Xiaomi is a Chinese electronics company founded in 2010 that has grown to become a global leader in consumer electronics. It began by developing smartphones but has since expanded into other products like smart TVs, laptops, wearables, and smart home devices. Xiaomi emphasizes high quality at affordable prices through cost optimization strategies. It has grown rapidly and achieved significant financial success, becoming the third largest smartphone seller globally by 2023 with a 12% market share. Xiaomi's diversification and focus on innovation through its product ecosystem has driven its rise in the industry.

1. Jashore University of Science and Technology
Lab Report On
Uses of IoT Technology in Xiaomi
Course Code: MKT-4104
Course Title: IoT & Innovation Lab
Submitted By Submitted To
Name: Md Shamim Bishwas
Roll: 182320
Session: 2018-19
Dept of Marketing
Jashore University of Science
and Technology
Abdullah Al Mamun
Lecturer
Dept of Marketing
Jashore University of Science
and Technology
Submission Date: 12 June 2023

2. Table of content
Serial No Title Page No
01 Executive Summery 03
02 Introduction 04
03 Literature Review 04
04 Manufacturing 06
05 Supply Chain Management 06
06 Management Process 08
07 Selling and Marketing 08
08 Customer Relationship
Management
09
09 Conclusion 10
10 Reference 11

3. Xiaomi
Executive Summary: Xiaomi, a globally recognized electronics brand, is widely popular and renowned.
MI, an abbreviation for Mobile Internet, represents Xiaomi. It is also known as "Mission Impossible." With
a tagline of "Always believe that something wonderful is about to happen," Xiaomi offers a diverse range
of consumer electronics products.
 Mobile phone
 Mi pad
 MIUI (operating system)
 MIWIFI (network router
 Mi TV (Smart TV line)
 Mi box ( set top box)
 Mi power bank ( external battery)
 Mi bands ( fitness monitor)

While Xiaomi is renowned for its smartphones, it is not limited to that domain. The company, established
in April 2010, gained further recognition when it listed its brand on the main board of the Hong Kong Stock
Exchange on July 9, 2018. Xiaomi operates as a consumer electronics and smart manufacturing company,
showcasing its expertise beyond smartphones.
Xiaomi, a privately owned electronics and software company, was founded in 2010 by serial entrepreneur
Lei Jun and seven other co-founders. Since its inception, Xiaomi has become a global force, expanding its
presence to 70 countries and regions. Notably, it has secured a place in the top five in 16 markets,
demonstrating its significant market reach. With a workforce of approximately 18,000 employees, Xiaomi
has achieved remarkable financial success. In 2017 alone, the company generated over RMB 100 billion in
revenues. This consistent growth has positioned Xiaomi to be listed on the Fortune Global 500 in the
foreseeable future, highlighting its growing influence in the global business landscape. One of Xiaomi's
key business strategies is its focus on cost advantage. By optimizing its operational efficiency and supply
chain, the company delivers high-quality products at competitive prices. Additionally, Xiaomi has nurtured
a vast and loyal fan base, leveraging its fan-centric approach to enhance customer loyalty and drive business
growth. Central to Xiaomi's success is its ecosystem of products and services. The company has diversified
its offerings beyond smartphones to include tablets, laptops, wearable devices, TVs, routers, and other smart
home devices. These products are sold through Xiaomi's web store as well as third-party websites, ensuring
wide accessibility to consumers worldwide. Lei Jun, the founder of Xiaomi, plays a pivotal role in the
company's management. He leads a management committee consisting of 11 other members, including co-
founder and vice chairman Lin Bin, partner and president Lu Weibing, co-founder and senior vice president
Liu De, and partner and senior vice president Zhang Peng, among others. This team oversees and manages
the overall activities of Xiaomi. Xiaomi's success in the smartphone market is undeniable. As of 2023, it is
the third-largest seller of smartphones globally, capturing approximately 12% of the market share,
according to Counterpoint. Such achievement has led people to dub Xiaomi as the "Apple of China,"
recognizing its impact and influence in the industry.

