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How Xiaomi Become the Number 1 Smartphone Brand?

The most popular Chinese smartphone manufacturing company Xiaomi is highly popular for selling best smartphones at cheapest rates.

After reading this article, you will understand the amazing business strategy of Xiaomi to crushed Indian smartphone industry and become a leader.

Xiaomi released its first smartphone in 2011.

Just after three years, it became the largest smartphone company in China. After getting huge success in China, Xiaomi started entering in Indian smartphone industry slowly.

It was difficult to create a brand in India because Samsung had taken the majority of the market share. Besides, there were also other companies such as Micromax, Motorola and Lenovo. Xioami crushed all the companies and become the number one smartphone brand in India as well.

Also read: Why LeEco Failed Completely?

Not only in smartphones, but Xioami is also selling so many products such as Mi TV, Mi Band, Mi Headphones, Mi Earphones, Mi Power bank, Mi router, Mi Bag and many more.

11 Reasons How Xiaomi Succeed in India

1. Cheapest Rates: The company is always focused on mid-range smartphones. Xiaomi has smartphones with a range from 5000 to 30000 Rs.

2. Specifications: One of the biggest reasons for success is Specifications. The company is providing high-quality specifications such as camera quality, processor, memory, display and many more.

3. MIUI: Xiaomi has created its monopoly by creating a high-quality user interface. MIUI is a very special feature because Xiaomi is the only company which provides regular updates of the user interface. Recentaly, the company has started showing ads on their phones. Technically, Xiaomi has started showing ads on MIUI. By doing this, the chinese smartphone maker will generate more revenue and in the end they will decrease the price of newer smartphones.

4. Flash Sale: We simply cannot buy newly launched smartphones of Xiaomi. It creates a monopoly by creating flash sales. It means the phones will be available at a particular time with limited stock.

5. Mi website: We can buy all the Xiaomi products from Mi Official Website. Xiaomi focused on selling their smartphones initially with the help of Flipkart and Amazon India. Then the company realised that there is a possibilty of cost reducation if Xiaomi creates its own ecommerce website. 

6. Made in India: The company started launching their phones with Made in India slogan. These are not 100% made in India but phones are just assembled in India.

7. R & D costs: The reason behind the cheap price of smartphones is R & D costs. The company is not spending too much money compared to Samsung and Apple. Xiaomi just adopts the newest design and technology.

8. Advertising strategy: In the initial stage of the company in India, Xiaomi started spending money on digital ads rather than traditional ads. Till this date, the company is less spending money on traditional ads.

9. Accessories: Not only smartphones but Xiaomi is also selling high-quality accessories.

10. After Selling Service: However, the company has a large user base. But, Xioami is also providing better after selling service.

11. Profit Margin: Taking less profit and giving more specifications that’s the strategy of a company. By doing this, the company is selling more and more smartphones because the price of smartphones is comparatively less than other companies. Xiaomi is earning more profit from its other accessories than from a smartphone.

These are the fundamental reasons why Xiaomi is highly successful in India.

Let’s look at the journey of Xiaomi India.

The journey of Xiaomi India

  • July 2014: Xiaomi enters India (Xiaomi India)
  • August 2015: Begins local manufacturing(assembling unites) as part of Make in India.
  • October 2017: Becomes the biggest selling smartphone brand in India
  • November 2017: Powerbank manufacturing
  • February 2018: LED smart TV launched
  • November 2018: Opens 500 Mi stores

“Xiaomi looks a bit like Apple but is really more like Amazon with some elements of Google.” – Lei Jun (Founder of Xiaomi)


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If you find this article useful, then let me know in the comment area. Share if you find something informative. 

Thank You 

Anuj Vohra

Hi , I am Anuj Vohra. I write articles about technology, economics, and business case studies at Itsfacile.com

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