Success Stories – Xiaomi In India (Part 1)

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Xiaomi has replaced Samsung as the top smartphone company in India as of Jan 2018 with the market share of 27%. The top five smartphone companies in India are (not in order) Xiaomi, Samsung, Vivo, Oppo, and Lenovo+Motorola. I will be focusing on all the points which made Xiaomi No. 1 and I will also be sharing my personal experience.

HISTORY:

Xiaomi, founded on 6th April 2010 by Lei Jun, in China and today it’s a multi-billion dollars industry. Xiaomi released its first smartphone (Mi 1) in August 2011 in China and in 2014 it became the largest smartphone company. As of 2017, it is world’s 5th largest smartphone company.

I know about Xiaomi, even before it came to India. As I love Custom ROMs a lot, and on XDA-Developers I saw MIUI rom. That time they were just the Custom ROM developers for me. And later they started manufacturing smartphones. Later they ruled their home country and became “The Apple of China”

Before Xiaomi entering India, the country was ruled by brands like Apple, Samsung, Sony, HTC, BlackBerry, LG, Lava, Xolo, Micromax, and Karbonn; just to name a few. Then it was like a BIG-BANG, Xiaomi entered Indian Market. It launched Mi 3 via Flipkart in July 2014 and due to high traffic on the website, Flipkart site crashed. Within 6 months they sold 1 million units in India. By May 2015 Xiaomi grabbed 3% market share in Indian smartphone market. At this stage, they are far from being No.1

Market Share 2015 May

Oppo was already in Indian Market, but not well known and vivo has just made its debut.

STRATEGIES:

Unlike other companies, Xiaomi didn’t go on spending millions after millions on MARKETING. Instead, they relied on social media and word of mouth. They know where people were and are, and they targeted the right place. So, this step saved a lot of money which adds to the cost, hence the phones prices were total value.

E-Commerce was doing excellent, and people use to browse lot and lot of products online, they partnered with Flipkart as their retail partner. And a new era of Flash Sale started. Other companies manufacture large quantity, and sale them; if failed to sell them all, then there was a price drop or discount. Selling online that too with Flash Sale, made people waiting and crazy to grab Mi phone. This step also saved a lot of other expenses with goes into channel sales.

Both these strategies worked like charm and Xiaomi got what it wanted, and customers got value for money phones.

I don’t know how many parts I will be making. Stay tuned part 2 coming very soon.
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