Xiaomi, the Different Way in Chinese Industry

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Xiaomi is known to be one of those Chinese manufacturers of phones that are blooming, but it is more than that, as it is making its way into the Chinese mobile phone market in its own way, with a different approach to other manufacturers, who we will try to understand in this article.

Speaking of sales, provided that Xiaomi has released a market model, has had hours of availability, something difficult to achieve in an industry so competitive with much larger fish, which theoretically can offer better products at better prices.

China cannot escape the domain Android, especially Samsung’s hand, followed by a lot of Chinese companies are delighted with what Google’s operating system allows. Xiaomi is one that chooses Android (not close the door to alternatives), but few reach the level of customization and detail of his work on the operating system.

Xiaomi phones

The overall market experiencing a duopoly Android / iOS, moving between innovation and the opportunities that the vertical integration. Controlling the entire process of creating and selling a device becomes more important than it seems: to improve costs, not stay out of supplies of components, and sell the product with less reliance on the channels.

Xiaomi has understood the market well, and does not compete in the same way as you might look Huawei or Lenovo. It bases its strategy in controlling the supply chain, creates its own sales channel, and has its own services and accessories, leaving the mobile phone as a central part, but not only in their business.

Xiaomi, tribe or community of believers

Xiaomi community

It is vital to get a lower price on the phone, is the key for the user enters Xiaomi what the world offers, once within the community, offering services and accessories also give economic returns. Regular updates and participation possibilities are important, which ends up making very attractive experience within the community.

Xiaomi is a company looking for sales volumes. Looking for customer satisfaction. Looking for ways to give customers a big surprise

The idea is to draw the attention of customers who have no interest in your product – there are already too many on the market – but be happy they consider being within the community Xiaomi is the best choice. Some might call it faith community, or even “Tribe”.

Although economic results are positive, they are not expected to return, but it is important for a company so young, that does not compare to the millions in sales of Apple or Samsung, but remain distinct.

Xiaomi Sells More than Hardware

Xiaomi phone 2

The communion between software, hardware and services is vital in Xiaomi do not believe any is above the other. That company news and regular improvements this makes people feel a sense of belonging.

  • The hardware is the best; the phones have high end specifications at competitive prices. Not many models are created, preferably one per year, they can better control at all levels.
  • The accessories are well designed, with its own identity and colorful.
  • The software is updated periodically, depending on market locations. All are encompassed within what is known as MIUI, which is the name of the personalization Android, and more.
  • Services are also priority; Xiaomi has its own IM client, MiTalk. The design is very important and is in line with all household products.
  • Not close the door to other devices, and we present the Xiaomi Box, a set-top box Apple TV style.
Photo Gallery

Most importantly, they are all available on their own sales channel. The sale is online and successfully from the first day I began the adventure. Xiaomi eliminates intermediaries, but also tries to bond with each client.

The operators do not seem happy that the free ends at a good price champion for the Chinese market, causing them to lose direct contact with customers. Not all phones sold Xiaomi network, a small amount can be obtained through the operator, but with a price 30% higher.

In short, each of the Xiaomi activities are designed to add value added product expected his audience, a customer who is usually young and passionate about the Internet and new technologies.

Under a system of reserves, which are depleted?

The phones are sold by reservation. No phones manufactured without stopping, and will serve as come out of the oven, Xiaomi knows will sell. Hence always be as advertising that sold in hours.

The shortage is fictional, but the production makes it more manageable and also generates demand from others who stand looking. The model does not seem expandable millionaires many markets and sales numbers, but to them it works fine for now.

Xiaomi, a little history and sales

Xiaomi phones 3

But very few, because Xiaomi Technology is a company that was born in spring 2010, with Lei Jun as founder and investor. Earlier he had been lucky with Joyo.cn, who bought Amazon and Amazon became China. The headquarters is located in Beijing.

We have to go through September 2011 for the first Xiaomi phone; known as Mi-One, I had the pleasure of knowing and analyzing thanks to people in Deal Extreme I did get a test drive.

The Android phone dared with a dual core Qualcomm Snapdragon processor, 8 megapixel camera and a screen with four inches of remarkable quality signed by Sharp in addition to customization MIUI retailer. This does not cost more than 300 euros, half a competitor such top brand.

Xiaomi phones 4

While Huawei and ZTE were fighting in international markets Xiaomi production was raised for domestic consumption, with dropper terminal output outside China’s borders. The priority was to keep the tribe happy.

In August 2012 presented the Xiaomi MI-2, again staying at the same price offered much more: 4.3 inch IPS, quad-core processor with 2GB of RAM Qualcomm, and MIUI on Jelly Bean.

Come to the sales that have been shared: 3.5 million units the first year for the first model, and between the two, in 2012, had accumulated 7 million units. The initial target of 2 million, so rather than mission accomplished.

The forecasts for 2013 are to double the sales (more than fifteen million), which seems feasible with the arrival of two new models with better looking so than previous: Xiaomi Mi-2S and Xiaomi Mi-2A. The two models have been presented in April, especially highlighting the first to use a Qualcomm Snapdragon chipset 600.

Another milestone we remarkable what MIUI ROMs for Xiaomi terminals are not, we have that have been downloaded over ten million times. It has reached version 5, and is built on Android, but people do not want Xiaomi tied to Google and has already stated on occasion that if other ecosystem allows the same level of customization, will be taken into account.

Lei Jun, the Chinese named Steve Jobs

Lei Jun

With Xiaomi not only can draw parallels with Apple in terms of their loyal fans, which are also in the form of his creator. A Lei Jun, 42, likes to assemble presentations a similar style, including dress similarly. He accepts the comparisons, but I like to define it as an inspiration.

Another feature of the leader is active in social networks, with four million followers on Weibo, where advantage to further developments, as his official channel.

The company has had two great shots by investors, the first of 90 million, and a second last summer of $ 216 million, with Qualcomm included in operations. Currently estimated to have a value of 4,000 million, with sales of 2,000 million and more than 200 million profit.

The ambitions are there, someday will come to other markets officially. The plans point to the U.S. in 2014, and are now being planned to operate in Taiwan and Hong Kong.

What is the roof of Xiaomi, and how far you can reach with its strategy, are questions we cannot answer. I, as a user of the first phone, I trust you will go far, thanks to the meticulous they put in their work.

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About Author

Katherine Husmith

Katherine Husmith is an Internet business analyst and business builder that publishes the Business Builder Report, distributes software and ebook publications.

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