Xiaomi has become a household name nowadays. They have take the whole technology world by storm, merely five years old and this company has become 3rd largest mobile manufacturer after beating the likes of Lenovo and LG which is a phenomenal achievement.
The company started in April 2010 by 8 founder and initially they worked on the developing an android based firmware by the name MIUI. They launched there first phone by august 2011. and within a span of four years they have become the 3 rd largest sellers in the global market.
So what did they do right which gave them a rapid success in a highly competitive smartphone market. Lets analyze what strategies they used to have an edge over there customers.
1. Low margin/ High number of Sell– this concept was first brought by Motorola when they started selling Moto G/X/E their flagships phone at a highly low margin which drop down their price to such a extent that people were automatically pulled towards these phone and they become overnight best sellers. Same concept is being used by Xiaomi where they are selling their phone at a very low margins and are concentrating more on the number of phone being sold.
2. High Quality hardware and performance: The Company procure the hardware from the same vendor form where companies like HTC, Sony and Samsung are purchasing so basically its the same hardware int he phone just like big brands just at a lower price which is what customer are thriving upon. the performance of the Xiaomi phone are at par with the brands like Apple.
3. Innovative marketing strategy – The company brought in the concept of Flash sales. A very innovative marketing strategy which has now been used by other big companies as well. The Company asked user to register themselves and then sold the phone on a specific date and time, those who were lucky enough would get the phone rest will have to wait for the next flash sale. The numbers published were phenomenal, in the sale they sold 25000 units in 11 seconds. Yes this is what the number was and this create a huge hype and brought sudden interest of the people in the product they were selling.
4. Frequency of new product – Xiaomi has made it a practice to launch a new phone by gap of 1-2 months . Each product more fabulous then the previous one. You can say before Xioami old model fades away from the new headlines they hit a market with a new product with more to offer than previous one.
5.Target market – Xiaomi has strategically targeted the Developing countries and fast growing economies especially and south Asia and followed by the developing nation. They have very specifically taken care of customer needs and accordingly developer their strategies and products.
Xiaomi seems like on the right track to be the world number 1 but you never know how it turns out. Lets wait and watch!