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7 Lessons of Xiaomi’s Marketing Success Story in China

In: Computers and Technology

Submitted By LAWRENCECHIN
Words 322
Pages 2
#1: Product – not just another knock-off
Competing only on price was not what XiaoMi has chosen as their core strategy. Surely, their phones and tablets are cheaper than Apple’s and Samsung’s but, by far, not the cheapest ones in the market. There are cheaper smartphones that flood China, however all of them have a major flow – poor quality. Essentially, those devices are reverse-engineered versions of Samsung models built from cheaper materials.
By coming up with a good quality phone at lower price range was the key strategic move that put XiaoMi firmly on the map. The phone has a robust case, high quality screen and a reasonable battery. It doesn’t break easily, unlike cheaper copycats that start having issues after just a few months of use.
By building it’s own Android-based OS called MIUI, XiaoMi phones got new exciting features not found on standard Android devices as well as plenty of customization options.
#2: Price – pay less now, pay more later
XiaoMi has also realized that selling cheaper phones near their actual cost was not a sustainable long term strategy, so they decided to go with the Amazon’s model – just cover the cost of the devices and make money from selling content. Although, XiaoMi is often compared to Apple, especially considering the fact that their founder, Lei Jun, resembles Steve Jobs in his style and charisma, it is clear that XiaoMi’s true inspiration comes from Amazon.
Also, XiaoMi mostly sells online which further reduces cost of sales and overheads related to brick and mortar stores or dealing with distributors and retailers.
XiaoMi has also managed to harness the power of social media by not only broadcasting their messages and announcements but by actively engaging with their customers. Engineers are routinely encouraged to speak directly to consumers and use gathered feedback to refine software.

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