality at the right price to its customers.

Quality products At a very low price, the company sells good quality products on the e-commerce portal. The smartphones of Xiaomi are regularly rated very high on quality.

Consistent strong revenues and profit The Company has seen a consistent increase in the annual growth for the last 4 years which enabled innovations in the smartphone segment.

Advance technology The smartphones of Xiaomi are technologically advanced and are well known for its cameras which are very high in resolution. Xiaomi is often at the leading edge of new technology as it offers innovative and featured products.

Increased brand awareness The increase in brand awareness of Xiaomi smartphones has resulted in higher sales across the Asian market.

Online marketing The Flash sales of Xiaomi smartphones on e-commerce portal have made consumers go crazy, and the company was able to sell the smartphones at very reasonable prices in a limited time.

Investment in R&D The Company invests heavily in R&D. Its major R&D expense is towards cost advantage Footnote 3 rather than on differential advantage. Footnote 4

Operating advantage Its low production cost is an operating advantage with excellence in engineering and innovative designs.

Brick-and-mortar store Xiaomi was able to sell its smartphone through click stores. (Flash sales). But offline sales were not so attractive. Lack of significant retail presence is a weakness.

Advertising and marketing The company has spent very less on marketing and advertising. Its advertisements are not very consistent. The company spends on advertising only during a new product launch.

Poor service and weak after sales Service centres of Xiaomi India are limited and provide very little after-sales support when compared to the competitors.

Brand image and equity Because of being a Chinese manufacturer, the company’s brand image is not as good as Samsung and Apple.

Opportunities

Growing urban income The per capita income is the indicator of the prosperity of an economy. According to the Ministry of statistics and programme implementation (MOSPI), the per capita income has shown a rise of 8.6% (FY Footnote 5 2017-18). However, it was slower than in the previous year growth pattern.

Increase in urban population According to U.N. World Urbanization prospects 2018 report, 34% of India’s population lives in urban areas. It shows an increase of 3% urban population since the 2011 census.

FDI norms The relaxation in FDI norms has a positive impact on the smartphone industry.

Growing Educated youth preferring smartphones The shopping trend of this growing educated youth has shown a preference for smartphones which are available at reasonable prices. According to the IMF, India’s population mostly comprises of young people, with 41% of people in the age group of 25–40.

Emerging market India as an emerging market for the smartphone segment provides an opportunity to increase revenue.

Government regulation As the government is serious about the security of phones and user data, the company has to respond to India’s data security and privacy concerns. It can be a destabilizing factor.

Health concern As the customers are showing a lot of concern towards health, an awareness about the dangerous effects of using mobile phones can have an impact on consumer behaviour which can in turn have a negative impact on the smartphone industry.

Uncertainties in share market Due to sudden fluctuation in stock prices, Xiaomi sinks after billions of shares are unlocked for sale. This will have an impact on the market share of Xiaomi India.

The imposition of Tax The implementation of GST has increased the prices of goods. But Xiaomi products are still priced cheaper than its competitors. However, when the government has cut the GST rates, the company has reduced its prices of smartphones to pass the benefits to its customers.

Increase in competition The market for smartphone makers in India is saturated as many other Chinese manufacturers (like Oppo and Vivo) are coming up with affordable products with handsome specs.

Business model and innovative strategies of Xiaomi India

The Flash sale model has worked wonderfully for Xiaomi. In Flash sales, the product is generally made available only in limited quantities. The model has made the customers go crazy. The CEO of Xiaomi India Mr Manu Jain has defined himself as a Maverick. He is the one who challenged the status quo by doing exactly the opposite of what other mobile brands were doing in India. People have labelled him Crazy as the rivals were entrenched in brick-and-mortar stores across the country; he has adopted the online route to sell its products in a country like India. The company has got huge orders within that limited time, and Xiaomi India was able to reach its target sales in that short span (Fig.  7 ).

SWOT analysis of Xiaomi India

The pricing strategy of Xiaomi India is that its products are 30–50% cheaper than the top brands like Samsung and L.G. The company’s strategy is to keep just 5% margin for itself. It assembles its products locally to take advantage of Make in India duty benefits. The Company has plans to follow the same pricing strategy for its smart appliances. Moreover, the Flash sales model concept shall also be extended to white goods.

The company focuses on a triathlon model. This creates synergies by cross-selling services and products to users, through its innovative retail concept which involves direct online sales to maximize efficiency and create a long-term direct digital relationship with the users. With its astounding growth, the company has challenged the leading smartphone makers Samsung and Apple in the Indian market (as per the Xiaomi Team report published on Aug 20, 2019).

Xiaomi India’s adopts a line modernization strategy as it intends to expand its smartphone line by refreshing the portfolio and expanding the range. It also wants to expand its product category and has plans to enter the white goods market in India. All the electronic appliances which are going to be launched in India are going to be based on IoT. All these appliances are going to be launched online first and then will be available in exclusive brand stores. The most innovative strategy of the company is its keen focus to create new revenue drivers.

Financial highlights of Xiaomi India

Total revenue was approximately RMB51.951 billion, up 14.8% YoY;

Gross profit was approximately RMB7.26billion, up 28.4% YoY;

Net profit was approximately RMB1.96 billion;

Non-IFRS adjusted net profit was approximately RMB3.64 billion, up 71.7% YoY;

Earnings per share were RMB0.082.

Marketing strategies

The product portfolio of xiaomi india.

The product portfolio of Xiaomi India can be categorized into Smartphones, Smart TV’s and Ecosystem Accessories. The detailed items are listed below:

Smartphones

Redmi Note 6 Pro

Redmi Note 5 Pro

Redmi 6 Pro

Other products sold by Xiaomi India

Power banks

Selfie sticks

Chargers and cables

Bands and fitness trackers

Cases and protectors

Air purifiers

VR headsets

Xiaomi offers high cost-to-performance products. The company adopts a penetration pricing strategy. It offers competitively priced smartphones to its consumers. Indian customers are price sensitive and cannot afford expensive smartphones. According to Xiaomi, its success comes from consistently focusing on price and features. Xiaomi had a tough time in India because of its competitors Samsung, Oppo and Vivo. But because of its penetrative pricing strategy, Xiaomi was able to win its battle in India. However, the company for its Premium models displays aggressive specifications that might create avenues to lift Xiaomi’s brand image and support premium pricing.

Chinese smartphone giant Xiaomi India has kicked off its No.1 Mi Flash sale on Mi.com and Amazon India. Xiaomi Smartphones were up for sale online for a limited period until Friday in the month of December 2014. Xiaomi India has also partnered with Paytm, Google pay and MobiKwik to offer cashback and rewards to its customers during the Flash sales on Mi.com. The Amazon partner has offered an instant discount to its HDFC Bank Users.

Xiaomi India has taken the online route to enter into Indian market while its rivals were deeply entrenched in brick-and-mortar stores across the country. According to Manu Jain, the India head of Xiaomi as told to ET (Mar 2018), the competitors of Xiaomi were splurging millions of dollars on advertising and hiring bollywood biggies like Khans; the company was betting on word of mouth. The company believed in their blockbuster fans, i.e. their customers.

The Flash sale offered the 4 GB RAM variant of Redmi Note % pro at a discounted price of Rs. 12,999, while Redmi Note % Pro 6 GB RAM model was available at Rs. 11,999. The company offered huge discounts and rewards to its customers during the Flash Sales.

Chinese smartphone manufacturer Xiaomi has toppled the leading smartphone maker Samsung in India (Canalys report 2018). Xiaomi which was once considered as a cheap copycat is now able to rub shoulders with the South Korean market leader. It has set up 500 Mi stores in rural areas and has plans to ramp up to 5000 stores in 2019 to increase its offline sales (ET 2018). The company also wants to penetrate the rural market through its offline sales. It also wants to enter into a franchise agreement with its local vendor to reach out to the masses. The size of Mi stores is on average not more than 300 Sq ft. These Mi stores are likely to generate employment opportunities to over 15,000 employees in these regions.

The key factor that supports smartphones sales in India is the rising rate of internet penetration which drives online purchase. However, the internet users in Indian cities rose 10% in 2017, but the overall internet users stayed low at around 480 m in 2017. It is only 35% of the total population which shows a rich upside to grow. The online channel sales of smartphones in India rose from 34% in the fourth quarter of 2017 to 36% in the first quarter of 2018. The rising 4G coverage due to operator investments in 4G networks and 4G service price cuts (e.g. Reliance Jio) have accelerated smartphone market growth (Fig.  8 ).

Smartphone sales in India: online versus offline.

Xiaomi’s high cost-to-performance smartphone models have contributed to its largest market share in India. Another major factor for its rising market share is the comprehensive distribution channels which include both online and offline. Online channels contribute to 70% of Xiaomi’s smartphone sales. According to IDC, riding on the growing online channel market trend (up from 34% in 4Q17 to 36% in 1Q18), Xiaomi also gained market share in e-Tailer shipments, to 53% in 1Q18 from 32% in 1Q17. In May 2017, Xiaomi started its first offline channel in India by establishing “Mi Home”. By 2018, Xiaomi has 17 Mi Home stores. The company increased it to 100 stores by mid-2019.