4. Furthermore, Xiaomi has strategically divided its timeline into four eras: 2010-2013, 2014-2017, 2018-
2022, and since 2022. This division reflects the company's evolution and growth throughout different
phases, demonstrating its adaptability and ability to stay ahead of market trends. Xiaomi's unique selling
point lies in its ability to offer high-quality devices with top-of-the-line specifications at competitive prices,
differentiating itself from its competitors. This approach has contributed to Xiaomi's rise as the fourth-
largest smartphone player globally, solidifying its position in the highly competitive consumer electronics
market.
In conclusion, Xiaomi's journey from its founding in 2010 to becoming a global leader in consumer
electronics and smart manufacturing is a testament to its innovative products, cost advantage strategy, and
strong brand presence. With its commitment to delivering high-quality yet affordable devices, Xiaomi
continues to revolutionize the industry and shape the future of technology.
Introduction:- Xiaomi, commonly referred to as MI, is a Chinese consumer electronics and smart
manufacturing company. The name "Xiaomi" holds multiple meanings, with MI representing "Mobile
Internet" and also being associated with "Mission Impossible." Established in April 2010, Xiaomi quickly
made a mark in the industry and listed its brand name on the main board of the Hong Kong Stock Exchange
on July 9, 2018. As a consumer electronics company, Xiaomi offers a wide range of products, including
TVs and media devices, vacuum cleaners, environment appliances, kitchen appliances, illumination
products, and smart devices. The company's commitment to innovation and quality has garnered significant
recognition. In the second quarter of 2022, Xiaomi secured the third position globally in terms of
smartphone shipments, according to Canalys. Moreover, as of 2023, Xiaomi stands as the third-largest seller
of smartphones worldwide, commanding a market share of about 12%, as reported by Counterpoint.
Xiaomi's impact and contribution to the industry have earned it the nickname "the Apple of China." The
company's success is not limited to smartphones; it has expanded into wearable items and developed its
own range of state-of-the-art technology devices. Additionally, Xiaomi has ventured into manufacturing
appliances such as televisions, flashlights, unmanned aerial vehicles, and air purifiers, leveraging its
Internet of Things (IoT) and Xiaomi Smart Home product ecosystems. One of Xiaomi's core strategies
revolves around pricing. The company keeps its prices close to the manufacturing costs and bill of material
costs by prolonging the product lifecycle to around 18 months, longer than most smartphone companies.
Xiaomi also utilizes inventory optimization techniques and flash sales to maintain low inventory levels and
efficient operations. Xiaomi Corporation, officially registered as Xiaomi Inc., is not only focused on
consumer electronics but also engages in designing and manufacturing related software, home appliances,
and household items. This diversification allows Xiaomi to cater to a broader range of consumer needs and
expand its presence in various market segments. Overall, Xiaomi's rapid rise in the consumer electronics
industry can be attributed to its commitment to innovation, cost-effectiveness, and the development of a
comprehensive ecosystem. With its focus on providing cutting-edge technology at competitive prices,
Xiaomi continues to revolutionize the market and establish itself as a global leader in the industry.

5. Literature Review: In 2010, when Lei Jun was 47 years old, he founded Xiaomi in Beijing along with his
six senior associates. Their journey began to flourish in August 2011 when they introduced their first
smartphone. By 2014, Xiaomi had managed to secure a substantial market share in China. Initially, the
company primarily sold its products online, but later expanded to brick and mortar stores. Over time,
Xiaomi gradually diversified its offerings, developing a wide range of consumer electronics. The company's
history can be divided into four eras: 2010-2013, 2014-2017, 2018-2022, and from 2022 to the present day.
2010–2013
On 6 April 2010 Lei Jun & six others was made Xiaomi as co-founded. They are
 Lin Bin (vice president of Google China Institute of Engineering)
 Zhou Guangping ( senior director of the Motorola Beijing R&D Centre).
 Liu De ( Chairman of the Department of Industrial Design at the UST, Beijing)
 Li Wanqiang (general manager of Kingsoft Dictionary)
 Huang Jiangji (principal development manager)
 Hong Feng (senior product manager for Google China)
At the beginning of the company's journey, Lei Jun was dissatisfied with the products offered by other
mobile phone manufacturers. He believed that he could create a better product if he tried. Consequently, on
16 August 2010, Xiaomi introduced their first Android-based firmware called MIUI. In the same year, the
company raised $41 million in a Series A funding round, paving the way for their future endeavours.
2014-17
In February 2014, Xiaomi made a significant move by announcing its expansion beyond China and
establishing an international headquarters. This marked a crucial step in the company's global ambitions.
In April of the same year, Xiaomi made headlines by purchasing the domain name mi.com for a record-
breaking $3.6 million, replacing xiaomi.com as its primary domain name. By December 2014, Xiaomi
successfully raised $1.1 billion at a staggering valuation of over $45 billion, solidifying its position as one
of the world's most valuable private technology companies. Continuing its growth trajectory, Xiaomi
acquired patents from Microsoft in June 2016, bolstering its intellectual property portfolio. In July 2017,
the company further expanded its patent assets by entering into a patent licensing agreement with Nokia,
enhancing its technological capabilities and strengthening its position in the industry. Recognizing the vast
potential of the Indian subcontinent, Xiaomi opened Mi Stores in India, Pakistan, and Bangladesh in 2017.
This strategic move allowed the company to tap into these emerging markets, establishing a stronger
presence and gaining access to a large customer base.
Through these various milestones and strategic endeavors, Xiaomi has positioned itself as a formidable
player in the global technology market, known for its innovative products, aggressive expansion, and ability
to adapt to diverse market conditions.

