4. Our Company
Founded in 2010 in China
One of the fastest growing online-based
companies in the world
We stand for
Innovation.
Efficiency.
Freedom.
Introduction
7. Introduction
Xiaomi phones are
sold out in a flash
When new batches of
Xiaomi phones are put
up online for ordering,
They are usually
sold out within half
an hour.
Over 3 milion
phones have been
sold.
8. The Mi-2 phone:
Flair and Functionality
4.3 inch display
720p gapless IPS
display
1.5GHz Quadcore
chip
2 GB RAM
9. The Mi-2 phone:
Flair and Functionality
iOS style
homescreen
Voice Assistant
Panorama mode
for camera
1080p HD video
taking
10. The Mi-2 phone:
Flair and Functionality
Music Player with
automatic search
for synchronized
lyrics
New style home
screen – Study
Room & Angry
Birds theme
11. So Many Features…
But sold only for RMB 1999!
“More for less” pricing strategy captures middle segment
12. Introduction
People are the most
IMPORTANT MEDIA.
delivers them the superior
product they want and need,
and they create the crazy hype through social media.
That’s why Xiaomi
products are
“Born to inspire mania.”
13. Social media:
Costless hype machine
Each weibo message has
over 1 million views
and 30k shares!
Social media is an
extremely cost-
effective medium for
wide spread hype.
14. Exclusivity:
Uniqueness with affordability
Phones are sold in small
batches of 250,000
only, thus are sold out
quickly.
The Xiaomi phone
becomes a superior
trendy accessory due to
its exclusivity.
15. User Engagement:
Community breeds loyalty
With a mascot and other
Xiaomi brand
merchandise like caps and
t-shirts, Xiaomi fans
are a community.
User engagement
becomes easy with fans
leaving feedback
enthusiastically on the
official forums.
17. Introduction
Why Xiaomi?
Wide acclaim and
huge sales success in
home country means the
product has potential
Fierce domestic
competition drives the
search for foreign markets to
diversify risk
18. Introduction
Why Thailand?
Low cost and low barriers of entry in Thailand
High demand for
smartphones with
relatively low penetration
rate (27%) presents
ample opportunities
20. Situation Analysis
Geographical Environment
Central Thailand
• Fertile area
• Dense
population
• Metropolitan
Bangkok
Eastern, southern
and northern
Thailand
• Mountain
areas
• Forestry area
• Natural
resources
• Mining, rice
cultivation
21. Situation Analysis
Economic Environment
Placed 60th place worldwide and 10th place
regionally in the 2012 Index of Economic Freedom
Emerging country: 4-5% annual growth
in GDP
Export-driven country, easing monetary policy
Corporate tax rate is reduced to 18% from
30%, favorable FDI conditions
22. Smart Phone
Xiao Mi (M1/M2)
Nokia
(C3-00/ X2-01)
Samsung
(GT-S5570)
Apple
(Iphone/Ipad)
Price
US$240/US$320
US$228/US$128
US$296
US$747/US$399
Market Share at
June 2012
N/A
48%
15%
3%
Economic Environment
Xiaomi phones are much more affordable than the Apple
iPhone 5 or Samsung Galaxy SIII.
23. Introduction
Trade Environment
“Ease of doing business”: 17 out of 183
Imports > Exports (US$12.1 billion trade deficit):
rising middle-class
Member country of Association of Southeast Asian Nations
(ASEAN)
• Other members include Indonesia, Malaysia,
Philippines, Singapore, etc.
• Free flow of investment and manufacturing
• Free trade with China, Korean, Japan, etc.
28. Political & Legal
Environment
Thailand was ranked as the
5th most corrupt country among
the 16 Asia-Pacific economies.
Bribing becomes a direct
cost for businesses.
30. Industry Background - China
Domestic vendors drive the growth,
Majority uses Android System
China is the biggest projected smartphone market:
Smartphone sales > Feature phone sales
1
2
3
4
5
Domestic Brands
31. Competitive Advantages
Veteran experts from
Google, Microsoft and
Motorola clear
vision and technical
know-how
Elimination of channel
costs lower price
High performance at
attractive low price
32. Competitive Disadvantages
Single sales mode
Lack of effective
after-sales service
Lack of quality
control
Lagged behind in the
cooperation with mobile
operators
Frequent appearance
on public media
complaints
Not enough
maintenance spots +
high repair charges
34. Industry Background -
Thailand
Population
67 million
Total no. of mobile subscriptions
77 million
% of Mobile Penetration
115%
Total no. of Internet users
25 million
% of Internet penetration
37.3%
No. of mobile Internet users
1 million
Large untapped
market for feature
phone users to switch
to smartphones
and access mobile
Internet services
35. Industry Background -
Thailand
New 3G and 4G frequencies license auctions coming up
in 2013
Almost half of Thailand’s Internet users say mobile
phones are their preferred mode of access to the
Internet
Faster speeds of mobile Internet access and
wider access of 3G or 4G services from
telecom operators = increase in demand
for mobile services
37. Competitors Analysis
49%
15%
10%
7%
5%
3%
2%
2%
1%
6%
Overall handset brand market share (Primary Phone)
Nokia
Samsung
i-mobile
Blackberry
G-net mobile
Apple
LG
WellcoM
Motorola
Others
Overall market dominated
by Nokia & Samsung
However, Apple has
78% of the
smartphone market
= Thais are ready to
accept high price
point
38. Competitive Advantages
Focus on development
of hardware +
software
Acquisition of startup
software companies
eg. Duokan
Abundant investment
from foreign investors
High performance at
attractive low price
39. Competitive Disadvantages
Relatively short
development time
System crashes +
bugs
Weekly updates by
users needed
High cost of setting
up maintenance
stations
Cost-ineffective to
mail back phones
to China for repairs
Lose customer
confidence in
service quality
44. Action Plan
Short-term Plan (1-2 years)
Direct Export to Test Market
• Product & Price: 20 million of M1 and M2
• Place/Sales channels: Online sales
platform & collaborate with Thailand
local telecom-operators
• Establishing a warehouse in central
Thailand
Mid-term Plan (3-4 years)
Expansion
• Self-owned App Store
Applications
eBooks + Podcasts
Long-term plan (over 5 years)
Regional Hub
• FDI: Manufacturing factories in
central Thailand
• Regional hub of south-east Asia
business
45. Conclusion
Is going to enter the Thailand market
through direct export initially
while aiming to set up a regional hub there in the long term.
High demand for
smartphones will be the major profit-driver for Xiaomi,
and the company will
continue using the
“More for Less” pricing strategy.
