4/29/2024 0 Comments Doi penetration pricing strategyXiaomi Corporation which was founded in April 2010 was listed in the Hong Kong stock exchange on July 9, 2018. Xiaomi India’s focus is to design high-quality products and make it available at accessible prices to the world. It was an exclusive sales tie-up with Flipkart, and the Mi phones were sold within 30 min on the very first day. It entered the Indian market on July 15, 2014, in partnership with Flipkart to sell its smartphone Mi 3 whose price was Rs. It ranks 468th among all categories and ranks 7th in the internet services and retail category (Xiaomi Team-Aug 20, 2019). In July 2019, Xiaomi was listed in Fortune Global 500 companies and became the youngest Global 500 companies of 2019. According to the Wall Street Journal, Xiaomi awarded the founder and CEO Lei Jun about $1.5 billion in stock. The serial entrepreneur Lei Jun has founded Xiaomi in 2010 based on the vision “Innovation for everyone”. Its target market is the price-sensitive lower middle-income group of customers and millennials who prefer smartphones in a lower price range. It is the world’s fourth largest smartphone manufacturer after Samsung, Huawei and Apple. Xiaomi has launched its first smartphone in August 2011 and became the largest smartphone company in China by 2014. Initially, Xiaomi was a startup technology-based company and in a span of fewer than 5 years has become a global player in the smartphone market. The market valuation of Xiaomi is more than the US $ 46 billion. The founder of Xiaomi has an estimated net worth of US$ 12.5 billion which makes him the 11th richest person of China and 118th richest person of the world. It has entered the Western market but couldn’t catch enough attention. Later, it expanded its business in other countries like Malaysia, Singapore, Indonesia, Philippines and South Africa. Xiaomi popularly known as “Apple of China” was founded 7 years ago on April 6, 2010, by a serial Entrepreneur Lei Jun in Beijing and became the leading smartphone brand in the first largest market China and the second largest market India. The smartphone market has plenty of new players who manufacture and sell smartphones. Later, it was followed by Nokia, Ericsson, Apple, Blackberry, Samsung and others. IBM was the first company to introduce smartphones in the year 1990. Most users have shifted from simple phones to smartphones. The use of smartphones has seen spectacular growth in the recent past. Through the innovative strategies of Xiaomi, it is likely to become a game changer in the near future. The finding indicates that the company needs to focus on improving its product quality, advertising and distribution network to face fierce competition. The study aims to analyse the Indian smartphone market with the business model, marketing mix and innovative strategies of Xiaomi in order to identify its strengths, weaknesses, opportunities and challenges. Samsung of South Korea and Xiaomi of China are expected to continue their fight for top slot in 2019. It has become a global player from a startup company in smartphone market in a span of not even a decade. Xiaomi the Bengaluru headquartered firm has entered the Indian market on July 15, 2014, in partnership with Flipkart to sell its smartphone with a concept of Flash sales. Xiaomi being the “Coolest Company” in the heart of its users is committed to continuous innovation. 2.93 bn in 2017–2018 (according to IDC, Counterpoint Research). The firm that sells smartphones under the brand Redmi and Mi had a net profit of Rs. Xiaomi’s India revenue jumped 175% in 2017–2018 to Rs. The organization has achieved an astounding growth. According to IDC India, Xiaomi has 29.7% of market share at the end of Q218. Currently, Xiaomi revenue comes from the sale of products like smartphones, Iot, lifestyle products, advertising services and internet value-added services (which include online games). Xiaomi which has emerged as the top smartphone brand in India also manufactures consumer electronics and mobile apps. It produces low-cost but high specification smartphones. Xiaomi (the word Xiaomi means millet which means a “grain” that is a staple diet in various parts of the world) is the world’s fourth largest smartphone (a smartphone is a mobile phone with various functions of a computer) company based on total shipments. The case study is based on Xiaomi Corporation, a Chinese Public company, headquartered in Beijing, China.
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