Hello and welcome to this episode of our programme where we focus on xiaomi phones in The Indian
market.
In India announced third quarter sales report, we found a very interesting phenomenon, called
the Indian market as a boycott made in China, in the position of the mobile phone sales
of the top five, however, China's mobile phone brand accounted for four of them, and at the
top is very cost-effective millet, millet mobile phone for India market order, It's
been snapped up by Indians.
It also made a joke, as early as ten years ago threatened to "buy" made in India, now
more than ten years have passed, but more and more dependent on made in China, the mobile
phones made in China has become a "beacon" of the Indian market, but they still do not
admit their own shortcomings, still choose everywhere and we compete, confident let us
a little worried about.
India and China have many similar places, in a few years ago, the state of the huge
population and is a agricultural country, are referred to as developing countries, put
a few years later, we have fully realized the rolling on the data, however, the image
of the indians still a few decades ago, everywhere and we compete, also don't know which come
of confidence, They think we're inferior to them in every way.
But from a practical perspective, India is developing very quickly in recent years, both
in technology and economy, compared to previous years have obvious difference, main reason
is that India's huge and cheap Labour, is each big technology companies to build factories
in India, take foxconn and apple, invested a large amount of funds for the Indian market
development, The whole process has not been satisfactory, but it has also indirectly boosted
India's economy, and there are many similar examples.
Is because such a little achievement, however, India's thought on the comprehensive strength
beyond us, and we compete, at any cost, they also learn to build what we make, the end
result is a lot of money to spend, but in doing this, take after China's success in
manufacturing in terms of the space station, they always defy spirit, take out a piece
of design drawings, Claiming that India's space station is more advanced than ours has
been dismissed by many countries as a "joke"!
Seeing the extraordinary popularity of Chinese apps in the Indian market, Indians began to
move their bad ideas again.
They blocked Chinese apps like TikTok and wechat, and wanted to develop similar software
by themselves.
However, the imitated APP did not get the support of Indians.
They're doing it in a different way, so to speak.
Millet in the Indian market situation is very "amazing", "iPhone" as the Chinese market,
consumers all the time in the "curse", many people even threatened to millet out of the
Indian market, but constantly refresh the record sales of millet, India can be seen
everywhere "hands a millet mobile phone" scene, scene which we are familiar?
Xiaomi has exerted the "law of true fragrance" to the extreme in the Indian market, which
is the same as Apple's iPhone in the Chinese market.
The main reason why Apple cannot sell in the Indian market is that its price is too high,
which does not meet the local consumption level at all.
Xiaomi's ultra-high cost performance just fits the market demand of India.
The Mobile market in India is just a fraction of what it was in China a decade ago, so Xiaomi
can quickly gain market share.
From millet to enter the Indian market, has been around blockade news, India for the manufacture
of mobile phone technology, however, does "chilling" to local consumers, and millet
to enter the Indian market, just to make up for this vacancy, everyone can afford, and
able to enjoy the latest technology, and a boycott of sound, The main reason is that
Indians hate Xiaomi for being a "Chinese company" in the same way we hate Apple for being an
American company.
Even in technical strength in the obvious disparity, India is not willing to accept
the loss to the fact that China is similar to patent dispute, that paragraph of time
millet and Ericsson India delicious to a duel, the millet to support Ericsson, eventually
millet in the Indian market to eat the loss, but it can change what?
It can only make itself happy for a while, but xiaomi still needs to make money in the
Indian market.
Although India's rapid economic development in recent years, but the overall level of
consumption, even worse than a decade ago, we called they gave ten thousand yuan to buy
a mobile phone, they naturally is no way to afford, because this is equivalent to their
income for a year, and millet hundreds of yuan, thousands of pieces of mobile phone
pricing, very accord with their level of consumption, Moreover, Xiaomi has done very well in quality
control, which is also the reason why Xiaomi can quickly become popular in the Indian market.
With the advantage of population, India's mobile phone market is attracting more and
more attention from manufacturers.
In recent years, major brands have set up shop in India.
According to data on smartphone shipments in India in the third quarter released by
research firm Counterpoint, Chinese handset makers are the most popular among consumers
in India.
With a market share of 22%, Xiaomi successfully beat Samsung and Vivo, ranking first in sales.
Xiaomi is one of the first Chinese smartphone makers to enter India.
It not only sells phones in India, but also sets up a production base in the country,
and Lei Jun was even met by the Indian prime minister for this.
