Why are Mi phones a big success in India?

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Xiaomi Turns 8 sale

Mi phones a big success in India due to following reasons:-1.

Xiaomi is basically an ecommerce companySerial entrepreneur and Xiaomi co-founder Lei Jun likes to say that his newest startup is an ecommerce company u2013 which is one of many reasons he dislikes the frequent comparisons between Xiaomi and Apple.

He thinks that likening it to Amazon is closer to the mark.

Xiaomi has its own estore and also has a storefront on Alibabau2019s Tmall.

,The numbers back up Lei Junu2019s claim.

Xiaomiu2019s website is the third largest business-to-consumer (B2C) ecommerce store in China in terms of sales volume (behind Tmall and closest rival JD).

On Chinau2019s Singles Day on November 11, a sales bonanza that saw US$9.

3 billion spent on Tmall, Xiaomi was the top brand on Alibabau2019s marketplace.

Xiaomi sold 1.

2 million phones during the 24-hour sales event, racking up, along with sales of some other gadgets, RMB 1.

56 billion (US$254 million) in items sold.

,Xiaomi generally only sells its devices in limited flash sales u2013 typically in batches of about 50,000 to 100,000 in China, but in smaller amounts overseas u2013 so as to ensure it only manufactures what itu2019s sure to sell.

,The upstart companyu2019s sales pitch doesnu2019t stop once someone has bought a smartphone.

New customers will find that their phone comes with a Xiaomi store app pre-installed.

,2.

Homepage is an estoreThat online commerce focus finds its apotheosis in the Mi Global - Mi Global Home website.

Most gadget brands use their homepages as showrooms or glorified online adverts.

Xiaomi, however, cuts to the chase by making its home on the web into a pure ecommerce store.

,Xiaomiu2019s web home updates daily to put an emphasis on which products are next available in its ongoing flash sales.

,u201cXiaomiu2019s product pages mimic best practices from Tmall,u201d says Rand Han, the founder and managing director of Resonance China.

Tmall is Chinau2019s biggest brand-oriented online marketplace, with tens of thousands of vendors such as Uniqlo, Costco, and Burberry.

That makes Xiaomiu2019s website layout familiar to the hundreds of millions of shoppers on Tmall and other popular ecommerce sites in China, with the usual tabs to switch between images, specifications, and buyersu2019 reviews and ratings.

,Appleu2019s website segregates all that stuff into the Apple Online Store, but for Xiaomi itu2019s front and center.

,3.

Makes use of a new kind of social commerceBecause Xiaomi largely sells its phones online, social media is an important part of the way it remains visible and engaged with both customers and prospective buyers.

It does this in China mainly via Weibo, and in new markets itu2019s making use of Facebook, Twitter, and u2013 primarily through Hugo Barra, ex-Googler turned Xiaomi VP for international operations u2013 Google+.

,On Weibo, Xiaomi often sees engagement levels well over 60 percent, according to the Resonance China report, thanks to frequent daily posts on a surprising variety of topics.

Not only is there the usual buzz for products and news about flash sales, but also incentives for retweets, how-to guides, and fun things like photo contests.

Xiaomiu2019s Weibo will also retweet some viral content going around Chinau2019s web so long as itu2019s relevant to its audience and also sort of ties in to cultural issues around gadgets and technology.

,4.

Every product range has a social hubAnother crucial part of Xiaomiu2019s social media strategy is that it runs Weibo accounts for every product range.

Xiaomi has 10 main Weibo accounts, the most popular of which is the Xiaomi Mobile Weibo with close to 11 million fans; the newest one, for the MiPad (pictured above), has just surpassed 500,000 followers.

Xiaomiu2019s corporate Weibo has four million followers, indicating that people would rather interact online with gadgets (so to speak) rather than a company.

Gadgets are very personal, but companies tend to be rather faceless, so this makes sense from a human perspective u2013 yet itu2019s something that so few companies do, particularly outside of China.

,This allows the company to cross-promote Weibo posts between accounts.

,In addition to Xiaomiu2019s social accounts, the firmu2019s executives are also active on Weibo and serve as brand ambassadors.

Lei Jun has over 11 million followers, while Lin Bin has more than four million.

,5.

Creates scarcityXiaomiu2019s flash sales help it rein in inventory and reduce wastage, avoiding the kind of over-production disasters seen recently with Amazonu2019s Fire Phone and Microsoftu2019s Surface RT.

