xiaomi business case study

How Xiaomi Became Successful In India [Xiaomi Case Study]

Devashish Shrivastava

Xiaomi Corporation is a Chinese gadget manufacturer established by Lei Jun in 2010 and headquartered in Beijing. Xiaomi makes and puts resources into cell phones, versatile applications, trimmers, headphones, television, and numerous other products. Ranked 468th, Xiaomi was the most youthful organization on Fortune Global 500 List of 2019.

Xiaomi launched its first cell phone in August 2011 and quickly picked up a piece of the overall industry in China. It became China's biggest cell phone organization in 2014. At the beginning of the second quarter of 2018, Xiaomi was the world's fourth-biggest cell phone manufacturer. Xiaomi later built up a more extensive scope of hardware catalog, including a brilliant home (IoT) gadget ecosystem.

Xiaomi has 15,000 employees in China, India, Malaysia, and Singapore; it is now expanding to different nations like Indonesia, the Philippines, and South Africa. According to Forbes magazine, Lei Jun, the CEO of Xiaomi, has more than $12.5 billion in assets.

Lei Jun is China's eleventh most extravagant individual and 118th in the world. Xiaomi is the world's fourth most important innovative startup in the wake of getting $1.1 billion subsidizing from financial specialists, pegging Xiaomi's valuation at more than $46 billion.

History Of Xiaomi Corporation Business Strategy Of Xiaomi Corporation How Does Xiaomi Prosper And Increase Its Revenue? Business Growth Of Xiaomi Corporation Future Plans Of Xiaomi FAQs

History Of Xiaomi Corporation

Xiaomi was founded in April 2010 by Lei Jun . MIUI, the ROM made by Xiaomi , turned into an immense achievement and has been ported to numerous gadgets. Since 2014, MIUI can be downloaded and installed in more than 200 gadgets in both English and Chinese. By the end of 2013, Xiaomi had more than 30 million MIUI clients around the world, an impressive figure for a youthful organization.

The MIUI ROM isn't as user-friendly as Apple's iOS and gives modern administrations, for example, cloud reinforcement, simple to utilize music player, and an application store. The group at Xiaomi joyfully takes on fan criticism using numerous channels and updates the ROM regularly with bug fixes, improvement, and extra highlights.

In 2011, Xiaomi launched the Mi One phone. Xiaomi just doesn't make its own product, but it fabricates its own equipment. The Mi One was a top-spec phone with signigicant features.

While commentators rush to call the Beijing-based organization "The Apple of China", Xiaomi likes to contrast itself with Amazon. Xiaomi makes ground-breaking equipment which it sells and depends on administration and substance to make up a greater part of its income.

Xiaomi's income in 2013 alone was over $5 billion, very noteworthy for a young organization. There are comparisons between Xiaomi and Apple as both are equipment and programming organizations, both have solid power over stock-chains, and both have a hot fanbase.

Aside from this, the two organizations don't share anything else practically. Apple prices its phones at unbelievable costs and doesn't take on a lot of client input, whereas Xiaomi is polar opposite.

Xiaomi dispatched 7.2 million phones in 2012 and 18.7 million phones in 2013. It even sold more than Apple in one quarter. In the principal quarter of 2014, Xiaomi sold over 11 million phones, more than what it sold throughout 2012.

The demand for Xiaomi keeps increasing because of the good-of its gadgets and the economical price at which its products are sold in universal markets, for example, Hong Kong, Taiwan, and Singapore .

Hugo Barra (ex-Google android official) has been tasked with the job of overseeing Xiaomi's expansion beyond China. Malaysia, Philippines, Thailand, Indonesia, and India will see Xiaomi phones straightaway.

Business Strategy Of Xiaomi Corporation

Xiaomi had some wonderful achievements in its third entire year as a device creator. The Company is on course to sell 60 million phones this year, and it has ensured footed (if rather moderate) strides into various markets in Asia, for example, Indonesia and India. The organization's development is amazing given the the variety in its product catalog aside from phones.

An ongoing social marking report on Xiaomi by Resonance China dissects an enormous assortment of the startup's procedures and shows how pleasantly they are working out.

The business strategies are described below:

Xiaomi - A Web-Based Business Organization

Business visionary and Xiaomi prime supporter Lei Jun states Xiaomi as a web-based business organization—one of the numerous reasons he loathes the successive examinations among Xiaomi and Apple. They feel a comparison with Amazon is more relevant. Xiaomi has its e-store and has a customer-facing facade on Alibaba's Tmall. The numbers back up Lei Jun's case.

Xiaomi's site is the third biggest business-to-customer (B2C) internet business store in China in terms of deals volume (behind Tmall and nearest rival JD). On China's Singles Day on November 11, a business bonanza saw $9.3 billion spent on Tmall; and Xiaomi was the top brand on Alibaba's commercial center that day.

Xiaomi sold 1.2 million telephones during the 24-hour deals occasion, piling on, alongside offers of some different devices, RMB 1.56 billion ($254 million) in items sold.

Xiaomi by and large sells its gadgets in constrained glimmer deals, ordinarily in clusters of around 50,000 to 100,000 in China and bigger sums abroad. Thus, Xiaomi fabricates only what is certain to sell.

The upstart organization's attempt to close the deal doesn't stop once somebody has purchased a phone. New clients find that their phone includes a pre-installed Xiaomi store application.

The Landing Page Is An E-store

Most device brands use their landing pages as showrooms or celebrated online adverts. Xiaomi gets to the point by making its landing page into an unadulterated web-based business store.

Xiaomi's e-store is updated every day to put an accentuation on which items are next accessible in its progressing streak deals. "Xiaomi's item pages copy best practices from Tmall," says Rand Han, the organizer and overseeing chief of Resonance China.

Tmall is China's greatest image-arranged online commercial center with a huge number of merchants, for example, Uniqlo, Costco, and Burberry. That makes Xiaomi's site design recognizable to the huge number of customers on Tmall and other mainstream online business locales in China.

It has the typical tabs to switch between pictures, details, and purchasers' audits and appraisals. Apple's site isolates all that stuff into the Apple Online Store , whereas Xiaomi keeps it upfront.

Uses Another Sort Of Social Trade

Since Xiaomi generally sells its phones over the web, online networking is significant. It does this in China, for the most part, using Weibo, and in new markets, Xiaomi uses Facebook , Twitter , and Google+.

On Weibo, Xiaomi regularly observes commitment levels well more than 60%, as per the Resonance China report, on account of incessant everyday posts on an amazing assortment of themes.

Not exclusively is there the standard buzz for items and news about glimmer deals, yet also motivating forces for retweets, how-to aides, and fun things like photograph challenges . Xiaomi's Weibo will likewise retweet some popular substance significant to its users by circumventing China's web. The retweet also binds into social issues around contraptions and innovation.

Each Item Range Has A Social Center

Xiaomi has 10 primary Weibo accounts, the most prominent of which is the Xiaomi Mobile Weibo with near 11 million fans; the latest account for the MiPad has crossed 500,000 followers.

Xiaomi's corporate Weibo account has 4,000,000 adherents, demonstrating that individuals would prefer to communicate online with contraptions (as it were) as opposed to an organization.

Notwithstanding Xiaomi's social records, the company's administrators are likewise active on Weibo and fill in as brand representatives. Lei Jun has more than 11 million supporters, while Lin Bin has more than 4,000,000.

Consistent Shortage

Xiaomi's glimmer deals help it get control over stock and lessen wastage, staying away from the sort of over-creation calamities seen as of late with Amazon's Fire Phone and Microsoft's Surface RT.

While that makes it harder to get a Xiaomi device, the organization has figured out how to turn that into a positive, making occasional promotion in terms of offering a predetermined number of gadgets every week .

Xiaomi's online life accounts, especially on Weibo and WeChat, play a key job in driving individuals to the enrollment page for each new blaze deal.

At that point, when a glimmer deal is finished, Xiaomi uses "fast sell-out" stats in further online networking postings; for instance, 50,000 Mi4 cell phones sold out in only 25 seconds. Not every person invites streak deals. The procedure is unquestionably much more mind-boggling than the typical snap-and-checkout on most online business locales.

The framework appears to have met with more analysis outside of China than it has in Xiaomi's home country. When Xiaomi propelled in India in September, it confronted a reaction as interest exceeded supply by a factor of two-to-one, bringing about a rush of baffled and disappointed remarks on the brand's Facebook India page. Notwithstanding those disadvantages, new phone manufacturers are imitating Xiaomi (OnePlus) using blaze deals.

Brings Down The Cost Of "Premium"

For Apple, premiums start at about $700. For Samsung , it's about $600. However, Xiaomi slashed it in half in 2011 by offering phones premium specs (yet a simple, blocky structure) at low prices – just $325. Xiaomi has also increased its equipment configuration game with the goal that the feel of the phone doesn't contrast with the amazing specs.

Enlivened by Apple, Xiaomi instructs purchasers on its plan reasoning, underscoring attention on straightforwardness and usefulness in its items. Xiaomi's very own rendition of Android, called MIUI, has additionally assisted with this superior feel as it is more preferred than most of the Android skins out there.

Runs Its Locale

Alongside its cautious online networking stratagem, Xiaomi is likewise starring dynamic in running its locale gatherings, or BBS. This is the place the brand's most bad-to-the-bone fans, named "Mi fans," meet to examine devices, share information, and by and large hang out.

This is something regular to Chinese organizations , yet to a great extent unused by significant brands abroad. Xiaomi's BBS has 30 million enrolled clients and sees 579,000 new posts day by day.

How Does Xiaomi Prosper And Increase Its Revenue?

Q2 of 2018 saw Xiaomi a 152% hop in its abroad income which is esteemed at about Rs 16,700 crores. The internet services help Xiaomi get a net benefit of around 60%. At the point when it at first began its tasks in India, Xiaomi profoundly relied upon informal publicizing to spare any kind of overhead cost.

This enabled the Chinese giant to sell its items (cell phones particularly) at a lower cost than its rivals. Xiaomi was able to pull in more clients as a result. More procurement implies more clients who use Xiaomi gadgets.

Some of its clients will, in general, become faithful to administrations like the MIUI, Mi Store, and so on. This is what Xiaomi needed ever since it began manufacturing phones . Selling the best of equipment at a lower cost and creating a dedicated fanbase is Xiaomi's plan of action.

Things weren't, however, that simple for the Chinese company. After an underlying lift to its cell phone deals, Xiaomi went down in positioning not long after players like Oppo , Vivo, and Huawei (with Honor) overwhelmed the phone space through disconnected streams. Even though Xiaomi was the pioneer in the online space, individuals still favored purchasing phones physically.

Therefore, Xiaomi started to grow its disconnected nearness by opening Mi Home stores and joining hands with the neighborhood merchants. Opening Mi Home Stores achieved two targets:

• Xiaomi now had one more channel to sell phones.
• People visiting the Mi Home Stores would regularly wind up purchasing different extras like power banks, earphones, and other accessories fabricated by Xiaomi.

Business Growth Of Xiaomi Corporation

In the second quarter of 2021, Xiaomi's total revenue amounted to RMB 87.8 billion. Xiami has recorded an increase of 64.0% year-over-year. It adjusted net profit for the period was RMB 6.3 billion.

The Chinese have a fixation with establishing world precedents. So when Xiaomi propelled 500 disconnected stores in India in October, 2019 at the same time, it registered a global record to its name. For a brand that has greatly depended on web-based blaze deals, opening so many stores was a new strategy.

Internationally, cell phone shipments declined 4.1% in the last quarter of 2018, topping off the "most noticeably awful year ever" for cell phone shipments as reported by industry tracker IDC. Be that as it may, India hasn't seen any stoppage.

In 2018, almost 142.3 million cell phones were dispatched in India. That implies a development of 14.5% over the earlier year. Among the cell phones sold in India , Xiaomi has seen significant strides with a 58.6% year-on-year increment in unit deals in 2018 to capture a piece of the overall industry at 28.9% (IDC stats).

It has been in the Indian phone market for just four years but has overtaken Samsung. The latter has a 22.4% share of the overall industry. India represents more than 33% of Xiaomi's cell phone deals all around.

In 2018, Xiaomi India booked an income of Rs 23,000 crore ($3.24 billion), a 174% development over the earlier year, selling telephones valued at a normal price of $142.53. Samsung's cell phone business in India rounded up about Rs 37,349 crore ($4.82 billion) in a similar period, up 9% from the prior year.

The South Korean organization's phones are valued higher with the catalog starting at $250.

In 2016, Xiaomi propelled the RedMi Note 3 and the RedMi 3S — both selling like hot cakes and helping the organization cut into the offers of Indian makers such as Micromax and Lava.

Xiaomi presently sells disconnected in more than 40 urban communities and has more than 4,000 favored accomplices who sell Xiaomi phones. It likewise propelled enormous organization retailers that year through Sangeeta, Poorvika, Croma, and Reliance Digital . The third mainstay of the organization's disconnected procedure was propelling Mi Home stores, which only sell Xiaomi gadgets.