6. 2018-22
In April 2018, Xiaomi made a notable move by introducing a smartphone gaming brand called Black Shark.
The Black Shark device boasted impressive specifications, including 6GB of RAM and the powerful
Snapdragon 845 SoC. Priced at $508, it offered a competitive edge by providing high-performance gaming
capabilities at a more affordable price point than its competitors. Expanding its range of services, on 2 May
2018, Xiaomi announced the launch of Mi Music and Mi Video in India. These value-added internet
services aimed to enhance the user experience and provide a comprehensive entertainment ecosystem for
Xiaomi users in the country. Furthering its global reach, on 3 May 2018, Xiaomi forged a partnership with
CK Hutchison Holdings, enabling the sale of Xiaomi smartphones in several European markets, including
the United Kingdom, Ireland, Austria, Denmark, and Sweden. This collaboration allowed Xiaomi to tap
into new customer bases and establish a stronger foothold in these regions. Recognizing the immense
growth potential in India, Xiaomi announced on 7 August 2018 that its top supplier, Holi tech Technology
Co. Ltd., would invest up to $200 million over the next three years to establish a major new manufacturing
plant in the country. This investment signaled Xiaomi's commitment to local manufacturing and its
dedication to meeting the increasing demand for its products in the Indian market.
Continuing its upward trajectory, in October 2020, Xiaomi achieved a significant milestone by becoming
the third-largest smartphone maker in the world in terms of shipment volume. With 46.2 million handsets
shipped in Q3 2020, Xiaomi solidified its position as a major player in the global smartphone industry.
Looking ahead, in December 2021, Xiaomi unveiled its highly anticipated Xiaomi 12 and Xiaomi 12 Pro
smartphones. These flagship devices showcased cutting-edge technology, premium features, and innovative
design, further strengthening Xiaomi's reputation as a leading provider of high-quality smartphones.
Through its continuous product innovations, strategic partnerships, and expansion into new markets,
Xiaomi has consistently demonstrated its commitment to delivering value and meeting the evolving needs
of consumers worldwide.
Since 2022
In April 2022, Xiaomi officially joined the Car Connectivity Consortium (CCC) board.
In May 2022, the Indian court has lifted the $725 million freeze on Xiaomi by federal agencies.[
In June 2022, Xiaomi has established Zhuhai Xinshi Semiconductor Technology Co., Ltd.
In December 2022，Xiaomi announces that the global cumulative sales of the Redmi Note series have
exceeded 300 million units.
Body
i) Manufacturing
ii) Supply Chain Management
iii) Management process
iv) Selling & marketing
v) Customer relationship management

7. Manufacturing: If we want to know about the MI manufacturing process then we have to answer the
following questions.
 Is Xiaomi is a manufacturing company?
Xiaomi is a consumer electronics and smart manufacturing company with smartphones and smart
hardware connected by an IoT platform at its core.
 What is Xiaomi and It’s product?
Xiaomi produces smartphones (Xiaomi Series, Mi Note Series, Mi Max Series, MIX Series, T Series, and
Redmi Series), tablets, laptops, wearable devices, TVs, routers, and other smart home devices on their web
store and on third-party websites. Some of their products are listed below.
 Where is the manufacturing of xiaomi?
Xiaomi Corporation commonly known as Xiaomi and registered as Xiaomi Inc., is a Chinese designer and
manufacturer of consumer electronics and related software, home appliances, and household items.
 How does Xiaomi market their product?
Xiaomi Corporation commonly known as Xiaomi and registered as Xiaomi. It is a Chinese designer
and manufacturer of consumer electronics and related software, home appliances, and household
items.
The most modern production factory of Xiaomi is located and also one of the most complete and advanced
in the industry at a global level: Mi Smart Factory.
A few years ago, it was still very difficult to imagine that a smartphone factory could operate on a large
scale without personnel or lights on. However, nowadays My Smart Factory is operated by mobile robots
AGV (for its acronym in English) that are in charge of managing the entire production chain in an orderly
manner. In short, Xiaomi Mi Smart Factory can carry out 100% automated and intelligent production in an
unmanned way, thanks to this class of advanced technologies.
Supply Chaim Management: How can Xiaomi manufactures Xiaomi Phone in such a fast pace? Let's
look into its supply chain.
1. Procurement: In order to shorten the procurement process and lower the cost, most of the electronic
components are imported from countries nearby such as MOS and battery from Thailand, Screen from
Sharp, camera from Sony. Once these components are ready, they will be shipped to Shenzhen, one of the
biggest port city near Hong Kong, and assembled there in local foundry.