Although the entry of Xiaomi into the Indian market can be inspiring for many, the company was in the spotlight when the Xiaomi Redmi Note 7s exploded and the company refused to take the blame as it clarified that the damage to the phone was "customer induced" (Report of Times of India). Similar cases have been reported in the products under the Redmi brand as many phones exploded while charging. The Chinese tech company is facing criticism for its faulty batteries and manufacturing defects which caused the explosion threatening the lives of the users. However, the company’s CEO Mr. Manu Jain has made a statement that the damage is caused due to external forces (Business Today Nov 2019).

Moreover, Sweden’s Ericsson smartphone maker got an interim injunction against the sale of Xiaomi’s smartphones claiming that Xiaomi infringed 4 of its patents which deal with GSM, GPRS, EDGE and WCDMA technologies. This caused a ban on all Xiaomi smartphones selling in India, but later on smartphones based on Qualcomm chipsets were only allowed. Ericsson later claimed that Xiaomi was selling its non-Qualcomm products through a website called www.xiaomishop.com violating its interim order. Xiaomi India defended the claim by stating that they had no stake on the website and their name was being misused (The Indian Express Nov 2017 ).

In another case, Coolpad a Chinese smartphone maker has filed to Indian court against its rival Xiaomi over patent infringement as India has a good reputation in protecting Intellectual Property Rights (Economic Times Jun 2018).

Though the Xiaomi smartphones are famous for their design, affordable price, high-resolution cameras and good performance, it has faced a backlash on its ad ridden MIUI. Many customers hold back from buying a Xiaomi handset because of the ads being a part of its user interface.

Moving ahead

Xiaomi India has plans to invite more of its suppliers of the component to investing in India. The Chief Marketing Officer of Xiaomi India Mr. Anuj Sharma in an interview with ET said that 95% of smartphones are made in India. One of the suppliers “Holitech Technology” has signed an MoU with the Government of A.P to start its manufacturing facility. Economic Times 2018 report says that Xiaomi India has six factories in India. The company has plans to increase its manufacturing capacity of existing plants and also opening up new plants in India to cater to the local demand of customers. Presently, Foxconn Corporation India Unit makes the company’s phone locally. Foxconn and HiPad are producing Mi and Redmi devices in India. The company has plans to invest heavily in other manufacturers to build an ecosystem of IoT to extend its reach beyond smartphones.

To meet its growing demand for handsets, the company has partnered it with an original equipment maker FLEX to manufacture smartphones in Tamilnadu. This new plant at Tamilnadu is the seventh plant of Xiaomi India. Xiaomi India’s partner Holitech Technology which supplies components to top companies except for Apple sets up a plant in Greater Noida, to invest $200 mn. The new plan has started its operations in the third quarter of 2019. It is also estimated to generate 6000 jobs in the coming 3 years. It has plans to make compact camera modules, screen modules, fingerprint modules, thin-film transistors, capacitive touch and flexible printed circuits.

To boost its growth in the smartphone segment, Xiaomi India has plans to enter India’s rural market as it believes that the urban market has greater potential for the online market, but in rural India, the offline segment provides significant growth. It has launched Mi stores in the Tier 3 market of rural India to cater to the needs of India’s rural smartphone user. The Chief Operating Officer of Xiaomi India Mr Murali Krishna has said in an interview with ET that they have launched 500 stores in the rural market across India.

Out of 48% of market share, 20% of the sales of Xiaomi India are offline and the rest are online. The companies plan to open their own operated and branded stores is still pending with the Government. It has plans to open around 200 retail stores in the next 2 years to increase its target market.

Xiaomi India has plans to enter the white goods market in India which will make the country’s largest smartphone maker the full-fledged consumer electronics company in India. The Company has plans to make its electronic goods as smart appliances based on IoT. These smart appliances can connect to the internet and other devices and can be operated remotely. Xiaomi India’s potential electronic appliance category includes air conditioners, washing machines, refrigerators, laptops, vacuum cleaners and water purifiers.

The CEO of Xiaomi India as reported to Business Today has plans to launch various product categories in India, and their only concern is to customize the products to suit Indian customers. Xiaomi India would like to foray in areas where stringent rules and regulations don’t apply. Rather than bringing products like Drones which are subjected to strict rules and regulations, the company would like to focus on flexible sectors like electric cycles and vehicles.

The company at present caters to 50 markets in the country and has plans to enter 500 markets. To expand its business, it shall make offline presence through exclusive brand stores with a range of smartphones, smart televisions and other electronic appliances. The Chinese handset maker Xiaomi is all set to install its vending machines to sell its smartphone and accessories in major Indian cities (ET May 2019). These vending machines are called “Mi Express Kiosk “and will allow its consumers to purchase smartphones and accessories. The customers can pay through credit or debit cards, cash and UPI (ET 2019).

Xiaomi India has plans to launch in the high-end range of smartphone market competing for the toe to toe with the likes of Samsung, Oneplus and Apple which currently rule the segment in 2020.

Conclusion and inferences

The handset market has witnessed stiff competition, as the bigger players are getting even bigger and marginalizing the smaller players. Samsung of South Korea and Xiaomi of China are expected to continue their fight for the top slot in 2020. The other rivals for the top five positions will be from Oppo, Vivo, Realme, HMD Global(Nokia) and Huawei/Honor. Through the innovative strategies of Xiaomi, it is likely to become a game changer in the near future. The category expansion strategy of Xiaomi has made it a global player from just a startup firm.

Xiaomi has 190 million MAUs Footnote 6 on the MIUI.MIUI (Mi User Interface) is the proprietary operating system built on the android operating system which allows users to download mobile apps from the android ecosystem. The company has 38 apps with more than 10 million MAUs and 18 apps with more than 50 million MAUs. This app includes Mi App Store, Mi Browser, Mi Music, Mi Video Apps. (ET March 2018). With such innovative strategies, Xiaomi India is building a growing tribe of fans (Xiaomi tribe). They mostly target millennials who are tech savvy and innovators of products.

The most important move of Xiaomi India about offline expansion, especially in the rural market, is the significant factor for its growth and success. Moreover, the promise to get innovative designs like foldable smartphones and bezel-less smartphones at an affordable price shall make Xiaomi India sustain the top position in the long run.

Xiaomi plans to expand its product category (entering the white goods space in Indian market) shall open newer avenues of growth in the Indian market. The appliances based on IoT will contribute to the growing revenue. Xiaomi’s investment in various channels, innovative business models, growing ecosystem across devices and internet services is likely to drive market share gains in the future.

According to IDC 2018, Xiaomi has already acquired 30.6% market share in the first quarter 2019; the company’s future rests on how it capitalizes the strengths and minimizes its weaknesses to create sustainable competitive advantages. Currently, the company should concentrate on improving its manufacturing facility, advertising, product quality and distribution network. The company should come up with more such innovative business practices to deal with increasing uncertainties. The case study is based on secondary data from corporate websites relevant reports, news and articles from business magazines and newspapers. The study is useful to learn about the smartphone segment in India, its growth potential and challenges, future trends. To the best of the author’s knowledge, no such study was made in the past which attempts to investigate the marketing mix strategies, business models and challenges faced by smartphone maker Xiaomi India with the detailed analysis. The study infers that case study of Xiaomi is a lesson for all marketer’s as uncertainties and challenges can appear any time, and a combination of market research and innovative strategies is necessary to face such situations.

Maverick—one who doesn’t go along with group or party.

CAGR—Compounded Annual growth rate

Is something where the focus of the company is on reducing the cost.

Is something where the focus is on developing different features.

FY starts from 1st April and ends on 31st March in India

MAUs—Monthly Active Users.