One aspect that has worked very well for Xiaomi is the organization's evaluating procedure. Xiaomi co-founder Lei Jun broadly said a year ago that the organization could never make over 5% edges from its equipment portfolio, adjusting the organization to its vision of going past being an equipment creator.

"India is very value touchy and almost (every) client survey of the Xiaomi telephone will say that it is useful at the cost," says Vijay Raj, a Bengaluru-based blogger and analyst.

It's not just about making modest smartphones. There's likewise something exceptionally shrewd affecting everything here. As a Harvard Business Review article brings up, Xiaomi keeps its models in the market longer than other telephone producers.

So when segment costs fall, Xiaomi makes a benefit. A half-year prior, it posted a $2.1 billion benefit for its first quarter of business as a traded-on-an-open market organization.

According to one gauge, Xiaomi's MIUI has around 70 million month to month dynamic clients. That makes it a ground-breaking conveyance stage. "They would need to investigate what we can do to make extra dollars of it," says Kawoosa of TechArt. Xiaomi is making Rs 40-45 for each client for each month, he says.

MIUI was one of the earliest cell phone working frameworks making use of locally available infrared blaster to control apparatuses at home. It additionally presented clever highlights that make it simple for clients to duplicate one-time passwords for online exchanges and organize train booking affirmation messages to conspicuously show the PNR number.

Xiaomi likewise lets clients arrange two WhatsApp numbers on the same phone.. Xiaomi, generally speaking, has an arrangement of more than 200 items — extending from a pen to a cleanser gadget to consoles and PCs — a catalog created through its "biological system accomplices." Most of these aren't sold in India yet.

The organization plans to get as many brilliant gadgets as reasonably possible on a typical Internet of Things platform it calls the "Mi Home application". The primary classes in India are presently telephones, TVs, control banks, sound, wearables , and air purifiers. In September, Xiaomi propelled a home surveillance camera.

Future Plans Of Xiaomi

During his visit to India, Xiaomi's Founder and CEO Lei Jun discussed the organization's arrangements, techniques, targets, and a few indications on the upcoming product offerings for the Indian market. Here are some key highlights of his discussion:

Plans To Expand Disconnected Piece Of The Pie

"If we see by and large market, online is a little piece… so it's somewhat reliant on what number of individuals embrace the Internet. In China, after we have accomplished such a scale (in the online market), the test is how we can accomplish the equivalent in disconnected with effectiveness.

In India, after we accomplished over half piece of the pie in online space, the inquiry is how to do likewise in disconnected," Jun said.

New Assembling Plant

Xiaomi recently enlisted a assembling plant in Andhra Pradesh and guaranteed that over 95% of its phones for the Indian market would now be produced locally. As indicated by this ET report, the organization may even take a gander at sending out Indian produced phones later on.

The cell phone producer as of late guaranteed that it has crossed $1 billion in income from its India operations. Xiaomi makes money by selling phones, wearables, frill, air purifiers, and so on.

In Q4 2016, Xiaomi was the second biggest merchant in India as far as phone shipments were concerned, as indicated by IDC. The organization's Mi Band shipments additionally represented 10.3% of the Indian wearables market in Q2 2016.

More Stockrooms And Administration Focuses

The organization is additionally setting up a third distribution center in Delhi NCR and plans to twofold its administrations focus check from 250 to 500 by the principal half of this current year.

Note that Xiaomi has its web-based business store named mi.com in India. In July 2015, Xiaomi declared that it would also put in resources for setting up a claim distribution center and coordinations.

Plans To Enter The Money Related Division

As disclosed to The Hindu, Xiaomi will dispatch another arrangement of items, although Lei Jun didn't mention what sort of items they would be. Jun additionally implied that the organization is keen on venturing into the money related segment in India .

We are investigating the probability of giving budgetary administrations in India. Be that as it may, this part is exceptionally managed. It requires various licenses. If we could get such licenses, we are glad to be a piece of this monetary administration's development in India.

We have to comprehend if there are confinements on remote substances," Jun says. Xiaomi additionally has an installment administration called Mi Pay that is only accessible in China at the moment and has tied up with Bank of China and Union Pay, a card arrange in China.

On Creating New Openings And Income Targets

Jun likewise talked about how the organization focuses on making 20,000 new openings in the following three years by venturing into disconnected retails , assembling, and dissemination. Addressing ET, Jun said that the organization plans to create near $15 billion in general income by concentrating on developing markets like India and Indonesia.

What is the origin of Xiaomi?

Xiaomi was established in April 2010 by Lei Jun and headquartered in Beijing, China.

Who is the founder of Xiaomi?

Xiaomi was founded by Lei Jun, Lin Bin, Zhou Guangping, Wong Jiangji, Wang Chuan, Liu De, Li Wanqiang, and Hong Feng.

How does Xiaomi make money?

Xiaomi makes money by selling phones, wearables, frill, air purifiers, and so on. In Q4 2016, Xiaomi was the second biggest merchant in India as far as phone shipments were concerned, as indicated by IDC. The organization's Mi Band shipments additionally represented 10.3% of the Indian wearables market in Q2 2016.

What makes Xiaomi unique?

Its varied and unique ecosystem of products and the different way of marketing makes Xiaomi Successful and unique from others.

Is Xiaomi trusted brand?

Xiaomi Corporation is a trusted Chinese gadget manufacturer established by Lei Jun in 2010 and headquartered in Beijing.

Why Xiaomi is successful in India?

Xiaomi propelled 500 disconnected stores in India in October at the same time, it registered a global record to its name. For a brand that has greatly depended on web-based blaze deals, opening so many stores was a new strategy. Internationally, cell phone shipments declined 4.1% in the last quarter of 2018, topping off the "most noticeably awful year ever" for cell phone shipments as reported by industry tracker IDC. Be that as it may, India hasn't seen any stoppage.

Is Xiaomi and Huawei same company?

No, Xiaomi Corporation is a Chinese gadget manufacturer established by Lei Jun in 2010 and headquartered in Beijing, While Huawei is another multinational company of China and a competitor of Xiaomi.

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Xiaomi’s Globalization Strategy and Challenges

Xiaomi, the Chinese smartphone company founded in 2010, had quickly become an industry leader in the Chinese market. By 2016 it had started to expand internationally, and this case lays out the company’s globalization strategies and challenges moving forward. Hugo Barra, a top Android executive, had left Google a few years earlier to lead Xiaomi’s international growth. Xiaomi’s founder and CEO, Lei Jun, said the company’s ultimate goal was “making good but cheap things,” a low pricing strategy that had succeeded in China. The company sold over 70 million mobile phones in 2015—while aggressively building out a robust ecosystem. However, Xiaomi had expected to sell 80 to 100 million units that year; it was facing a declining domestic market and increased competition. Therefore, international expansion had become an important part of the company’s overall strategy.

But expanding to other countries would be a challenging road. For one, it would take considerable time and effort to tailor the company’s Android-based MIUI operating system for diversified markets—and obtain market-access qualifications. Xiaomi’s patent portfolio was thin compared to those of large competitors, and it ran the risk of lawsuits from companies that held patent rights in the countries it wanted to enter. Other challenges included building out sales channels, output capacity, and cross-culture management development. Xiaomi’s international plan included ten countries in Asia, Europe, and Latin America. The next year or two would be critical for Xiaomi—and it needed to make the right strategic decisions to succeed in its globalization efforts. 

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Five Lessons From Xiaomi’s Path to Smartphone Supremacy

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In June 2021, a global smartphone sales report marked an unusual tipping point. According to Counterpoint Research , Xiaomi, with a 17.1 percent share of global sales, surpassed both Apple and Samsung and became the #1 smartphone brand in the world for the first time . More interestingly, Xiaomi did it without entering one of the largest smartphone markets – the United States – due to potential political and legal risks. After Huawei’s setback, Xiaomi is far from an obvious contender to take over global leadership in a market dominated by household brands such as Apple and Samsung. Yet, it happened.

Beyond smartphones, Xiaomi has achieved global supremacy in the burgeoning Internet of Things (IoT) market, as my INSEAD colleague Amitava Chattopadhyay detailed in a recent INSEAD Knowledge article and case study .

There are many reasons for Xiaomi’s unlikely rise. For example, Chattopadhyay describes how the company effectively leveraged strategic alliances to build competitive advantage in IoT. In this article, I hope to complement his and others’ insights by looking at the fundamental strategic principles that underlie Xiaomi’s highly successful approach in smartphones – a crowded arena deemed impossible to enter by many. These principles can help other companies pay closer attention to challengers like Xiaomi in their industries.

First and foremost, Xiaomi’s product strategy closely follows the value innovation principles .

Xiaomi’s phones are designed to solve the unmet need of the iPhone users. Instead of following the industry playbook and pushing incremental technology improvements, Xiaomi continues to make conscious feature choices.

For example, the first Mi phone was designed for the dissatisfied Apple customers in China. Because of the fast development of super apps, such as WeChat, Chinese consumers use their smartphones to chat, commute, shop and pay for everything. As a result, long battery life is absolutely critical. For Instagram or Weibo influencers, camera hardware and software are essential for photos, videos and livestreams. Compared to these essentials, other features (such as the gyroscope) are superfluous decorations.

Having developed a deep understanding of local needs, the Mi phone product team made serious trade-offs to replace “decorative” features with essential upgrades. Facing the ultimate smartphone brand, the first Mi have already won a cult-like following because of the value offered in the local context.

As early as 2014, Xiaomi sales surpassed both Apple and Samsung in China. By 2018, Mi phone overtook Samsung in India .   Every step of the way, they stick to the value innovation principles and making value trade-offs based on the local consumer needs. When I spoke to the Xiaomi design team, they idolised Steve Jobs not because of his personality but his obsession with consumer behaviours and attention to detail. Now it seems the student has grown into a master.

Second, Xiaomi created truly differentiated products for each consumer segment.

While Apple trying to hold on to its high-end positioning and Samsung carefully playing across multiple segments by gradually “watering down” features to supply lower-end markets, Xiaomi chose the less “smart” and less efficient way. The company designed different products with specific feature trade-offs based on the needs of each segment. Xiaomi also created sub-brands in each segment: Mi for the high end (now Xiaomi), Redmi (and Note) for mid-market and POCO for low end.

For example, compared to Samsung, Redmi phones often offer better performance on key features such as battery life, processors and display while selling at a lower price.

Third, Xiaomi plays smartly across multiple digital ecosystems.

Xiaomi’s strategy differs from Apple, which orchestrated digital ecosystems through the App Store, iTunes, AppleTV, etc. Staying true to its identity as a hardware provider, Xiaomi offers devices that support multiple ecosystems in China – WeChat (Tencent), Weibo, Alibaba, etc.

In addition, Xiaomi has created a broad range of complementary products that offer multiple entry points to these ecosystems, such as electronic scooters for mobility, IoT appliances, and more. Their broad coverage helps to create an integrative and coherent consumer experience and in turn anchors their phone as the connecting point of the different ecosystems. Chattopdhyay and his co-authors coined the term “strategic coalescence” to describe how Xiaomi tapped personal networks to select high-quality partnerships, ensured mutual incentives and profitability throughout the ecosystem, and used the gains therein to enable a low-margin policy that made Xiaomi products irresistible to consumers.

Fourth, Xiaomi is everything digital in their business and organisation.

Founded a mere 11 years ago, Xiaomi understands the digital world and the digital generation. Compared to Apple and Samsung, Xiaomi was born digital and had a blank canvas to set up its product and its business.

Apple made the smartphone an essential part of our everyday lives. But Xiaomi understands that smartphone is not just another cool gadget but a central control tower of our lives.

In addition, Xiaomi organises its business activities around digital. While the glass cube flagship stores helped establish the Apple brand, Xiaomi built its brands primarily online. The company heavily leverages social media marketing including flash sales and fan events to promote products. As a result, digital helped Xiaomi significantly reduce its costs.

Xiaomi also built a small and Agile organisation. With around 22,000 employees, Xiaomi’s total headcount is significantly smaller than the 28,000-strong Samsung IM division , leaving aside global marketing and other central functional teams of Samsung.

Finally, online shopping highlights the strength of Mi phone features.

During the pandemic, most consumers around the globe needed to shop online, and often with a limited budget. Instead of the unparalleled in-store experience so carefully crafted by Apple and the undeniable brand allure from Samsung, online value buyers are presented with the stripped-down list of features in a product comparison table. Because the value-to-price ratio is designed according to consumer needs, Xiaomi becomes the obvious winner. Glowing reviews from satisfied customers then trigger recommendation algorithms, and their sales continue to rise.

It remains to be seen how long Xiaomi can sustain its global leadership position. However, their strategy may not be easily copied by Samsung in a short period of time, which makes this likely more than just “a summer fling”. 

About the author(s)

Chengyi Lin

is an Affiliate Professor of Strategy at INSEAD. His research primarily focuses on digital transformation and innovation for global and multi-national organisations.

