Xiaomi Inc., a Chinese smartphone company, is receiving a world-wide attention due to its exceptional sales performance. Founded in 2010, it took Xiaomi only 4 years to dominate the smartphone market in China, which put them into a position as a potential challenger to the top two companies, Apple and Samsung. Within a year, its net profit nearly doubled from 1.88 billion yuan to 3.46 billion yuan($566 million), not to mention its revenue was even more than doubled. Obviously, the company is taking advantage on targeting the world’s largest market, China, but I think the main reason for its extraordinary success is in virtue of Xiaomi’s efficient marketing strategy.
The company is proposing three unique strategies including low price, marketing based on social media, and online-base sales. Among those approaches, I was personally impressed by their online-sale strategy. I have experience living in China, and therefore, I understand the massive potential behind China’s fast-growing online market. Xiaomi was able to enter the niche market at a perfect timing, and they had built a solid fan base in China. Moreover, their marketing was not only effective in attracting customers, but it also reduced the cost for shipping management, which enabled their exceeding performance in profit generation. Overall, I have no doubt that their brilliant value proposition would build Xiaomi a highway to become a candidate for the world’s most valuable smartphone company.