“Behind the fall and rise of China’s Xiaomi”, 22 December 2017. Wired.com. https://www.wired.com/story/behind-the-fall-and-rise-of-china-xiaomi/

Buisness Today Nov 21, 2019, Xiaomi Redmi Note 7S allegedly explodes. https://www.google.com/amp/s/m.businesstoday.in/lite/story/xiaomi-redmi-note-7s-allegedly-explodes-company-says-fire-customer-induced/1/390793.html

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Business today, December 21, 2018, Xiaomi’s Redmi Go handset could soon be launched in India. https://www.businesstoday.in/technology/news/xiaomis-redmi-go-handset-could-soon-be-launched-in-india/story/302990.html

Business Today, December 20, 2018, Xiaomi No. 1 Mi Fan Sale: Here are all the deals and discounts you need to know about. https://www.businesstoday.in/technology/news/xiaomi-no1-mi-fan-sale-here-are-all-the-deals-and-discounts-you-need-to-know-about/story/302592.html

Business Today, Mar 20, 2019, Xiaomi makes its largest investment in India so far. https://www.businessinsider.in/xiaomi-investment-india-new-products-launch-expected/articleshow/68460618.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Business Today Nov 15, 2018, Xiaomi is the leader of the pack in India with a market share of 27.3% in Q3. https://www.businesstoday.in/technology/news/xiaomi-is-the-leader-of-the-pack-in-india-with-market-share-of-27.3-in-q3/story/291275.html

Business Today, November 20, 2018, Xiaomi plans to set up 5000 stores in rural India by the end of 2019. https://www.businesstoday.in/current/economy-politics/xiaomi-plans-to-set-up-5000-stores-in-rural-india-by-end-of-2019/story/292820.html

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CNBC Markets, 22 June 2018, Xiaomi reportedly awards founder $1.5 billion in stock ahead of IPO. https://www.cnbc.com/2018/06/22/xiaomi-reportedly-awards-founder-1-point-5-billion-in-stock-ahead-of-ipo.html

First post, Jan 02, 2020, Like Xiaomi, Realme phones are now spammed with ads, but they can be disabled. https://www.firstpost.com/tech/news-analysis/like-xiaomi-realme-phones-are-now-spammed-with-ads-but-they-can-be-disabled-7849991.html

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Macquarie Research, Jul 8, 2018. http://www.macquarie.com/research/disclosures

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The Business Today, Apr 02, 2019, Xiaomi India bets on internet services to increase revenue. https://www.businesstoday.in/buzztop/buzztop-technology/xiaomi-india-bets-on-internet-services-to-increase-revenue/story/333225.html

The Business Today Apr 25 2019, Xiaomi bets big on offline as online sales saturate. https://www.businesstoday.in/technology/news/xiaomi-bets-big-on-offline-as-online-sales-saturate/story/340430.html

The Business Today, Aug 27, 2018, Xiaomi eyes rural market in India, to open 500 Mi stores. https://www.businesstoday.in/current/economy-politics/xiaomi-eyes-rural-market-in-india-to-open-500-mi-stores/story/281674.html

The Business Today, Jun 19, 2019, Xiaomi Redmi Note 7 Pro is on sale today on Flipkart, Mi.com; check price, specifications. https://www.businesstoday.in/technology/news/xiaomi-redmi-note-7-pro-sale-today-on-flipkart-micom-price-specifications/story/357244.html

The Business Today, Mar 18, 2019, Xiaomi bets big on India, invests Rs 3,500 crore in two tranches. https://www.businesstoday.in/technology/news/xiaomi-bets-big-on-india-invests-rs-3500-crore-in-two-tranches/story/328741.html

The Business Today, Mar 20,2019Xiaomi enters the digital payments market, expands handset manufacturing. https://www.business-standard.com/article/companies/xiaomi-enters-digital-payments-market-expands-handset-manufacturing-119032000049_1.html

The Business Today, Nov 15, 2018, Xiaomi is the leader of the pack in India with a market share. https://www.businesstoday.in/technology/news/xiaomi-is-the-leader-of-the-pack-in-india-with-market-share-of-27.3-in-q3/story/291275.html

The Economic Times Apr 1, 2019, Xiaomi looks to monetise internet services in India. http://economictimes.indiatimes.com/articleshow/68666216.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times, Apr 26, 2019, Xiaomi slips but retains top spot in the Indian market. http://economictimes.indiatimes.com/articleshow/69054617.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times, Aug 23 2018, Xiaomi Q2 revenue soared 152% on strong growth in India. http://economictimes.indiatimes.com/articleshow/65504336.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times Dec 20, 2018, Xiaomi to invite more component suppliers to invest in India. http://economictimes.indiatimes.com/articleshow/67147023.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst . Accessed 3 Jan 2019

The Economic Times Dec 4, 2018, Xiaomi eyes India’s rural market to fuel growth. http://economictimes.indiatimes.com/articleshow/66941007.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times Dec 6, 2018, Xiaomi leads India wearables market in Q3 2018. http://economictimes.indiatimes.com/articleshow/66969493.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times Dec 21, 2018, Xiaomi to enter white goods space in India. http://economictimes.indiatimes.com/articleshow/67184592.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times Jan 3, 2018, Smartphone sales will grow only in India. http://economictimes.indiatimes.com/articleshow/67200234.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times Jan 9, 2019, Xiaomi sinks after billions of shares are unlocked for sale. http://economictimes.indiatimes.com/articleshow/67450375.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times Jan 2, 2019, Xiaomi TVs cheaper by up to Rs 2000. http://economictimes.indiatimes.com/articleshow/67343214.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times Jan 4, 2019, Xiaomi, Redmi split to become different brands: report. http://economictimes.indiatimes.com/articleshow/67378086.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times Jun 01, 2018, Coolpad open to taking Xiaomi to court in India. https://www.google.com/url?sa=t&source=web&rct=j&url=https://m.economictimes.com/tech/hardware/coolpad-open-to-taking-xiaomi-to-court-in-india/amp_articleshow/64408739.cms&ved=2ahUKEwjZkLqFq8znAhV-yTgGHZYDAlkQFjAAegQIBhAB&usg=AOvVaw17Pd8MSFWpYBjfEdQgCB00&ampcf=1

The Economic Times Jun 8, 2019, Samsung, Vivo & Oppo intensify offline battle to take on Xiaomi. https://economictimes.indiatimes.com/tech/hardware/top-brands-like-samsung-oppo-take-the-phone-battle-offline/articleshow/69698361.cms

The Economic Times, Mar 17, 2018, Unboxing Xiaomi: how this Chinese company does what it does in India. http://economictimes.indiatimes.com/articleshow/63342269.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times May 13, 2019, Xiaomi to sell phones via vending machines in India. http://economictimes.indiatimes.com/articleshow/69311072.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times, Nov 26, 2017, China’s handset maker Xiaomi came first in India. https://economictimes.indiatimes.com/tech/hardware/how-chinas-handset-maker-xiaomi-came-first-in-india/articleshow/61798368.cms?from=mdr

The Economic Times Nov 29, 2019, Xiaomi touches $5 billion milestone in 2018–2019. https://economictimes.indiatimes.com/tech/hardware/xiaomi-touches-5-billion-revenue-milestone-in-india-in-2018-19/articleshow/72299318.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Economic Times Sep 6, 2017, Chinese smartphone maker Xiaomi open to moving servers to India. http://economictimes.indiatimes.com/articleshow/60382698.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The Hindu, Apr 09, 2019, Xiaomi set up new manufacturing units in India for smartphones, PCBs. https://www.thehindubusinessline.com/info-tech/mobiles-tablets/xiaomi-sets-up-new-manufacturing-units-in-india-for-smartphones-pcbs/article23479556.ece

The Hindu Apr 24, 2019, Xiaomi eyes 10,000 retail stores in India. https://www.thehindubusinessline.com/info-tech/xiaomi-eyes-10000-retail-stores-in-india/article26931067.ece

The Hindu, May 18, 2018, Urbanization on the rise in India. https://www.thehindu.com/news/national/growth-in-urbanisation/article23925543.ece

The India Today, May 13, 2019, Mi Express Kiosk launched in India, allows buyers to purchase Xiaomi products instantly. https://www.indiatoday.in/technology/news/story/mi-express-kiosk-launched-in-india-allows-buyers-to-purchase-xiaomi-products-instantly-1523687-2019-05-13

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Tabassum, R., Ahmed, S. Xiaomi invades the smartphone market in India. Decision 47 , 215–228 (2020). https://doi.org/10.1007/s40622-020-00242-w

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All You Need to Know about Xiaomi - The Popular Chinese Electronics Company

Himaya Presthitha , Chayanika Goswami

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Xiaomi.

‘Quality products at honest pricing’ is almost everyone’s need. Xiaomi has a separate fan base for its high-grade products built with cutting-edge technology at reasonable prices. Xiaomi is a Chinese company that has its major ground in electronics. The company has its presence in over 100 countries and regions and has been hailed as the world's most valued tech startup already in 2014. Xiaomi currently ranks in the 70th position on the Top 100 Most Valuable Global Brands in 2021 by Kantar BrandZ.

Xiaomi Mobiles have also gained much popularity in India, which has only seen growth year on year. The company tops the list of the best-selling phones in India. Xiaomi India even made it to the ‘GUINNESS WORLD RECORDS’ by building the largest light mosaic (logo) in the world. It was set by placing 9,690 bulbs and this momentous work is found on the terrace of Xiaomi’s head office in Bengaluru. Here are some more interesting facts and figures about Xiaomi.

Xiaomi – Company Highlights

About Xiaomi Xiaomi - Founders/Owners Xiaomi - History Xiaomi - Name, Tagline & Logo Xiaomi - Funding & Investors Xiaomi - Competitors Xiaomi - Revenue Model Xiaomi - Growth & Revenue Xiaomi - Future Plans

About Xiaomi

Xiaomi is an electronics company based in Beijing, China. It was founded by Lei Jun in April 2010, and in 2014, Xiaomi was the largest smartphone company in China. Today, Xiaomi is one of the top five smartphone vendors in the world. The smartphone commodities of Xiaomi include different series such as Mi Series, Mi Note Series, Mi Max Series, Mi Mix Series, Mi NoteBook Series, Redmi Series, Blackshark, and Pocophone. Xiaomi has around 291.6 million active users for its MIUI updates. Besides, the company also offers laptops, mobile apps, mobile accessories, wearables, home appliances, and smart-home devices.

