13 Dec 2016

Adil Hameed

The Grand Success of Xiaomi in India

Image result for xiaomi logo
Source: AmongTech

As we all know, the smartphone industry has been an industry which has been acquiring immense growth in the recent past. Growing needs of the public, movement towards cashless economy and many other things can be considered as the factors of it. India had been a main market for almost all the smartphone manufacturers in the recent past because of the increasing demands to meet day to day life. In CY Q3 2016, smartphone shipment in India reached 32.3 million units, registering YoY growth of 11% and QoQ growth of 17.5%.In between this growth in the Indian markets, some companies have made a huge success while some others have been failing to meet the requirements of the users. Amidst all of these, the Chinese manufacturer Xiaomi, has been a success since its entry into the Indian markets. Reports says that Xiaomi has sold over 2 million smartphones just in the third quarter of this year. This, statistically, is a huge 150% growth for the company in their sales. Let us see what all have led to this amazing success story of Xiaomi. 

The growth of Redmi Note 3, 3S and 3S Prime in the market

After the company released the Redmi Note 3 in March of 2016, the phone has broken many records in the sales section in smartphone industry. This can be handed to its very low price starting from Rs 9,999 which is way lower than the Average Selling Price of phones in India. Xiaomi says that according to September, the company has sold over 2.3 million handsets of this modelXiaomi had also released the Redmi 3S and the 3S Prime model in the month of August. Like the Redmi Note 3, this phone was also priced at a very low Rs 6,999 which again is way lower than the Average Selling Price. Earlier, Flipkart said that it had sold over a million copies of this model in the site.

Both these phones have shown amazing value for money which helped in attaining public's trust. That is one of the primary factor the price sensitive Indian market was looking for always and what is better than a power packed device giving them one of the best value for money of all time. 

Focus on Online and Offline modes of selling

Many of the usual companies generally concentrate on the online selling platform leaving behind the offline mode of selling behind and thus getting lesser sales than expected. Xiaomi, in India, understanding that the Indian market is dynamic, brought in strategies to rule both online and offline modes of sales. For this, in the beginning they partnered with two retailers The Mobile Store and Redington for setting offline bases in India. Furthermore they also put their heads into marketing techniques like Printads across the country. 

Apart from all these, they even started a manufacturing unit in Andhra Pradesh in 2015 for which they tied up partnership with FoxConn. According to statistics, 75% of their sales were made of the phones manufactured from this unit. As a follow up to the manufacturing unit, they also tied up with Just Buy Live and Innocomm for more wider offline selling. The growing demands and the amazing sales till date has pushed Xiaomi to plan for two more manufacturing units in India which we will be able to see in the near future. 


All these steps made by Xiaomi has given them an edge above other companies like Oppo, Lenovo, Huawei etc. They have come to the 4th place in smartphone sales in India by owning 7.4% of the market share closing down the 7.5% of Micromax. It will be interesting to see the competition between Smartphone companies in making their way to the leaderboards. Let us all sit back and watch it.