RE: The Rising Star: How Did Xiaomi Doubled Their Revenue?
Source: http://blogs.ubc.ca/jaeseunglee/
Xiaomi is one of the chinese electronic companies which is mainly selling smartphones. As the blog “The Rising Start” discussed Xiaomi only used four years to domain Chinese smartphone market and became the competitive challenger to Apple and Samsung. How can it be so successful in such a short time? I deem that the effective marketing strategy plays a crucial role in it. Except the low price, marketing based on social media, and online-base sales, which had discussed in last blog, I found there is another unique approach used in Xiaomi marketing strategy “Hunger Marketing”. Xiaomi always launches a conferences presentation in public to introduce its new products. By doing this, Xiaomi can attract more costumers and interest in its novel products. After that, the demand of the new smartphone of course will increase but the company always produces the quantity of smartphone below the demand to cause an illusion that it is so popular and it is hard to buy one. Thus, Xiaomi can sell its products in a short time, and there are no more inventories. In addition, “Huger Marketing” is beneficial for manufacturers to control the quality of production; even if there is the trouble or flaw in the smartphone it is within the control ability.
Sources:
http://blogs.ubc.ca/jaeseunglee/
http://blogs.wsj.com/digits/2014/08/04/xiaomi-overtakes-samsung-in-china-smartphone-market/