（picture from yesky.com）
Xiaomi, a new smartphone manufacturer emerging in China several years ago, is gaining a larger and larger market share in China. In the second quarter of 2013 Xiaomi’s market share in China was 5%, exceeding Apple ‘s 4.8% share for the first time.
How can Xiaomi boost its sales?
My analysis shows that there are two main reasons.
First of all, Xiaomi build a close relationship with customers.Applying a co-creation strategy, Xiaomi is going beyond the traditional customer-vendar relationship to co-create value with customers.（Business Model Generation, Alexander Osterwalder and Yves Pigneur）Users give feedback and suggestions by app or weibo, the Chinese twitter. People will be more willing to purchase a certain product if they feel involved in the developing process.
Furthermore, Xiaomi caters to the need and self-respect of Chinese customers.China has been entitled for a long time a country with abundant labor force but no innovation. People criticize that ‘made in China’ cannot become ‘created in China’. Xiaomi and its products are strong strike-back. “If a product is not going to be first, it then must find an unoccupied position in which it can be first. “(Positioning, The Battle for Your Mind, AI Ries and Jack Trout) Although Xiaomi isn’t the first smartphone brand in China, but it becomes the first smartphone that be able to concentrate on serving Chinese customers ad represent the technology development of China.
（picture from huodongpingxuan.zt.brandcn.com）
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