Xiaomi Senior Vice President, Wang Xiang said that the company aims to open 2,000 stores around the world within three years.
Around 1,000 shops will be opened overseas with partners and the remaining 1,000 will cater China. Growing abroad is one of Xiaomi’s main goal. Wang Xiang said “we will definitely be a global player” in the coming years. Vice
President, Wang Xiang said:
You will see us in almost every country
On friday, 7th july, Xiaomi also said that it had shipped 23.16 million phones in the second quarter and is on its way to become world leading smartphone company.
Xiaomi Growth from 2010
Most people don’t know this that Xiaomi is a startup which launched in 2010. It has been successful due to its pricing policy which is very low in exchange for good quality products had led to a good demand in the global market. The company’s scale expanded on a galloping rate.
From there, the smartphone has focused mainly on R&D’s and production of other devices. Smart scooters, MI fitness band, smart air purifiers and much more.
It has also adopted from Silicon Valley culture. Energetic employees distributed stuffed MI bunnies around the headquarters.
Xiaomi Business Tactics
The company relies on producing high quality phones with low prices. How do Xiaomi produce such phones? The answer in quite simple. It does not have retail outlets because tax costs and inventory costs are added to it which makes the phone expensive.
Moreover, expenditure on research and development has given an edge over its competitors. It also uses marketing strategy such as donation per phone sold to Shaukat Khaunum. It also make goals and work on achieving them. Xiaomi plans on achieving a shipment of 100 million smartphone in 2017 and a revenue of $14.7 billion. While it is very easy to speak this figure, but quite hard to achieve for a new startup.
Global Expansion Business Strategy
Apart from increasing its diverse range of products, the company has also expanded their regional availability. The company has stepped its foot in Russia, United Arab Emirates and Egypt. It is also manufacturing locally in countries such as India and Indonesia. In the coming year, the company is looking to expand in Southeast Asian region like the Philippines and even the eastern Europe. The low cost phone such as RedMi 4A phone (costs $88) would produce more revenue in developing markets.
If you buy a product from any shop with a low price, normally … your expectation is quality may not be good, but we want to prove you don’t need to spend a lot of money to buy a high quality product.
The company also wants to link smartphone device to everyday objects i.e TV, etc following the concept of IOT. It aims to produce lamps that would shut off as soon you fall asleep.
Previously, the company broke all sales records by increasing it 70%.