Within a period of three years, Xiaomi India well known as a Mi India make the grade and become a second largest smartphone vendor with a market share of 10.7% immediate after the Samsung whose market share is 25.1% in India. (According to IDC’s India Quarterly Smartphone Tracker Q4’2016.) The journey was incepted with Mi3 along with a clear road map in their mind to offer a bundle of satisfaction at a groundbreaking price to the consumer. Indian consumer wants cheap, good and long lasting product while in particular mobile phone segment only Mi India effectuate these fundamental requirements of the Indian consumer.

official logo of Xiaomi

Indian smartphone market when Xiaomi entered in India

The very first smartphone Mi India launched was Mi3 at a price of Rs. 13,999 in July 2014. Mi3 brought revolution in Indian smartphone market. At that time, few domestic vendor offered the phones which substituted of flagship phones at the same price segment. Following the success of Mi3, Mi India targeted the entry level smartphone market and introduced the Redmi 1s. It had shaken the whole smartphone market in India. Tech experts were confused regarding a comparison of Redmi 1s. Redmi 1s is itself entry level phone, but the specification was of mid-range phones. With the Introduction of these two phones, Xiaomi India hit the six run in the first bowl. Mi India has been launching the update version of Mi and Redmi devices along with the Redmi Note devices, but Xiaomi never compromises in quality of the product.

Strong bundle of hardware offered by Mi India

Mi propositions have not only an excellent specification on paper but user experience and reliability also phenomenal. Industry best Qualcomm Snapdragon Processors are providing the power to most of the Mi devices. Screen resolution and battery life of devices are also excellent. Satisfaction is a soul of any product, and it found in Mi users. Mi5 phone powered by Snapdragon 820 along with great full HD display with 16 led backlit. Samsung offers same configuration phone Samsung Galaxy S7 at almost double the price tag than the Mi5. Mi pad was an Android version of Ipad mini 2. Mi pad was ruling over the mid-price segment of the tablet market because of its bundle of hardware offered by Mi. Not only phones but each product of mi like power bank, handsfree, etc. are exceptionally well-crafted and built in powerful hardware wins the race for Xiaomi.

Sale oriented Marketing Strategy:

As a part of marketing strategy, Mi India does give emphasis to the social network for the communication. They interact with Mi fans over social media especially Mi Forum and create a Mi community. It eventually helps the company to create the buzz on the internet regarding an upcoming product. Mi fans are themselves a brand ambassador of Mi India. Through social media, Xiaomi targeted the evoked set of a potential consumer. In order to keep competitive prices of the product, Mi India spends very fewer bucks over an advertisement, unlike other mobile phone companies which have a high marketing budget.  The sole marketing expense Mi India made is to display their ads on an online store like Amazon India, Flipkart, Snapdeal, etc.

Touch of India

India is such a market where any business has to follow the Indian way of doing business rather dumping any international business model. From the beginning Whenever Mi India get a chance, they give the touch of India to any occasion. Their offering is exactly what Indian consumer want. They have targeted the young consumer. They acknowledge each festival and rituals of India, and it seems on social media and Mi India website several times.

Mi India Celebrating Indian Festival
Mi India Celebrating Indian Festival

Innovative Pricing Policy

“Xiaomi (Mi India) is a software and e-commerce company that just happens to manufacture hardware,” – Hugo Barra (Former VP Global)

  • The business model of Mi India is unconventional, unlike well-known headset brands. Its primary source of earning is not profit on selling of devices. That is a cardinal reason why the prices of Mi devices are very competitive. It is a software and e-commerce Company as Hugo Barra says. Xiaomi has created an ecosystem for their devices. So for the profit, they depend upon selling of apps, games, themes, services for their own MIUI user interface.
  • Mi India saves millions through advanced marketing strategy. They give emphasis to social media marketing and word of mouth which are cost effective.
  • The life cycle of the Mi product is around 18-20 month. During that period, if prices of the hardware declined, the direct advantage get to the company. Due to having a long product life cycle R&D and development cost also decline.
  • To keep prices very competitive, Mi India concentrates over online sale only approach which eliminates the cost of distribution, warehouses and also profit of intermediaries.
  • Mi India started manufacturing devices domestically to confront pricing war with the competitors. It also supports the Modi Government Make In India campaign.

Under the leadership of Hugo Barra (Former VP of Global Xiaomi) and Manu Jain (VP of Global Xiaomi), Mi India flourished fantastically. Now Hugo Barra left the company, and Xiaomi promoted the Manu Jain to VP of Global business recently.

Eventually, Xiaomi breaks the prejudice of Indian consumer regarding Low cost, and Chinese products are of inferior quality. Today Mi India possess a second highest market share in mobile phone industry. It is a consequence of innovative business model and scrupulous management.


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