,While that makes it harder to get a Xiaomi gadget, the company has managed to spin that into a positive, creating periodic hype as flash sales of a limited number of devices open up each week.

Xiaomiu2019s social media accounts, particularly on Weibo and WeChat, play a key role in driving people to the registration page for each new flash sale.

,Then, once a flash sale is completed, Xiaomi makes use of the quick sell-out in further social media postings, declaring that, for example, 50,000 Mi4 smartphones sold out in just 25 seconds.

,Not everyone welcomes flash sales.

The process is certainly a lot more complex than the usual click and checkout on most ecommerce sites.

The system seems to have met with more criticism outside of China than it has in Xiaomiu2019s home nation.

When Xiaomi launched in India in September, it faced a backlash as demand outstripped supply by a factor of two-to-one, resulting in a wave of disappointed and frustrated comments on the brandu2019s Facebook India page.

,Despite those drawbacks, new phone makers that are emulating Xiaomi, such as OnePlus, are also using flash sales.

,6.

Offline is secondary to onlineXiaomi has 451 national service centers, but theyu2019re not stores u2013 although they do look rather a lot like Appleu2019s iconic shops with their pine desks and lots of space for playing around with the gadgets.

,These relatively small shops u2013 usually just outside of a cityu2019s main shopping area u2013 save Xiaomi spending on premium retail real estate.

,When Xiaomi ventures offline u2013 such as with events or its service centers u2013 itu2019s all very much secondary to its ecommerce core.

,7.

Lowers the price of u201cpremiumu201dFor Apple, premium starts at about US$700.

For Samsung itu2019s about US$600.

But Xiaomi chopped that in half in 2011 when it debuted the first of its smartphones, which packed premium specs (but a rudimentary, blocky design) into a tiny price u2013 just US$325.

,Xiaomi has kept that price for its flagship phone, which is now the Mi4.

Xiaomi has also upped its hardware design game so that the aesthetics of the phone itself are no longer too much of a compromise compared to models from Apple and HTC.

,Han explains to Tech in Asia:,Xiaomi first emphasizes its low price prior to diving in-depth into its flagship productu2019s high level of integrated technology and hardware performance.

This combination of low cost and high value is a strong message to Chinese consumers.

,Inspired by Apple, Xiaomi also educates consumers on its design philosophy, emphasizing a focus on simplicity and functionality in its products.

,Xiaomiu2019s own version of Android, called MIUI, has also helped with this premium feel as itu2019s better looking than most Android skins out there.

,8.

Runs its own communityAlong with its careful social media stratagem, Xiaomi is also pro-active in running its own community forums, or BBS.

This is where the brandu2019s most hardcore fans, dubbed u201cMi fans,u201d meet to discuss gadgets, share knowledge, and generally hang out.

This is something common to Chinese companies, but largely unused by major brands overseas.

,Xiaomiu2019s BBS has 30 million registered users and sees 579,000 new posts daily.

,9.

Loyalty programLots of supermarkets and quite a few other retailers now have loyalty programs, but itu2019s not something that people associate with gadget brands.

Xiaomi, however, has a well-established program under the VIP Users Center part of its BBS.

,Being a Xiaomi VIP entails getting points with each new purchase, which counts towards your status in the Xiaomi online community as well as for discounts on future purchases.

VIPs can also opt into participating in online u201cmissionsu201d and special events offline.

,All the BBS registered users are technically part of this, though only 90,000 of those have earned a VIP badge thatu2019s emblazoned on their Xiaomi BBS profile.

,10.

Beta access to gadgetsFor some gadgets, Xiaomi takes on a limited number of beta users u2013 typically just 500 u2013 who can buy the gadget for RMB 1 (US$0.

16) and a few hundred BBS loyalty points ahead of its official launch.

Shortly after Xiaomi teased its MiPad in May, selected Xiaomi fans got hold of the Android-based tablet a few weeks before it hit Xiaomiu2019s online sales.

,The strategy here is clear u2013 to build up hype and word-of-mouth advertising in the time it takes for the first batch of devices to roll off the production lines.

Itu2019s usually a period when a newly-revealed gadgets drops off the radars of most gadget enthusiasts, but Xiaomi keeps people tuned in until the first flash sale is ready for pre-registration.