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PRADEEP KUMAR SINGH

16/08/2022, 05.15 pm

Very Impressive article. Good learning.

• Log in or register to post comments

10/09/2022, 02.29 pm

Thank you, Pradeep!

It is interesting to see how the new Apple 14 release starts to focus on these features as well - such as camera (massively more pro) and battery life (all in, all day).

Anonymous User

20/09/2021, 05.27 pm

the xiaomi mobiles can affect in the market

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Xiaomi invades the smartphone market in India

• Published: 27 May 2020
• Volume 47 , pages 215–228, ( 2020 )

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• Rahela Tabassum 1 &
• Shehbaz Ahmed 1  

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The case study is based on Xiaomi Corporation, a Chinese Public company, headquartered in Beijing, China. Xiaomi (the word Xiaomi means millet which means a “grain” that is a staple diet in various parts of the world) is the world’s fourth largest smartphone (a smartphone is a mobile phone with various functions of a computer) company based on total shipments. It produces low-cost but high specification smartphones. Xiaomi which has emerged as the top smartphone brand in India also manufactures consumer electronics and mobile apps. Currently, Xiaomi revenue comes from the sale of products like smartphones, Iot, lifestyle products, advertising services and internet value-added services (which include online games). According to IDC India, Xiaomi has 29.7% of market share at the end of Q218. The organization has achieved an astounding growth. Xiaomi’s India revenue jumped 175% in 2017–2018 to Rs. 230.6 billion year on year. The firm that sells smartphones under the brand Redmi and Mi had a net profit of Rs. 2.93 bn in 2017–2018 (according to IDC, Counterpoint Research). Xiaomi Corporation which was founded in April 2010 was listed in the Hong Kong stock exchange on July 9, 2018. Xiaomi being the “Coolest Company” in the heart of its users is committed to continuous innovation. Xiaomi has launched its first smartphone in August 2011 and became the largest smartphone company in China by 2014. Xiaomi the Bengaluru headquartered firm has entered the Indian market on July 15, 2014, in partnership with Flipkart to sell its smartphone with a concept of Flash sales. It has become a global player from a startup company in smartphone market in a span of not even a decade. Samsung of South Korea and Xiaomi of China are expected to continue their fight for top slot in 2019. The study aims to analyse the Indian smartphone market with the business model, marketing mix and innovative strategies of Xiaomi in order to identify its strengths, weaknesses, opportunities and challenges. The finding indicates that the company needs to focus on improving its product quality, advertising and distribution network to face fierce competition. Through the innovative strategies of Xiaomi, it is likely to become a game changer in the near future.

Avoid common mistakes on your manuscript.

Xiaomi’s Mission Statement:

At Xiaomi, we strive to create the highest quality products at the lowest possible prices to provide people with access to the necessary tools and services that connect them to the world and, ultimately, their dreams.

Introduction

The use of smartphones has seen spectacular growth in the recent past. Most users have shifted from simple phones to smartphones. IBM was the first company to introduce smartphones in the year 1990. Later, it was followed by Nokia, Ericsson, Apple, Blackberry, Samsung and others. The smartphone market has plenty of new players who manufacture and sell smartphones. Xiaomi popularly known as “Apple of China” was founded 7 years ago on April 6, 2010, by a serial Entrepreneur Lei Jun in Beijing and became the leading smartphone brand in the first largest market China and the second largest market India. Later, it expanded its business in other countries like Malaysia, Singapore, Indonesia, Philippines and South Africa. It has entered the Western market but couldn’t catch enough attention. The founder of Xiaomi has an estimated net worth of US$ 12.5 billion which makes him the 11th richest person of China and 118th richest person of the world. The market valuation of Xiaomi is more than the US $ 46 billion.

Initially, Xiaomi was a startup technology-based company and in a span of fewer than 5 years has become a global player in the smartphone market. Xiaomi has launched its first smartphone in August 2011 and became the largest smartphone company in China by 2014. It is the world’s fourth largest smartphone manufacturer after Samsung, Huawei and Apple. Its target market is the price-sensitive lower middle-income group of customers and millennials who prefer smartphones in a lower price range.

The serial entrepreneur Lei Jun has founded Xiaomi in 2010 based on the vision “Innovation for everyone”. According to the Wall Street Journal, Xiaomi awarded the founder and CEO Lei Jun about $1.5 billion in stock. In July 2019, Xiaomi was listed in Fortune Global 500 companies and became the youngest Global 500 companies of 2019. It ranks 468th among all categories and ranks 7th in the internet services and retail category (Xiaomi Team-Aug 20, 2019).

It entered the Indian market on July 15, 2014, in partnership with Flipkart to sell its smartphone Mi 3 whose price was Rs. 13,999. It was an exclusive sales tie-up with Flipkart, and the Mi phones were sold within 30 min on the very first day. Xiaomi India’s focus is to design high-quality products and make it available at accessible prices to the world.

To understand the business strategies and competitiveness of Xiaomi India in the smartphone segment.

To evaluate the marketing mix model which provides guidelines to Xiaomi India to put the right product in the right place at the right time and price.

To analyse the major challenges faced by Xiaomi India in the arena of smartphones.

To conduct a SWOT analysis to assess Xiaomi India’s current position and how the company capitalizes its opportunities in the Indian market

Xiaomi: an overview

Xiaomi Corporation which was founded in April 2010 was listed in the Hong Kong stock exchange on July 9, 2018. Xiaomi being the “Coolest Company” in the heart of its users is committed to continuous innovation.

Xiaomi has launched its first smartphone in August 2011 and became the largest smartphone company in China by 2014. Xiaomi India the Bengaluru headquartered firm has entered the Indian market on July 15, 2014, in partnership with Flipkart to sell its smartphone with a concept of Flash sales. It has become a global player from a startup company in the smartphone market in a span of not even a decade. Samsung of South Korea and Xiaomi of China are expected to continue their fight for the top slot in 2020.

In a developing economy like India, the smartphones are unable to reach the masses due to its high prices. Mr Manu Jain, the CEO of Xiaomi India who acts like a nimble startup, maverick Footnote 1 in risk taking, nimble in decision-making but aggressive in execution is aiming to make its foot stronger in the Indian market by targeting people who have been untouched by the telecom revolution. Xiaomi popularly known as “Apple of China” entered the Indian market with an exclusive sales tie-up with Flipkart. In a very short span, the company has acquired the number one position in the Indian smartphone market surpassing even the Korean giant Samsung (Fig.  1 ).

Source : Economic Times, Mar 17, 2019

Journey of Xiaomi India from the time of its inception.

Penetration of Xiaomi in the Indian smartphone market

Xiaomi India has started its operations in India in 2014 and had a meagre share of 3% in 2015.

However, in 2016 it has clocked a revenue of $1 billion and became profitable (Fig.  2 ).

Source : IDC Counterpoint Research

Xiaomi revenue and net profit (in Billion Rs) in recent years.

Xiaomi India’s revenue jumped 175% in 2017–2018 to Rs. 230.6 billion year on year. The firm that sells smartphones under the brand Redmi and Mi had a net profit of Rs. 2.93 bn in 2017–2018 (according to IDC, Counterpoint Research).

The documents available at the Registrar of Companies show that in 2016–2017, Xiaomi India had a net profit of Rs. 1.64 bn and sales of Rs. 83.8 bn. According to Canalys (research agency), Xiaomi smartphones continued to experience high growth in the Indian smartphone market and ranked first in terms of market share by shipments in the second quarter of 2018.

India is an emerging market for smartphones. According to Counterpoint Technology Market Research and Cyber Media Research, although the global annual sales of smartphones have declined, the Indian smartphone market has grown by 12% approximately from about 134 million to 150 million in 2017.

According to International Data Corporation (IDC), in 2018, Xiaomi shipped 11.7 mn smartphones and became the top brand in the Indian market with 27.3% in the third quarter of 2018. Xiaomi India was able to grow to a new height with its successful Redmi 5A and Redmi Note 5 Pro series. It also has refreshed it Redmi 6/A/Pro portfolio.

The smartphone segment is the major growth driver in India. According to the ET report, Xiaomi’s smartphone shipments in India are going to register a 22% CAGR Footnote 2 in 2018-20E with market share gradually rising to 34% in 2020E from 30% in 2018. Among the emerging markets, India enjoyed the strongest growth of 14% YoY in 2017 to 8% of global market share, up from 7% in 2016 (Fig.  3 ).

Annual growth and market share of smartphone manufacturers in the Indian smartphone market in 2017–2018

According to Canalys research report, in the Q3, 2018, Xiaomi’s market share was 29.8% with an annual growth of 31.5%. Samsung market share was 23% with a negative annual growth of 1.6%. The market shares of Vivo and Oppo were 11.1 and 8.8%, respectively. The annual growth rate was 12.3% and − 2.0%, respectively (Fig.  4 ).

Source : Canalys smartphone analysis, Jan 2020

Annual growth and market share of smartphone manufacturers in the Indian smartphone market in 2018–2019.

According to Canalys Smartphone Analysis, Jan 2020 Xiaomi India was able to maintain its top position in 2019 with an annual growth of 5% and a market share of 29%.

Xiaomi’s smartphone shipments across the globe

According to Macquarie Research, July 2018, Company model has 15% CAGR for unit smartphone shipments in India in 2018-20E, driven by rising population and smartphone penetration rates. When compared to the rest of the globe, Xiaomi’s popularity is incredibly high in India (Figs.  5 , 6 ).

Source : Macquarie Research, July 2018

Xiaomi’s Global smartphone shipment.

Source : Canalys Research

India’s smartphone market Q3 2018-top 5 vendors.

The performance streaks of Xiaomi have shown no signs of abating. The company has cemented its lead in the country by shipping more than 12 million smartphones in Q3 2018. Samsung was able to ship 9.3 million smartphones in Q3 2018. Vivo and Oppo came the third and fourth with 4.5 million and 3.6 million shipments, respectively.

SWOT analysis of Xiaomi

Growing market Growing market for smartphones in developing countries is a major strength of Xiaomi, especially in the Asian market. India, China and Pakistan are the largest consumers in the Asian market. Currently, Xiaomi products are available in more than 80 countries around the world and have a leading foothold in many of them.

Pricing strategy The pricing strategy adopted by Xiaomi is penetrative pricing. It prices its product very reasonably. It offers the right quality at the right price to its customers.

Quality products At a very low price, the company sells good quality products on the e-commerce portal. The smartphones of Xiaomi are regularly rated very high on quality.

Consistent strong revenues and profit The Company has seen a consistent increase in the annual growth for the last 4 years which enabled innovations in the smartphone segment.

Advance technology The smartphones of Xiaomi are technologically advanced and are well known for its cameras which are very high in resolution. Xiaomi is often at the leading edge of new technology as it offers innovative and featured products.

Increased brand awareness The increase in brand awareness of Xiaomi smartphones has resulted in higher sales across the Asian market.

Online marketing The Flash sales of Xiaomi smartphones on e-commerce portal have made consumers go crazy, and the company was able to sell the smartphones at very reasonable prices in a limited time.

Investment in R&D The Company invests heavily in R&D. Its major R&D expense is towards cost advantage Footnote 3 rather than on differential advantage. Footnote 4

Operating advantage Its low production cost is an operating advantage with excellence in engineering and innovative designs.

Brick-and-mortar store Xiaomi was able to sell its smartphone through click stores. (Flash sales). But offline sales were not so attractive. Lack of significant retail presence is a weakness.

Advertising and marketing The company has spent very less on marketing and advertising. Its advertisements are not very consistent. The company spends on advertising only during a new product launch.

Poor service and weak after sales Service centres of Xiaomi India are limited and provide very little after-sales support when compared to the competitors.

Brand image and equity Because of being a Chinese manufacturer, the company’s brand image is not as good as Samsung and Apple.

Opportunities

Growing urban income The per capita income is the indicator of the prosperity of an economy. According to the Ministry of statistics and programme implementation (MOSPI), the per capita income has shown a rise of 8.6% (FY Footnote 5 2017-18). However, it was slower than in the previous year growth pattern.

Increase in urban population According to U.N. World Urbanization prospects 2018 report, 34% of India’s population lives in urban areas. It shows an increase of 3% urban population since the 2011 census.

FDI norms The relaxation in FDI norms has a positive impact on the smartphone industry.

Growing Educated youth preferring smartphones The shopping trend of this growing educated youth has shown a preference for smartphones which are available at reasonable prices. According to the IMF, India’s population mostly comprises of young people, with 41% of people in the age group of 25–40.

Emerging market India as an emerging market for the smartphone segment provides an opportunity to increase revenue.

Government regulation As the government is serious about the security of phones and user data, the company has to respond to India’s data security and privacy concerns. It can be a destabilizing factor.

Health concern As the customers are showing a lot of concern towards health, an awareness about the dangerous effects of using mobile phones can have an impact on consumer behaviour which can in turn have a negative impact on the smartphone industry.

