At the end of last year, Xiaomi completed a feat in India that the other manufacturers have not been able to do for the past six years: beyond Samsung to become India's largest smartphone brand. This is an important moment for this Chinese manufacturer, especially considering that Xiaomi began selling mobile phones 3 years ago.
Xiaomi started slowly in India, and because the market share of the offline market was stolen by companies such as OPPO and vivo, Xiaomi's financial situation in 2016 was actually worse. Xiaomi began self-adjustment from the beginning of last year, emulated Samsung’s business model, and then quickly emerged. At the end of the year, Xiaomi achieved such success as Samsung.
Let's take a look at how Xiaomi achieved counterattacks and surpassed Samsung as India’s largest smartphone brand.
Leading the mobile phone market
At any time, Samsung has more than 10 cheap smartphones sold in the market. The company provided massive equipment to the Indian market. The difference between models of different models is not very big, which helped it to obtain the sales of tens of millions of smart phones. Now Xiaomi is also doing this.
In the past six months, we have seen Xiaomi’s release of Xiaomi A1 based on Android One, red rice Y1 and Y1 Lite focusing on self-timer, entry-level model red rice 5A, red rice Note 5 and red rice Note 5 Pro.
According to the current situation, millet will not change this tactics in the short-term, we will see the Red Rice 5 listed later this month, followed by the millet Mix 2S, which is scheduled for March 27th. Global release. As Xiaomi gradually forces high-end smart phone market, this phone is likely to enter the Indian market.
From the perspective of internal hardware configuration, Redmi Note 5 is exactly the same as its predecessor. The main change is that it is replaced with an 18:9 screen. In the past 4 years, Samsung has been selling smart phones with this screen ratio in India and has launched a series of Galaxy J models. The hardware configuration between different models is almost indistinguishable.
In spite of this, Samsung has successfully sold tens of millions of Galaxy J series phones, which is also the best-selling Samsung mobile phone in India for many years. Xiaomi is now taking the same route, but there is a key difference: Redmi Note phones are very popular and are not assembled with the remaining accessories.
For example, Redmi Note 4 was the most cost-effective mobile phone in India last year, and the price of Redmi Note 5 is lower than it. Xiaomi hopes to guarantee that this year it will also provide a low-income consumer with a price of less than 10,000 rupees (about 153). Cheaper models of US dollars).
At the same time, Samsung is also insisting on iteratively upgraded product models. Its On7 Prime for Redmi Note 5 retails for only Rs 12,999 (approximately US$199.6) at Amazon India. Although Samsung introduced the phone two months ago, its hardware specifications are almost unchanged from those of the 2016 model. At the time, the same phone was configured as the Galaxy J7 Prime. Samsung also introduced another online-only version of the phone called Galaxy On Nxt.
The On7 Prime features a 5.5-inch full HD screen, an Exynos 7870 chipset with 8 Cortex A53 cores, a 13MP rear camera, 64GB of internal storage, and a 3300mAh battery. For the new model launched in 2018, new additions include a 13-megapixel camera, 4GB of RAM, and Samsung Mall features that can organize multiple e-commerce online store listings in one location.
When J7 Prime was launched in 2016, it was not the fastest mobile phone in the low-end smartphone. On7 Prime inherited all of its configuration. So, this phone's design is outdated, lacks the basic configuration such as ambient light sensor and gyroscope, and the display screen is still dull TFT display screen.
Since On7 Prime's retail price is Rs 1,000 higher than Redmi Note 5, it is easy to see why Samsung lost to Xiaomi in the low-end handset market.
But this is not a smooth sailing
Although the rapid development in India, but we found that there is still a shortage of millet in some areas, that is, the problem of sales channels. Xiaomi continues to sell mobile phones through time-limited purchases, which means that most customers who are interested in and registered with the new models will not be able to purchase the newly released models.
For example, Redmi Note 5 Pro had more than 2 million registered users for the first time, but Xiaomi only provided 300,000 mobile phones. These phones were sold out in a matter of minutes, and every time they opened their sales. Xiaomi said that in the future it will increase sales channels and supply of mobile phones, so that consumers can also buy their mobile phones offline, but it is clear that it still has a lot of work to do in this area.
It is one thing to have a good product that countless people flock to. It is another matter to ensure that it can be purchased by customers through certain channels. Millet also needs to redouble its efforts to ensure that it will not lose out to competitors in this regard.
Strengthen local manufacturing capacity
Another area that Xiaomi has focused on over the past two years is local manufacturing. As the Indian government began taxing mobile phones imported into the country, all smart phone manufacturers are building local factories to compete effectively.
Xiaomi already has two factories in India. All of its red rice phones are assembled locally in India. Xiaomi is preparing to build a third factory to increase its mobile phone production, and it also invested in an independent factory that produces mobile power.
Samsung was the first company to seriously consider establishing a local manufacturing plant. It has been selling locally-manufactured mobile phones in India for some time. Doing so can provide it with a unique pricing advantage.
Xiaomi is also concerned about local manufacturing, hoping to ensure that it maintains its advantage in product pricing.
Into the new category of products
Xiaomi is also working hard to expand the scope of its Indian product portfolio and strive to increase the degree of product diversification. It has already launched Xiaomi TV in India. For a long time, millet fans have been waiting for this product. The 55-inch millet TV 4 is equipped with a 10-bit 4K screen and costs only INR 40,000, which is far below the price of similar products from Samsung, Sony and LG.
In terms of its value, Xiaomi did not position its products in the high-end OLED TV market. Instead, it is targeting similar products from Vu, Micromax and other low-cost television brands. This is a wise move because Xiaomi TV has a better quality and recommendation engine.
Paving for more products
If Xiao Mi has any deep meaning behind Chennai's move to open Mi Home, it may indicate that the manufacturer is planning to introduce its lifestyle products into India this year. Xiaomi launched millet air purifiers in India last year, but its smart home products sold in the Chinese domestic market are much more than that. Like its smart phones, Xiaomi's lifestyle products are also inexpensive and provide a Series dazzling features.
With the launch of TV products and the imminent arrival of Xiaomi’s eco-products, Xiaomi is preparing to face challenges in various new categories of products. There are rumors that Xiaomi will conduct an initial public offering later this year, so it will certainly increase its market share as much as possible before listing.
Only time can tell whether Xiaomi can effectively compete in the areas it wants to enter. If everything can be like its smartphone business, then there is no problem.
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