When Xiaomi entered the highly competitive smartphone market in 2010, it did not provide real phones. The company only provides a free Android-based operating system (OS). However, in the past seven years, Xiaomi has become one of the largest smartphones in the world.
By 2020, Xiaomi has become the world’s largest Internet of Things (IoT) company with sales of more than 37 billion U.S. dollars and more than 210 million IoT devices (excluding smartphones and laptops). In more than 90 countries/regions, we search for answers through in-depth, years of company research, including with 12 senior managers (including co-founders, presidents, CEOs, presidents, senior vice presidents, and managers) In-depth interviews.
Head of Research, Development, Sales and Marketing) and the founder and CEO of Smartmi, Xiaomi’s largest ecosystem partner. Our research also includes analyzing more than 100 hours of talk time and reviewing more than 5,000 Xiaomi documents (from 2010 to 2020) and 470 external reports and data sets. Customer Loyalty Xiaomi entered its first market in China by providing MIUI, a free smartphone operating system. . , Huawei, Lenovo) and international manufacturers (No., Apple, Samsung) are struggling in various markets from budget to quality.
Most Chinese manufacturers only use the Chinese version of Android on their smartphones, but they are somewhat smart. Xiaomi is not directly competing, but is attracting technology-savvy smartphone users. They provide them with free software and are building a huge online community to interact with them and understand which features they desire and which do not need. This consumer group likes the unprecedented attention of technology companies and is highly active in interaction and delivery. Activities around the core value proposition
After the company established technology-savvy and high-quality market segments in big cities, Xiaomi began to expand into other market segments: targeting consumers with poor technology and consumers living in smaller cities . These consumers prefer offline shopping and want to discuss their needs with colleagues or make presentations. Ot SynergyXiaomi uses its smartphone as an “omnidirectional controller” and has launched products that can be connected to and controlled by the phone (such as TVs, air conditioners, air purifiers, smart lights). Xiaomi has been looking for partners to help the company quickly expand its range of IoT products.
The partners’ products are based on the IoT protocol and are easy to integrate into the Xiaomi home system. After consumers bought the first Xiaomi IoT product, they switched to other Xiaomi products. For competitors, it is becoming more and more difficult to win customers in the IoT category. Xiaomi clearly stands out from the broad demand of a broad market segment or a narrow market segment.