MI’s product range is huge which comprises mobile phones, smartwatches, tablets, smart TVs, power banks etc. Xiaomi is earning via its network by marketing numerous goodies. MI offer products at comparatively lower rates but still it is considered as the good quality phone maker. The handsets are of good quality, high Resolution screen, tough case, good battery life, and functions on the Android-based OS ROM termed MIUI. When compared with standard android phones, MI offers more distinctive features. Also there are options of customization.MI is using technology in the right way with its software becoming popular.
Xiaomi was founded in 2010. Xiaomi is more focused on selling handsets at a cheaper price currently, but is planning to gain more from selling contents such as applications, services, and accessories. One of the major factors in controlling price is Xiaomi’s marketplace. Mostly it is selling its products online. This reduces operating costs of stores, staff and other costs.Place
Headquarted in China, Xiaomi also has offices in Asia- Pacific, India & Brazil. MI has established a global presence (around 70 countries). Xiaomi penetrated the US and European markets via its online Mi store.
promotion strategies include Word of Mouth and social media. Xiaomi uses flash sales, selling their product in limited quantities within a restricted period as part of their sales strategies. Xiaomi also believes in Marketing without advertisement. This strategy allows Xiaomi to save money from doing advertisement as it generates the eagerness on consumers. MI is also successfully promoting a community of MI fans.
MI has positioned itself so well in the Indian market that every handset becomes a massive hit. The brand has gained a positive place in the customers’ hearts because they come up with such specifications & high excellence that make their products’ life cycle near to everlasting for next 15-18 months. MI’s focus is also on Middle class and is also considered to be student friendly. Lowest Price: The focus is also on offering great handsets at lowest price. Having low overhead costs the price of MI smartphone is considered to be nearly equal to the price of its component and production which is 60-70% lower than the price of phone with the equivalent good quality. Teenagers are becoming their main customers representing the new generation of tech savvy people. MI calls them “fans”.
MI business strategy is based on cost advantage. The company gathers and operates its large fan base in a well-organized manner with positive implications on customer loyalty. In 2014, Mi disrupted the mobile phone market by introducing flash online sales. MI claims to have sold 1 million smartphones by partnering with Flipkart. Xiaomi sold over 61 million handsets in 2014, whilst earning the 3rd spot on the list of biggest smartphone makers on a global scale. In 2014, Xiaomi was valued at 45 billion dollars making it the most valuable startup in the world. Xiaomi continues to be the number 1 smartphone brand in India for the 4th consecutive year. As per IDC’s Q2 2018 Report Xiaomi was once again the number 1 smartphone brand in India with 29.7% market share.
This means approximately one out of three smartphones sold in India are MI devices. Today Xiaomi is 24% larger than the second best player, which is Samsung. This is also the first time that any brand has shipped 10 Million smartphones in a quarter. Today top 4 selling smartphones in India are all Xiaomi phones: ( Redmi 5A, (2) Redmi Note 5 Pro, (3) Redmi Note 5 & (4) Redmi 5. Data demonstrates that Xiaomi users are engaged with their smartphone even more than Apple users. Company nurtures its fan base by offering weekly software updates and involving them with social networks and blogs. Xiaomi is customer oriented, the integration of customer experience with Xiaomi devices gives the chance to reach customers and sell them whatever they want.MI also sells smart home with Wi-Fi routers, smart TVs, media centres, webcams, lightbulbs, air purifiers and a wall plug, as well as wearables and wellness with the Mi fitness band, headphones and a blood pressure monitor.Company has created its own OS but also works with Android. Xiaomi has distorted its view on the future of achievement in the mobile smartphones market.
Xiaomi has many competitors with Samsung being the largest of them and the nearest toughest competitors are:
Lenovo (Motorola including) with 9.6%,
Micromax (with 7.5%).
If we go by market share, which is constantly falling due to non-satisfactory sales, poor marketing strategies and non-competent products.