Xiaomi is a pure Chinese Brand and it has been almost an year since it entered the Indian Smartphone market in last year 22nd July with its Xiaomi Mi3. Since then the Brand has rarely seen a downfall in its sale. In November the New Delhi High court ordered Xiaomi to Stop selling its product in the Indian Market, However after a few discontinuations the Ban was finally levied up by the Delhi High Court on 8 January 2015.
Xiaomi has launched a number of its products in the Indian Market. Some of these are given below –
- Xiaomi Mi3
- Xiaomi mi4i
- Xiaomi mi5
- Xiaomi Redmi 1s
- Xiaomi Redmi 2
- Xiaomi Redmi 2 Prime
- Xiaomi Redmi Note
- Xiaomi Redmi Note 4G
- Xiaomi Redmi Note 3
- Xiaomi Mi4
- Xiaomi Redmi 2
- Xiaomi Mi4i
- Mi Pad
- Mi Band
- Mi power bank (i.e. 10400 mAh, 5200 mAh, 5000 mAh, 16000 mAh and 20000 mAh)
- Mi in-ear-earphones (Piston Design)
Now everyone is surprised and amazed by the fact that how is this brand managing to sell its products at such a low cost. Few People think that its because China made products aren’t durable and thus the prices are low and other similar negative thoughts. But today we’ll reveal the real 5 facts/reasons why Xiaomi Smartphones are so cheap.
No Monetary Advertisements – Direct online sale
The first and the foremost reason is that Xiaomi does no Advertisements at all. And that saves a it lots of money. The company totally relies upon its social media network and Xiaomi Fan Group to spread the word mouth to mouth and that works pretty well too.
Also the Brand doesn’t approaches the Middle Man (i.e. shopkeepers, retailers), it just focuses upon sale of its products online via Flipkart, Amazon and Snapdeal and bit through offline stores such as The Mobile Store and Airtel Store. So as it doesn’t approaches retailers so there’s no retailer margin and thus more of cost cutting here.
Many Xiaomi fans and users have criticized Xiaomi’s Flash Sale policy as it offers very less quantity of product which isn’t ever able to fulfil the whole demand of its followers. Now Flash Sales require a limited less stock of products. So that means the company just produces a fixed number of say 40,000 particular type of phones and sells them immediately, this helps to avoid the storage and maintenance cost of the inventory.
Expansion Outside Local Boundaries
With all this Xiaomi isn’t just selling its Smartphones to a small customer base. It has and is continuously expanding its bases in more and more countries. At present its selling in countries like – China, most of the Southeast Asia, India, Brazil, Russia and Mexico. So its like making the saying of “Drops make an Ocean” come true, as there would be more buyers so more “Drops” and eventually it will form an “Ocean” with those “drops”.
Offering Low Prices – Inviting More Sales
Some great businessman once said –
“If you’ll keep cost of product at say Rs. 180 if its production cost is Rs.100 and other sellers are offering the same product at similar prices then you might be able to sell just a few countable number of products.
But if you price the same product at Rs.110 while the other sellers continue to sell at higher prices then the consumer demands for your products will rise so high that eventually you’ll realize that you are making more money than the other sellers even after selling at a lesser margin because your sale is much more than that of their products.”
The same case is with the products of MI and those products offered by other similar brands at much higher prices.
Its a very less known fact that in the founding partners of the Brand, one company was Qualcomm. And Qualcomm is world famous for its super powerful mobile processors. So as most Smartphone Brands including MI uses Qualcomm processors in their smartphones and Xiaomi being a partner company with Qualcomm gets the same processor at cheaper prices than those of other brands, is able to keep its production cost much lower than them.
Xiaomi has just started is success journey and looks no where in a mood to stop right now. Now all what everyone is eyeing to see that which will be the other Smartphone brands whose sales figures are yet to be crushed by those of spectacular devices offered by the brand.
Thanks for reading guys ,
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This is Shreyansh Signing off!!