Xiaomi is the third largest smartphone brand in the top 30 cities in India. E xperts say for multinationals to succeed in India the key is learning to do business the Indian way, rather than dumping global business models and practices on the local market. With a market share of 8. Making its way to the top three brands within two years of operations in India, it appears to have played the price card to perfection.

Not long ago, Micromax and Intex disrupted the market with smart pricing. They offered high-end smartphones at affordable prices, posing serious challenges to established brands like Apple and Samsung.

And will it be able to sustain the growth momentum in the long run and take a serious shot at the numero uno position? For Xiaomi, globally as well as in India, the business pitch revolves around a strong belief that high-end technology should not cost a fortune and be available to all. For instance, increased capacity of battery in Xiaomi devices is attracting users in huge numbers as they want longer battery life. To begin with, it offers its own operating system OS MI - which reportedly has more features than others.

Xiaomi started off as an OS developer and as the platform became popular it got into manufacturing smartphones. It passes on this cost advantage to end buyers by offering high-end yet affordable phones. It does indulge in advertising but in an innovative way.

It leverages social media and word of mouth to build brand image. For instance, prior to launching Redmi Note 3 in March this year, the company started an explorer programme. It chose Mi fans who were most active on the Mi community one month before the launch and handed out Redmi Note 3 as a beta-testing device. The content that the users generated on social media helped the brand attract more thanengagements. A business-to-customer model helps Xiaomi cut costs by bypassing the traditional distribution model including stakeholders like master, regional, micro distributor and retailer.

xiaomi india ppt

Many brands end up losing from five to 20 per cent margin as they follow the traditional retail model. Xiaomi also manufactures its devices locally. It helps save costs because of a friendly tax structure that the company enjoys vis-a-vis imports.

In terms of cost, local sourcing reduces the lead time in getting the products quickly to the market in comparison to imports from China which require advance planning of two to three months. The working capital which is stuck in the system is lower when one is manufacturing locally as against imports.

For instance, Redmi 2 and Redmi Prime launched in but continue to sell as they remain competitive devices in terms of features and price.

The prices also go down, but not in the same ratio. What this implies is that competitive brands are playing catch-up with Xiaomi which leads the market by bringing cutting-edge products to buyers. Interestingly, unlike other brands which launch about 30 to 40 models per year, Xiaomi rolls out only four models. Xiaomi is playing the volumes game. The lower segment of smartphones in the sub-Rs 10, category is its biggest market. Redmi Note clocked sales of about 1.

Jain admits a section of the population would always consider buying a device that they can flaunt. Jain asserts that the growth potential which the Indian smartphone market offers is big enough for everyone to co-exist. But as India becomes more digital, more and more people will read reviews, blogs and compare brands. And people will discover that Xiaomi will easily beat any established brand on specifications and price points, he says.

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A game of innovation: N Chandramouli. Therefore, volume is the only metric on which they can hedge their bet. The brand is packing a punch in the sub-Rs 10, category, the largest selling smartphone segment. This target audience will continue to grow and offer brands like Xiaomi an opportunity to expand. Xiaomi is treading on thin ice. Competition is coming up with better, newer and cheaper products.In partnership with Hipad Technology, Xiaomi has also started manufacturing smartphones at its power bank plant in Noida, Uttar Pradesh.

This results in a total of six smartphone manufacturing plants in India to date. Today we are deepening this commitment with three more smartphone factories and our first SMT plant dedicated towards local manufacturing of PCBA units.

Xiaomi has pioneered local assembly of PCBAs in India, and I believe we will continue to play a key role in transforming India into a global manufacturing hub. Xiaomi made these announcements at its first ever Supplier Investment Summit in India, where the company is hosting over 50 global smartphone component suppliers to educate them about the Indian manufacturing ecosystem.

We believe that this will help our suppliers effectively assess and expand their manufacturing capabilities in the country; contribute towards meaningful investment and job growth; and help boost the overall economy. The supplier summit starts today and will run until 11 April The component suppliers will be visiting the states of Uttar Pradesh and Andhra Pradesh to explore and learn about investment opportunities in India, incentives offered by the central and state governments, FDI policy, industrial policy and various state sector specific policies.

Xiaomi has grown to become the number one smartphone player in India over the past three years, with an overall market share of Aims to lead a broader INR 15, Cr. India Localization Smartphones. Newer Posts. Older Posts.It also has other meanings, including "Mission Impossible", because Xiaomi faced many challenges that had seemed impossible to defy in our early days.

We believe that high-quality products built with cutting-edge technology should be made accessible to everyone. With presence in over 30 countries and regions, Xiaomi is expanding its footprint across the world to become a global brand. In Julyhe returned to Kingsoft as Chairman of the Board. Moreover, he invested in many successful start-up companies like YY, UC and Vancl as an angel investor. On April 6,he chose to re-start and founded Xiaomi. Lin Bin joined Xiaomi in He graduated from Sun Yat-sen University in with a bachelor degree in electronic engineering.

