Xiaomi, which started ten years ago, is now a thirty billion dollar company. Samsung and iPhone are the only ones with mobile phone sales. Calling this journey a fairy tale is not wrong at all, but the journey was not as smooth as it was. Today we will know about the incredible rise of Xiaomi and the tech giant who understands the customer!
The company was registered as a software company. The primary goal was to create some easy and timely custom user interface for Android mobile users. Lei Jun, a half-witted and unattractive young Sixties digital celebrity, left a corporate career with the potential to become an entrepreneur, along with several other friends.
None of them were sure, what they really wanted to do, how much they could do, how people would take their initiative – no idea. After five years of hard work, perseverance and innovative ideas, the young men discovered that their company, Xiaomi, has become known as the third largest mobile maker in the world today!
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Xiaomi has made a revolution in the mobile phone market, they started the war of handing over good phone customers at low prices, showing that other mobile brands have been forced to compete in a balanced competition. Companies couldn’t keep their monopoly on pricing, Xiaomi’s reason for bringing Android phone prices to the middle class. Samsung and Xiaomi have created a new ring and consumer category by breaking the exclusive hegemony of the iPhone, but the journey has not been smooth.
Rise of Xiaomi – Beginning of the journey
Xiaomi was born in 2010, as a software company. Lei Jun has started his own startup after leaving the job of CEO of Kingsoft Mobile. Seven others accompanied him. All eight of them were in their thirties and forty, blood was hot at that age, people were not afraid to take risks. They took the risk, left everything and went on a mission to start from zero. Many feared that the family was behind, but they did not want to look at them. Since then rise of Xiaomi has begun.
The goal was to create a simple and easy-to-use user interface system for Android users. It was named MIUI. Now those who use Xiaomi’s mobile are familiar with this term. When MiUI’s work was finally completed in 2011, they planned to use this software user interface on their mobile phones.
Xiaomi’s first mobile to come to market
Whatever the thought, the process of bringing Xiaomi brand new phones to market has begun. They still could not get to the investors. They contacted Qualcomm, a maker of mobile processors, in exchange for a percentage. Qualcomm also relied on June to sign the deal, with the Mi-One handset coming to market in April 2011. The price was kept at 1999 yuan.
Veni, vidi, vici!
There is a proverb in Italian Veni, vidi, vici – that means I came, I saw, I won. Xiaomi’s story in the mobile market is very much of this type. The first mobile was a great response. Chinese people are not accustomed to getting this configuration phone at such a low cost, it would cost two to two and a half times more money to buy a Samsung phone of the same capacity. So Xiaomi played great in this place. Their business strategy also came from here – the best product at a lower price. And that is why Xiaomi has become the focus of customers. As soon as one phone came to market, it started to run out. The amount of pre-orders kept increasing. These are the events of 2014-15.
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Xiaomi is now the world’s third-largest mobile maker, after Samsung and Apple. In 2015, the company set a record of more than 21 million mobile sales a day, which was found in Guinness World Records. They conquered India after conquering China, and have seen success there too.
Now Xiaomi has become a huge market in South Asia, East Asia, the Middle East and Europe. New phones are being released, and the technology market is experiencing a big push. Before the announcement of Xiaomi’s new mobile sales in Flipkart or Amazon in India, pre-order procession started, vendors were forced to cope with the push.
Best products at low prices
Xiaomi’s business method is very simple – the more sales, the more profits. Without trying to sell the brandValue, they try to keep the price within reach of the buyer. The phone that cost ten thousand rupees to make, Xiaomi never leaves the market for twenty thousand rupees, whatever the iPhone or Samsung is doing. The configuration of Samsung’s Fifty Thousand Phones is getting the same configuration of Xiaomi Mobile subscribers for twenty thousand taka, so why don’t people run behind Xiaomi? Another five years ago, Xiaomi’s ‘Oriental iPhone’ took its toll.
How does Xiaomi sell mobile at such a low price?
Many are interested to know, how does Xiaomi keep the price of mobile so low? One of the major reasons for this is, Xiaomi’s promotional cost is zero. They spend very little money on advertising. Recently, however, TV commercials have shown little interest. Instead, they organized a program called ‘Xiaomi User Meetup’ or ‘Dinner for the Fans’, where they listened to customer complaints and suggestions and tried to upgrade themselves.
Another source of income for Xiaomi is ads, those who use Xiaomi’s mobile, they are exposed to the phone’s own apps for 5/5 seconds. It was not in the early days, it was later linked. This ad is mentioned in Xiaomi’s policy. It is also a major source of income for Xiaomi, though customers have complained about it.
Xiaomi is more active online than offline, with very few visual outlets. This is also one of the reasons for their low cost good mobile supply. China-India or any other country Xiaomi is mainly sold online. There is also a flash sale or flat discount offer on it. Xiaomi’s ads do not appear in the newspaper, but Xiaomi believes in the promotion of the Word of Mouth. It’s as if you’re reading this article, but it also serves as a kind of campaign for Xiaomi. This is how Xiaomi is spread around the world.
Meet the needs of youth
Demand for youth is a major reason for Xiaomi’s aggression. Xiaomi has always tried to capture the pulse of the customer, understanding what customers want. That’s how they have configured the mobile configuration. Mi lineup, Redmi lineup, Pokophone series – Xiaomi’s new addition comes in store, customers are not bothered. Within the budget, Xiaomi has offered a lot of variations on mobile processors and cameras, which is why they have survived for a long time.
Xiaomi is so aggressively occupying the mobile phone market that many people do not know that the company has many more products. Xiaomi’s many other products include fitness bands, drones, smart light bulbs, robot vacuum cleaners and power banks.
The company also manufactures security cameras, media streaming devices, televisions, laptops, and even smart shoes. Xiaomi has also stepped into the world of electric scooters a while back. Their smart scooter brought to the Chinese market is capable of moving at least 18 miles once it is charged.
Xiaomi, which launched ten years ago, is now a thirty billion dollar company, with sales of mobile phones just ahead of Samsung and the iPhone. Calling this journey a fairy tale is not wrong at all, but the journey was not as smooth as it was. By struggling, Xiaomi is reigning in this market without understanding the mindset of the customer, they have turned themselves into the tech giant. Who knows, Lei Jun might not have dreamed so much the day he resigned as CEO of Kingsoft!
Feature Image: China Daily