India is the second-largest smartphone market in the world second only to China. With the intense competition and the volatility of the complex smartphone industry, it is all about ‘survival of the fittest’.
Over the last seven years, Chinese smartphone brands have taken over the Indian market and made Indian mobile companies vanish. But one company in particular which has outshone in the game has to be Xiaomi. With its best selling handsets, like the popular Redmi phones, the brand has brought in a very radical change in the way smartphones are designed and sold. It was only after Xiaomi that other established players, like Apple and Samsung, started considering the affordability factor in pricing of smartphones. If you are looking to buy a Redmi mobile then follow the below article that highlights the top 5 reasons which can be attributed to Redmi’s roaring success.
1. Agile Marketing strategy
When Xiaomi made an entry into India, 95% of the market was driven by offline sales. Xiaomi literally turned the tables by introducing the online selling model which proved to be very beneficial especially in the current pandemic situation where most users opt for online over offline sales. If you have to define Xiaomi’s marketing strategy, it would include a singular, consumer-centric strategy to make products which resonate with the masses. The brand has been successful in making in-roads into practically every segment from budget to premium phones. The launch of the Mi Store has further bolstered their online sales in addition to being popular on Flipkart and Amazon. It also leverages ‘Flash Sales’ during any new phone launch which helps create a hype followed by a yearning in the minds of the customer and then allows a short time period to grab the product.
2. High return on investment
In a price-sensitive, hyper-competitive market like India where each consumer looks at multiple factors while selecting their preferred smartphone, it is imperative to create products that can be differentiated in the market place and provide a high ROI. The ‘honest pricing’ strategy which it follows allows it to gain a mere 5% margin on every smartphone and thus pass on this benefit to the customer. The deep market understanding coupled with detailed studying of consumer usage patterns and buying habits has helped Xiaomi to introduce the Redmi range. These phones in particular are a huge hit as they offer a sweet blend of powerful specifications and low price. The Mi10i is a trailblazer available at a starting price of Rs 21999, and offers features and specifications which can be found in smartphones at twice the price. And with Xiaomi’s grand entry into the premium segment, it has managed to move from a mere 3% market share in October 2020 to approximately 14% in May 2021 again reinforcing the high value customers see in Mi phones.
3. Path-breaking Innovation
Being a consumer-driven brand, Redmi has always believed in investing substantial amounts in R&D and bringing innovative technology within the reach of the budget segment users. Moreover, low price is not the only factor and companies need to ensure they put a great product with superior quality in the hands of the customer. The Mi 10i is one such phone which pushes the performance envelope with power-packed specifications that are hard to imagine in a mid-budget segment phone, in keeping with the Xiaomi philosophy. In a market dominated by 48MP and 64MP mobile cameras, MI took massive strides in mobile photography by introducing the 108MP quad rear camera in the Mi10i.
4. Loyal customer base
One of the prime reasons for Xiaomi’s success in India was that the brand was able to nurture a loyal consumer following in a short span of time. The MI community is pivotal to Redmi’s growth by participating in the product development efforts through new product trials and constant feedback mechanism. The brand is also able to engage with customers effectively through various social media handles and drive increased satisfaction and retention.
5. Diversified smart portfolio
While harping on their dominance in the smartphone space, Xiaomi has quickly made inroads into other segments such as Smart TV’s, laptops, earphones, smart bands etc. This diversification certainly boosts customer confidence as they start viewing Xiaomi as a brand which is working toward smarter living and a more holistic portfolio.
Xiaomi, in a short span of time, has become a force to reckon with in the Indian smartphone market and has displaced seasoned players and made Indian companies insignificant. Against all odds, Xiaomi is seeing robust growth in India and globally too. After gaining a lion’s share of the Indian market and holding on to the market leader position for 3 years, it has leapfrogged Apple in Q2 2021 to become the second-biggest seller of smartphones worldwide as per Canalys report . It won’t be too long before it rises to the no.1 spot globally – considering it has the highest rate of annual growth at 83%.