A brief look into the history and products offered by Xiaomi and their future in the Indian smartphone industry.

1. Xiaomi Inc.
By
Edwin Grigary

2. Introduction
• Xiaomi Inc. better known as “Mi” is a privately owned Chinese electronics company headquartered
in Beijing, China.
• Began its operation in August 2010 with Android based firmware MIUI .
• In August 2012, Xiaomi launched the Xiaomi Mi2 smartphone.
• The company had sold over 10 million Mi2 devices in just 11months.
• Following the success of MI2 Xiaomi launched their new models MI3,REDMI 1S,REDMI Note, RedMi
pro in 2013-2014.
• Expanded into other consumer electronics including tablets, wifi network routers, Smart TV, Set-top
box, cloud storage and cloud computing service, instant messenger, and power bank.
• In the first quarter of 2015 ,Xiaomi launched their new flagship device MI4 and other upgraded
versions of their earlier models.

3. Cont…
• Xiaomi currently sells its products in all major counties including USA, Australia, India,
Russia, Singapore etc.
• Xiaomi broke the world record for most Smartphones sold in 24Hrs on April 6 2015. The
sale reached a staggering 2.11 million mark within 24 hrs.
• Also known as “The new Apple” or “The apple of China”.
• The company sold over 60 million smartphones in 2014.
• Xiaomi is now the third largest smartphone maker in the world followed
by Lenovo and LG at fourth and fifth place respectively. Samsung remains at the first
place despite declining shipment volume, followed by Apple Inc. at second place.
• The company's founder and CEO is Lei Jun, China's 23rd richest person according
to Forbes.

4. Products
• Mi3
Redmi 1S
Mobile phones
Mi4 Redmi pro
Redmi Note

5. • MiPad
Tablets
Software's
• MIUI
Home entertainment
• Mi smart TV
• Set top box
Accessories
• MiWiFi (network router)
• MiPower Bank (external battery)
• Mi Band (fitness monitor & sleep tracker)

6. Marketing and Business Model
Xiaomi employs a marketing strategy that is very unlike other smartphone makers
such as Samsung and Apple.
• Apple makes its profit on the hardware, while Xiaomi makes their profit on
services.
• Company prices the phone almost at bill-of-material prices, without
compromising the component quality and performance.
• Xiaomi sells a model for up to 18 months instead of the short 6 months used by
Samsung to profit from the fall in the costs of components that occurs over time.
• Xiaomi does not own a single physical store and instead sells exclusively from its
own online store which further reduce overhead costs .
• It also did away with traditional advertising and relies on social networking
services as well as its own customers to help advertise its products.

7. Cont…
• “Customer obsessed” strategy:
• Taking customer feedbacks to keep improving.
• Also maintains and develops a strong relationship with customers
through customer forums .
• An eco-system of Smart products .
• Xiaomi sells it’s product through online stores through flash sales
which ensures that supply never outstrips demand .

8. Xiaomi and the Indian Market
India: Emerging Smartphone Market
• Breaking out to Smartphone's from Featured phones
• When there are about 650 million mobile users in India, only 12 per cent of them
are Smartphone users. So the headroom to grow is tremendous.
• Focusing the youth
• Younger generation are so fascinated towards Smartphone's.
• They depend more on it, rather than PC for most of the work

9. What are the features used by a Rural India
Consumer?

11. A look at the Competitors…..
Micromax
• Micromax is the biggest competitor in
India as it has a wide range of
budgeted Smartphones. It focuses on
continuous innovation and has a big
market share in India after Samsung.
Branding: Micromax caught a
global attention by taking Hugh
Jackman as a Brand
Ambassador
Samsung
• Samsung is the world leader in
smart phones and also in India.
• Holds around 22% of the market share.
• Very high brand value among customers
• Strong aftersales support.

12. Cont…
• Karbonn Mobiles
• Karbonn is another Indian
mobile brand that mainly
focuses on youth .
• Holds around 3% of market
share.
• Lava mobiles hold 7% of the market.
• They mainly focus on low cost phones
within 10000Rs.
• LAVA Mobiles

13. • Xiaomi entered the Indian Market by mid 2014 and since then their devices have
been selling like hot cakes.
• Xiaomi currently holds 4% of the Indian smartphone industry.
• The arrival of Xiaomi has forced other competitors to reduce the price of their
products and introduce new variants .

14. Comparison between MI4 and Samsung S5
Samsung S5Xiaomi MI4

15. Conclusion
• Xiaomi with its innovative marketing and business
models is redefining the mobile phone market around
the world, and its sure that they would be able to
reach the top position in a few years time.”