Quick & Large sized Production
The
biggest advantage what Xiaomi has today is their production alignment
and products platform across different countries. Like established
brands Samsung, Nokia etc - they offer almost same models in most of
their operating countries and that gives them advantage to achieve real
economies of scale. They have the ability to squeeze margins of their
suppliers and in turn promise them bigger volumes and thus top lines
with timely payments. They were the first one to set up their factories
in India to take advantage of Make-In-India program.
Always in-flavor models
When
Xiaomi launches any model - they make sure that they time the market
right. They never experiment with old processors or technology - which
gives them lot of favours from the bloggers & consumers. I will
explain the bloggers part a little late here but consumers always
prefers the latest technology. Today, they purchase the phone not by
looks but also by the “what-is-under-the-hood”.
Use of Influencers
This
is probably the first brand, which has used the social influencers in
the very best manner. They hold conferences, parties and take their
feedback very seriously. If you are an influential blogger - Xiaomi will
ensure that they keep calling you for feedback and involve you. This
helps to create buzz in social media.
Success in India
Xiaomi’s
success in India also largely thanks to e-commerce companies who were
looking to acquire new customers and wanted to show higher GMV to their
investors or bosses. That has resulted into almost zero cost of sales to
Xiaomi. Today - market places like Flipkart or AMZ does advertisement
for Xiaomi models because they are getting users or buyers and that help
them to add into GMV.
Xiaomi is not only a mobile company
When
you buy a Xiaomi phone, it usually comes with few apps - which you may
not required. These apps are of non-removable nature. Over a period of
time, people start using these apps and Xiaomi makes money from the
advertisements which they are placing inside these apps. Now imagine the
kind of large customer base Xiaomi holds and calculate the revenue.
Scarcity generates demand
In
the initial phase, they have ensured that their supply will remain
lower than demand. This creates lot of fury among customers that they
did not get blah blah model on blah blah date flash sales. Customers
complained over social networks, and again company enjoyed publicity.
People who did not know Xiaomi, came to know about it.
Avoiding unnecessary investments
Even
today in India, which contributes almost 60% of their overseas sales -
their total employees in India are less than 100. Now consider other
brands and you will be able to calculate the savings of not only
salaries but other stuff also. Also lean organisations will always make
faster calls. Bigger ones moves like elephants. They take time to
respond to market.
Though, I am not selling Xiaomi on my website - OnlyMobiles.com
but I have tremendous respect for this company and I wish them good
luck. I hope they will keep keen eye on their after sales network and
improve customer service a bit.
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