Xiaomi: Entering International Markets: Presented By: Prashant Shukla Sumit Sharma
Xiaomi: Entering International Markets: Presented By: Prashant Shukla Sumit Sharma
Xiaomi: Entering International Markets: Presented By: Prashant Shukla Sumit Sharma
INTERNATIONAL MARKETS
Presented By : Prashant Shukla
Sumit sharma
Introduction
Xiaomi Inc. headquartered in Beijing China, is a privately
owned electronics company that designs, develops, and sells
smart phones, mobile apps, and other technology products.
Began its operation in August 2010 with Android based
firmware MIUI (pronounced as “Me You I”).
Expanded into other consumer electronics including tablets,
wifi network routers, Smart TV, Set-top box, cloud storage
and cloud computing service, instant messenger, and power
bank.
The Internationalization of Chinese
smartphone brands
First Chinese smartphone brands that tried to internationlize
were Huawei and ZTE. They first established good
relationships with foreign operators by providing
telecommunications infrastructure or producing phones from
them.
Lenovo by purchasing motorola. It acquired 2000 patients by
motorola and 16000 by google
Coolpad by establishing research centers in the US and India.
Gionee Sponsored KKR and established funding charity.
OnePlus by its invitation system of marketing.
Xiaomi’s International Practice
Chinese smartphone market was becoming saturated.
By 2015 1.32 billion about 95% population of china had
smartphone. So no room for the market to grow.
Xiaomi’s relatively low price and extremly low profit margin
had put xiaomi in critical position.
According to IDC average price of xiaomi in 2015 was
US$141 compared to 213 of Huawei, 231 of OPPO and 208
of VIVO.
Xiaomi in Hong Kong and Taiwan
Hong kong and Taiwan were physically close to Mainland
china so xiaomi targeted the “ Circle of Chinese Culture “ as
first overseas attempt.
It started to sell through Ecommerce platforms, xiaomi
website using paypal for payments.
It also collaborated with local operators and ecommerce
platforms.
In order to provide better services and communicate with
users xiaomi opened its MIUI forum for fans in HongKong
and Taiwan.
Xiaomi in India and Southeast Asia
Three factors emerged for the choice of new market
The proportion of young people in the population.
A fast growing period of ecommerce.
And operators relatively weak control over phone selling
channels.