He was obtained his master degree of computer science from Drexel University in the United States of America. He is solely responsible for Google China Mobile search, android localization application team formation, engineering research and development. Wang Xiang joined Xiaomi in and he is responsible for platform functions and will assist the CEO with Group operations.

Wang Xiang graduated from Beijing University of Technology with a bachelor degree in electronic engineering. He worked as Senior VP and President of Greater China at Qualcomm, and under his leadership the company rapidly expand and deepen its relationships in China. Hong Feng joined Xiaomi in While at Google Headquarters, Mr. Wang Chuan joined Xiaomi in He is responsible for business development and team management of air conditioners, refrigerators, washing machines and other major appliances other than TV.

He founded Thunder Stone Technology Ltd. Liu De joined Xiaomi in and is in charge of the recruitment, promotion, training and assessment of senior staff, organizational structure design and approval.

In addition, he is responsible for cadres training sessions. In the meantime, he remains Dean of Qinghe University. Liu De graduated from Beijing Institute University with a bachelor degree in industrial design.Xiaomi is one the fastest growing consumer electronics companies based out of China. Xiaomi initially started off as a mobile brand but now offers a wide range of consumer electronics products. The products in the collection of Xiaomi are.

These products are mostly run on Qualcomm processors in India due to a case pending with the court with Ericsson on the usage of non-Qualcomm products in India.

Similarly, it has customised the products to the requirements of the region it operates in to incorporate the local market and political conditions. This shows the strong product portfolio in the marketing mix strategy possessed by Xiaomi. Xiaomi sells at low price and offers high quality products. According to the founder, chairman and CEO their main aim is to sell the products at the price the product is produced without making any profit.

So, the strategy being followed by Xiaomi is sell at a low price today and gain later strategy. Their profit generation focus is on the accessories, apps, and services that are to be used with their products. This is a unique pricing strategy in its marketing mix, mostly aimed at gaining a substantial market share. The pricing strategy of Xiaomi has enabled the brand to penetrate into a global market and have a substantial market share. Initially, they started with low end feature phones to enter the market.

Now, gradually, Xiaomi has also established itself as a leading smartphone player across the world.

xiaomi india ppt

Xiaomi operates in China, Singapore, India and 27 other countries mainly in emerging markets of south east Asia. It has a huge presence in many of these countries but major turnover comes from mainland China. Xiaomi mainly sells through online mode though it has made some modifications in some of the emerging markets like India where it uses retail outlets to sell its products. It operates through Flipkart in the online space in India.

Xiaomi also operates dedicated stores called Mi home present in Beijing and now being opened in Bangalore. It expects to open Mi home stores in India.

Xiaomi promoted its products by selling high specs at lower price to markets where technology savvy people could not afford high spec products from Xiaomi competitors. They have distinguished themselves by building a strong following around their custom operating system. Most of the employees of Xiaomi are also previous loyal fans who have become part of the team developing the product.

In this way Xiaomi has made sure there is a pull strategy than a push strategy of the products produced by them. Xiaomi also leveraged social media to the fullest and word of mouth. It promoted through micro blogging sites and social networking sites like Facebook and Twitter.

They regularly organize flash sales which forced the people to buy them due to the urgency. This caused a hype for the product and there has been alleged reports that some of the products were sold out in 6 minutes.

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This type of publicity pushed sales for Xiaomi. Xiaomi also organizes fan festivals and local meetups regularly like the concept followed by Harley Davidson to try and create a cult following for Xiaomi products. The fans are encouraged to bring their friends along to these meetings as well.Xiaomi pledges 15 crore to relief fund. Xiaomi increases Redmi Note 8 price. Covid impact: Lenovo-Motorola, Xiaomi, Lava to shut factories. Xiaomi to donate masks, hazmat suits, abide by lockdown orders: Manu Jain.

Xiaomi, Samsung market share rises, Realme slips. All rights reserved. For reprint rights: Times Syndication Service. Tech and Gadgets. Precious Metal. Market Watch. Pinterest Reddit. By Writankar Mukherjee. By revenue, Xiaomi continues to be behind Samsung India which had clocked mobile phone sales of Rs 43, Samsung is at the second slot by shipment volumes with When contacted, Xiaomi India chief finance officer Sameer Rao said the company has launched multiple successful smartphones in which are priced extremely competitively.

The company has also expanded its TV, soundbar, beard trimmer, water purifier and shoes. He said Xiaomi currently has the largest exclusive retail brand network in India. Rao said the company has made significant investment in supporting product categories, building the largest exclusive retail network in India, scaling up manufacturing for smartphones and televisions along with PCBA manufacturing of smartphones which are done locally.

Xiaomi touches $5-billion revenue milestone in India in 2018-19

Read more on International Data Corporation. Oppo Electronics. Follow us on. Download et app. Become a member. Brands may look to flood market with smartphones, offers after Covid restrictions ease: Analysts. To see your saved stories, click on link hightlighted in bold. Fill in your details: Will be displayed Will not be displayed Will be displayed. Share this Comment: Post to Twitter.Variety of smartphones and other devices available: Xiaomi has a variety of smartphones at different prices in its portfolio, catering to different types of customers.

