http://gadgets.ndtv.com/mobiles/news/25000-xiaomi-mi-3-phones-to-be-offered-to-flipkart-customers-who-couldnt-buy-earlier-601852

Xiaomi India, a smartphone company which headquarter is located in China, just announced there would be 25,000 available for consumers who repeatedly attempted to purchase Xiaomi Mi3 at least five times in the previous flash sales.  For these consumers, Xiaomi Vice President Hugo Barra introduced a new system of sale called the Xiaomi Priority Pass. This new system will automatically make Xiaomi Mi3 available to purchase on the consumers ‘s cart. If the consumer doesn’t purchase in a given period of time, then the device will be offered to the next batch of consumers.  Xiaomi also announced more than 300,000 Mi phones were sold in first two months.

Xiaomi is a Chinese domestic smartphone company that provides good quality smartphones in a relatively low price.  Xiaomi’s latest smartphone Xiaomi Mi4 costs about $429. Other than Mi series, Redmi series is for consumers willing to spent less money on smartphones. In particular, Redmi Note only cost about $150 in China. This is clearly a example of Cost Leadership Strategy by setting a low price while maintain a good quality to win more market shares.

Other than Cost Leadership, Xiaomi also gives consumers a popular impression by using flash sales. Since there are only a certain amount of Xiaomi that are available online and online it is the only way to buy them, it means that there are only a few consumers can successfully purchase at a time. Thanks to Xiaomi’s Cost Leadership Strategy,  60,000 Redmi 1S went out of stock in 13.9 seconds, given by the Xiaomi website. Xiaomi successfully gives consumers who successfully purchase Xiaomi a sense of pride, just like what iPhone consumers who try to buy the latest version of iPhone as soon as it is released.