Xiaomi’s unique business strategy
With strong features and cheaper cost points than many other major manufacturers, Xiaomi smartphones have a reputation for being a great value. The business has recently moved outside of its native China, making a huge impression in India and progressively expanding its market position in Europe. How do they rule the global smartphone market then? Let’s find out.
Xiaomi keeps making deliberate feature decisions
For China’s disgruntled Apple users, the first Mi phone was created. Chinese customers use their cellphones for everything, including commuting, shopping, and paying for everything, thanks to the rapid development of super applications like WeChat. Long battery life is therefore vitally essential. Camera gear and software are necessary for influencers on Instagram or Weibo to capture images, videos, and livestreams. Additional technologies are unnecessary extras in comparison to these necessities.
Xiomi has a robust social media presence
Xiomi used social media marketing to its advantage and spent no money on conventional advertising. 2000 individuals were recruited by the corporation to manage its online community across social media and forums. Xiaomi expanded its internet presence in accordance with a well-thought-out approach. The initial purchasers of MIUI smartphones were the 1 million “mi fan” users. People who bought the smartphones liked them, and told other users about them. The company now leverages offline storefronts, Flipkart, and Amazon as points of sale.
Longer product cycle
You will discover that every phone maker, including Apple, Samsung, Vivo, and others, releases a new model every year. Year after year, a smart smartphone is unveiled that features the best possible displays, RAM, memory, central processing unit , etc. Every new technology has higher upfront expenses that only go down over time. But these businesses are constantly looking for new technologies. . Phone costs have increased as a result. Xiaomi, though, follows a different strategy. Xiaomi releases phones every 24-36 months with the same hardware, as opposed to introducing models with fresh hardware every year.
Online advertisements
The majority of Xiaomi’s phone sales are conducted online, and the company makes little investment in establishing a traditional brick and mortar retail presence offline. Although Xiaomi sells its items on its own website in India, it also has partnerships with Flipkart and Amazon, the two largest e-commerce platforms, to take advantage of their effective distribution networks. In this manner, the business avoided needless initial investment while ensuring that the greatest amount of smartphone enthusiasts could access their items.
Given the intense competition and the fact that no firm has controlled the market for an extended period of time, Xiaomi will need to constantly push the envelope and evolve its marketing strategy. Without a question, Xiaomi produces high-quality phones and offers them for incredibly low prices. Xiaomi has a distinctive business model that enables them to sell phones for less money.
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