And that's what makes Xiaomi phones very popular in India.
Xiaomi entered India before the country had established a mature online distribution channel
for mobile phones.
In this context, Xiaomi has completely moved its online sales plan to India, driving down
smartphone prices by saving store costs and storage costs.
Xiaomi brand has left a very good impression among Indian people because of its high quality
and low price.
After that, Xiaomi learned from experience in the domestic market and actively arranged
offline sales channels, thus its position in the industry became more and more stable.
In terms of products, Redmi products are the key to xiaomi's leading sales in the Indian
mobile phone market.
For a simple example, the redmi 9A was the best-selling smartphone in India in the third
quarter of 2021.
The redmi Note10, which was released earlier, was also the top-selling single smartphone
in India.
This reflects a characteristic of the Indian mobile market, which has far more users at
the low end than at the high end.
Given that there are still a large number of feature phones in India, there is still
a large market for mid - and low-end smartphones, which is where Xiaomi is best at.
From this point of view, Xiaomi will not relinquish the top spot in the short term.
But Xiaomi's dominance, long ahead of its rivals in terms of sales, is slowly eroding
as more Chinese handset makers enter the Indian market.
Data comparison shows that xiaomi's market share in 2021 has been reduced compared with
that in 2020.
Xiaomi is not alone in this.
All of the top five players in The Indian market by sales, except OPPO, have seen their
share shrink.
This is not least because of the severe shortage of components in the third quarter and the
fact that manufacturers are not stocking up as well as expected.
Xiaomi's share will not necessarily decline if there are no problems in the Indian phone
supply chain.
The reason xiaomi's dominance of the phone market is declining is not just because the
company itself has failed to live up to expectations.
It's that xiaomi's price advantage is slowly disappearing as more upstarts emerge in the
Indian market.
In the past two years, Vivo's V and Y series have quickly gained ground in India thanks
to their design excellence and even briefly overtook Samsung to become the country's second-largest
handset maker.
Realme, which was born in India, has also seen sales soar, helped by its cost-effective
CSeries.
Although RealMe is currently ranked fourth in the sales list, OPPO is the parent brand
in the fifth place, and "Brother" is also on the list.
The core of Xiaomi's internationalization strategy is to focus on user experience.
An important reason for xiaomi's success in the domestic market is the establishment of
high-quality user experience on mobile phones.
Xiaomi began to interact with users at the early stage of product release, listened to
users' feedback carefully and quickly optimized and improved product design.
Xiaomi develops customized Internet services for different markets.
Xiaomi has more than 190 million monthly active users on its mobile platform.
Xiaomi's overall strategy is to sell high-quality products online at honest prices, so sales
channels in overseas markets must also be in line with its overall strategy.
Xiaomi's sales in overseas markets mainly rely on online sales, but it also maintains
cooperation with other third-party sellers through its offline Mi Home display stores.
In India, xiaomi has partnered with Flipkart, India's largest e-commerce firm, Amazon and
other local partners.
At present, The company has established cooperative relations with many operators around the world,
such as Vodafone, Telefonica and Orange, and more than 50 operators around the world have
cooperated with Xiaomi.
Multiple sales channels have significantly reduced xiaomi's operating costs and enabled
the company to successfully implement its overall strategy of selling high-quality products
at honest prices.
In October 2017, Xiaomi achieved its revenue of over 100 billion yuan ahead of schedule,
and ranked 455 in The BrandFinance Global Brand Value 500 for the first time in 2017.
Whether a company can be listed on the list mainly depends on its operating income, so
the operating income has become an important indicator to measure the competitiveness of
an enterprise in the world.
It took the company seven years from brand establishment to over 100 billion yuan in
revenue.
Google, the oldest of the top 10 brands in the world, took nine years to reach the goal
of 100 million yuan in revenue.
There is no doubt that Xiaomi has become a powerful brand.
Xiaomi has won over consumers in developing countries by setting up local factories and
offering cost-effective products in markets such as India and Indonesia.
In Western Europe, we mainly choose to cooperate with suppliers and build brand effect.
And the entry into the global brand value top 500 is the most powerful evidence of the
success of Xiaomi's internationalization strategy.
Therefore, other Chinese enterprises exploring overseas markets can also learn from Xiaomi's
experience, pay attention to the localized development and operation of products, study
the user psychology and consumption habits of target places, and expand diversified sales
channels.
That's all for this episode, thanks for watching, and we'll see you next time.