8. 2. Manufacturing: Xiaomi's Manufacturing model is similar to Dell's, which is based on users' demand.
First potential Xiaomi Phone users will place orders online. Once Xiaomi has gathered enough order, they
then will purchase components from its suppliers.
3. Inventory Management: Since Xiaomi only purchases components and manufactures Xiaomi Phones
after users have placed orders. There is no surplus raw material to be managed. Once a phone assembly is
complete, it will be delivery to several warehouses across china. As every phone has already had an owner,
it will be delivered as soon as it arrive the warehouse. In the warehouse there are two team, one team is to
receive and double-check phone from foundry, and the other team will pack the phone with accessories,
attached the order to the package, and delivery tt to the user. Such a high turnover rate leads to 80% less
inventory in the warehouse, while the other 20% is occupied b replacement battery and accessories.
4. Delivery: In order to reduce the cost of shipping, Xiaomi established its warehouse near warehouses of
other big E-commerce companies, and established cooperation on warehouse management and shipping,
Therefore, Xiaomi can take advantages of E-commerce's delivery system, to lower their cost and ensure the
product can reach its user faster.
5. Sales Strategy: Xiaomi makes use of Hunger Marketing, by lower the yield of production on purpose,
to create a situation that there is relatively high demand over the supply. Every time XIaomi only launched
a limit smaller number (near 100-300 thousand) Xiaomi phones, and once its online order platform is
launched, thousands of people will fight for a phone, and all orders are fulfilled within 30 minutes. Usually
companies will use Hunger Marketing to maintain a relatively higher price for its product, but Xiaomi is
trying to maintain or even lower its low price. Xiaomi assumes that once the productive is beyond their
expectation with such a low price, more people will be attracted and get one Xiaomi product. Since China
is a big market, profits will increase eventually. Therefore, Hunger Marketing is a good way for Xiaomi to
advertise its brand name.
Management Process: Lei Jun is the founder of Xiaomi. Lei Jun form a management committee along
with another 11 members. These twelve member manage the overall activities of Xiaomi from. Lei Jun is
the Founder, Chairman and CEO. Lin Bin is co founder and vice chairman. Lu Weibing is partner and
president. Liu De is co founder and senior vice president. Zhang Peng is partner and senior vice president.

9. Zeng XUEZHONG is senior vice president. Yan Kesheng is Vice president. Lam Sai Wai, Alain is Vice
president CFO. ZHU Dan is Vice president. Wang Xiao Yan is vice president. Qu Heng is vice president.
Ma Ji is vice president.
According to Lei Jun, Xiaomi is at the starting point of a new stage. After three years of exploration, its
high-end strategy has just made an outcome: the xiaomi 13 Series. The business progress of smart electric
vehicles has exceeded expectations, and the company is full of confidence in its ability to mass produce
and launch in the first half of 2024. The overall technical system of the company is also growing, and a
large number of innovations are emerging. Advanced explorations such as Xiaomi it ‘s new humanoid robot
Cyber One continue to make progress, and the intelligent manufacturing system is continuously
empowering the whole manufacturing industry.
“Next, we will continue to increase investment in R&D, continue to promote the high-end strategy, and
promote the company’s business focus and streamline administration to further improve operational
efficiency.” Lei Jun stated
Selling and Marketing: Xiaomi is a consumer electronics and smart manufacturing company
with smartphones and smart hardware connected by an IoT platform at its core. Xiaomi began with a very
simple idea: to offer high specs at low prices. They target markets where technologically-savvy customers
may not be able to afford top-of-the-line Apple or Samsung smartphones but seek higher-quality devices
than cheap knock-offs or clones.
It’s unique selling point was high-quality devices with top of the range specs, but at lower prices than
competitors. It has grown to be the fourth-biggest smartphone player globally. Xiaomi rose rapidly to
become, at one point, the biggest smartphone player in China. Xiaomi adopted hunger marketing as an
integral part of their digital marketing strategies. The company operated according to the emotional needs
of their target customer segment by creating a shortage of supply in purpose, creating a buzz in the market
and evoking desire in customers to own an MI smartphone.

