2. Introduction
• Xiaomi Inc. better known as “Mi” is a privately owned Chinese electronics company headquartered
in Beijing, China.
• Began its operation in August 2010 with Android based firmware MIUI .
• InAugust 2012, Xiaomi launched the Xiaomi Mi2 smartphone.
• The company had sold over 10 million. Mi2 devices in just 11months.
• Following the success of MI2, Xiaomi launched their new models MI3,REDMI 1S,REDMI Note in the
continues years.
• Expanded into other consumer electronics including tablets, wifi network routers, SmartTV, Set-top
box, wearable, cloud storage and cloud computing service, instant messenger, and power bank.
• Company having more than 7000 patents.
3. Cont…
• Xiaomi currently sells its products in all major counties including USA, Australia, India, Russia,
Singapore etc.
• Xiaomi broke the world record for most Smartphones sold in 24Hrs on April 6 2015.The sale
reached a staggering 2.12 million mark within 24 hrs. (Celebrates Xiaomi Day-with discount)
• Also known as “The new Apple” or “The apple of China”.
• Xiaomi is now the third largest smartphone maker in the world followed by Lenovo and LG at
fourth and fifth place respectively. Samsung remains at the first place despite declining
shipment volume, followed by Apple Inc. at second place.
• The company's founder and CEO is Lei Jun, China's 23rd richest person according to Forbes.
5. • MiPad
Tablets
Software's
• MIUI
Home entertainment
• Mi smartTV
• Set top box
Accessories
• MiWiFi (network router)
• MiPower Bank (external battery)
• Mi Band (fitness monitor & sleep tracker)
6. Marketing and Business Model
Xiaomi employs a marketing strategy that is very unlike other smartphone makers such as
Samsung andApple.
– Apple makes its profit on the hardware, while Xiaomi makes their profit on its services.
– Company prices the phone almost at bill-of-material prices, without compromising the
component quality and performance.
– Xiaomi sells a model for up to 18 months instead of the short 6 months used by other to
profit from the fall in the costs of components that occurs over time.
– Xiaomi does not own a single physical store and instead sells exclusively from its own online
store which further reduce overhead costs .
– It also did away with traditional advertising and relies on social networking services as well
as its own customers to help advertise its products.
7. Cont…
• “Customer obsessed” strategy:
– Taking customer feedbacks to keep improving.
– Also maintains and develops a strong relationship with customers
through customer forums .
• An eco-system of Smart products .
• Xiaomi sells it’s product through online stores through flash sales
which ensures that supply never outstrips demand .
8. What are the features used by a Rural India Consumer?
9. • Xiaomi entered the Indian Market by mid 2014 and since then their devices have been
selling like hot cakes.
• Xiaomi currently holds 8% of the Indian smartphone industry.
• The arrival of Xiaomi has forced other competitors to reduce the price of their products
and introduce new variants .
11. Conclusion
• Xiaomi with its innovative marketing and business
models is redefining the mobile phone market around
the world, and its sure that they would be able to reach
the top position in a few years time.”