From 2019, Xiaomi even started selling accessories such as caps, bags, glasses, backpacks, and also lunchboxes, pillows, cups, filters, umbrellas, and screwdrivers.

In 2018, Xiaomi launched Mi Credit in India for easy accessibility of personal loans.  The company also offers various value-added-internet services like 'Mi Music', 'Mi Video' and 'Mi Game'.

Xiaomi - Founders/Owners

Lei Jun is the founder, CEO, and President of Xiaomi. The other co-founders are, Lin Bin, Dr. Zhou Guangping, Liu De, Li Wanqiang, Wong Kong-Kat, Hong Feng and Chuan Wang.

Lei Jun is a graduate in computer science from Wuhan University. In 1992, Lei Jun joined Kingsoft, a Chinese software company as an engineer. In 1998, Lei Jun became the CEO of Kingsoft. In December 2007, he resigned from Kingsoft for health-related issues. While he was still working with Kingsoft, Lei Jun founded an online bookstore named Joyo.com. Joyo.com was acquired by Amazon.com in 2004.

After resigning from Kingsoft, Lei Jun became an angel investor and invested in over 20 companies. He still invests in various companies through Shunwei Capital. In 2008, he joined UC Web as Chairman, and in 2010 Lei Jun founded Xiaomi.

Xiaomi co-founder & President Lin Bin is a graduate in radio electronics and holds a rich experience of working with companies like ADP, Microsoft, and Google. Lin Bin is also a member of the board of advisors of Tufts University School of Engineering located in Boston (USA).

Dr. Zhou Guangping , who is a Ph.D. in Electrical Engineering, worked with Motorola and held various pivotal positions in the company before joining Xiaomi. Currently, Dr. Zhou leads the hardware and BSP teams at Xiaomi.

Liu De is an M.S. and an expert in Industrial design. He established the Industrial Design Department at the University of Science and Technology Beijing. In 2003, Liu De founded 'New Edge', an Industrial Design Company. Mr. Liu currently looks after the industrial design and Ecosystem Development teams at Xiaomi.

Li Wanqiang is known as one of the earliest UI and HCI experts in China. After completing his graduation in Industrial Engineering in 2000, Mr. Wanqiang joined Kingsoft, where he was leading many important and well-known software projects. In 2010 Wanqiang joined Xiaomi as a co-founder.

Wong Kong-Kat graduated in computer science in 1997 and joined Microsoft, where he worked till 2010. Mr. Wong is now in charge of the Mi wifi and Mi Cloud teams.

Hong Feng holds a post-graduate degree in computer science.  He started his career with Siebel System as a Lead Software Engineer. In 2006, Mr. Hong joined Google as a Senior Software Engineer. Later he also looked after the development of the various localized products of Google (in China) like Google Music and Google Pinyin Input as a Senior Product Manager at Google China. Mr. Hong now looks after the MIUI division at Xiaomi.

Xiaomi co-founder Chuan Wang is a seasoned entrepreneur. In 1997, Mr. Wang founded Thunderstone Technology, which grew to be the largest VOD (Video on Demand) system provider in China. In 2007 Chuan Wang founded a digital book company named Beijing Duokan Technology of which he is currently the CEO. In 2012, Mr. Wang joined Xiaomi as the co-founder and Vice President. Presently he manages the Mi TV and Mi Box teams at Xiaomi.

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Xiaomi - History

Lei Jun founded Xiaomi in 2010, as a software company and created MIUI ROM based on Google's Android. The idea behind developing MIUI was to offer more functionalities and a better UI than Android. MIUI indeed got the popularity it deserved. As per reports in March 2020, the MAU ( Monthly Active Users) of MIUI increased to 330.7 million worldwide.

In 2011 Xiaomi entered the hardware segment by launching the Mi One phone. The Xiaomi team's focus has been on creating quality hardware devices and sell them at comparatively lower costs than those available in the market while they intended to make revenue through their services and content. The company today not only sells mobile phones but much more like mobile apps, wearables, home appliances, and smart home devices.

Xiaomi - Name, Tagline & Logo

The meaning of the word ‘Xiaomi’ is ‘Millet’ and few reports show that it also means ‘Rice’. Lei Jun relates the word ‘Xiao’ to the Buddhist concept that, a single grain of rice is as great as a mountain’, indicating the company’s endurance. “Only for fans” was its tagline before.

The logo of the company shows the word ‘MI’- written in white placed inside an orange rectangle. ‘MI’ is the abbreviation for “Mobile Internet”, but Xiaomi has mentioned that it can also be read as “Mission Impossible”, representing all the challenges the company has faced so far.

Xiaomi - Funding & Investors

Xiaomi has raised funding worth approx. $7.4 Billion over 15 different funding rounds. Xiaomi went public in 2018.

Xiaomi - Competitors

Top competitors of Xiaomi include Samsung Electronics, Apple , Huawei , Samsung , OnePlus, and Oppo . Xiaomi sustains its paramount position with constant updates and optimization along with marketing at reasonable prices. Apple and Samsung provide good quality phones but have high prices. Whereas Xiaomi provides a number of features at reasonable prices.

Redmi smartphones are priced for as low as 6000 rupees on Amazon, and Xiaomi continues to have the highest market share for smartphone shipments in India. One of Xiaomi's strongest competitors is Realme. Realme is a daughter brand of Oppo also coming up with equally great phones like Xiaomi. And thus there is strong competition between Realme and Xiaomi. Motorola and Samsung are increasing the competition. Samsung released the M series where they actually did focus on value for money without compromising necessary specs.

Xiaomi - Revenue Model

Xiaomi’s primary source of revenue is from smartphones, the Internet of Things (IoT) and lifestyle products, internet services, and other miscellaneous products and services that the company offers.

A major portion of Xiaomi's revenue comes from the sale of smartphones. In 2018, the company is reported to have sold 119 million smartphones. Around 25% of Xiaomi's revenue comes from IoT and Lifestyle products. The company deals in a wide variety of IoT-enabled products like smart TVs, electric scooters, vacuum cleaners, cameras, rearview mirrors, etc. As regards the internet-based services provided by the company, pre-loaded apps and services form a good part of Xiaomi's revenue. Besides the company offers monthly subscriptions to its TV shows, games, and movies, and also earns by providing advertisement services.

Xiaomi - Growth & Revenue

Xiaomi has grown in sales and product ranges. The company reportedly has around 22,074 employees worldwide.

However, due to the Coronavirus pandemic, the smartphone company saw a decline in the Q1 of 2020. However, Xiaomi has also been declared as the only brand among the top five smartphone sellers , to achieve comparatively sound sales in the first quarter of 2020. It saw a 1.4% YoY from 2019, during the first quarter of 2020.

In 2019, Xiaomi’s total revenue was approximately RMB 205.84 Billion, and gross profit was nearly RMB 28.55 Billion. In the Q4 of 2019, the company’s total revenue grew by 27.1% to RMB 56.5 Billion with an attuned net profit of RMB 2.3 Billion and a 26.5% YoY increase.

“Despite headwinds from the Sino-US trade war and global economic downturn, Xiaomi stood out in 2019 with a commendable set of results as our revenue exceeded RMB 200 billion for the first time. We also celebrated several key milestones, ranging from the successful launch of our dual-brand strategy as Xiaomi and Redmi are spun-off and independently operated, the affirmation of ‘5G+AIoT’ as our strategic roadmap, to our inaugural entries into the prestigious ranks of the Fortune Global 500 and BrandZ’s Top 100 Most Valuable Global Brands” says, Mr. Lei Jun, Founder, Chairman, and CEO of Xiaomi.

According to reports dated September 1, 2021, Xiaomi has revealed that it would not be launching any more of its products with the Mi brand. The Chinese tech giant has decided to withdraw the "MI" name from all their future products.

Xiaomi - Future Plans

Xiaomi’s vision is to make quality technology accessible to everyone, i.e., “Innovation for everyone”. The company makes this possible with its high-quality products and remarkable services.

In 2020, Xiaomi intends to keep its focus on the development of 5G smartphones, and thus improve its position in the premium smartphone segment. The company also has plans to invest big in AIoT.

In the current scenario, where the Indian Government and the public at large are opposing China-made goods, Xiaomi India Head Manu Jain is quite optimistic about the company's position in India.

"We act like an Indian company since we have local productions. Data is stored in India as well. We have been trying to build a truly local company"  - quotes Manu Jain

According to reports, Xiaomi has 7 factories in India, four of which are in Andhra Pradesh, two in Tamil Nadu and one in Noida. As claimed by the company about 99% of Xiaomi phones are produced in India. As said by Manu Jain, the company has also started a pilot project whereby the company is exporting Xiaomi phones made in India to Bangladesh and Nepal. Besides smartphones, the company claims that almost 100% of smartphone chargers, USB cables and batteries are made in India. Xiaomi also has a smart TV manufacturing plant in Tirupati, Andhra Pradesh.