10. Marketing Strategy of Xiaomi analysis the brand with the marketing mix framework which covers the 4Ps
(Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing
approach, promotion planning etc. These business strategies, based on Xiaomi marketing mix, help the
brand succeed in the market.
Xiaomi's selling and marketing expenses worldwide from 2017 to 2022(in billion yuan)
table column chart
Characteristic Expense in billion yuan
2017 5.23
2018 7.99
2019 10.38
2020 14.54
2021 20.98
2022 21.32
Showing entries 1 to 6 (6 entries in total)
Customer Relationship Management: Xiaomi has had successful remarkable milestones as
the gadget maker in the technology industry. The Xiaomi success is attributable to its robust
Customer Relationship (CRM)strategies. One of the company goals is to focus on innovating quality
products to meet the ever-changing preferences of the target markets. Xiaomi CRM strategy canbe
discussed based on the following aspects ‘Define The Xiaomi’s CRM strategy is largely rooted on its online
platform. The company interacts with its customers on Chinese social platforms. Recently, the company
has established an active mobile community known as “MI Talk”. The mobile community enables the users
of the Xiaomi gadget to share their experiences. The platform facilitates effective management of the
company interactions and relationships with customers well as potential customers. Collect Through its
digital operations, Xiaomi has created a Weibo account for each product range. This approach allows the
company to collect useful information from their customers concerning their different product ranges. Link
The online platform is the major link between Xiaomi and its customers. The industry analysts have termed
Xiaomi as a faceless company that is making enormous profits more than the mobile manufactures that
have been in the industry for years. Integration Xiaomi has integrated a WeChat in addition to its online
platform to facilitate the interaction between the company and customers. The WeChat platform

11. enables the company to set keywords and canned responses. Customers use the keywords such as
"repair" and "restart" to get connected the appropriate customer representatives.
Conclusion: In just a short span of four years since its founding, Xiaomi has achieved remarkable success
as the third largest smartphone maker in the world and the leading brand in China. The company's rapid
rise can be attributed to its unique business model and innovative strategies, setting it apart from traditional
competitors in the industry. One of the key factors contributing to Xiaomi's success is its crowd-sourcing
approach to product design. By actively involving customers and enthusiasts in the development process,
Xiaomi ensures that its products meet the needs and preferences of its target audience. This approach not
only helps in creating high-quality and customer-centric products but also fosters a sense of community and
brand loyalty among Xiaomi users. In addition to its innovative product development, Xiaomi has also
adopted unconventional marketing tactics. Rather than relying on traditional advertising methods, the
company has embraced online and social media marketing channels. By leveraging the power of social
media platforms and engaging directly with their customers, Xiaomi has successfully created a strong online
presence and generated significant buzz around its products. Furthermore, the company has utilized word-
of-mouth marketing, with satisfied customers becoming brand advocates and spreading positive reviews
about Xiaomi products, amplifying its reach and reputation. Another key element of Xiaomi's success is its
ability to offer high-end technology products at relatively lower prices compared to its competitors. This
competitive pricing strategy has allowed Xiaomi to penetrate new markets and gain a strong foothold,
especially in price-sensitive regions. By providing affordable yet feature-rich smartphones and other tech
products, Xiaomi has appealed to a wide range of consumers who desire quality devices without breaking
the bank. Moreover, Xiaomi's foray into the health tech sector with initiatives like the Real Time Eye
Blinking Detection has further expanded its product portfolio and positioned the brand as an innovator in
the industry. This integration of health-related features enhances the value proposition for customers and
diversifies Xiaomi's offerings beyond smartphones. Overall, Xiaomi's success story serves as a prime
example of how a start-up can disrupt an industry and achieve remarkable growth. By combining unique
business strategies, customer-centric product development, unconventional marketing tactics, and
competitive pricing, Xiaomi has transformed into a global technology powerhouse. As the company
continues to expand into new markets and introduce innovative products, its impact on the industry is likely
to grow, solidifying its position as a leading player in the global smartphone market.

12. Reference:
https://www.mi.com/global/about
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ION_ECOSYSTEM_Category_13_STRATEGIC_MANAGEMENT_13_02_BUSINESS_ECOSYSTEMS_STRATEGI
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https://www.researchgate.net/figure/Mapping-of-Xiaomis-Supply-Chain_fig1_321240181