Xiaomi: A Chinese Multinational`s Journey in India

Xiaomi: A Chinese Multinational`s Journey in India
Case Code: BSTR644
Case Length: 11 Pages
Period:
Pub Date: 2022
Teaching Note: Available
Price: Rs.400
Organization : Xiaomi India, Xiaomi Corporation
Industry : Technology & Communications
Countries :
Themes: International Marketing , Marketing Strategy, Brand Strategy
Xiaomi: A Chinese Multinational`s Journey in India
Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

Indian Smartphone Market

India’s smartphone shipments touched 158 million units in 2019 with growth of seven percent year on year. Record shipments led to India surpassing the US and becoming the second-largest smartphone market globally..

Online Sales: Xiaomi’s Classic Entry Strategy

The idea of online sales for smartphones came from Jain, who observed that most customers in India used smartphones to access the internet and indulge in online shopping. Customers were different from American and Chinese customers who predominantly used desktops and laptops..

Venturing Into Offline Sales

In 2017, Xiaomi India realized that it had to ramp up its presence offline as this segment made up 70 percent of India’s consumer market. In the second quarter of 2017, it ventured into offline operations to cater to offline consumers while increasing brand visibility in offline distribution channels..

Invading Smartphone Market In India

Xiaomi India’s success led to domestic companies such as Karbonn, Spice, and Micromax exiting the market. One of the factors that led to Xiaomi’s rise was the inability of Indian smartphone makers to quickly adapt their products to 4G. On the other hand..

Past Perfect, Future Tense

Even though Xiaomi India maintained its top position in 2018 and 2019, industry experts opined that another brand was likely to take over in 2020. According to the International Data Corporation (IDC) , Xiaomi India held a 28 percent market share in 2018..

Competition Intensifies

As of August 2020, Samsung also planned to shift its manufacturing base from Vietnam to India. In September 2020, Micromax, an Indian brand with a 22 percent market share in 2015, announced plans to reenter the Indian market after five years away. Micromax had, in fact, overtaken market leader Samsung in 2015..

Meanwhile, Xiaomi Planned Big In India

Xiaomi India aimed to focus on 5G smartphones in the future to secure its position in the premium smartphone segment and invest in IoT. In tune with the company’s vision of “Innovation for everyone,” Xiaomi India wanted to provide quality technology that was affordable to everyone..

Exhibits

Exhibit I: Number of Smartphone Users in India
Exhibit II: Milestones Achieved by Xiaomi from 2014 to 2016
Exhibit III: Top Brands in India

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