Hello everyone, this is Arpit Rana and today I am going to tell you about a company which becomes one of the top 10 biggest mobile phone companies in less than 10 years. The growth of this company is one of the fastest you have ever seen. This company made world record when it comes with it’s products to India. So, about which company I am really talking about?
This is Xiaomi also known as Apple of China.
SUCCESS STORY OF XIAOMI
So, how do you think Xiaomi changed everything all in a once?
Let us begin the story of Xiaomi, the story of Xiaomi begins when Lei Jun the founder of Xiaomi used to be in Kingsoft company. When he was in Kingsoft he worked with Motorola and Nokia, he told what things they can improve in their phones but neither Motorola nor Nokia ever put any implementation. So, he decided to make a brand that will take customer feedback very seriously. This is how Xiaomi begins.
The history of Xiaomi is not very old, it was just in 2010. The company started with android bases UI. There android UI became a huge hit. In 2011, Xiaomi brought itself in hardware game and there first phone also worked well. The name of their phone was Mi 1. The meaning of Mi was mission impossible, it reflects that at 2011 it was nearly impossible for xiaomi to build a phone but they did it.
In 2012, they brought their second phone MI 2. It also enjoyed huge success.
In 2013, Xiaomi announced to launch their android TV. So, basically the difference in Xiaomi and other manufacturers was the price. Xiaomi was bringing amazing devices with great quality at very less price. It was like if apple is making atleast 100 dollars in one phone, xiaomi was just making less tha 1 dollar in 1 phone. Now, you will be wondering how xiaomi is making profit then?
For it, carefully observe what Xiaomi did in India. Xiaomi entered in India in 2014 and there was no advertisement, no Xiaomi vendors, nothing at all. But do you know how many phones Xiaomi sold for first time in India? I don’t know the exact figure but what I am going to tell you now you will hardly behave.
On July 22, 2014 Flipkart website crashed. Don’t know what Flipkart is? Flipkart is an Indian online e-commerce store. Do you know why flipkart crashed? The reason was Xiaomi. There was tremendous booking for the smartphone that even such a high profile website gets crashed. From here concept of flash sale started when stock of Xiaomi phones gets sold out in seconds.
So, it is clear that they removed the middle man by directly launching only in e-commerce websites. The main reason for getting flash sale was getting tremendous amount of features in very less price.
But how they marketed their products? As I said they were not using TV adds but they were using social media which prevents them from spending extra money on TV or newspapers adds.
You will be wandering but now you see Xiaomi stores and Xiaomi adds on TV. Yes, now Xiaomi has started to do so, they first established themselves here and now they are doing everything they can do to do more sales.
Today, you see Xiaomi with make in India movement and Xiaomi is also the youngest company in global top 500 richest companies of the world. Apart from phones, today xiaomi is popular for TV, fitness bands, air purifiers in India.
Xiaomi is an amazing company and they are constantly improving. Xiaomi is one of some companies that have it’s social forums and dircetly take feedbacks from the customers. In this way they get word of mouth marketing. Word of mouth marketing means, I am reading learnsomebusiness blogs and recommending it to others as this blog learnsomebusiness provide amazing information for free.
So, at first I am telling you that it seems hard for Xiaomi to make a profit but reality is that Xiaomi makes profit. As, they earns sometimes even less than one dollar per phone, but see the volume they sale. That volume is massive, this makes their 1 dollar bigger. Another point is after you buy xiaomi phone, you automatically enters in their ecosystem and they they try to sell more products or services. Like Xiaomi don’t give headphones in the box, but you can buy xiaomi headphones separately.
Is everything amazing in xiaomi?
No. There are some departments in which xiaomi needs to improve. The first departrment is Camera. Xiaomi still struggles in camera of their phones. Although they are constantly improving it and may make it perfect in some time. Another department where Xiaomi needs improvement is after sales service, after selling so many volumes of phones, it become difficult for xiaomi to provide good aftersales. Although they are undoubtedly improving it also.
So, lastly what we can learn from Xiaomi?
- Choosing to invest in right thing at right time. First,they invest in product, not on middle man, not on TV adds. Then after they got a market there, they started investing in other things also.
- Choosing the perfect marketing strategy, like xiaomi chose social forums which improved their word of mouth marketing.
- Expansion, it is clear that xiaomi does lots of expansion from phones to air purifiers.
- Customer feedback is the basis of xiaomi that changed everything.
- Another reason for xioami’s success is to decrease profit margin and make better affordable devices.
So, are you going to apply these creative things to achieve success like Xiaomi in no time? Tell your views about this case study. If you are from Xiaomi and reading it, thanks for making amazing products at least prices.