2020 is a year of change for Xiaomi’s high-profile strategy in India: from cautious tiptoe transition to a whole new market segment, it has now turned hostile.
Xiaomi in India
Xiaomi has abandoned its budgetary roots and is committed to becoming a full service. When I last reviewed Xiaomi’s India strategy in May 2020, the world (especially India) was in the early stages of a sustained pandemic. It’s hard to imagine that COVID-19 will have an impact on the country. Nevertheless, Xiaomi has managed to increase its market share. In fact, research firm Canalys reports that Xiaomi has a 27% leading share in the Indian smartphone market.
A report from Counterpoint Research in the first quarter of 2021 estimates that Xiaomi continues to rank first. position. Of course, when smartphone shipments to India increased 23% year over year to 38 million units, it had a lot to do with entry-level smartphones, but Xiaomi also profited of the ever-increasing high-end level.
Currently, the rabbit market is not only based on the Redmi 9 series but also on the good performance of the Mi 10i in the high-end mid-range market. Xiaomi has obviously adopted an entry-level success formula so far, but there is still plenty of room for growth in the high-end market segment. Customer trust is gaining Xiaomi’s previous efforts in the high-end market, mainly in Mid 2016. Mix did not gain many fans.
The price of this phone is a dime, and years of waiting for another flagship store have not given confidence in the company’s impressive performance. In contrast, Xiaomi relentlessly focuses on the entry-level market.
The collateral benefits of making money,… reputation for beginners. In 2020, Xiaomi 10 will for a long time become the first premium Xiaomi mobile phone in India, and Xiaomi will quickly follow the Xiaomi 10T series. Considering that the company will return to the price of its flagship, Xiaomi has to beat the popular OnePlus 8 with one or two punches, and it also plays another role: to demonstrate its commitment to the Indian market. line?
This changed the equation and Xiaomi maintained the leading position of the Mi 11 series at a very competitive price. In the high-end mid-range market, the launch of the Mi 11 series has solidified Xiaomi’s commitment. You have a Mi 11x equipped with the Snapdragon 870. Less than 29,999 rupees (around US $ 410), compared to the much more expensive OnePlus 9R, it’s definitely worth it. Then there is the Mi 11x Pro, which starts at 39,999 rupees ($ 550), which once again ruins the OnePlus 9 and provides the best camera for Mi 11 Ultra, and of course, Mi 11 Ultra also gives you more features.
Bodykit is your direct competition’s money. However, the flagship store is only part of the story. From a broader perspective, it is clear that Xiaomi wants to fit its entire product portfolio into the price scale. For example, the traditional price of the Redmi Note series is well below 20,000 marks (~ $ 260). Redmi Note 10 Pro broke through this barrier and increased the price of the entire Note 10 series. It has been extended and improved vertically, from Mi Robot vacuum cleaners to high-end laptops and QLED TVs, such as the giant 75-inch TV. recently launched.
Time and execution in the emerging smartphone market are key factors. Xiaomi’s expansion towards more high-end products is a good time for Xiaomi to take the first step. India’s entry-level market segment is full of choices. Realme launched the Realme and Narzo branded products, flooding the market. In this environment, Xiaomi has many opportunities to diversify, and high-quality components have to pay a price. In addition, the average retail price of smartphones is slowly but surely increasing. In this market, sales can grow with very low profit margins. Xiaomi needs to consolidate its position in the high-end smartphone market in order to maintain profitability. Components are important, but high quality phones aren’t just about the hardware.
The software and support are registered trademarks. As my colleague Hadley recently pointed out, the inconsistency of MIUI in the Mi Wallet will affect the user experience. Take the Mi 11 Ultra as an example – the notification scaling issue is not what you would expect from a 69,999 rupee (around US $ 950) phone. Prompt delivery of MIUI updates can usually fix most errors, but first impressions matter. There is also the issue of updates: Apple’s support for 4 to 5 years is second to none; Samsung has bridged the gap by providing support for many mobile phones (not just flagship phones) in 3 years. Compared (at best), the two-year update that Xiaomi provided is quite poor. Fixing these issues is crucial for Xiaomi.