Xiaomi is a brand which is on the lips of almost every tech person in India. It has managed to present itself in almost every market there is to conquer in this land of 1.3 billion people. Not only in India but around the world, Xiaomi has managed to create ripples in the concrete market dominated by a few elite companies.
India, however, remains its biggest and the best market. People have taken to Xiaomi like a swan to ballet. It is the number one smartphone seller with its market rising 175% from last year. The number of sales in 2016-17 were around INR 8000 crores. The number grew to a lavish INR 22947 Crores in the financial year 2017-18. This tells us how important India is for the Chinese brand.
That said, the prices Xiaomi offers are insanely low. That is one of the main reasons Xiaomi has conquered the Indian market. The aggressive pricing and some brilliant marketing is the reason for their success. They can price their products so aggressively is mainly due to a policy they have and also because of the different businesses the company has.
In China, Xiaomi has a smartphone business, a white goods business, and mobile internet business. Now Xiaomi has a strict policy of maintaining just five percent profit in the smartphone business which allows them to cut prices on most of their products and also white goods as well. However, the mobile internet business which is about ten percent of the company has a profit of about 60 % which kind of compensates for the other businesses. This strategy is a winning model as it is tried and tested by Xiaomi.
That said, the company is now planning to enter the white goods market in India. The white goods market in India is a massive market as it has increased by a mind-blowing 100% year-on-year. The company is going to turn into a total electronics brand in India. It is going to launch washing machines, laptops, refrigerators, air-conditioners, and also mini appliances like water purifiers and vacuum cleaners.
The main thing about these products is that they will all be smart products and will be connected to the internet in one way or another. The Internet of Things (IoT) is what these products will be based on. The positive side of this is that the products can be operated remotely and can connect to other devices as well. The executives of Xiaomi India have said that these products will be available to the consumers on the online platform first and then in the physical stores.
Judging by how the TV market is going for the Chinese company, these products will also get a huge response among the consumers. Xiaomi sold 1 million TVs in the first nine months of business. They were priced 30-50% lower than the traditional brands like Sony, Samsung, and LG. This made them shift the TV sales to offline market as well and they have recently sent more than 1 million TV sets to India to start the same.
– Unmesh Phule