Uncertainties in share market Due to sudden fluctuation in stock prices, Xiaomi sinks after billions of shares are unlocked for sale. This will have an impact on the market share of Xiaomi India.

The imposition of Tax The implementation of GST has increased the prices of goods. But Xiaomi products are still priced cheaper than its competitors. However, when the government has cut the GST rates, the company has reduced its prices of smartphones to pass the benefits to its customers.

Increase in competition The market for smartphone makers in India is saturated as many other Chinese manufacturers (like Oppo and Vivo) are coming up with affordable products with handsome specs.

Business model and innovative strategies of Xiaomi India

The Flash sale model has worked wonderfully for Xiaomi. In Flash sales, the product is generally made available only in limited quantities. The model has made the customers go crazy. The CEO of Xiaomi India Mr Manu Jain has defined himself as a Maverick. He is the one who challenged the status quo by doing exactly the opposite of what other mobile brands were doing in India. People have labelled him Crazy as the rivals were entrenched in brick-and-mortar stores across the country; he has adopted the online route to sell its products in a country like India. The company has got huge orders within that limited time, and Xiaomi India was able to reach its target sales in that short span (Fig.  7 ).

SWOT analysis of Xiaomi India

The pricing strategy of Xiaomi India is that its products are 30–50% cheaper than the top brands like Samsung and L.G. The company’s strategy is to keep just 5% margin for itself. It assembles its products locally to take advantage of Make in India duty benefits. The Company has plans to follow the same pricing strategy for its smart appliances. Moreover, the Flash sales model concept shall also be extended to white goods.

The company focuses on a triathlon model. This creates synergies by cross-selling services and products to users, through its innovative retail concept which involves direct online sales to maximize efficiency and create a long-term direct digital relationship with the users. With its astounding growth, the company has challenged the leading smartphone makers Samsung and Apple in the Indian market (as per the Xiaomi Team report published on Aug 20, 2019).

Xiaomi India’s adopts a line modernization strategy as it intends to expand its smartphone line by refreshing the portfolio and expanding the range. It also wants to expand its product category and has plans to enter the white goods market in India. All the electronic appliances which are going to be launched in India are going to be based on IoT. All these appliances are going to be launched online first and then will be available in exclusive brand stores. The most innovative strategy of the company is its keen focus to create new revenue drivers.

Financial highlights of Xiaomi India

Total revenue was approximately RMB51.951 billion, up 14.8% YoY;

Gross profit was approximately RMB7.26billion, up 28.4% YoY;

Net profit was approximately RMB1.96 billion;

Non-IFRS adjusted net profit was approximately RMB3.64 billion, up 71.7% YoY;

Earnings per share were RMB0.082.

Marketing strategies

The product portfolio of xiaomi india.

The product portfolio of Xiaomi India can be categorized into Smartphones, Smart TV’s and Ecosystem Accessories. The detailed items are listed below:

Smartphones

Redmi Note 6 Pro

Redmi Note 5 Pro

Redmi 6 Pro

Other products sold by Xiaomi India

Power banks

Selfie sticks

Chargers and cables

Bands and fitness trackers

Cases and protectors

Air purifiers

VR headsets

Xiaomi offers high cost-to-performance products. The company adopts a penetration pricing strategy. It offers competitively priced smartphones to its consumers. Indian customers are price sensitive and cannot afford expensive smartphones. According to Xiaomi, its success comes from consistently focusing on price and features. Xiaomi had a tough time in India because of its competitors Samsung, Oppo and Vivo. But because of its penetrative pricing strategy, Xiaomi was able to win its battle in India. However, the company for its Premium models displays aggressive specifications that might create avenues to lift Xiaomi’s brand image and support premium pricing.

Chinese smartphone giant Xiaomi India has kicked off its No.1 Mi Flash sale on Mi.com and Amazon India. Xiaomi Smartphones were up for sale online for a limited period until Friday in the month of December 2014. Xiaomi India has also partnered with Paytm, Google pay and MobiKwik to offer cashback and rewards to its customers during the Flash sales on Mi.com. The Amazon partner has offered an instant discount to its HDFC Bank Users.

Xiaomi India has taken the online route to enter into Indian market while its rivals were deeply entrenched in brick-and-mortar stores across the country. According to Manu Jain, the India head of Xiaomi as told to ET (Mar 2018), the competitors of Xiaomi were splurging millions of dollars on advertising and hiring bollywood biggies like Khans; the company was betting on word of mouth. The company believed in their blockbuster fans, i.e. their customers.

The Flash sale offered the 4 GB RAM variant of Redmi Note % pro at a discounted price of Rs. 12,999, while Redmi Note % Pro 6 GB RAM model was available at Rs. 11,999. The company offered huge discounts and rewards to its customers during the Flash Sales.

Chinese smartphone manufacturer Xiaomi has toppled the leading smartphone maker Samsung in India (Canalys report 2018). Xiaomi which was once considered as a cheap copycat is now able to rub shoulders with the South Korean market leader. It has set up 500 Mi stores in rural areas and has plans to ramp up to 5000 stores in 2019 to increase its offline sales (ET 2018). The company also wants to penetrate the rural market through its offline sales. It also wants to enter into a franchise agreement with its local vendor to reach out to the masses. The size of Mi stores is on average not more than 300 Sq ft. These Mi stores are likely to generate employment opportunities to over 15,000 employees in these regions.

The key factor that supports smartphones sales in India is the rising rate of internet penetration which drives online purchase. However, the internet users in Indian cities rose 10% in 2017, but the overall internet users stayed low at around 480 m in 2017. It is only 35% of the total population which shows a rich upside to grow. The online channel sales of smartphones in India rose from 34% in the fourth quarter of 2017 to 36% in the first quarter of 2018. The rising 4G coverage due to operator investments in 4G networks and 4G service price cuts (e.g. Reliance Jio) have accelerated smartphone market growth (Fig.  8 ).

Smartphone sales in India: online versus offline.

Xiaomi’s high cost-to-performance smartphone models have contributed to its largest market share in India. Another major factor for its rising market share is the comprehensive distribution channels which include both online and offline. Online channels contribute to 70% of Xiaomi’s smartphone sales. According to IDC, riding on the growing online channel market trend (up from 34% in 4Q17 to 36% in 1Q18), Xiaomi also gained market share in e-Tailer shipments, to 53% in 1Q18 from 32% in 1Q17. In May 2017, Xiaomi started its first offline channel in India by establishing “Mi Home”. By 2018, Xiaomi has 17 Mi Home stores. The company increased it to 100 stores by mid-2019.

Although the entry of Xiaomi into the Indian market can be inspiring for many, the company was in the spotlight when the Xiaomi Redmi Note 7s exploded and the company refused to take the blame as it clarified that the damage to the phone was "customer induced" (Report of Times of India). Similar cases have been reported in the products under the Redmi brand as many phones exploded while charging. The Chinese tech company is facing criticism for its faulty batteries and manufacturing defects which caused the explosion threatening the lives of the users. However, the company’s CEO Mr. Manu Jain has made a statement that the damage is caused due to external forces (Business Today Nov 2019).

Moreover, Sweden’s Ericsson smartphone maker got an interim injunction against the sale of Xiaomi’s smartphones claiming that Xiaomi infringed 4 of its patents which deal with GSM, GPRS, EDGE and WCDMA technologies. This caused a ban on all Xiaomi smartphones selling in India, but later on smartphones based on Qualcomm chipsets were only allowed. Ericsson later claimed that Xiaomi was selling its non-Qualcomm products through a website called www.xiaomishop.com violating its interim order. Xiaomi India defended the claim by stating that they had no stake on the website and their name was being misused (The Indian Express Nov 2017 ).

In another case, Coolpad a Chinese smartphone maker has filed to Indian court against its rival Xiaomi over patent infringement as India has a good reputation in protecting Intellectual Property Rights (Economic Times Jun 2018).

Though the Xiaomi smartphones are famous for their design, affordable price, high-resolution cameras and good performance, it has faced a backlash on its ad ridden MIUI. Many customers hold back from buying a Xiaomi handset because of the ads being a part of its user interface.

Moving ahead

Xiaomi India has plans to invite more of its suppliers of the component to investing in India. The Chief Marketing Officer of Xiaomi India Mr. Anuj Sharma in an interview with ET said that 95% of smartphones are made in India. One of the suppliers “Holitech Technology” has signed an MoU with the Government of A.P to start its manufacturing facility. Economic Times 2018 report says that Xiaomi India has six factories in India. The company has plans to increase its manufacturing capacity of existing plants and also opening up new plants in India to cater to the local demand of customers. Presently, Foxconn Corporation India Unit makes the company’s phone locally. Foxconn and HiPad are producing Mi and Redmi devices in India. The company has plans to invest heavily in other manufacturers to build an ecosystem of IoT to extend its reach beyond smartphones.

To meet its growing demand for handsets, the company has partnered it with an original equipment maker FLEX to manufacture smartphones in Tamilnadu. This new plant at Tamilnadu is the seventh plant of Xiaomi India. Xiaomi India’s partner Holitech Technology which supplies components to top companies except for Apple sets up a plant in Greater Noida, to invest $200 mn. The new plan has started its operations in the third quarter of 2019. It is also estimated to generate 6000 jobs in the coming 3 years. It has plans to make compact camera modules, screen modules, fingerprint modules, thin-film transistors, capacitive touch and flexible printed circuits.

To boost its growth in the smartphone segment, Xiaomi India has plans to enter India’s rural market as it believes that the urban market has greater potential for the online market, but in rural India, the offline segment provides significant growth. It has launched Mi stores in the Tier 3 market of rural India to cater to the needs of India’s rural smartphone user. The Chief Operating Officer of Xiaomi India Mr Murali Krishna has said in an interview with ET that they have launched 500 stores in the rural market across India.

Out of 48% of market share, 20% of the sales of Xiaomi India are offline and the rest are online. The companies plan to open their own operated and branded stores is still pending with the Government. It has plans to open around 200 retail stores in the next 2 years to increase its target market.

Xiaomi India has plans to enter the white goods market in India which will make the country’s largest smartphone maker the full-fledged consumer electronics company in India. The Company has plans to make its electronic goods as smart appliances based on IoT. These smart appliances can connect to the internet and other devices and can be operated remotely. Xiaomi India’s potential electronic appliance category includes air conditioners, washing machines, refrigerators, laptops, vacuum cleaners and water purifiers.

The CEO of Xiaomi India as reported to Business Today has plans to launch various product categories in India, and their only concern is to customize the products to suit Indian customers. Xiaomi India would like to foray in areas where stringent rules and regulations don’t apply. Rather than bringing products like Drones which are subjected to strict rules and regulations, the company would like to focus on flexible sectors like electric cycles and vehicles.

The company at present caters to 50 markets in the country and has plans to enter 500 markets. To expand its business, it shall make offline presence through exclusive brand stores with a range of smartphones, smart televisions and other electronic appliances. The Chinese handset maker Xiaomi is all set to install its vending machines to sell its smartphone and accessories in major Indian cities (ET May 2019). These vending machines are called “Mi Express Kiosk “and will allow its consumers to purchase smartphones and accessories. The customers can pay through credit or debit cards, cash and UPI (ET 2019).

Xiaomi India has plans to launch in the high-end range of smartphone market competing for the toe to toe with the likes of Samsung, Oneplus and Apple which currently rule the segment in 2020.

Conclusion and inferences

The handset market has witnessed stiff competition, as the bigger players are getting even bigger and marginalizing the smaller players. Samsung of South Korea and Xiaomi of China are expected to continue their fight for the top slot in 2020. The other rivals for the top five positions will be from Oppo, Vivo, Realme, HMD Global(Nokia) and Huawei/Honor. Through the innovative strategies of Xiaomi, it is likely to become a game changer in the near future. The category expansion strategy of Xiaomi has made it a global player from just a startup firm.

Xiaomi has 190 million MAUs Footnote 6 on the MIUI.MIUI (Mi User Interface) is the proprietary operating system built on the android operating system which allows users to download mobile apps from the android ecosystem. The company has 38 apps with more than 10 million MAUs and 18 apps with more than 50 million MAUs. This app includes Mi App Store, Mi Browser, Mi Music, Mi Video Apps. (ET March 2018). With such innovative strategies, Xiaomi India is building a growing tribe of fans (Xiaomi tribe). They mostly target millennials who are tech savvy and innovators of products.

The most important move of Xiaomi India about offline expansion, especially in the rural market, is the significant factor for its growth and success. Moreover, the promise to get innovative designs like foldable smartphones and bezel-less smartphones at an affordable price shall make Xiaomi India sustain the top position in the long run.

Xiaomi plans to expand its product category (entering the white goods space in Indian market) shall open newer avenues of growth in the Indian market. The appliances based on IoT will contribute to the growing revenue. Xiaomi’s investment in various channels, innovative business models, growing ecosystem across devices and internet services is likely to drive market share gains in the future.