Also, the company is not entirely dependent on the smartphone business and it is diversifying into various consumer electronics products like smart TV, fitness bands, notebooks, air purifier, water purifier etc.

For example, the smartphone might be used as a remote for the smart TV. This kind of interconnection would create a lock in for the customer to Xiaomi products. Strong brand awareness and value: Xiaomi has shipped an estimated 90 million smartphones ina significant portion of shipments being in emerging markets such as India.

New launches and premium products like Note Pro and Mi Mix 2 are expected to result in the sales figure being even higher. The company has a variety of products like smartphones, air purifiers, smart TVs, etc. Not only products but revenues from services like app store and browser are also expected to rise. The high growth prospects due to rising market share in emerging markets and plans to expand into developed markets are good reasons to give Xiaomi a valuation of 20x, higher than its major competitor Apple 16x.

Focus on hardware and software: Xiaomi not only sells smartphones having high end features but also sells low to mid-range models.

The company is able to sell low to mid-range models with good features due to its competitiveness in software. Having its own operating system enables the company to roll out quick OS updates to increase customer satisfaction.

The OS is also modified for different models of phones. Strong performance in multiple markets: Xiaomi first entered the Indian market in The growth was largely due to the establishment of a strong offline sales network of Mi Homestores and Mi Preferred Partner stores to complement the online sales network.

As of Q3Xiaomi has the largest market share in India with The company has always seen the Indian market as crucial to its globalisation strategy, so the runaway success in the Indian market ahead of a powerful competitor like Samsung is a major step towards becoming a global leader.

Artificial intelligence to improve customer experience: AI is recognised as the future of business that will drive autonomous networks and improve customer experience through a more in-depth understanding of customer behaviour. Artificial intelligence has found application in many industries, including smartphone industry. The global smartphone leader Samsung has also come up with Bixby AI assistant. The industry is clearly moving towards AI-enabled smartphones to provide greater value to the users.Xiaomi is the third largest smartphone brand in the top 30 cities in India.

E xperts say for multinationals to succeed in India the key is learning to do business the Indian way, rather than dumping global business models and practices on the local market. With a market share of 8. Making its way to the top three brands within two years of operations in India, it appears to have played the price card to perfection. Not long ago, Micromax and Intex disrupted the market with smart pricing.

They offered high-end smartphones at affordable prices, posing serious challenges to established brands like Apple and Samsung. And will it be able to sustain the growth momentum in the long run and take a serious shot at the numero uno position?

For Xiaomi, globally as well as in India, the business pitch revolves around a strong belief that high-end technology should not cost a fortune and be available to all. For instance, increased capacity of battery in Xiaomi devices is attracting users in huge numbers as they want longer battery life.

xiaomi india ppt

To begin with, it offers its own operating system OS MI - which reportedly has more features than others. Xiaomi started off as an OS developer and as the platform became popular it got into manufacturing smartphones. It passes on this cost advantage to end buyers by offering high-end yet affordable phones. It does indulge in advertising but in an innovative way. It leverages social media and word of mouth to build brand image.

For instance, prior to launching Redmi Note 3 in March this year, the company started an explorer programme. It chose Mi fans who were most active on the Mi community one month before the launch and handed out Redmi Note 3 as a beta-testing device. The content that the users generated on social media helped the brand attract more thanengagements. A business-to-customer model helps Xiaomi cut costs by bypassing the traditional distribution model including stakeholders like master, regional, micro distributor and retailer.

Many brands end up losing from five to 20 per cent margin as they follow the traditional retail model. Xiaomi also manufactures its devices locally. It helps save costs because of a friendly tax structure that the company enjoys vis-a-vis imports.

In terms of cost, local sourcing reduces the lead time in getting the products quickly to the market in comparison to imports from China which require advance planning of two to three months. The working capital which is stuck in the system is lower when one is manufacturing locally as against imports. For instance, Redmi 2 and Redmi Prime launched in but continue to sell as they remain competitive devices in terms of features and price. The prices also go down, but not in the same ratio.

What this implies is that competitive brands are playing catch-up with Xiaomi which leads the market by bringing cutting-edge products to buyers.

Interestingly, unlike other brands which launch about 30 to 40 models per year, Xiaomi rolls out only four models. Xiaomi is playing the volumes game. The lower segment of smartphones in the sub-Rs 10, category is its biggest market. Redmi Note clocked sales of about 1. Jain admits a section of the population would always consider buying a device that they can flaunt.

Jain asserts that the growth potential which the Indian smartphone market offers is big enough for everyone to co-exist. But as India becomes more digital, more and more people will read reviews, blogs and compare brands. And people will discover that Xiaomi will easily beat any established brand on specifications and price points, he says. A game of innovation: N Chandramouli. Therefore, volume is the only metric on which they can hedge their bet. The brand is packing a punch in the sub-Rs 10, category, the largest selling smartphone segment.

This target audience will continue to grow and offer brands like Xiaomi an opportunity to expand. Xiaomi is treading on thin ice. Competition is coming up with better, newer and cheaper products.