CHINA TOPIX

05/06/2024 12:37:09 pm

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Xiaomi Wants To Repeat Mainland China Success Overseas In 2015

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(Photo : Reuters) Xiaomi is dedicated to expansion outside of the walled-garden in China, already entering India and looking towards Russia and Brazil this year.

Xiaomi achieved the number one spot in China last year, with a 244 percent increase in sales volume leading to over 40 million sales.

The transition of this strong performance into international dominance, Xiaomi is looking towards Russia, Brazil and other potential markets for 2015 expansion.

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Xiaomi's President Bin Lin is confident this year will see mass expansion of Xiaomi, speaking in an interview on Friday, the president said he is very excited for the changes coming.

Head of international Hugo Barra, ex-Google executive, has also said expansion into 2015 could reach new countries, and Xiaomi may even penetrate the U.S. market.

Xiaomi has worked a different style of business into China, with no physical presence in stores but a huge digital following. Xiaomi hires over 50 workers simply to manage social media, and most executives maintain an active and friendly presence to customers.

The other big reason for Xiaomi's success is the cheap prices, removing the high profit margins from Xiaomi's portfolio. In its stead come millions of sales in China, and a high interest in the products.

Xiaomi's Redmi managed to sell 18 million units in 2014, showing the potential of cheap devices costing near $100 off contract. In places like Russia and Brazil, which are less competitive than India and China, Xiaomi could sell even higher numbers.

There is still a worry that the lack of sophistication and knowledge of a market may undervalue Xiaomi, especially if it is incapable of bringing local apps to the forked Android MIUI skin.

India has been the first case file of how Xiaomi can manage its sales in another country, but patents are another issue for the Chinese based company. Even though Xiaomi fixed terms with Ericsson rather quickly in India, it might not be as easy in other regions.

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