On July 9, Xiaomi was listed on the Hong Kong Stock Exchange. Although it did not reach the previous $100 billion valuation, the current $50 billion still makes more money than ever before. All said that money can do whatever they want. But we wonder what an impact the Xiaomi’s listing will have on consumers?
Product become better, more innovative, and use more advanced technology
As a manufacturer starting with technology electronics, research and development are very important for companies like Xiaomi. If you want to be strong in R&D, you must first have money before you talk about the capabilities of R&D personnel. After the listing of Xiaomi, there will be more funds to be allocated, and the firm will definitely not be embarrassed in the lifeline of ‘R&D.’
After strengthening R&D investment, the hardware products (digital, home appliances, etc.), software products (MIUI, etc.), and Xiaomi’s chip business (Surge) of Xiaomi and its ecological chain will be better at exporting technical achievements and even breaking through.
This will also ensure that the products will become innovation regularly. The reasonable innovation can make products better, attract more media and consumers, and make more sales. This could become vital for the chipset business, especially. So once the company could design cost-effective SoCs itself, the prices of its smartphones will be way lower.
It’s easier to buy Xiaomi products
When selling products, all manufacturers face three kinds of problems. First, it is related to the number and type of channels. Second, it concerns the purchase experience. And third, it’s the stocking volume. Before the listing, due to the market situation and the pressure of competitors, Xiaomi has already begun to lay out offline sales channels. Xiaomi House and Xiaomi Authorized Experience Store have appeared in various places. With the mature online e-commerce sales model, there will be more and more purchase channels for the company’s products after the listing.
10 years ago, online shopping was not as popular as it is now. One of the factors is that consumers think that it is very practical to buy goods that are tangible in physical stores. Until now, online shopping is still not as good as physical stores in this respect. Many people have encountered the situation when they received the courier and found that the product was different from their expectations. With an official store, consumers can experience the product and improve the buying experience.
Finally, there are many people who say that Xiaomi’s smartphones are good, but they can’t buy. This phenomenon has really plagued the company for a long time. After the listing, we believe that the brand will invest more to provide more sufficient quantities for future products. So consumers who want Xiaomi products can buy at any time.
There are many links in the after-sales service of products, and the improvement of service quality in each link requires more cost investment. In general, both labor costs and time costs can be solved by funds.
For the simplest example, when your phone is broken, some vendors will diagnose the problem and fix the problematic part, but some companies will give you a new phone directly. We believe that most people tend to the latter. But they all need money. Manufacturers have money to give consumers the most thoughtful and problem-solving after-sales service.
Advertising is essential for any company that sells products. With money, the company can place more ads in more places and more prominent locations.
Offline stores are also very good ads. In the bustling area, the business circle needs money, and the listed Xiaomi has the money. Imagine a person unfamiliar with the brand who accidentally walked into a Xiaomi Home while shopping, and was attracted by the products displayed. This is a very effective advertising campaign.
It goes abroad
No matter what industry or market, there is money to make. The domestic smartphone market is already very saturated. If it doesn’t want to be restricted by the market size, Xiaomi needs to go out. Before the listing, Xiaomi gradually appeared in the developed markets of Western Europe.
After the listing, Xiaomi has more capital. Therefore, it can further increase overseas expansion and increase the official sales and after-sales channels of overseas markets. In addition, the listing has also made Xiaomi a fire, raising the visibility. This will allow more overseas consumers to purchase Xiaomi products and services.
The profitability of Xiaomi’s listing far outweighs the disadvantages. Consumers are likely to see an overall improvement in pre-sales, after-sales, and product experience. We hope that the company can seize the opportunity, make a breakthrough in the product, and give the consumers satisfactory results.