According to IDC 2018, Xiaomi has already acquired 30.6% market share in the first quarter 2019; the company’s future rests on how it capitalizes the strengths and minimizes its weaknesses to create sustainable competitive advantages. Currently, the company should concentrate on improving its manufacturing facility, advertising, product quality and distribution network. The company should come up with more such innovative business practices to deal with increasing uncertainties. The case study is based on secondary data from corporate websites relevant reports, news and articles from business magazines and newspapers. The study is useful to learn about the smartphone segment in India, its growth potential and challenges, future trends. To the best of the author’s knowledge, no such study was made in the past which attempts to investigate the marketing mix strategies, business models and challenges faced by smartphone maker Xiaomi India with the detailed analysis. The study infers that case study of Xiaomi is a lesson for all marketer’s as uncertainties and challenges can appear any time, and a combination of market research and innovative strategies is necessary to face such situations.

Maverick—one who doesn’t go along with group or party.

CAGR—Compounded Annual growth rate

Is something where the focus of the company is on reducing the cost.

Is something where the focus is on developing different features.

FY starts from 1st April and ends on 31st March in India

MAUs—Monthly Active Users.

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Macquarie Research, Jul 8, 2018. http://www.macquarie.com/research/disclosures

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Market Disruption Strategies: The Transformation of Xiaomi

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After breaking into China’s smartphone market, where it becomes a leading brand, Xiaomi sees sales stagnate and then decline as the disruption strategy that empowered its rise loses momentum. As competitors counter every move, targeting its core consumer segment, the company urgently needs to reignite growth and develop a sustainable competitive advantage. The case describes the changing market landscape, Xiaomi’s product portfolio, distribution systems, partnerships, brand management, promotion and pricing. The question is whether to remain focused on smartphones—on which Xiaomi’s reputation has been built—or transform into an IoT ‘ecosystem’ encompassing a wider range of product categories. The challenge is to understand the respective pros and cons and formulate a detailed implementation plan for the chosen strategy.

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After breaking into China's smartphone market, where it becomes a leading brand, Xiaomi sees sales stagnate and then decline as the disruption strategy that empowered its rise loses momentum. As…

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After breaking into China's smartphone market, where it becomes a leading brand, Xiaomi sees sales stagnate and then decline as the disruption strategy that empowered its rise loses momentum. As competitors counter every move, targeting its core consumer segment, the company urgently needs to reignite growth and develop a sustainable competitive advantage. The case describes the changing market landscape, Xiaomi's product portfolio, distribution systems, partnerships, brand management, promotion and pricing. The question is whether to remain focused on smartphones-on which Xiaomi's reputation has been built-or transform into an IoT 'ecosystem' encompassing a wider range of product categories. The challenge is to understand the respective pros and cons and formulate a detailed implementation plan for the chosen strategy.

Learning Objectives

The case can be used in a variety of contexts, including MBA, EMBA, MS, executive education and undergraduate courses. The topic is suitable for courses on marketing, strategy, branding, entrepreneurship, organizational transformation, ecosystems, IoT (Internet of Things), and emerging markets. The aim is to understand how a firm is able to disrupt an established consumer goods market, achieve continuous growth, and develop a sustainable competitive advantage. The case illustrates the advantages and pitfalls of pursuing a pure online strategy in serving a large emerging market. It highlights the forces driving market evolution in the technology sector and the strategies that enable a firm to thrive (e.g., leveraging network effects conferred by IoT devices in an 'ecosystem'). It takes students through the process by which a single-category brand evolves into a multi-category brand, the associated benefits and challenges (e.g., positioning, brand architecture), and how to create, grow and manage a brand 'ecosystem'.

Feb 24, 2021

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Asia, China

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Xiaomi Marketing Strategy - Let's Reveal Xiami's Success Strategy

Xiaomi marketing strategy – let’s reveal xiami’s success strategy.

Table of Contents

This article illustrates the marketing mix framework of Xiaomi, and explains key marketing strategies that contribute to the Xiaomi’s business success. The article is primarily useful for the market researchers, entrepreneurs and strategic management/marketing students, who want to learn about the marketing strategies of successful brands like Xiaomi.

1. Introduction

A powerful and well-integrated marketing-mix is deemed critical for business success. In this article, we have discussed the marketing-mix of Xiaomi. 

The marketing-mix framework has four components- product, price, place and promotion. We have first analyzed each marketing mix component, and then have discussed its role in making Xiaomi a successful brand.

Click here to get the basic information about the Xiaomi company. 

2. Xiaomi marketing strategy

2.1. xiaomi product strategy, 1. xiaomi product mix.

Xiaomi mainly offers hardware, software and internet services. The company has a vast portfolio that includes:

• Smartphones 

• Smart TVs

• Wearables smart watches

• Power banks

• PC and TV accessories

• Camera drones

• Routers etc. 

By pursuing the product diversification strategy, Xiaomi sells some unrelated product as well, like- apparel, fashion accessories, lifestyle products and smart home accessories like water purifier, vacuum cleaner and rice cooker etc. 

2. Xiaomi Unique Selling Proposition

The unique selling proposition of Xiaomi is- offering high product quality with great specs in affordable prices.

Despite charging low prices, Xiaomi fulfills its promise of offering high quality. Due to efficient product design and quality, Xiaomi won more than 145 industrial design awards for its cellphones, TVs and speakers. 

3. Xiaomi Segmentation, Targeting and Positioning

4. xiaomi target market.

Overall, Xiaomi target market includes:

• Tech savvy customers, who are in age group of 18 to 35 years;

• And are from working/middle class;

• Want good quality and impressive specs in affordable price;

• And perceive market leaders like Apple and Samsung as overpriced.

Following table shows the target market of each Xiaomi sub-brand:

5. Xiaomi customer profile

A recent study revealed that Xiaomi customer base includes:

• Predominantly male users (69.1%)
• 31.7% from 30 to 34 bracket 
• 25.4% from 25-29 bracket
• 14.2% from 19 to 24 bracket
• 6.5% are above 40 year old

6. Xiaomi brand positioning

The Xiaomi brand positioning is- a high-tech , yet affordable brand with impressive specs that bridges the gap between mass market and high-end market segment. 

7. Xiaomi global revenue mix

Following graph shows the revenue that Xiaomi made in 2022 from different product categories:

Source: Counter Point

The graph shows that from 2021 to 2022, revenue from IoT, internet services and others category rose from 38.7% to 39.6%, while revenue from smartphones declined from 61.3% to 60.3%. 

After smartphones, the IoT sales made the highest contribution, followed by internet services, and ‘others’ category. 

Xiaomi partnership with Microsoft is also allowing to brand to generate revenue from cloud services. 

8. Key takeaway

• Good quality with impressive specs (fully customizable MIUI) at affordable prices drive the Xiaomi to the top spot. 

• Product strategy well-aligned with the target customer needs.

2.2. Xiaomi pricing strategy

1. xiaomi pricing strategy.

Xiaomi adopts penetration pricing strategy to expand the market presence through aggressive price reductions. The price penetration strategy enables Xiaomi to gradually gain the foothold in the competitive smartphone market by offering affordable alternatives to expensive phones without compromising over features and quality. 

2. Xiaomi pricing objectives

By charging low prices, Xiaomi adopts ‘ low price today and gain later ’ mindset. The key pricing objectives are:

• Penetrate deeper into budget conscious segment

• Charge low price for device, and earn revenue from accessories, services and apps

• Benefit from the price elasticity of demand

• Expand reach to growing mass market 

3. How Xiaomi charges low prices?

Brands take cost cutting measures to charge low prices:

• Xiaomi spends most of the money on production and designing

• Spends more on online, cost efficient promotion strategy 

• Reduces logistics costs by partnering with online retailers- Amazon and Flipkart

4. Xiaomi price range

Xiaomi smartphones are available in a wide price range of CNY 180 (Xiaomi Mi Max 3) to CNY 6,825 (Xiaomi 13 pro). 

5. Xiaomi mission statement

Xiaomi mission statement is well-aligned with its affordable pricing strategy:

To make quality technology accessible to all

6. Key takeaways

• Cheap prices do not always mean cheap quality. By adopting long-term view, Xiaomi charges low prices to grab market share from competitors.

• Initially, Xiaomi entered the market with low-end phones, and today, it is world’s third largest smartphone brand, with strong presence in both- low and high-end segments. 

2.3. Xiaomi place strategy

1. xiaomi distribution strategy.

Initially, Xiaomi adopted online-only distribution model. For instance, when Xiaomi entered in India, it gave exclusive distribution rights to Flipkart. 

Later, Xiaomi shifted from exclusive to selective distribution strategy, and entered in distribution contract with Amazon and Snapdeal. 

In 2021, Xiaomi announced to ramp up the offline distribution . 

in India and other countries. 

2. Xiaomi distribution channels

• Official website

• Official store outlets

• Online distribution partners

Here are online distribution partners of Xiaomi all over the world:

Here is the list of online distribution partners for Xiaomi smart devices:

3. Xiaomi distribution network

Xiaomi products are available in more than 100 countries. Xiaomi has strong presence in the China, India, Singapore and many other emerging Southeast Asian countries. Its online distribution network is spread in all over the world to ensure maximum coverage.  

Following graph shows the Xiaomi’s presence in top ten Asian-pacific countries:

Source: Statista

To know the overall Xiaomi market share, click here . 

4. Key takeaways

Xiaomi distribution strategy is well-aligned with its product and pricing strategy. Strong e-commerce presence reduces the logistics costs that allows Xiaomi to charge lower prices without compromising over quality. 

2.4. Xiaomi promotional strategy

1. xiaomi advertising strategy.

Xiaomi uses both- online and offline promotional channels. However, its main focus remains on the online marketing. 

Initially, Xiaomi only focused on inexpensive social media marketing tactics.  But in 2016, Xiaomi revised its promotional strategy, and started investing on traditional advertising channels to achieve international expansion objectives.

2. Xiaomi traditional advertising

Xiaomi spends on the TV and print advertising to reach the mass market. Here is an example of Xiaomi advertisements in newspapers and billboards: 

Other than direct advertising, Xiaomi generates word of mouth through PR story-telling advertising technique :

The story-telling technique generates the WOM by keeping the readers engaged.

3. Xiaomi social media marketing

In an effort to cut costs, Xiaomi mainly focuses on the social media marketing strategy. The company holds strong presence on famous social networking sites:

4. Xiaomi online brand community

Xiaomi has large online brand community that spreads e-WOM about the brand over different social networking sites. 

The company has on online MI brand Community App:

The community members ask questions, and help each other in solving the problems. The community provides a personal space to users where they can share their experiences and solutions. 

5. Xiaomi social media campaigns

Xiaomi frequently launches social media campaigns, and arranges contests and quizzes to generate e-WOM:

In 2019, Xiaomi launched its Mi 10 on Twitter in a live video . The video got close to 5 million views, and 50 million impressions, with 60% increase in conversion rate. 

6. Xiaomi hunger marketing strategy

Xiaomi adopted ‘hunger marketing strategy’ to achieve digital marketing objectives:

Hunger marketing required Xiaomi to:

• Understand target customers’ emotional needs

• Create an in-purpose supply shortage

• Create buzz and evoke desire to own Xiaomi smartphone

7. Xiaomi celebrity endorsement strategy

Xiaomi invests on celebrity endorsements, particularly in India to capture market share. 

In India, Ranveer Singh is the face of Xiaomi-Mi:

8. Xiaomi influencer marketing strategy

Xiaomi identifies and collaborates with tech influencers to reach the mass market. 

Xiaomi understands the importance of choosing the right influencer. It collaborates with three types of influencers:

• Professional talent (e.g. Hello-Mate TV- a property related YouTuber)

• Entertainment talent (e.g. Healo Diary- a food vlogger)

• Lifestyle talent (e.g. Ada Pong- Vlogger)

9. Promotional discounts

Xiaomi offers promotional discounts and flash sales to drive the sales. The purpose of offering flash sales is to keep brands under discussion, and grab the attention of potential customers by creating a sense of urgency.

Although, many smartphone brands offer flash sale offers, Xiaomi took it to extreme. In UK, Xiaomi grabbed everyone’s attention by offering $1 flash sale:

Source: BBC

Read full story here

10. Xiaomi marketing budget

In response to the rising competition and changing consumer behavior, Xiaomi is gradually increasing the market budget every year. 

Following graph shows the Xiaomi marketing and advertising budget from 2017 to 2021:

11. Key takeaways

Xiaomi blends traditional and digital marketing strategies to engage customers, and create brand awareness. The focus on digital marketing helps Xiaomi save costs, and expand the reach to target market. 

3. Recommendations

• Focus on related diversification to earn more revenue from services and accessories

• Expand the official outlets in and outside China

• Increase product variety to widen the price range, and ensure maximum coverage

• Continue investing on digital marketing activities to interact and engage with customers

• Increase marketing budget for traditional marketing activities as well to fuel the international expansion

• Expand the use of influencer and celebrity endorsement strategy in other emerging markets as well (other than India)

4. Conclusion

To sum up, Xiaomi presents a success case study of how brands can achieve enormous success through a well-integrated marketing mix. 