With an aim to expand its business in India, MI increased its production capacities in the country by establishing 2 more factories to manufacture smartphones in India, and 1 factory dedicated entirely for the Smart TV division of the brand, as of February 2021.

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How Xiaomi is Dominating the Global Smartphone Market?

Just have a look around yourself, there must be at least 5 people around you who would be using a Xiaomi phone. Today, we will be talking about the leading smartphone brand who has been able to establish trust among users worldwide.

Let us first deep dive into Xiaomi’s journey-

Xiaomi Corporation is a Chinese electronic company founded in April 2010. The company began its operations as a software company by ex-Kingsoft CEO Lei Jun, by creating a new custom ROM based on Google’s Android, MIUI. The company launched Mi 1 and Mi 2 smartphones in August 2011 in and 2012 respectively in Asia and East Asia Markets.

In 2015, Xiaomi Corporation decided to expand its business in India through major e-commerce sites and offline retailers. Xiaomi was a ground-breaking smartphone at the time in budget and was well received by Indian customers. Since then, the company has expanded in Pakistan, Spain, UK, Ireland, Austria, Denmark, Sweden, Paris, Milan and the USA.

Besides smartphones, the corporation has also launched various smart home products, fitness products, TVs, laptops, drones, Wi-Fi routers, cloud services and instant messenger services.

Xiaomi Business Model

With the main aim of providing quality technology at affordable prices to everyone, Xiaomi has captured third place in the global smartphone market. Xiaomi’s Chief Executive Officer Lei Jun fragmented the source of revenue-generation into four segments of the market:

• Internet of Things (IoT) and lifestyle products
• Smartphones
• Internet services
• Miscellaneous services and products

As the years of success passed, the revenue generation process became faster and enterprise value touched $100 Billion during the initial public offering. The company began to compete with tech giants such as Apple and Samsung.

When Xiaomi was struggling to gain profit in 2016, the CEO decided to sell products other than smartphones. They generated substantial revenue that was enough to make a strong base for a large company. Besides selling smartphones, the company also provides services like air purifiers, suitcases, televisions and much more. Xiaomi also provides paid cloud storage. Services offered by Xiaomi also include online games and TV shows. Xiaomi is also producing AI-engines which can impact the business model positively in future.

Now, let’s have a look at different categories in which Xiaomi is ruling the technology market:

• Xiaomi’s Global Smartphone Market: In the present day, the smartphones of Xiaomi are responsible for 65% of the total revenue. According to a survey, Xiaomi sold 119 million smartphones in 2018. It is the highest number for any brand to date.
• Internet of Things and Lifestyle Products: Xiaomi has always focused on making people’s life simpler with its innovative technologies. Xiaomi’s IoT and lifestyle products roughly made 25 percent of revenue generation in 2018. It produced around $6.4 billion approximately. The products include internet cables, Bluetooth Speakers, Smart TV, Electric Scooters, Vacuum Cleaner, Cameras, Smart Home systems and much more.
• Internet Services: The business model of Xiaomi also includes internet service business. These businesses include preloaded apps and apps in the Mi store. Around 9.1 per cent of the total revenue comes from these services. They also provide cloud storage which is again a paid service. Xiaomi always focused on its internet services. Its efficient internet services are for start-ups. Start-ups play a crucial role in Xiaomi’s success in terms of business.

Xiaomi’s Revenue Generation Model:

With ensuring better productivity at an affordable price, Xiaomi focuses on its customer acquisition and advertising strategy. The business model of Xiaomi includes a variety of electronic gadgets and internet services that are innovative and attractive. Miscellaneous additional services and products of Xiaomi also have their fair share in helping the company generate good revenues.

Customer reliability is one of the critical strengths of Xiaomi. Xiaomi always produces affordable products. This thing still fascinates the customer towards the brand. Xiaomi provides its users with an unforgettable experience which also helps them to retain their customer base. This lets the company have more subscribers for its proprietary services such as Mi Store, Music, MI Cloud and so on. All this helps the company make good money.

Marketing Approach adopted by Xiaomi:

Xiaomi has kept its marketing strategy minimalistic due to the cost leadership business strategy. Unlike other recent competitors like Oppo and Vivo, the mobile internet company didn’t adopt traditional marketing and utilised social media marketing to save on advertising costs.

Xiaomi adopted hunger marketing as an integral part of their digital marketing strategies. The company operated according to the emotional needs of their target customer segment by creating a shortage of supply in purpose, creating a buzz in the market and evoking desire in customers to own an MI smartphone.

Xiaomi focused primarily on the price element of the marketing mix compared to other elements of the 7P’s of marketing. Let us check out those 7Ps of marketing: Product: The mobile internet company offered high-quality phones with latest features at unbelievable prices. The product consisted of high-quality hardware components and the final price was very low when compared to other brands.

• Pricing:  The product was sold on its cost price through online platforms without involvement of any mediator.
• Place:  After the huge success in China, Xiaomi launched its products internationally. They hired Hugo Barra (Ex-Google android Executive) to discover new opportunities for expansion.
• Promotion by Social Media:  Xiaomi leveraged social media platforms beautifully to enhance their online presence. Engineers engaged with consumers and gathered feedback to refine the software and remove the bugs.
• Promotion by Brand Promoters:  Xiaomi actively participates in the discussion on social media has succeeded in generating a dedicated fan base of millions of users. Promotion by Word of Mouth: The Flash sales created a buzz and everyone was talking about it. It helped Xiaomi to gather huge popularity.
• Promotion by CEO:  Xiaomi’s head, Lei Jun, did a great job in making his brand look cool. He put a face to the brand. Lei Jen’s is quite similar to Steve Jobs in the way he talks about the brand.

Social Media Strategy adopted by Xiaomi

Leveraging the power of social media marketing, the Chinese mobile internet company didn’t invest a single penny in traditional advertising. The company employed 2000 people over social media and online forums to manage its online community. Xiaomi followed a well-strategized plan to expand its online presence:

• Building a strong tech fan base: Starting the company with a single product that was MIUI operating system, Lei Jun was not in the mood to spend money on advertising and marketing in the beginning phase. To create brand awareness, he with his team started to promote his product on online forums. They all worked very hard and spent a lot of time on forums, making comments, sending posts and advertising. They used the above method to do marketing with zero budget, they set up MIUI mobile phone forum, which became the base camp of “mi fan” with over 1 million registered users.
• Gaining the trust of the fan base: Xiaomi started to collect feedback from its users every week and implement it in the next release. Every week, a new version of MIUI was released which was again then analysed by a few hundred thousand hardcore users. Some of the users participated in product research, development, test, spread, marketing and public relation. Fans also organized offline city gatherings.
• Selling directly to your fans and Promote your brand’s name: Naturally, the 1 million “mi fan” users became the first buyers of MIUI smartphones. People bought the phones, liked it and recommended it to other users. The company now uses Flipkart, Amazon and offline stores as Point of Sale.

Campaigns by Xiaomi

Social media marketing is a very effective and reliable source for any brand, product which is going to be launched. If social media marketing is used with a proper plan and strategy then we can see a huge difference in traffic and terms of revenue. To connect with the customers, attract engagement and build the presence of the brand online, Xiaomi developed various social media campaigns. Let’s have a look into them.

#MiIndia – A Social Media Campaign on Twitter by Mi India To attract new buyers for Mi 3 (the newly launched Smartphone by Mi India in July 2014), the brand connected with people on Twitter use the hashtag #MiIndia. Users were asked to show their interest in the Smartphone and register themselves on the official website. One lucky winner would win a power bank from Mi India.

#GuessTheCup- A Social Media Campaign on Facebook by Mi India To promote the Mi Bands, the brand connected with people across Facebook with a contest. The users were asked to guess the cup under which the band was present in a video uploaded. The lucky winners would get a chance to win bands from Mi India.

Redmi Note– A Social Media Campaign through Twitter by Mi India Mi India connected with people on Twitter to promote their new Redmi Note phone and convinced them to participate in the contest. The users were asked to follow the brand and re-tweet the official launch tweet for Redmi Note. 10 lucky winners would win priority passes for the grand launch of the Smartphone.To amplify the effect, Xiaomi debuted television with its first ever TVC for the Indian market in 2015. The ad film promoted its newest offering- Redmi Note 3.

#Shot on RedmiNote7s On Instagram, the camera quality of the Mi phones was explored and promoted in the best way. Xiaomi relied on Social media to engage with Mi fans, consumers and used the platform to share thoughts, converse with like-minded people and generate high-quality content.#ShotOnRedmi helped communicate the value of a phone for a potential consumer and also helped in retaining followers for the brand.

