Due its affordability, Xiaomi, a powerful digital communication equipment, has became in a worldwide revolution which everyone can have.
Xiaomi is the world’s third biggest smartphone marker after Samsung and Apple. Due its success, Lei Jun is Forbes Asia’s 2014 Businessman of the year.
Lei Jun was a student with a technical focus of computer-science at Wuhan University and at only 45 years old, has become the eighth-richest man in China with $9.9 billion.
In 2010, Lei Jun creates the brand Xiaomi which means “small rice” in Mandarin. In only 4 years, prestige and popularity of Xiaomi has increased well above all in China, due its low price and its advanced technology.
China, the world’s largest market, where Xiaomi sells more devices than Apple and it expected to rise up to 60 million unit sales in 2014, which mean double’s 2013. The first half of 2014, Xiaomi sold up to $5.5 billion, more than all sales in 2013.
This year, during the “Single’s Day”, Xiaomi sold over 1 million of mobile phones. Lei is taking advantage of similar promotions around Asia and as example, last November in Indonesia, the company sold 10.000 advices in less than 40 seconds.
Next year, sales in Asia-Pacific except Japan will represent over than half of 1.5 billion global smartphone sales. Nevertheless, there’s still a lot to do because Xioami should expand it to Europe and U.S.
Quality and technology in Xiaomi’s devices are at the height of well-known brands which have Android operating system. Xiaomi’s phone are half the price of Apple’s flagship phone, the Iphone .The brand philosophy is based on providing good smartphones at the lowest possible prices.
As reported by Kantar, Xiomi’s company is reducing the device costs faster than other brands via the web distribution model which allows a reduction of the cost up to 10 percent since the company doesn’t have to use any retailers or middle man margin.
Lei’s aim is to turn Xiaomi into a national brand in China which can influence all of China’s industry and at the same time, benefit to everybody in the world. His goal is to make a global company.
Xiaomi, via social media, collects suggestions and opinions of its users in order to improve its products. That technique, helps the smartphone company to offer good devices to its consumers and this shows in sales. A particularity of Xiaomi is that doesn’t rely on physical selling infrastructure.
Lei has built a successful company aided by Hugo Barra, former Google vice president who is in charge to oversee all markets outside China. Currently, Xiaomi has around 7500 employees.
Hugo Barra’s goal is to expand the brand around the world and due to his efforts, Xiaomi has presence in 7 international markets. However, international sales represent only the 6% of its overall sales.
With its strategy, Xiaomi burst into the Chinese smartphone market and nowadays, its competitors are imitating its strategy.
Due its success, during the last year, Samsung has lost 7 percent of market share. However, brands like Huawei and Lenovo have maintained their market share and Apple has increased its sales whith its newly launched phones.
India is the new country with potential for selling smartphones. Because of this, many Chinese brands are jumping into the Indian market where Samsung is already the leader.
Xiaomi should adapt its strategy in order to have success in the international markets. To go in other markets, Xiaomi should incorporate the cultures and traditions of all markets, add Google Pay app store and have locate manufacturing in some markets to avoid high import duties .
Within a few years, Xiaomi has turned into a successful brand in the Chinese market thanks to its capacity to understand Chinese consumers and meeting their needs. Xiaomi is the example of a good marketing strategy and an effective business model.
Your company also can be successful in China with the proper marketing strategy and we can help you. If you are interested to increase your presence in China, contact us.
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