Foreign media published an analysis article on Saturday saying that flash purchase and good use of social media has made Chinese technology startup Xiaomi defeat Samsung Electronics to become the leader of the Indian smart phone market. Although Xiaomi plans to double India’s revenue this year to reach about 20 Billion Dollars, but how to improve the supply chain to meet the needs of Indian users has become a new worry for Xiaomi. The following is the summary of the article:
After failing five times in the past month, Indian university student Bhavsar Hardik successfully booked a dream-smart phone on the Internet - the red rice Note 5 Pro. from Xiaomi. It's like an iPhone X, 'Hadik said excitedly.
The 19-year-old Hadik, like many Indian nationals, has been deeply attracted by Xiaomi's flash shopping activities through local e-commerce websites Flipkart, Amazon India and Xiaomi official website Mi.com. The flash sale activities held by these websites usually last for no more than After 3 seconds, very few people were able to place a successful purchase of a millet device.
Hadik said that the demand for Xiaomi’s smart phones is very large, but there is a shortage of supply in the market. Despite these limitations, Hadik still said he is a fan of Xiaomi, because Xiaomi’s mobile phones are inexpensive. “I don’t like Samsung. Electronic products, because the brand's products are too expensive. Apple, Vivo and Oppo are also the same reason. 'Hartik snapped red rice Note 5 Pro is priced at 13,999 million rupees, while the iPhone X in the Indian market ups and downs The price is 8.3499 million rupees (about 1285 US dollars).
Millions of Indian consumers like Hadik helped Xiaomi become the second largest smartphone market in the world - the leading Indian market. After about three and a half years of entering the Indian market, Xiaomi was in the fourth quarter of last year. Beat Samsung Electronics and become the largest smartphone manufacturer in India.
According to statistics from market research firm Canalys, after entering the Indian market in July 2014, Xiaomi occupied 27% of India's smartphone market in the fourth quarter of last year, ahead of Samsung Electronics' 25%.
Xiaomi, known as 'China's Apple', has seen the Indian market as its next growth engine in the face of intensified competition and slower growth of smartphones in the domestic market. Xiaomi also focuses on diversified and long-term revenue channels. , to support the company's efforts for the listing.
Creating a more internationalized image will enable Xiaomi to attract more international investors in its initial public offering (IPO). Although management of Xiaomi did not make an official statement on the company's listing plan, sources revealed that Xiaomi has hired investment banks to prepare Hong Kong Stock Exchange listed.
After a disappointing 2016, Xiaomi’s rejuvenation in 2017 was strong. In the fourth quarter of December 31, 2017, Xiaomi’s smartphone shipments increased by 83% year-on-year, becoming the top 10 smartphone brands in the world. The highest increase in the brand. Throughout 2017, Xiaomi’s smartphone shipments reached 96 million units, ranking sixth among global manufacturers.
Xiaomi’s Indian revenue hit a record high of US$1 billion last year. This kind of outstanding performance also made Xiao Jun’s founder and CEO Lei Jun set the company’s revenue target in India this year to more than 2 billion yuan. USD. Milli Global Vice President, Manu Jain, the first Indian employee, said that at the beginning of his business in India, Xiaomi only had a small office with 6 chairs.
Today, Xiaomi India already has more than 400 local employees and three manufacturing factories. Xiaomi, who is good at using social media, also gathered about 4 million active Indian 'rice rice'. Through flash shopping and development of the Indian 'rice flour' community, Xiaomi Has been insisting on his 'try and test' marketing strategy.
Tarun Pathak, deputy director of Counterpoint Research, said, 'Through organizing city-level offline interactive activities and other ongoing activities, Xiaomi has been building his own 'rice flour' community.' Pasak said through Facebook With the online interactive activities held, millet fans are able to prioritize first-hand information on new products. 'Through the effective use of social media, Xiaomi has created a positive reputation for the company and its products,' he said.
The self-proclaimed Indian consumer Ekrar Saiyyad, one of Millie’s most loyal fans, claimed to have purchased more than 100 millet phones for himself, family and friends since July 2014. 'We talk about mobile phones. And what they do, and what the future of the millet will look like,' Said said.
Unlike Xiaomi, other Chinese smart phone brands have invested heavily in advertising to increase their brand awareness among Indian consumers. Vivo paid $338 million last year for the Indian professional cricket league's naming rights. Today, The name of the event has been changed to 'Vivo Indian Premier League'. The OPPO signed a five-year agreement worth US$ 166 million to become a sponsor of the Indian national cricket team.
Navkendar Singh, an Indian market analyst firm IDC India, said that smart phone buyers in India 'are currently focusing on the price/performance ratio of smart phones,' rather than the company’s marketing campaigns. The increase in the global smart phone market The speed is almost stagnant, while the Indian market maintained a growth rate of 12% last year. How to increase the market share of smart phones in India has become a priority issue for all manufacturers.
IDC statistics show that at present, over 75% of the demand in India's smart phone market is related to products priced less than US$200. Xiaomi’s current product prices in India are generally between US$100 and US$200. The profit rate is very low.
"Millet is currently proud of the horseshoe disease in the Indian market. If Xiaomi can continue to maintain its current growth rate, Lei Jun's $2 billion sales target in the Indian market is not impossible," said Kiranjeet Kaur, senior research manager at IDC Singapore.
However, Xiaomi still needs to learn lessons from the Chinese market. It is impossible to become a low-cost handset maker. The millet was founded in 2010 and was once the world's highest-valued technology start-up company. At the end of 2014, it had a valuation of over 46 billion yuan. US dollar. However, with the rise of Huawei, OPPO and vivo, and other smart phone brands, flash purchases and social media have reduced the attractiveness of Xiaomi's young consumer groups, resulting in former Xiaomi users choosing to use other brands of products.
Market analysts believe that Xiaomi has not yet built a user group large enough to afford more expensive smartphones. 'This is a very difficult ceiling to break,' said IDC's Kaul. The number of users in the high-end market is limited. Limiting the profitability of Xiaomi. Counterpoint expects Xiaomi's profit margin for each cell phone to be only $2 in the third quarter of last year.
In comparison, Huawei, OPPO and vivo have higher profit margins, with each handset reaching US$15, US$14 and US$13 respectively. The world’s second-largest smartphone maker, Apple, has an average profit of 151 per smartphone. Dollars.
Counterpoint predicts that Xiaomi’s revenue in the Indian market last year accounted for nearly 30% of the company’s total global revenue. It is expected that this year’s proportion will reach 35%. Xiaomi’s global vice president Jia Yin said that millet is still optimistic about the opportunities in the Indian market. Attitude. 'We can make more achievements here,' he said.
Xiaomi is still an active venturer in the Indian market. The company promises to invest at least $1 billion in 100 Indian start-ups between 2017 and 2022. 'We are currently able to become a long-term partner and help us conduct business in India. The startup company is very interested in, 'Jin said.
Xiaomi currently also sells smart TVs, health bracelets and charging treasures in the Indian market. The company will also introduce more intelligent networking devices such as smart scooter and water purifiers to the Indian market in the future.
Although the maturity of the Indian market has allowed Xiaomi to launch more smart devices, the company’s supply chain may limit its large-scale promotion of these products throughout India. Xiaodi’s loyal fan Said has encountered this problem. Haunting. 'I very much want to buy a millet 55-inch 4K TV, but this company does not have enough inventory.'