Note Kiya Jaye – #RedmiNote7Pro With the launch of Note 7 Pro, Xiaomi launched a new campaign “Note Kiya Jaye” that featured their new brand endorser, Ranveer Singh who had the power to play multiple characters with his strong comical tone. Note Kiya Jaye effortlessly played out humorous scenarios while showcasing the features of the phone and innovative technology for customers.Xiaomi left no stone unturned to promote its product. They used 360 degree marketing strategy slowly and steadily. They have also conducted several influencer marketing campaigns to promote its product among the youth.

• DurSeDekho- Redmi Note 7 Pro In the classroom scene, the Father (Ranveer Singh) while casually inspecting the classroom environment uses the double-tap double-zoom feature on Redmi Note 7 Pro’s 48MP camera to zoom into the student’s desk to find that he is reading a comic book instead of a textbook.

Key Takeaways from Xiaomi’s Business Strategy

Xiaomi’s business strategy depends upon time and trends. Here are some key-takeaways from the strategy that we must study and implement to further growth:

• Assembling and Employing a fan base: Since 2012, the brand has created a huge fan base that involves millions of people across the world. Fans spend countless hours online discussing Xiaomi products on various forums which increased the level of brand awareness at no extra cost to the company. Just like Apple, every mobile company enjoys a hardcore following.
• Manufacturing Exceptional Products at Pocket-friendly services: With the aim of providing people with exceptional products at pocket-friendly prices, Xiaomi with MIUI interface created a practical design with their latest technology, By providing exceptional technology, they have also targeted the lower-income group. They can buy these smartphones easily. Xiaomi mainly competes with the market on providing cheap products and services.
• Regular Optimizing of Products and Services: The mobile company is actively developing the ecosystem for its products and services. Xiaomi’s business strategy attracts business from 55 companies of which 29 companies were originally started by Xiaomi itself. Besides manufacturing smartphones, Xiaomi also deals in various products ranging from gaming laptops to homemaking products.
• Large Community and Social Media Engagement: With more than 1 Million monthly users, MI community has become a strong platform to interact with the Mi users. When compared to other brands, some of the biggest tech giants do not provide a common platform to share their views. The tech giant also invites its fans for its launch of any new product. Xiaomi also does its engaging part with the users on the other social media platforms and remains active with them.
• Flash Sales: Xiaomi builds its market by creating a demand for its newly launched product. People get the Fear of Missing Out (FOMO) and eventually end up discussing when the next sale goes on. This leads to curiosity and free promotion. This type of marketing strategy is called hunger marketing.
• Beta Access to Gadgets: To create a hype in the market, Xiaomi chooses a limited number of beta users which can be up to 500. They can buy gadgets for less selling price and loyalty points before its ahead of the official launch. Xiaomi teased its MiPad in May, selected Xiaomi fans got hold of the Android-based tablet a few weeks before it hit Xiaomi’s online sales.The strategy used created hype and enhanced word-of-mouth advertising. It’s usually a period when newly-revealed gadgets drop off the radars of most gadget enthusiasts.

Conclusion Truly, Xiaomi is a perfect example of a start-up business. It has been a unique blend of business strategies, digital marketing strategies and social media marketing strategies which has transformed the business in just 5 years of its inception. Cost competitive strategies have been boon for the brand. There are opportunities for Xiaomi to become the world’s No. 1 smartphone company as the company is already giving a tough competition to other competitors.

Experential

Unlocking The Success Secrets Of Xiaomi In The Indian Market

• Computing & Gadgets
• Mobile Devices

Introduction

In recent years, Xiaomi has emerged as a dominant force in the Indian mobile devices market, captivating consumers with its innovative products and strategic approach. The company's remarkable success in India can be attributed to a combination of factors, including its astute market entry strategy, product localization, and a strong focus on building brand presence. By delving into the intricacies of Xiaomi's triumph in the Indian market, we can uncover valuable insights that shed light on the company's winning formula and its impact on the mobile devices industry.

Xiaomi's journey in India represents a compelling narrative of resilience, adaptability, and ingenuity. As we unravel the layers of its triumph, we gain a deeper understanding of the dynamics at play in one of the world's most fiercely competitive mobile devices markets. This exploration will not only illuminate the strategies that have propelled Xiaomi to the forefront but also provide invaluable lessons for businesses seeking to carve their niche in the Indian market.

The meteoric rise of Xiaomi in India serves as a testament to the company's unwavering commitment to innovation, customer-centricity, and strategic agility. By dissecting the pivotal elements of Xiaomi's approach, we can glean profound insights into the intricate interplay of market dynamics, consumer behavior, and brand positioning. This journey of exploration will unravel the enigmatic allure of Xiaomi's success and offer a glimpse into the future landscape of mobile devices in India.

As we embark on this captivating odyssey through Xiaomi's conquest of the Indian market, we are poised to unearth the secrets that have propelled the company to the zenith of success. Join us as we unravel the captivating saga of Xiaomi's triumph and glean invaluable lessons that transcend the realm of mobile devices, resonating with businesses across diverse industries.

Understanding the Indian Market

The Indian market stands as a vibrant tapestry of diverse consumer preferences, cultural nuances, and economic dynamics. Understanding the intricacies of this multifaceted landscape is pivotal for any company aiming to establish a formidable presence in the country. In the realm of mobile devices, India presents a unique amalgamation of burgeoning technological adoption, price sensitivity, and a burgeoning youth demographic that is increasingly tech-savvy.

One of the defining characteristics of the Indian market is its sheer scale. With a population exceeding 1.3 billion and a rapidly expanding middle class, India offers an expansive consumer base with a voracious appetite for mobile devices. Moreover, the country's diverse socio-economic strata necessitates a nuanced understanding of varying purchasing power, regional preferences, and cultural inclinations.

Furthermore, the Indian market is characterized by a pronounced emphasis on value for money. Consumers are discerning and seek products that offer a compelling blend of quality, features, and affordability. This inclination towards value-centric offerings has propelled the demand for budget-friendly yet feature-rich mobile devices, creating a fertile ground for companies adept at catering to this paradigm.

In addition, the digital revolution sweeping across India has catalyzed a surge in smartphone adoption, fueled by affordable data plans and a burgeoning ecosystem of digital services. This digital transformation has not only heightened the demand for smartphones but has also engendered a burgeoning e-commerce landscape, offering companies a myriad of avenues to engage with consumers.

Moreover, the youth demographic in India, characterized by its tech-savviness and digital fluency, wields significant influence in shaping consumer trends. Their predilection for cutting-edge technology, social connectivity, and multimedia consumption underscores the need for mobile devices that resonate with their lifestyle and aspirations.

In essence, comprehending the Indian market entails navigating a complex interplay of demographic dynamics, economic disparities, and technological evolution. Companies that adeptly decipher these nuances and align their strategies with the evolving needs and aspirations of Indian consumers are poised to unlock the vast potential that this dynamic market offers.

Xiaomi's Market Entry Strategy

Xiaomi's foray into the Indian market was underpinned by a meticulously crafted market entry strategy that encapsulated the company's astute understanding of the Indian consumer landscape. Central to this strategy was Xiaomi's recognition of the burgeoning demand for feature-rich yet affordable smartphones, aligning with the prevailing consumer sentiment in India. Leveraging this insight, Xiaomi positioned itself as a disruptor in the market, offering high-quality devices at competitive price points, thereby challenging the established norms and redefining the value proposition for Indian consumers.

A pivotal element of Xiaomi's market entry strategy was its embrace of the online sales model, capitalizing on the burgeoning e-commerce ecosystem in India. By eschewing traditional retail channels and directly engaging with consumers through online platforms, Xiaomi circumvented the constraints of conventional distribution networks, thereby streamlining its operations and optimizing cost efficiencies. This approach not only facilitated broader market reach but also resonated with the tech-savvy Indian consumers who were increasingly gravitating towards online shopping for their mobile device purchases.

Furthermore, Xiaomi's market entry strategy was characterized by a fervent commitment to localized innovation and customization. The company astutely recognized the significance of tailoring its products to suit the unique preferences and requirements of Indian consumers. This entailed not only adapting its devices to cater to the diverse linguistic and cultural nuances prevalent across India but also incorporating features specifically designed to address the needs of the local market. By embracing this localized approach, Xiaomi endeared itself to Indian consumers, fostering a sense of resonance and relevance that set the stage for its meteoric ascent in the country.

Moreover, Xiaomi's market entry strategy was underpinned by a strategic emphasis on community engagement and brand advocacy. The company leveraged social media platforms and community forums to foster a vibrant ecosystem of brand enthusiasts and loyalists, thereby cultivating a formidable brand presence in the Indian market. This proactive engagement with consumers not only facilitated valuable feedback mechanisms but also engendered a sense of inclusivity and participation, further bolstering Xiaomi's resonance with Indian consumers.

In essence, Xiaomi's market entry strategy in India epitomized a harmonious convergence of astute market insights, strategic agility, and a fervent commitment to consumer-centric innovation. By aligning its approach with the evolving needs and aspirations of Indian consumers, Xiaomi not only carved a niche for itself but also set new benchmarks for market entry strategies in the fiercely competitive Indian mobile devices landscape.

