Xiaomi invades the smartphone market in India

Rahela Tabassum () and Shehbaz Ahmed ()
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Rahela Tabassum: Amjad Ali Khan College of Business Administration
Shehbaz Ahmed: Amjad Ali Khan College of Business Administration

DECISION: Official Journal of the Indian Institute of Management Calcutta, 2020, vol. 47, issue 2, No 8, 215-228

Abstract: Abstract 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.

Keywords: MI; Global player; Serial entrepreneur; MIUI (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s40622-020-00242-w

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