INTRODUCTION

Xiaomi Inc. is a privately owned Chinese electronics company

headquartered in Beijing. 4th largest smartphone maker. Xiaomi designs,
develops, and sells smartphones, mobile apps, laptops and
related consumer electronics.

Since the release of its first smartphone in August 2011, Xiaomi has
gained market share in mainland China and expanded into developing a
wider range of consumer electronics, including a smart home (IoT) device
ecosystem. The company's founder and CEO is Lei Jun, China's 23rd
richest person according to Forbes. The company sold over 60 million
smartphones in 2014.

The company has over 8,000 employees, mainly in mainland

China, India , Malaysia and Singapore, and is expanding to other countries
such as Indonesia, the Philippines and Brazil.

According to IDC, in October 2014 Xiaomi was the third largest

smartphone maker in the world, following Samsung and Apple Inc., and
followed by Lenovo and LG. Xiaomi became the largest smartphone
vendor in China in 2014, having overtaken Samsung, according to an IDC
report.

At the end of December 2014, Xiaomi became the worlds most valuable
technology start-up after it received US$1.1 billion funding from investors,
making Xiaomi's valuation more than US$46 billion. Xiaomi entered the

Indian market in July 2014 and since then expanded rapidly in India.
Earlier, Xiaomi used to sell exclusively on Flipkart until it announced its
partnership with both Amazon.com and Snapdeal on 7 April 2015. This is
seen as a bid by the smartphone manufacturer to expand its retail base in
India. It has also teamed up with AirTel Store and The Mobile Store to sell
some of its selected devices. Later, in Q1 2015, it started its own store
and stopped selling its accessories to online stores.

TYPES OF PRODUCTS

MOBILE PHONES

In January 2015 in Beijing, China, Xiaomi unveiled the Mi Note and

Mi Note Pro at about half the price of the comparable iPhone 6. Both
devices have a 5.7-inch display and use a dual-glass design with a
2.5D front and 3D rear glass.
The Mi Note is powered by hardware more than a year old at
launch, the Mi Note Pro has the newer octa-core Qualcomm
Snapdragon 810 processor, Adreno 430 GPU, 4 GB LPDDR4 RAM and
LTE Cat 9, giving it a higher performance than the Mi Note, with
approximately the same battery life.

LAPTOPS

Xiaomi forayed into PC space with the launch of its first-ever

ultrabook Mi Notebook Air in China. It features a 13.3-inch display,
powered by Intel i5 processor, 8 GB DDR4 RAM, 256 GB SSD storage
and runs on Microsoft's Windows 10 operating system. Xiaomi has
priced this 13.3-inch laptop at RMB 4,999. A more affordable variant
of Mi Notebook Air with 12.5-inch HD display, Intel core m3
processor, 4 GB RAM and 128 GB SDD is priced at RMB 3499. Mi
Notebook Air includes only Chinese version Windows 10 without
possibility to download English language pack.

TELEVISION SETS

SMARTWATCH

POWER BANK

 FITNESS BAND

SMART HOME PRODUCTS

DRONES

KINDS OF PROMOTION

WORD OF MOUTH
First of all, early on, they have pioneered flash style sales which were
done with little or no advertising. Flash sales basically mean selling limited
quantities during limited periods. They always create anticipation and
urgency great factors to win consumers minds and hearts. Needless to

say, the units were sold quickly and talked over a lot all over Chinas
vibrant social media. Word of mouth marketing worked very well for
XiaoMi and they continue to take full advantage of it.

ACTIVE USE OF SOCIAL MEDIA

XiaoMi has also managed to harness the power of social media by not only
broadcasting their messages and announcements but by actively
engaging with their customers. Engineers are routinely encouraged
to speak directly to consumers and use gathered feedback to
refine software.

DEDICATED BRAND ADVOCATES

Through its active role in social media, XiaoMi has also succeeded
in building a dedicated fan base. Those Mi-fans are very active in social
media and are, in some ways, similar to those hardcore Apple
advocates that we are all familiar with. Mi-fans are always present
at XiaoMis product launches where they are known for loud cheering and
applauding.

CEO AS THE FACE OF THE BRAND

Last but not least, XiaoMis charismatic boss, Lei Jun, does a great job in
making his brand look cool and current. He has put a face to a brand,
something that traditional executives in China wouldnt feel comfortable
doing. Lei Jens similarity to Steve Jobs in the ways he talks about the
brand is not a coincidence the late Apples founder still holds an almost
iconic image among Chinese.

SALES STRATERGIES ADOPTED

HOMEPAGE IS AN ESTORE
That online commerce focus finds its apotheosis in the Xiaomi.com
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.

Makes use of a new kind of social commerce

Because 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 its making use of Facebook, Twitter, and primarily
through Hugo Barra, ex-Googler turned Xiaomi VP for international
operations Google+.

CREATES SCARCITY
Xiaomis flash sales help it rein in inventory and reduce wastage, avoiding
the kind of over-production disasters seen recently with Amazons Fire
Phone and Microsofts 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. Xiaomis social media
accounts, particularly on Weibo and WeChat, play a key role in driving
people to the registration page for each new flash sale.

Offline is secondary to online

Xiaomi has 451 national service centers, but theyre not stores although
they do look rather a lot like Apples iconic shops with their pine desks and
lots of space for playing around with the gadgets.
These relatively small shops usually just outside of a citys main
shopping area save Xiaomi spending on premium retail real estate.

Runs its own community

Along with its careful social media stratagem, Xiaomi is also pro-active in
running its own community forums, or BBS. This is where the brands most
hardcore fans, dubbed Mi fans, meet to discuss gadgets, share
knowledge, and generally hang out. This is something common to Chinese
companies, but largely unused by major brands overseas.

SALES REPORT
Chinese tech major Xiaomi today said its smartphone sales in India has
grown by 72 per cent in the last two years.
The company, which entered the Indian market in 2014, gets a lion's
share of its sales from online platform.
"We entered India in July 2014 and disrupted the smartphone industry
with high-quality devices. We have since then seen an incredible growth
rate of 72 per cent year-on-year (July 2014 to July 2016) in terms of
smartphone sales," Xiaomi India Head Manu Jain told PTI.

Xiaomi's mid-range smartphone Redmi Note 3, which made its debut in

early March, has become India's number one selling smartphone online
until now.
The Chinese company confirmed Redmi Note 3's sales details on its official
site. It claims to have sold more than 2.3 million units in six months, which
is equivalent to one phone being sold every 7 seconds.

To mark the occasion, Xiaomi has organised a promotional activity inviting

fans to play a game and winners stand a chance to win cash coupons and
a grand price of Redmi Note 3.
Xiaomi Redmi Note 3's staggering sales record is palpable, as it most costeffective phone in the mid-range category. Despite being priced Rs 9,999
(16GB+2GB RAM: low-end model), the device boasts top-notch build
quality, powerful processor, a massive battery and a decent camera on
the rear.
Xiaomi had a long spell of dull sales between late 2015 and the first
quarter of 2016, but the introduction of the Redmi Note 3 in March-end
has started to turn things around for Xiaomi. The company followed up
with feature-rich phablet Mi Max in Julu and the budget phone Redmi 3S
series in August, and they too come well endowed with good set of
hardware and are poised to increase Xiaomi's market share in India.