Product Localization and Customization

Product localization and customization have been pivotal pillars of Xiaomi's triumphant journey in the Indian mobile devices market. Recognizing the diverse and nuanced preferences of Indian consumers, Xiaomi astutely embarked on a path of tailoring its products to resonate with the unique requirements of the Indian market.

At the core of Xiaomi's localization strategy lay a deep understanding of the cultural, linguistic, and regional diversity prevalent across India. The company meticulously endeavored to imbue its devices with features and interfaces that catered to the linguistic preferences of diverse Indian consumers. This entailed the incorporation of multilingual support, enabling users to seamlessly interact with their devices in their preferred language. Moreover, Xiaomi adeptly localized its user interfaces and pre-installed apps to align with the cultural nuances and usage patterns prevalent in different regions of India. This localization approach not only facilitated a more intuitive and immersive user experience but also engendered a sense of inclusivity and resonance among Indian consumers.

Furthermore, Xiaomi's customization endeavors extended beyond linguistic and cultural adaptations, encompassing the integration of features specifically tailored to address the unique needs and aspirations of Indian consumers. The company meticulously analyzed consumer behavior, usage patterns, and feedback to discern the specific requirements that would enhance the utility and appeal of its devices in the Indian context. This led to the incorporation of features such as enhanced battery optimization to cater to the prevalent power infrastructure challenges, camera enhancements tailored for capturing vibrant Indian landscapes, and optimizations for popular local apps and services. By infusing its devices with these localized customizations, Xiaomi not only augmented the practical utility of its products but also fostered a deeper emotional connection with Indian consumers.

In essence, Xiaomi's unwavering commitment to product localization and customization underscored its empathetic approach towards the Indian market. By meticulously tailoring its devices to align with the linguistic, cultural, and functional preferences of Indian consumers, Xiaomi transcended the realm of mere products, emerging as a brand that resonated with the diverse tapestry of India. This localization and customization ethos not only fortified Xiaomi's market position but also set a compelling precedent for companies seeking to establish a formidable presence in the dynamic and diverse Indian market.

Embracing Online and Offline Channels

Xiaomi's astute approach to market penetration in India encompassed a dual-pronged strategy that deftly embraced both online and offline channels. This strategic duality not only broadened the company's market reach but also catered to the diverse consumer preferences prevalent in the Indian landscape.

Central to Xiaomi's foray into the Indian market was its proactive embrace of the burgeoning e-commerce ecosystem. The company adeptly leveraged the burgeoning popularity of online shopping in India, capitalizing on the convenience, accessibility, and expansive reach offered by digital platforms. By establishing strategic partnerships with leading e-commerce players, Xiaomi ensured a ubiquitous online presence, enabling consumers across the length and breadth of India to access its diverse product portfolio with unparalleled ease. This online-centric approach resonated particularly well with the tech-savvy Indian consumers who exhibited a predilection for seamless digital experiences and the convenience of doorstep delivery.

In tandem with its online endeavors, Xiaomi also recognized the enduring significance of offline retail channels in India. The company strategically forged partnerships with established brick-and-mortar retailers, thereby augmenting its market presence and accessibility for consumers who preferred the tactile experience of physical retail outlets. This omnichannel approach not only catered to the diverse shopping preferences prevalent in India but also facilitated a more immersive and personalized engagement with consumers. Xiaomi's offline retail foray was characterized by the establishment of exclusive Mi Home stores, which served as experiential hubs for consumers to interact with Xiaomi's diverse product lineup, receive personalized demonstrations, and benefit from expert guidance. This offline presence not only bolstered Xiaomi's brand visibility but also engendered a sense of trust and reliability among Indian consumers.

Moreover, Xiaomi's omnichannel strategy transcended the dichotomy of online and offline channels, fostering seamless integration and synergy between the two realms. The company adeptly harnessed the potential of its online sales to drive consumer awareness and engagement, subsequently channeling this momentum to fuel offline retail footfall and conversions. This cohesive approach not only amplified Xiaomi's market penetration but also underscored the company's agility in navigating the dynamic retail landscape of India.

In essence, Xiaomi's embrace of both online and offline channels epitomized a holistic and consumer-centric approach to market expansion. By adeptly catering to the diverse shopping preferences and consumption habits prevalent in India, Xiaomi not only broadened its market reach but also fostered a more inclusive and immersive brand experience for Indian consumers. This omnichannel ethos not only fortified Xiaomi's market position but also set a compelling precedent for companies seeking to navigate the multifaceted retail landscape of India.

Building a Strong Brand Presence

Building a strong brand presence has been a cornerstone of Xiaomi's triumphant odyssey in the Indian mobile devices market. The company's strategic endeavors to fortify its brand resonance have not only elevated its market standing but have also engendered a profound emotional connection with Indian consumers.

Central to Xiaomi's brand-building narrative in India has been its unwavering commitment to fostering a vibrant ecosystem of brand enthusiasts and loyalists. The company astutely leveraged social media platforms and community forums to cultivate an engaged and fervent community of users who not only championed Xiaomi's products but also actively participated in shaping the brand narrative. This proactive engagement not only facilitated valuable feedback mechanisms but also imbued Xiaomi's brand with a sense of inclusivity and authenticity, resonating deeply with Indian consumers.

Moreover, Xiaomi's brand-building endeavors transcended the realm of conventional marketing, encompassing a multifaceted approach that underscored the company's ethos of empathy and resonance. The company meticulously curated its brand messaging to align with the aspirations, values, and cultural fabric of India, thereby forging a narrative that transcended mere product promotion. By weaving a narrative that celebrated the spirit of innovation, affordability, and inclusivity, Xiaomi endeared itself to Indian consumers, fostering a sense of kinship and loyalty that transcended transactional relationships.

Furthermore, Xiaomi's brand-building narrative in India was characterized by a fervent commitment to corporate social responsibility and community empowerment. The company proactively engaged in initiatives that not only enriched the lives of Indian communities but also underscored its commitment to being a responsible and empathetic corporate citizen. By aligning its brand with causes that resonated with the Indian ethos, such as digital literacy, environmental sustainability, and skill development, Xiaomi not only bolstered its brand equity but also endeared itself to consumers as a brand with a purpose.

In essence, Xiaomi's relentless pursuit of building a strong brand presence in India epitomizes a narrative of empathy, resonance, and community-centric ethos. By fostering a brand narrative that transcended mere product promotion and resonated deeply with the aspirations and values of Indian consumers, Xiaomi not only fortified its market position but also emerged as a brand that embodies the spirit of inclusivity, innovation, and social responsibility. This brand-building saga not only serves as a testament to Xiaomi's strategic acumen but also sets a compelling precedent for companies seeking to carve a lasting imprint in the hearts and minds of Indian consumers.

Leveraging Social Media and Community Engagement

Leveraging social media and community engagement has been a cornerstone of Xiaomi's triumphant journey in the Indian mobile devices market. The company's strategic endeavors to fortify its brand resonance have not only elevated its market standing but have also engendered a profound emotional connection with Indian consumers.

Xiaomi astutely recognized the transformative potential of social media as a dynamic platform for fostering meaningful interactions and cultivating a vibrant brand community. The company adeptly harnessed the pervasive influence of social media platforms to amplify its brand messaging, engage with consumers in real-time, and foster a sense of inclusivity and participation. By curating compelling content, initiating interactive campaigns, and actively responding to consumer queries and feedback, Xiaomi transcended the realm of conventional marketing, forging authentic connections with Indian consumers.

Moreover, Xiaomi's social media endeavors were characterized by a fervent commitment to transparency, authenticity, and responsiveness. The company proactively utilized social media platforms as conduits for transparent communication, thereby demystifying its brand ethos, product innovations, and corporate initiatives. This transparent engagement not only fostered trust and credibility but also empowered Indian consumers to feel invested in Xiaomi's journey, cultivating a sense of ownership and advocacy.

In tandem with its social media initiatives, Xiaomi embarked on a proactive strategy of community engagement, recognizing the pivotal role of brand enthusiasts and loyalists in shaping the brand narrative. The company fostered a vibrant ecosystem of brand advocates, enthusiasts, and loyal users, cultivating a sense of kinship and camaraderie. This proactive engagement not only facilitated valuable feedback mechanisms but also imbued Xiaomi's brand with a sense of inclusivity and authenticity, resonating deeply with Indian consumers.

Furthermore, Xiaomi's community-centric ethos extended beyond virtual interactions, encompassing on-ground initiatives and experiential engagements. The company orchestrated community-centric events, product launch gatherings, and interactive workshops, thereby fostering tangible connections with its user base. By providing platforms for consumers to share their experiences, insights, and aspirations, Xiaomi not only amplified its brand resonance but also nurtured a sense of belonging and empowerment among Indian consumers.

