Xiaomi is an extremely popular brand in China, known for its cheap prices and durable products. Although Xiaomi is not a well-known company internationally, it has been dubbed by western media as “the apple of China” due to the success the company has had in the past 4 years (fifth-largest phone manufacturer in the world).

In my opinion, I believe that the company’s value proposition is the reason behind the success of this company. The company’s value proposition is to provide consumers with cheap but durable phone devices. Their value proposition directly relates to their customer market. Xiaomi sells their devices near break-even point, which attracts many consumers, since it is almost half as expensive as any other phone in China (around 150 yuan) compared to a Samsung (around 500 yuan). With its low prices, Xiaomi targets all the consumers who cannot afford a Samsung or Apple product. This proposition/strategy not only works in China, but it works in different parts of the world too. In the article, Xiaomi sold 60,000 Redmi 1S phones in 13.9 seconds during a promotion in India.

Sources:

http://www.businessinsider.com/xiaomi-is-the-apple-of-china-2014-10