Xiaomi understands the market pulse, and acts accordingly. To know about Xiaomi, read our article on Xiaomi SWOT analysis . 

5. References

Zhou, K. (2018, April 22). Xiaomi CEO Lei Jun: How Xiaomi Turned the Tables . Pandaily.

Admin, & Admin. (2023a, January 10). Apple’s Marketing Strategy Analysis | Secret behind Apple’s Market Leadership . Strategy Finders.

Rox , R. (2018, January 30). Study in China shows age demographic of smartphone users . Notebookcheck.

Xiaomi Updates: Q3 2022 – Counterpoint Research . (2022, December 9). Counterpoint Research.

Admin, & Admin. (2023b, January 12). Microsoft SWOT Analysis 2023 – A Detailed Analysis by Experts . Strategy Finders.

Admin, & Admin. (2023b, January 11). Comprehensive Analysis Of Walmart Marketing Strategy . Strategy Finders.

Statista. (2023d, March 20). Market share of Xiaomi smartphones in APAC 2022, by country .

Admin, & Admin. (2023d, January 12). SWOT Analysis of Apple | Strengths and Weaknesses revealed . Strategy Finders.

Admin, & Admin. (2023n, March 20). Airbnb SWOT Analysis 2023 – Analysis by Marketing Analysts . Strategy Finders.

How Xiaomi achieved close to 5 million video views by launching its smartphone live on Twitter . (n.d.).

Kelion, B. L. (2018, November 12). Xiaomi criticised for UK smartphone £1 flash sale . BBC News.

Kelion, B. L. (2018b, November 12). Xiaomi criticised for UK smartphone £1 flash sale . BBC News.

Statista. (2022d, May 13). Xiaomi’s selling and marketing expenses 2017-2021 .

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How Xiaomi is Dominating the Global Smartphone Market?

Just have a look around yourself, there must be at least 5 people around you who would be using a Xiaomi phone. Today, we will be talking about the leading smartphone brand who has been able to establish trust among users worldwide.

Let us first deep dive into Xiaomi’s journey-

Xiaomi Corporation is a Chinese electronic company founded in April 2010. The company began its operations as a software company by ex-Kingsoft CEO Lei Jun, by creating a new custom ROM based on Google’s Android, MIUI. The company launched Mi 1 and Mi 2 smartphones in August 2011 in and 2012 respectively in Asia and East Asia Markets.

In 2015, Xiaomi Corporation decided to expand its business in India through major e-commerce sites and offline retailers. Xiaomi was a ground-breaking smartphone at the time in budget and was well received by Indian customers. Since then, the company has expanded in Pakistan, Spain, UK, Ireland, Austria, Denmark, Sweden, Paris, Milan and the USA.

Besides smartphones, the corporation has also launched various smart home products, fitness products, TVs, laptops, drones, Wi-Fi routers, cloud services and instant messenger services.

Xiaomi Business Model

With the main aim of providing quality technology at affordable prices to everyone, Xiaomi has captured third place in the global smartphone market. Xiaomi’s Chief Executive Officer Lei Jun fragmented the source of revenue-generation into four segments of the market:

• Internet of Things (IoT) and lifestyle products
• Smartphones
• Internet services
• Miscellaneous services and products

As the years of success passed, the revenue generation process became faster and enterprise value touched $100 Billion during the initial public offering. The company began to compete with tech giants such as Apple and Samsung.

When Xiaomi was struggling to gain profit in 2016, the CEO decided to sell products other than smartphones. They generated substantial revenue that was enough to make a strong base for a large company. Besides selling smartphones, the company also provides services like air purifiers, suitcases, televisions and much more. Xiaomi also provides paid cloud storage. Services offered by Xiaomi also include online games and TV shows. Xiaomi is also producing AI-engines which can impact the business model positively in future.

Now, let’s have a look at different categories in which Xiaomi is ruling the technology market:

• Xiaomi’s Global Smartphone Market: In the present day, the smartphones of Xiaomi are responsible for 65% of the total revenue. According to a survey, Xiaomi sold 119 million smartphones in 2018. It is the highest number for any brand to date.
• Internet of Things and Lifestyle Products: Xiaomi has always focused on making people’s life simpler with its innovative technologies. Xiaomi’s IoT and lifestyle products roughly made 25 percent of revenue generation in 2018. It produced around $6.4 billion approximately. The products include internet cables, Bluetooth Speakers, Smart TV, Electric Scooters, Vacuum Cleaner, Cameras, Smart Home systems and much more.
• Internet Services: The business model of Xiaomi also includes internet service business. These businesses include preloaded apps and apps in the Mi store. Around 9.1 per cent of the total revenue comes from these services. They also provide cloud storage which is again a paid service. Xiaomi always focused on its internet services. Its efficient internet services are for start-ups. Start-ups play a crucial role in Xiaomi’s success in terms of business.

Xiaomi’s Revenue Generation Model:

With ensuring better productivity at an affordable price, Xiaomi focuses on its customer acquisition and advertising strategy. The business model of Xiaomi includes a variety of electronic gadgets and internet services that are innovative and attractive. Miscellaneous additional services and products of Xiaomi also have their fair share in helping the company generate good revenues.

Customer reliability is one of the critical strengths of Xiaomi. Xiaomi always produces affordable products. This thing still fascinates the customer towards the brand. Xiaomi provides its users with an unforgettable experience which also helps them to retain their customer base. This lets the company have more subscribers for its proprietary services such as Mi Store, Music, MI Cloud and so on. All this helps the company make good money.

Marketing Approach adopted by Xiaomi:

Xiaomi has kept its marketing strategy minimalistic due to the cost leadership business strategy. Unlike other recent competitors like Oppo and Vivo, the mobile internet company didn’t adopt traditional marketing and utilised social media marketing to save on advertising costs.

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.

Xiaomi focused primarily on the price element of the marketing mix compared to other elements of the 7P’s of marketing. Let us check out those 7Ps of marketing: Product: The mobile internet company offered high-quality phones with latest features at unbelievable prices. The product consisted of high-quality hardware components and the final price was very low when compared to other brands.

• Pricing:  The product was sold on its cost price through online platforms without involvement of any mediator.
• Place:  After the huge success in China, Xiaomi launched its products internationally. They hired Hugo Barra (Ex-Google android Executive) to discover new opportunities for expansion.
• Promotion by Social Media:  Xiaomi leveraged social media platforms beautifully to enhance their online presence. Engineers engaged with consumers and gathered feedback to refine the software and remove the bugs.
• Promotion by Brand Promoters:  Xiaomi actively participates in the discussion on social media has succeeded in generating a dedicated fan base of millions of users. Promotion by Word of Mouth: The Flash sales created a buzz and everyone was talking about it. It helped Xiaomi to gather huge popularity.
• Promotion by CEO:  Xiaomi’s head, Lei Jun, did a great job in making his brand look cool. He put a face to the brand. Lei Jen’s is quite similar to Steve Jobs in the way he talks about the brand.

Social Media Strategy adopted by Xiaomi

Leveraging the power of social media marketing, the Chinese mobile internet company didn’t invest a single penny in traditional advertising. The company employed 2000 people over social media and online forums to manage its online community. Xiaomi followed a well-strategized plan to expand its online presence:

• Building a strong tech fan base: Starting the company with a single product that was MIUI operating system, Lei Jun was not in the mood to spend money on advertising and marketing in the beginning phase. To create brand awareness, he with his team started to promote his product on online forums. They all worked very hard and spent a lot of time on forums, making comments, sending posts and advertising. They used the above method to do marketing with zero budget, they set up MIUI mobile phone forum, which became the base camp of “mi fan” with over 1 million registered users.
• Gaining the trust of the fan base: Xiaomi started to collect feedback from its users every week and implement it in the next release. Every week, a new version of MIUI was released which was again then analysed by a few hundred thousand hardcore users. Some of the users participated in product research, development, test, spread, marketing and public relation. Fans also organized offline city gatherings.
• Selling directly to your fans and Promote your brand’s name: Naturally, the 1 million “mi fan” users became the first buyers of MIUI smartphones. People bought the phones, liked it and recommended it to other users. The company now uses Flipkart, Amazon and offline stores as Point of Sale.

Campaigns by Xiaomi

Social media marketing is a very effective and reliable source for any brand, product which is going to be launched. If social media marketing is used with a proper plan and strategy then we can see a huge difference in traffic and terms of revenue. To connect with the customers, attract engagement and build the presence of the brand online, Xiaomi developed various social media campaigns. Let’s have a look into them.

#MiIndia – A Social Media Campaign on Twitter by Mi India To attract new buyers for Mi 3 (the newly launched Smartphone by Mi India in July 2014), the brand connected with people on Twitter use the hashtag #MiIndia. Users were asked to show their interest in the Smartphone and register themselves on the official website. One lucky winner would win a power bank from Mi India.

#GuessTheCup- A Social Media Campaign on Facebook by Mi India To promote the Mi Bands, the brand connected with people across Facebook with a contest. The users were asked to guess the cup under which the band was present in a video uploaded. The lucky winners would get a chance to win bands from Mi India.

Redmi Note– A Social Media Campaign through Twitter by Mi India Mi India connected with people on Twitter to promote their new Redmi Note phone and convinced them to participate in the contest. The users were asked to follow the brand and re-tweet the official launch tweet for Redmi Note. 10 lucky winners would win priority passes for the grand launch of the Smartphone.To amplify the effect, Xiaomi debuted television with its first ever TVC for the Indian market in 2015. The ad film promoted its newest offering- Redmi Note 3.

#Shot on RedmiNote7s On Instagram, the camera quality of the Mi phones was explored and promoted in the best way. Xiaomi relied on Social media to engage with Mi fans, consumers and used the platform to share thoughts, converse with like-minded people and generate high-quality content.#ShotOnRedmi helped communicate the value of a phone for a potential consumer and also helped in retaining followers for the brand.

Note Kiya Jaye – #RedmiNote7Pro With the launch of Note 7 Pro, Xiaomi launched a new campaign “Note Kiya Jaye” that featured their new brand endorser, Ranveer Singh who had the power to play multiple characters with his strong comical tone. Note Kiya Jaye effortlessly played out humorous scenarios while showcasing the features of the phone and innovative technology for customers.Xiaomi left no stone unturned to promote its product. They used 360 degree marketing strategy slowly and steadily. They have also conducted several influencer marketing campaigns to promote its product among the youth.

• DurSeDekho- Redmi Note 7 Pro In the classroom scene, the Father (Ranveer Singh) while casually inspecting the classroom environment uses the double-tap double-zoom feature on Redmi Note 7 Pro’s 48MP camera to zoom into the student’s desk to find that he is reading a comic book instead of a textbook.

Key Takeaways from Xiaomi’s Business Strategy

Xiaomi’s business strategy depends upon time and trends. Here are some key-takeaways from the strategy that we must study and implement to further growth:

• Assembling and Employing a fan base: Since 2012, the brand has created a huge fan base that involves millions of people across the world. Fans spend countless hours online discussing Xiaomi products on various forums which increased the level of brand awareness at no extra cost to the company. Just like Apple, every mobile company enjoys a hardcore following.
• Manufacturing Exceptional Products at Pocket-friendly services: With the aim of providing people with exceptional products at pocket-friendly prices, Xiaomi with MIUI interface created a practical design with their latest technology, By providing exceptional technology, they have also targeted the lower-income group. They can buy these smartphones easily. Xiaomi mainly competes with the market on providing cheap products and services.
• Regular Optimizing of Products and Services: The mobile company is actively developing the ecosystem for its products and services. Xiaomi’s business strategy attracts business from 55 companies of which 29 companies were originally started by Xiaomi itself. Besides manufacturing smartphones, Xiaomi also deals in various products ranging from gaming laptops to homemaking products.
• Large Community and Social Media Engagement: With more than 1 Million monthly users, MI community has become a strong platform to interact with the Mi users. When compared to other brands, some of the biggest tech giants do not provide a common platform to share their views. The tech giant also invites its fans for its launch of any new product. Xiaomi also does its engaging part with the users on the other social media platforms and remains active with them.
• Flash Sales: Xiaomi builds its market by creating a demand for its newly launched product. People get the Fear of Missing Out (FOMO) and eventually end up discussing when the next sale goes on. This leads to curiosity and free promotion. This type of marketing strategy is called hunger marketing.
• Beta Access to Gadgets: To create a hype in the market, Xiaomi chooses a limited number of beta users which can be up to 500. They can buy gadgets for less selling price and loyalty points before its ahead of the official launch. Xiaomi teased its MiPad in May, selected Xiaomi fans got hold of the Android-based tablet a few weeks before it hit Xiaomi’s online sales.The strategy used created hype and enhanced word-of-mouth advertising. It’s usually a period when newly-revealed gadgets drop off the radars of most gadget enthusiasts.