In essence, Xiaomi's adept leveraging of social media and community engagement epitomizes a narrative of empathy, resonance, and inclusivity. By fostering authentic connections, transparent communication, and vibrant community interactions, Xiaomi not only fortified its brand presence but also emerged as a brand that embodies the spirit of genuine engagement and consumer-centric ethos. This social media and community engagement saga not only serves as a testament to Xiaomi's strategic acumen but also sets a compelling precedent for companies seeking to cultivate enduring relationships with Indian consumers.

Providing Value for Money Products

At the heart of Xiaomi's resounding success in the Indian mobile devices market lies its unwavering commitment to providing value for money products. The company's astute understanding of the Indian consumer landscape, characterized by a discerning emphasis on affordability and quality, has been pivotal in shaping its product strategy.

Xiaomi's value-centric approach transcends mere pricing considerations, encompassing a holistic ethos of delivering products that offer an unparalleled blend of innovation, functionality, and durability at compelling price points. The company's product portfolio, spanning smartphones, smart devices, and ecosystem products, reflects a meticulous curation of features and capabilities that resonate with the diverse needs and aspirations of Indian consumers.

Central to Xiaomi's value proposition is its relentless pursuit of technological innovation without compromising on affordability. The company has consistently introduced cutting-edge features, robust performance capabilities, and sleek designs across its product lineup, thereby democratizing access to advanced technology for Indian consumers. This strategic confluence of innovation and affordability has not only elevated Xiaomi's market standing but has also empowered Indian consumers to embrace and experience the transformative potential of technology.

Moreover, Xiaomi's value-centric products are underpinned by a fervent commitment to quality and reliability. The company's rigorous quality assurance processes, coupled with a customer-centric approach to product development, have engendered a sense of trust and assurance among Indian consumers. Xiaomi's products are synonymous with durability, performance, and user-centric design, thereby offering unparalleled value that transcends the realm of mere price considerations.

Furthermore, Xiaomi's value proposition extends beyond individual products, encompassing a comprehensive ecosystem of interconnected devices and services that augment the overall consumer experience. The company's ecosystem approach, characterized by seamless integration, interoperability, and affordability, has not only enriched the lives of Indian consumers but has also fostered a sense of continuity and convenience.

In essence, Xiaomi's unwavering commitment to providing value for money products epitomizes a narrative of empowerment, accessibility, and consumer-centric ethos. By delivering products that encapsulate a harmonious blend of innovation, quality, and affordability, Xiaomi has not only redefined the value proposition in the Indian mobile devices market but has also emerged as a brand that resonates deeply with the aspirations and discerning preferences of Indian consumers. This value-centric ethos not only fortifies Xiaomi's market position but also sets a compelling precedent for companies seeking to cater to the dynamic and value-conscious Indian consumer landscape.

Xiaomi's remarkable ascent in the Indian mobile devices market stands as a testament to the company's strategic acumen, unwavering commitment to consumer-centric innovation, and astute understanding of the dynamic Indian consumer landscape. The company's triumph in India is not merely a saga of market conquest but a narrative of empathy, resonance, and inclusive brand building that has redefined the contours of the mobile devices industry.

As we reflect on Xiaomi's journey, it becomes evident that the company's success is deeply rooted in its ability to align with the evolving needs and aspirations of Indian consumers. From its astute market entry strategy that challenged conventional norms to its fervent commitment to product localization and customization, Xiaomi has epitomized a brand that resonates deeply with the diverse tapestry of India. By embracing online and offline channels in a cohesive omnichannel strategy, Xiaomi has not only broadened its market reach but has also catered to the diverse shopping preferences prevalent in India.

Moreover, Xiaomi's relentless pursuit of building a strong brand presence, leveraging social media, and fostering community engagement has transcended the realm of conventional marketing, forging authentic connections and engendering a profound emotional bond with Indian consumers. The company's commitment to providing value for money products has democratized access to advanced technology, empowering Indian consumers to embrace innovation without compromising on affordability.

In essence, Xiaomi's conquest of the Indian market serves as a compelling testament to the transformative potential of strategic agility, consumer-centric ethos, and empathetic brand building. The company's journey not only illuminates the dynamics of the Indian mobile devices landscape but also offers invaluable lessons for businesses seeking to establish a formidable presence in one of the world's most vibrant and diverse consumer markets.

As we look towards the future, Xiaomi's triumph in India serves as an inspiring narrative that transcends the realm of mobile devices, resonating with businesses across diverse industries. It underscores the profound impact of empathy, resonance, and strategic acumen in shaping enduring brand narratives and fortifying market positions. Xiaomi's journey in India is not merely a triumph; it is a testament to the enduring power of consumer-centric innovation and inclusive brand building in shaping the destiny of businesses in the dynamic and diverse landscapes of the world.

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What went wrong with Xiaomi's dream journey in India?

Repeatedly running afoul with indian regulators, the chinese smartphone maker currently has a precarious situtation in india, the market it once dominated. what went wrong.

• Updated Oct 07, 2022, 10:10 PM IST

Chinese consumer electronics company Xiaomi Technology India Private Limited is again in news. The company, which is one of the market leaders in India's smartphone market, had hogged the limelight for offering popular and affordable smartphones and best-in-class hardware at the best rates. But the company has also grabbed the Indian government’s attention due to legal complications.  

The company came into the limelight after the central probe agency Enforcement Directorate (ED) seized over Rs 5,500 crore from Xiaomi over violations of the Indian foreign exchange law. 

What’s the case 

Xiaomi India is a trader and distributor of mobile phones in India under the brand name of MI. Xiaomi India procures completely manufactured mobile sets and other products from manufacturers in India. The company started its operations in India in 2014.  

The ED on April 30 announced that it has seized more than Rs 5,500 crore worth of Xiaomi India’s assets, stating that the smartphone maker made illegal remittances to foreign entities and showed them as royalty payments. 

As per the charges levelled by ED, Xiaomi India remitted the huge sum under the guise of royalty from three companies, one of which was a Xiaomi group entity. While investigating the case, ED found that Xiaomi India started remitting foreign currency equivalent to Rs 5,551.27 crore since 2015, a year after it began its India operations. 

ED said that Xiaomi India remitted the amount following instructions from its parent group in China. “The amount remitted to two other US-based unrelated entities was also for the ultimate benefit of the Xiaomi group entities,” its statement read. 

WATCH: Is it the end of Xiaomi's dream run in India? 

The central financial-crime fighting agency further stated that Xiaomi India did not avail any services from the three foreign entities to whom Rs 5,550 crore was transferred. In fact, the company has been procuring its products from various manufacturers within the country. Xiaomi India was also found to have provided misleading information to banks while remitting the money aboard, the ED said in its statement. 

Xiaomi’s defence and action 

In its defence, Xiaomi India said that the company is committed to India and that it adheres to local laws and regulations. “These royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in our Indian version products. It is a legitimate commercial arrangement for Xiaomi India to make such royalty payments. However, we are committed to working closely with government authorities to clarify any misunderstandings,” the company said after ED's action.  

Earlier this month, the company approached the Karnataka High Court and challenged the September 29, 2022 order of the Foreign Exchange Management Act (FEMA) Competent Authority, which confirmed the April 29 seizure order of the ED. 

The company had approached the HC earlier this year against this order. The HC had, however, ordered it to approach the Competent Authority under FEMA. 

New petition  

On October 7, in a new petition, Xiaomi challenged the Competent Authority’s order on grounds that a representative of a foreign bank was not allowed to be examined during the hearing.  

The company’s advocate argued that since the petition has also challenged the validity of Section 37A of FEMA which relates to assets held outside India by a company, the petition was maintainable. 

In other case 

Earlier, the Income Tax department had slapped a notice for tax evasion in December 2021. The Central Board of Direct Taxes (CBDT), in a statement in December 2021, noted that the company has made remittance in the nature of royalty, to and on behalf of its group companies located abroad, which aggregates to more than Rs 5,500 crore. 

A week after the raids were conducted, the Directorate of Revenue Intelligence (DRI) issued three showcause notices to Xiaomi India for demand and recovery of duty amounting to Rs 653 crores. The DRI, in its statement, said that Xiaomi India was found evading customs duty by way of undervaluation. 

What’s at stake 

The Indian smartphone market is mainly dominated by Chinese players with Xiaomi having around 23 per cent, Vivo nearly 15 per cent, Realme around 15 per cent, and Oppo having around 10 per cent market share, based on Mobile Devices Monitor data of 2021. Xiaomi was India's leading smartphone seller in 2021, with a 24 per cent market share, according to Counterpoint Research.  

With growing legal tussles, there were rumors that the company might be shifting its base to Pakistan.  

In a reply to a tweet by South Asia Index of moving its operations to Pakistan ‘false and baseless’ amid legal complications, Xiaomi has said the reports are baseless and that its brand is a successful example of Make in India journey as 99 per cent of their smartphones and 100 per cent of our TVs are manufactured in India.  

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• #what is happening with Xiaomi
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• #Enforcement Directorate Xiaomi

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