Ever since Xiamen launched its first Android smartphone in India, the company has not looked back since then. With an important 21% mobile phone market share, it is undoubtedly a leading smartphone brand in India. Xiamy is known for its innovative, unique and affordable mobile and tablet devices. It is a privately owned entity that designs, builds, develops and sells consumer electronics with emphasis on smartphones, tablets and notebooks.
Although most of Xiamami’s products and especially smartphones operate on Android-based OS, but there is also its user interface called MIUI, which gives their devices a unique UI. In addition to the advanced mobile phones, it also makes fitness trackers, air purifiers, TVs, drones and other electronic accessories. In India, Xiamii has become a leading phone manufacturer mainly due to its aggressive pricing, which seems most likely to be attractive to the user due to high end specification at such affordable prices.
The good thing about the company is that their high quality products are supported by world-class services provided in their service centers. Xiaomi is also known for its good reputation for customer services after sales. They have MI service centers in all major Indian cities and constantly invest in making other service centers in other cities and small towns. For the company to survive in India, it is extremely important to provide professional customer care and this is where they grow on their competitors.
Xiaomi is China’s leading android based smartphone making company with presence across Asia and European markets. It’s a privately owned electronic products manufacturing company headquartered in Beijing, China. If you compare all the leading companies in the industry, it has become the 4th largest smartphone maker and that too achieved in such a short period.
It was August 2011 when Xiaomi released the first smartphone and since then it has been launching excellent quality smartphones year after year, and most of them have performed very well across the world. Company has a major market share in China, India, and many South Asian countries. The company invest a lot in research and development of new consumer electronics and as result of this, they have now released drones, air purifiers, wifi routers and fitness bands.
According to Forbes list, Xiaomi’s founder and current CEO Lei Jun is 23rd richest person in China. The company has claimed to sold over 60.5 million smartphones in recent years. The major success for the company is the Xiaomi Redmi Note 3’s performance in India with over 8,50,000 units sold in year 2016. Even though some people say that they copy Apple’s products because their design and styling is almost similar, but that is a debatable subject and should be left for critics to write about.
Xiaomi is home to over 8,000 employees working in its manufacturing facilities in China, India, Singapore and Malaysia. They are also planning to invest and expand their facilities in countries like Brazil, Indonesia and Philippines. Their tremendous growth in recent years is based on their aim to create world class electronics and sell them at lower to affordable price range. This has led to huge success and they are currently the 3rd largest smartphone manufacturing company in the world after Apple and Samsung.
Recently the company received US $1.1 billion of investment funding which made it the most valuable technology and consumer electronics making startup in the world. With its current valuation of US $46 billion, it is all set to become one of the top companies in the world. In india they entered the market in 2014, and since then they have grown enormously with many successful smartphone launches. At the beginning, they used to sell their products with only one eCommerce company in India, but now they have decided to sell with other leading eCommerce brands as well. This is a well thought out plan to increase its retail base in India.
At present Xiaomi has partnership with Airtel & The Mobile Store to sell its selected smartphones and other electronics. Recently, company started its own stores where it sells smartphones, tablets, fitness trackers and other accessories. To support Indian government’s Make in India Initiative, Xiaomi has started its first manufacturing facility in Sricity, Andhra Pradesh in partnership with Foxconn, which is the leading smartphone components making and assembling company.
Increasing its list of successful smartphones in India, Xiaomi has recently unleashed the all new Mi 5s Plus which is expected to perform well. It is also expected that the company is planning to launch its smart LED TV series in India soon. Recently they launched the Mi Notebook which is highly rated by experts and it will be interested to see when will it be launched in India.
There are several reasons behind Xiaomi’s success in smartphones market across the world. One of them is a unique strategy to price the products close to almost manufacturing cost without compromising on quality and performance of hardware components and software. Unlike Samsung and Apple who price their products ridiculously high, Xiaomi keeps the prices low in developing countries’ market where they sell in high volume to make profit. Besides smartphones being the major money maker, they also make money by selling peripheral devices, applications, premium content and smart home products. However, 95% of the company’s revenue come from sales of smartphones which is extremely impressive compared to other companies.
To reduce overhead costs, they prefer selling their electronic goods online and for that they don’t have to invest in physical stores. They sell everything online from their official eStore that helps them save money on offline retail store setups. Company also spend less on traditional advertising and instead relies more on social media networking services to directly connect with its target market in an engaging and interactive way.
Selling online helps Xiaomi keep a tight control over its stock, which makes it easier for it to process cheaper batch orders according to demand of its products and response in the market. They use flash online sales which not only helps them get exposure in terms of marketing, but also ensure the supply is never going to outstrip the demand. Moreover, it’s a great strategy to hype, popularise and promote products. On the other hand, if we see traditional OEMs, they require large upfront production costs, which companies have to manage by increasing their product prices.
The most impressive and contributing aspect of Xiaomi’s success is their willingness to listen to customers’ feedback and mould their services and products accordingly. They encourage their users to test their devices and upcoming features before releasing them in public which ensure the end customer would get a well tested feature or product to eliminate bugs.
Xiaomi’s product managers and service center professionals spend a lot of time browsing user forums and social media pages to quickly solve customers’s issues and to pick valuable suggestions. This way good ideas and tips are transferred to company’s engineers to work on for next set of updates.
Xiaomi also has it’s own on-top of android user interface called MIUI. It is open source and allowed to be downloaded on other android smartphones. It makes their applications and content easily accessible for users and in result they gain popularity and exposure. It’s a great way to widen the potential and spread the products to new potential target users.
With dedication to innovate and create new smartphones every passing year, Xiaomi is surely a company to reckon for the future and the way sales numbers are going high, future certainly look bright. However, they will have to increase the number of Mi service center to keep their existing customers happy, otherwise they may risk losing the market share earned with years of hard work and dedication.