Conclusion Truly, Xiaomi is a perfect example of a start-up business. It has been a unique blend of business strategies, digital marketing strategies and social media marketing strategies which has transformed the business in just 5 years of its inception. Cost competitive strategies have been boon for the brand. There are opportunities for Xiaomi to become the world’s No. 1 smartphone company as the company is already giving a tough competition to other competitors.

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Xiaomi's case study: the innovative business model for the Chinese and global markets of smartphones.

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Tech Buzz China Insider

From Smartphones to Smart Cars: Xiaomi's Automotive Business and Its Strategic Implications

Leveraging their robotic vacuum expertise.

Table of Contents

Things that caught our attention, introduction, the timeline of xiaomi's automobile business.

Continuous Investment in the Automotive Field Research and Development Manufacturing Xiaomi's First Car The "Human x Car x Home" Smart Ecosystem

Xiaomi’s Main Business / Ecosystem

Internet of Things and Service

The Competitive Landscape

Xiaomi's Automotive Strategy Predictions

Strengths and Weaknesses Analysis Strategy Predictions Positioning & Pricing Segmentation and Targeting

Key Takeaways

Are you an investor or business operator eager to dive deep into China's thriving electric vehicle ecosystem? Don't miss this opportunity to gain firsthand insights and knowledge. Join Tech Buzz China on an Exclusive Electric Vehicle Trip in China! Embark on a one-week journey across three dynamic cities , where you'll visit leading EV manufacturers, innovative battery producers, LIDAR technology pioneers, and much more. It's not just a trip; it's a comprehensive learning experience in one of the world's most exciting EV markets. Spaces are highly limited - reserve your spot today for this exclusive learning journey!

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At a recent Asia Society Northern California conference, Tech Buzz China founder Rui Ma explored "Innovation in the US and China" with notable panellists like NIO's US head Ganesh Iyer and Bloom Energy's CEO KR Sridhar, moderated by Gary Rieschel, a cross-border VC and the founder of Qiming. See the discussion here .

On December 28th, 2023, Xiaomi unveiled its first car model, the Xiaomi SU7, at its technology launch event in Beijing. This C-class sports sedan is scheduled for mass production starting in the first half of 2024. At the event, Lei Jun, Founder, Chairman, and CEO of Xiaomi Group, stated that Xiaomi Auto aims to rival Porsche and Tesla and aspires to be among the top five global car manufacturers within 15 to 20 years.

Xiaomi's foray into car manufacturing, a seed planted a decade ago, is approaching the pivotal phase of product realization. In this issue, we deep dive into Xiaomi's automotive business, exploring the intricacies of its strategy, the potential impact on the global automotive landscape, and the company's vision for the future of transportation. Why does a tech giant known for its smartphones decide to venture into the highly competitive automotive industry? How might Xiaomi's entry into the automotive market change traditional engineering and driving experience? These are the questions we aim to explore, providing an in-depth look at the strategic decisions and investment possibilities they present.

Freya Zhang and Ed Sander, Research Editors

Rui Ma, Consulting Editor

(click on the images above for information on the Tech Buzz China team)

In April 2013, Lei Jun ventured to the United States for a meeting with Elon Musk. At the time, Xiaomi was emerging in the tech world with its new high-end Android smartphone, Xiaomi 2s, while Tesla, celebrating a decade, had just launched the Model S. Inspired by this conversation, Lei Jun wrote an article praising Musk, titled "Elon Musk of Tesla: A Cool Fellow." He then bought two Model S cars, using one for driving and the other for disassembly, possibly sparking his interest in car manufacturing. 

Continuous Investment in the Automotive Field

Post-2014, Xiaomi embarked on an ambitious investment journey that covers the gamut from auto components to complete vehicles and the aftermarket. A look at their investment history reveals a significant and diverse portfolio.

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Retailers body to seek govt intervention on POCO’s business practices

We cannot allow a brand to operate in india at the expense of legitimate businesses and government revenue..

The South Indian Organised Retailers Association is planning to seek the central government's intervention with regard to the business practices of POCO, a sub-brand of Xiaomi, alleging that the cell phone manufacturer is avoiding the supply of phones to mainline channels. In a statement, the ORA claimed that the business methods of the firm are a clear indication of POCO's attitude to minimise spending by reaching the product through online and ''illegitimate'' channels without providing consumer experience.

The retailers body also said that POCO is not contributing to employment generation in India, as the brand operates with just three distributors and "no sales promoters" in stark contrast to other major smartphone brands like Samsung, VIVO, and OPPO. These actions by POCO not only harm the legitimate sales channels but also result in financial losses to the government exchequer, ORA charged.

"POCO's unfair and unethical business practices have serious implications for the industry and economy as a whole. We cannot allow a brand to operate in India at the expense of legitimate businesses and government revenue. ORA will urge the competent authorities to take swift action against POCO and set a precedent for ethical business conduct in the country," the statement said.

POCO officials could not be reached for comment.

ORA has made several attempts to address these issues with the POCO leadership team, but their "lack of response" has compelled the retailers body to take action including escalating the matter to the Ministry and departments concerned after the Lok Sabha elections to demand the cancellation of POCO's trade license, the statement said. In addition, ORA is prepared to file a case with the Competition Commission of India (CCI) to ensure accountability and transparency in the smartphone market, it added.

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Case Study: How Aggressively Should a Bank Pursue AI?

• Thomas H. Davenport
• George Westerman

A Malaysia-based CEO weighs the risks and potential benefits of turning a traditional bank into an AI-first institution.

Siti Rahman, the CEO of Malaysia-based NVF Bank, faces a pivotal decision. Her head of AI innovation, a recent recruit from Google, has a bold plan. It requires a substantial investment but aims to transform the traditional bank into an AI-first institution, substantially reducing head count and the number of branches. The bank’s CFO worries they are chasing the next hype cycle and cautions against valuing efficiency above all else. Siti must weigh the bank’s mixed history with AI, the resistance to losing the human touch in banking services, and the risks of falling behind in technology against the need for a prudent, incremental approach to innovation.

Two experts offer advice: Noemie Ellezam-Danielo, the chief digital and AI strategy at Société Générale, and Sastry Durvasula, the chief information and client services officer at TIAA.

Siti Rahman, the CEO of Malaysia-headquartered NVF Bank, hurried through the corridors of the university’s computer engineering department. She had directed her driver to the wrong building—thinking of her usual talent-recruitment appearances in the finance department—and now she was running late. As she approached the room, she could hear her head of AI innovation, Michael Lim, who had joined NVF from Google 18 months earlier, breaking the ice with the students. “You know, NVF used to stand for Never Very Fast,” he said to a few giggles. “But the bank is crawling into the 21st century.”

• Thomas H. Davenport is the President’s Distinguished Professor of Information Technology and Management at Babson College, a visiting scholar at the MIT Initiative on the Digital Economy, and a senior adviser to Deloitte’s AI practice. He is a coauthor of All-in on AI: How Smart Companies Win Big with Artificial Intelligence (Harvard Business Review Press, 2023).
• George Westerman is a senior lecturer at MIT Sloan School of Management and a coauthor of Leading Digital (HBR Press, 2014).

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Jennifer Howard-Grenville and Ujjwal Pandey

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Hydrogen is often hyped as the “Swiss army knife” of the energy transition because of its potential versatility in decarbonising fossil fuel-intensive energy production and industries. Making use of that versatility, however, will require hydrogen producers and distributors to cut costs, manage technology risks, and obtain support from policymakers.

To cut carbon dioxide emissions, hydrogen production must shift from its current reliance on fossil fuels. The most common method yields “grey hydrogen”, made from natural gas but without emissions capture. “Blue hydrogen,” which is also made from natural gas but with the associated carbon emissions captured and stored, is favourable.

But “green hydrogen” uses renewable energy sources, including wind and solar, to split water into hydrogen and oxygen via electrolysis. And, because there are no carbon emissions during production or combustion, green hydrogen can help to decarbonise energy generation as well as industry sectors — such as steel, chemicals and transport — that rely heavily on fossil fuels.

Ultimately, though, the promise of green hydrogen will hinge on how businesses and policymakers weigh several questions, trade-offs, and potential long-term consequences. We know from previous innovations that progress can be far from straightforward.

Wind power, for example, is a mature renewable energy technology and a key enabler in green hydrogen production, but it suffers vulnerabilities on several fronts. Even Denmark’s Ørsted — the world’s largest developer of offshore wind power and a beacon for renewable energy — recently said it was struggling to deliver new offshore wind projects profitably in the UK.

Generally, the challenge arises from interdependencies between macroeconomic conditions — such as energy costs and interest rates — and business decision-making around investments. In the case of Ørsted, it said the escalating costs of turbines, labour, and financing have exceeded the inflation-linked fixed price for electricity set by regulators.

Business leaders will also need to steer through uncertainties — such as market demand, technological risks, regulatory ambiguity, and investment risks — as they seek to incorporate green hydrogen.

Test yourself

This is the third in a series of monthly business school-style teaching case studies devoted to responsible-business dilemmas faced by organisations. Read the piece and FT articles suggested at the end before considering the questions raised.

About the authors: Jennifer Howard-Grenville is Diageo professor of organisation studies at Cambridge Judge Business School; Ujjwal Pandey is an MBA candidate at Cambridge Judge and a former consultant at McKinsey.

The series forms part of a wide-ranging collection of FT ‘instant teaching case studies ’ that explore business challenges.

Two factors could help business leaders gain more clarity.

The first factor will be where, and how quickly, costs fall and enable the necessary increase to large-scale production. For instance, the cost of the electrolysers needed to split water into hydrogen and oxygen remains high because levels of production are too low. These costs and slow progress in expanding the availability and affordability of renewable energy sources have made green hydrogen much more expensive than grey hydrogen, so far — currently, two to three times the cost.

The FT’s Lex column calculated last year that a net zero energy system would create global demand for hydrogen of 500mn tonnes, annually, by 2050 — which would require an investment of $20tn. However, only $29bn had been committed by potential investors, Lex noted, despite some 1,000 new projects being announced globally and estimated to require total investment of $320bn.

Solar power faced similar challenges a decade ago. Thanks to low-cost manufacturing in China and supportive government policies, the sector has grown and is, within a very few years , expected to surpass gas-fired power plant installed capacity, globally. Green hydrogen requires a similar concerted effort. With the right policies and technological improvements, the cost of green hydrogen could fall below the cost of grey hydrogen in the next decade, enabling widespread adoption of the former.

Countries around the world are introducing new and varied incentives to address this gap between the expected demand and supply of green hydrogen. In Canada, for instance, Belgium’s Tree Energy Solutions plans to build a $4bn plant in Quebec, to produce synthetic natural gas from green hydrogen and captured carbon, attracted partly by a C$17.7bn ($12.8bn) tax credit and the availability of hydropower.

Such moves sound like good news for champions of green hydrogen, but companies still need to manage the short-term risks from potential policy and energy price swings. The US Inflation Reduction Act, which offers tax credits of up to $3 per kilogramme for producing low-carbon hydrogen, has already brought in limits , and may not survive a change of government.

Against such a backdrop, how should companies such as Hystar — a Norwegian maker of electrolysers already looking to expand capacity from 50 megawatts to 4 gigawatts a year in Europe — decide where and when to open a North American production facility?

The second factor that will shape hydrogen’s future is how and where it is adopted across different industries. Will it be central to the energy sector, where it can be used to produce synthetic fuels, or to help store the energy generated by intermittent renewables, such as wind and solar? Or will it find its best use in hard-to-abate sectors — so-called because cutting their fossil fuel use, and their CO₂ emissions, is difficult — such as aviation and steelmaking?

Steel producers are already seeking to pivot to hydrogen, both as an energy source and to replace the use of coal in reducing iron ore. In a bold development in Sweden, H2 Green Steel says it plans to decarbonise by incorporating hydrogen in both these ways, targeting 2.5mn tonnes of green steel production annually .

Meanwhile, the global aviation industry is exploring the use of hydrogen to replace petroleum-based aviation fuels and in fuel cell technologies that transform hydrogen into electricity. In January 2023, for instance, Anglo-US start-up ZeroAvia conducted a successful test flight of a hydrogen fuel cell-powered aircraft.

The path to widespread adoption, and the transformation required for hydrogen’s range of potential applications, will rely heavily on who invests, where and how. Backers have to be willing to pay a higher initial price to secure and build a green hydrogen supply in the early phases of their investment.

It will also depend on how other technologies evolve. No industry is looking only to green hydrogen to achieve their decarbonisation aims. Other, more mature technologies — such as battery storage for renewable energy — may instead dominate, leaving green hydrogen to fulfil niche applications that can bear high costs.

As with any transition, there will be unintended consequences. Natural resources (sun, wind, hydropower) and other assets (storage, distribution, shipping) that support the green hydrogen economy are unevenly distributed around the globe. There will be new exporters — countries with abundant renewables in the form of sun, wind or hydropower, such as Australia or some African countries — and new importers, such as Germany, with existing industry that relies on hydrogen but has relatively low levels of renewable energy sourced domestically.

