Xiaomi, Inc. has rapidly grown since its founding in 2010, becoming the #1 smartphone seller in China and #5 globally by 2015. The company's success is attributed to innovative marketing strategies, a dynamic supply chain, and the expertise of its world-class executives. Looking forward, Xiaomi aims to expand globally while facing competition from local rivals and adhering to regional regulations.

1. XIAOMI, Inc

2. Always believe that
something wonderful
is about to happen.
- Xiaomi Mantra -

4. 70 Million
Xiaomi’s actual smartphones
sold in 2015, directly to customers.

5. #1 in CHINA
By smartphone shipments 2015
15% 14.50%
13.40%
8% 8.10%
Xiaomi Huawei Apple OPPO Vivo

6. #5 in Wordwide
Market Share 2015
23%
16.20%
7.40%
5% 4.90%
Samsung Apple Huawei Lenovo Xiaomi

7. #2 in World’s Most Valued
Tech Startup

8. #2 in
50 SMARTEST
COMPANY 2015*
#1 TESLA MOTOR
#2 XIAOMI
#3 ILLUMINA
#4 ALIBABA
*) MIT Tech Review

9. mobile internet

11. Mi Product Milestones
2011/12
Launch MIUI,
Mi One, & Mi
2. Value
reached up to
4 Bio.
2013
Launch Mi 3. Estimated value 10 Bio
2014/15
Launch Redmi,
Mi 4, Mi Band,
Mi Box, Mi
Wifi, Mi Yi, Mi
Pad, Mi Smart
TV
2010
Xiaomi
founded.
Profit from
internet
marketing.
Value at 250 Mio in
8 months
2016
MIUI 8, Mi 5, Mi Mix, Mi
Camera, Mi Yi M1, Mi
Drone, MiJia Smarthome,
Mi VR, Mi Water & Air
Purifier, Mi Robot Vacuum
Current value
at 46 Bio

12. XIAOMI
BEST PRACTICES
1. World Class Executive
2. Innovative marketing
3. Dinamic-pragmatic supply
chain management &
manufacturing
4. Future expansion

13. #1
WORLD CLASS
EXECUTIVES

14. Xiaomi Executives
Experienced from Microsoft, Motorola,
Kingsoft, Sina, & Google.
Responsible for developing MIUI ecosystem (Mi Cloud, Mi Theme,
Mi Credit, etc), R&D, hardware design, & software development.

15. HUGO BARRA
VP Global
ex Google Android Product Management

16. #2
INNOVATIVE
MARKETING

17. Xiaomi sells online
directly to customers
from their own websites

18. Social Media Marketing & Customer Participation via
Mi Fans, Mi Festival, Mi Forum
Less advertising, endorsement, and no marketing agencies.
More user generated content from social media.

20. Experience Store

21. #3
SUPPLY CHAIN &
MANUFACTURING

22. • No excess inventory, tighter supply control
• Shortens procurement process & lower cost
by sourcing from Asia Pacific vendor (etc Sharp, Sony)
• Reduce shipping cost by locating warehouse
near e-commerce companies
SUPPLY CHAIN STRATEGY

23. • Strong partnership with Invitec & Foxconn (also Apple vendor)
• Essentially using same component for new phone
• Support longer product life cycles with software update,
spare part & service support.
• Resulting big enough profit margin
to keep customer price low.
MANUFACTURING

24. #4
FUTURE
EXPANSION

25. FACING THE GIANTS
Xiaomi actually is gaining niche market by offering high end Android
devices using many of the same components from Samsung & Apple,
but at very attractive price.
But, they also have to look out their native competitors like Huawei,
Oppo, & Vivo.

26. GLOBAL EXPANSION
• Depends on Xiaomi ability to replicate and adapt their business
model in other region. So far, India has done well.
• Comply with regional regulations regarding local material
substance.

27. Xiaomi’s Future Ecosystem
Internet of Things

29. ESTABLISHED IDEAL
START UP
HIGH
SCALE
LOW
SCALE
LOW
EMPATHY
HIGH
EMPATHY
#customeroriented

30. THANK YOU
Arya Pamungkas
animum.fortuna@gmail.com