XIAOMI, Inc

Always believe that
something wonderful
is about to happen.
- Xiaomi Mantra -

70 Million
Xiaomi’s actual smartphones
sold in 2015, directly to customers.

#1 in CHINA
By smartphone shipments 2015
15% 14.50%
13.40%
8% 8.10%
Xiaomi Huawei Apple OPPO Vivo

#5 in Wordwide
Market Share 2015
23%
16.20%
7.40%
5% 4.90%
Samsung Apple Huawei Lenovo Xiaomi

#2 in World’s Most Valued
Tech Startup

#2 in
50 SMARTEST
COMPANY 2015*
#1 TESLA MOTOR
#2 XIAOMI
#3 ILLUMINA
#4 ALIBABA
*) MIT Tech Review

mobile internet

Mi Product Milestones
2011/12
Launch MIUI,
Mi One, & Mi
2. Value
reached up to
4 Bio.
2013
Launch Mi 3. Estimated value 10 Bio
2014/15
Launch Redmi,
Mi 4, Mi Band,
Mi Box, Mi
Wifi, Mi Yi, Mi
Pad, Mi Smart
TV
2010
Xiaomi
founded.
Profit from
internet
marketing.
Value at 250 Mio in
8 months
2016
MIUI 8, Mi 5, Mi Mix, Mi
Camera, Mi Yi M1, Mi
Drone, MiJia Smarthome,
Mi VR, Mi Water & Air
Purifier, Mi Robot Vacuum
Current value
at 46 Bio

XIAOMI
BEST PRACTICES
1. World Class Executive
2. Innovative marketing
3. Dinamic-pragmatic supply
chain management &
manufacturing
4. Future expansion

#1
WORLD CLASS
EXECUTIVES

Xiaomi Executives
Experienced from Microsoft, Motorola,
Kingsoft, Sina, & Google.
Responsible for developing MIUI ecosystem (Mi Cloud, Mi Theme,
Mi Credit, etc), R&D, hardware design, & software development.

HUGO BARRA
VP Global
ex Google Android Product Management

#2
INNOVATIVE
MARKETING

Xiaomi sells online
directly to customers
from their own websites

Social Media Marketing & Customer Participation via
Mi Fans, Mi Festival, Mi Forum
Less advertising, endorsement, and no marketing agencies.
More user generated content from social media.

Experience Store

#3
SUPPLY CHAIN &
MANUFACTURING

• No excess inventory, tighter supply control
• Shortens procurement process & lower cost
by sourcing from Asia Pacific vendor (etc Sharp, Sony)
• Reduce shipping cost by locating warehouse
near e-commerce companies
SUPPLY CHAIN STRATEGY

• Strong partnership with Invitec & Foxconn (also Apple vendor)
• Essentially using same component for new phone
• Support longer product life cycles with software update,
spare part & service support.
• Resulting big enough profit margin
to keep customer price low.
MANUFACTURING

#4
FUTURE
EXPANSION

FACING THE GIANTS
Xiaomi actually is gaining niche market by offering high end Android
devices using many of the same components from Samsung & Apple,
but at very attractive price.
But, they also have to look out their native competitors like Huawei,
Oppo, & Vivo.

GLOBAL EXPANSION
• Depends on Xiaomi ability to replicate and adapt their business
model in other region. So far, India has done well.
• Comply with regional regulations regarding local material
substance.

Xiaomi’s Future Ecosystem
Internet of Things

ESTABLISHED IDEAL
START UP
HIGH
SCALE
LOW
SCALE
LOW
EMPATHY
HIGH
EMPATHY
#customeroriented

THANK YOU
Arya Pamungkas
animum.fortuna@gmail.com