How will the associated social and environmental costs be borne, and how will the economic and development benefits be shared? Tackling climate change through decarbonisation is urgent and essential, but there are also trade-offs and long-term consequences to the choices made today.

Questions for discussion

Lex in depth: the staggering cost of a green hydrogen economy

How Germany’s steelmakers plan to go green

Hydrogen-electric aircraft start-up secures UK Infrastructure Bank backing

Aviation start-ups test potential of green hydrogen

Consider these questions:

Are the trajectories for cost/scale-up of other renewable energy technologies (eg solar, wind) applicable to green hydrogen? Are there features of the current economic, policy, and business landscape that point to certain directions for green hydrogen’s development and application?

Take the perspective of someone from a key industry that is part of, or will be affected by, the development of green hydrogen. How should you think about the technology and business opportunities and risks in the near term, and longer term? How might you retain flexibility while still participating in these key shifts?

Solving one problem often creates or obscures new ones. For example, many technologies that decarbonise (such as electric vehicles) have other impacts (such as heavy reliance on certain minerals and materials). How should those participating in the emerging green hydrogen economy anticipate, and address, potential environmental and social impacts? Can we learn from energy transitions of the past?

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New EY US Consulting study: employees overwhelmingly expect empathy in the workplace, but many say it feels disingenuous

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The majority (86%) of employees believe empathetic leadership boosts morale while 87% of employees say empathy is essential to fostering an inclusive environment.

As many employees face downsizings, restructurings and a looming global recession, most say that empathic leadership is a desired attribute but feel it can be disingenuous when not paired with action, according to the 2023 Ernst & Young LLP ( EY US )  Empathy in Business Survey .

The study of more than 1,000 employed US workers examines how empathy affects leaders, employees, and operations in the workplace. The survey follows the initial EY Consulting analysis of empathy in 2021 and finds workers feel that mutual empathy between company leaders and employees leads to increased efficiency (88%), creativity (87%), job satisfaction (87%), idea sharing (86%), innovation (85%) and even company revenue (83%).

“A  transformation’s success  or failure is rooted in human emotions, and this research spotlights just how critical empathy is in leadership,” said  Raj Sharma , EY  Americas Consulting  Vice Chair. “Recent years taught us that leading with empathy is a soft and powerful trait that helps empower employers and employees to collaborate better, and ultimately create a culture of accountability.”

The evolving state of empathy in the workplace

There are many upsides to empathetic leadership in the workplace, including:

• Inspiring positive change within the workplace (87%)
• Mutual respect between employees and leaders (87%)
• Increased productivity among employees (85%)
• Reduced employee turnover (78%)

“Time and again we have found through our research that in order for businesses to successfully transform, they must put humans at the center with empathetic leadership to create transparency and provide employees with psychological safety,” said  Kim Billeter , EY Americas  People Advisory Services  Leader. “Empathy is a powerful force that must be embedded organically into every aspect of an organization, otherwise the inconsistency has a dramatic impact on the overall culture and authenticity of an organization.”

In fact, half (52%) of employees currently believe their company’s efforts to be empathetic toward employees are dishonest ― up from 46% in 2021, and employees increasingly report a lack of follow-through when it comes to company promises (47% compared to 42% in 2021).

To fulfill the authenticity equation, previous EY research indicates offering flexibility is essential. In the 2022 EY US Generation Survey, 92% of employees surveyed across all four workplace generations said that company culture has an impact on their decision to remain with their current  employer.

Lead with empathy  now  to combat the workplace challenges ahead

While leaders may experience lower employee attrition rates now when compared to the Great Resignation, a resurgence is brewing. Many economists expect a soft landing from the looming recession and with it may come turnover, particularly if employees already feel disconnected from their employer or from each other.

In fact, failing to feel a sense of belonging at work or connection with coworkers is a growing reason why employees quit their jobs. About half (50% and 48% in 2021) left a previous job because they didn’t feel like they belonged, and more employees now say they left a previous job because they had difficulty connecting with colleagues (42% vs. 37% in 2021).

“What happens outside of work has a direct impact on how people show up. It’s no longer enough for leaders to think of a person in one dimension – as an employee or as a professional within the organization,” said  Ginnie Carlier , EY Americas Vice Chair – Talent. “Leading with empathy helps move from the transactional and to the transformational Human Value Proposition, where people feel supported both personally and professionally.”

2023 EY Empathy in Business Survey methodology

EY US  commissioned a third-party vendor to conduct the 2023 EY Empathy in Business Survey, following the 2021 Empathy in Business Survey. The survey among 1,012 Americans who are employed, either full-time or part-time, was completed between October 23 and November 6, 2022. At the total level, the study has a margin of error of +/- 3 percentage points at the 95% confidence level.

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Ahmedabad (Gujarat) [India], April 20 (ANI): The restoration of the Indian economy, especially banks since 2014 is actually a lesson for the Harvard Business School said finance minister Nirmala Sitharaman, while addressing the gathering at the Gujarat Chambers of Commerce and Industry (GCCI), in Ahmedabad on Saturday. The finance minister was speaking on the topic Vikshit Bharat 2047.

“In terms of weighing which India has restored its economy between 2014 and now more particularly banks it’s actually a lesson for Harvard Business School” said Nirmala Sitharaman while speaking at the event.

She underscored the transition of India’s banking sector and the reforms initiated by the government since 2014.

Sitharaman pointed out the twin balance sheet problem prevailing in 2014, where banks’ balance sheets were burdened with non-performing assets (NPAs), hindering lending to companies, while companies themselves struggled to repay loans.

Drawing a comparison, Sitharaman highlighted the failure of the Silicon Valley bank in the United States and emphasized the Indian government’s role in safeguarding the infrastructure of Indian banks during and after the pandemic. She praised the Indian banking sector for effectively managing mergers and ensuring stability amid challenging circumstances.

“Post pandemic banks, like Silicon Valley bank which was widely trusted by startups, collapsed and nobody knew about it” she said.

Reflecting on India’s journey, Sitharaman acknowledged the difficulties faced by the government in restoring the economy, including merger-related issues, liquidity problems in 2019, the impact of COVID-19 in 2020, and the fragile economy in need of restoration.

“So even post COVID managing banks, keeping them healthy, ensuring that they don’t collapse are still a raw game for West whereas we have managed them although we started with a fragile situation”

Sitharaman expressed optimism about India’s future, stating that with continued collective effort, India can achieve the vision of Viksit Bharat by 2047. She emphasized the importance of sustained efforts by all stakeholders, stating, “Another good solid 25 years of Sabka prayaas, we will be able to reach Vikshit Bharat.”

The minister also shed light on the resilience and progress of the Indian economy, showcasing the government’s commitment to driving growth and development. (ANI)

This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.

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A popular YouTuber's negative video of Humane's AI Pin raises questions about critical reviews in the age of innovation

• This post originally appeared in the Insider Today newsletter.
• You can sign up for Business Insider's daily newsletter here .

Hello there! If you're struggling to decide the foods worth buying organic, best-selling author Michael Pollan has some suggestions for the ones worth splurging on to avoid harmful chemicals .  

In today's big story, we're looking at a critical tech review that caused a bit of a stir on social media .

What's on deck:

Markets: Goldman Sachs quiets the haters with a monster earnings report .

Tech: Leaked docs show one of Prime Video's biggest issues, forcing customers to abandon shows .

Business: The best bet in business these days? Targeting young men who like to gamble .

But first, the review is in!

If this was forwarded to you, sign up here.

The big story

Up for review.

"The Worst Product I've Ever Reviewed… For Now"

Marques Brownlee, the YouTuber better known as MKBHD, didn't mince words with the title of his review of Humane's AI Pin .

In a 25-minute video , Brownlee details all the issues he encountered using the AI device. (Spoiler alert: There were a lot.)

Brownlee's review aligns with other criticisms of the device . But not all of those came from someone with as much sway. His YouTube channel has more than 18 million subscribers.

One user on X pointed that out , calling the review "almost unethical" for "potentially killing someone else's nascent project" in a post reposted over 2,000 times. 

Most of the internet disagreed, and a Humane exec even thanked Brownlee on X for the "fair and valid critiques." 

But it highlights the power of Brownlee's reviews. Earlier this year, a negative video of Fisker's Ocean SUV by Brownlee also made waves on social media . 

Critical reviews in the age of innovation raise some interesting questions.

To be clear, there was nothing wrong with Brownlee's review. Humane's AI Pin costs $700. Watering down his review to ease the blow would be a disservice to the millions of fans relying on his perspective before making such a significant purchase.

Too often, companies view potential customers as an extension of their research and development. They are happy to sell a product that is still a work in progress on the promise they'll fix it on the fly. ("Updates are coming!")

But in a world of instant gratification, it can be hard to appreciate that innovation takes time. 

Even Apple can run into this conundrum. Take the Apple Vision Pro. Reviewers are impressed with the technology behind the much-anticipated gadget — but are still struggling to figure out what they can do with it . Maybe, over time, that will get sorted out. It's also worth remembering how cool tech can be, as Business Insider's Peter Kafka wrote following a bunch of trips in Waymo's software-powered taxis in San Francisco . Sure, robotaxis have their issues, Peter said, but they also elicit that "golly-gee-can-you-believe-it" sense.

As for Humane, America loves a comeback story. Just look at "Cyberpunk 2077." The highly anticipated video game had a disastrous launch in 2020 , but redeemed itself three years later, ultimately winning a major award .

Still, Humane shouldn't get a pass for releasing a product that didn't seem ready for primetime, according to the reviews. 

And its issue could be bigger than glitchy tech. Humane's broader thesis about reducing screen time might not be as applicable. As BI's Katie Notopolous put it: " I love staring at my iPhone ."

3 things in markets

1. Goldman finally strikes gold. After a rough stretch, the vaunted investment bank crushed earnings expectations , sending its stock soaring. A big tailwind, according to CEO David Solomon, is AI spawning " enormous opportunities " for the bank. 

2. Buy the dip, Wedbush says. Last week's drop among tech stocks shouldn't scare away investors , according to Wedbush. A strong earnings report, buoyed by the ongoing AI craze, should keep them soaring, strategists said. But JPMorgan doesn't see it that way, saying prices are already stretched .   

3. China's economy beat analysts' expectations. The country's GDP grew 5.3% in the first quarter of 2024, according to data published by the National Bureau of Statistics on Tuesday. It's a welcome return to form for the world's second-largest economy, although below-par new home and retail sales remain a cause for concern .

3 things in tech

1. Amazon Prime Video viewers are giving up on its shows. Leaked documents show viewers are fed up with the streamer's error-ridden catalog system , which often has incomplete titles and missing episodes. In 2021, 60% of all content-related complaints were about Prime Video's catalog.

2. Eric Newcomer is bringing his Cerebral Valley AI Summit to New York. The conference, originally held in San Francisco, is famous for producing one of the largest generative AI acquisitions ever. Now, it's coming to New York in June .

3. OpenAI is plotting an expansion to NYC. Two people familiar with the plans told BI that the ChatGPT developer is looking to open a New York office next year. That would be the company's fifth office, alongside its current headquarters in San Francisco, a just-opened site in Tokyo, and spots in London and Dublin.

3 things in business

1. America's young men are spending their money like never before. From sports betting to meme coins, young men are more willing than ever to blow money in the hopes of making a fortune .

2. Investors are getting into women's sports. With women like Caitlin Clark dominating March Madness headlines, investors see a big opportunity. BI compiled a list of 13 investors and fund managers pouring money into the next big thing in sports.

3. Bad news for Live Nation. The Wall Street Journal reports that the Justice Department could hit the concert giant with an antitrust lawsuit as soon as next month. Live Nation, which owns Ticketmaster, has long faced criticism over its high fees.

In other news

Blackstone hires Walmart AI whiz to supercharge its portfolio companies .

Taylor Swift, Rihanna, Blackpink's Lisa: Celebrities spotted at Coachella 2024 . 

NYC's rat czar says stop feeding the pigeons if you want the vermin gone .

A major Tesla executive left after 18 years at the company amid mass layoffs .

Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say .

New York is in, San Francisco is very much out for tech workers relocating .

AI could split workers into 2: The ones whose jobs get better and the ones who lose them completely .

Oh look at that! Now Google is using AI to answer search queries .

A longtime banker gives a rare inside look at how he is thinking about his next career move, from compensation to WFH .

Clarence Thomas didn't show up for work today .

What's happening today

Today's earnings: United Airlines, Bank of America, Morgan Stanley, and others are reporting . 

It's Free Cone Day at participating Ben & Jerry's stores. 

The Insider Today team: Dan DeFrancesco , deputy editor and anchor, in New York. Jordan Parker Erb , editor, in New York. Hallam Bullock , senior editor, in London. George Glover , reporter, in London.

Watch: Nearly 50,000 tech workers have been laid off — but there's a hack to avoid layoffs

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