Xiaomi, a company which is hogging more than 1/4th of India’s smartphone market, is about to do something brilliant. The Chinese giant came in India at a time when the market was vulnerable and like a clay. It could have been molded in any way possible. However, Xiaomi, change the face of the entire market with their strategy. A company based on India’s ever-growing smartphone population tapped the right nerves by playing with the price.
The company brought out it’s A game while applying its genius in the Indian market. That being said, the company is now coming out with its new plans. Internet services in India is one of the biggest markets as of now. One cannot really put a number on how huge this market is at the moment. The payments market alone is worth hundreds of billions of dollars and it is not even 10% of the Indian population using the digital payments services.
Manu Kumar Jain talked about the same. He said that the company could not announce the factories being built because of the election season and the announcement will take place in the next few months. “The announcement got delayed because of the current election season. Once that’s done, maybe a few months from now, they should be able to announce (the new factories),” said Manu Kumar Jain.
That being said, the company is looking at certain things and have recently launched a host of internet services. The company launched Mi Pay, Mi Music, Mi Video, Mi Credit and many such services. The Mi Pay app is built for the Indians specifically and it is done from scratch. The payments app was not built from scratch even in China.
Jain said, “We believe our internet business is going to be big. We believe just the payment or financial services could be billions of dollars of opportunity in India…look at the size of the UPI transaction. There is a pretty big opportunity. These services are only launched in India and China. Mi-Pay is built from scratch for India as compared to what we did in China. Other services like Mi Music are specifically designed and built in India.”
The company is looking to earn money through the internet business in India. The company looking to monetize through content. It is going to monetize via ads and that is the only way as they try to build their brand in the internet world as well.
“We do have ad monetization because we pay for the content and there’s a huge cost for just running our content operations. We do make money on our internet services like payments, music, video and many other services that we are launching. We would want to make money over there,” Jain concluded.