Xiaomi has grown exponentially in recent years, positioning itself as one of the best brands of smartphones in the world and becoming the number 1 brand in India. Earlier this year, the Chinese company joined the stock market, raising a total of 4.72 million dollars in the Initial Public Offering (IPO), now, the company is having a huge growth compared to other years.
Hardware, retail businesses, and the Internet, the keys to the success
Hong Feng, the co-founder of Xiaomi made a statement during the Fintech week in Hong Kong, where he said that the success that the company has achieved is due to three factors, ‘hardware, retail businesses, and Internet connection’.
Xiaomi has a large hardware business since over the years they have been able to create a series of devices that have achieved great popularity, such as the Smart Mi Power Bank and the Mi Band Huami Smart Band. The company stands out for offering high-quality products at reasonable prices, without neglecting the aesthetic aspects.
According to Hong Feng’s statements, the manufacturing cost is the same as the other brands, but they manage to deliver the devices directly into the hands of consumers by more affordable means.
This is where retail businesses join the equation because that is the reason why the Chinese manufacturer can offer affordable prices, they have been able to provide users with lower prices compared to its competitors.
The co-founder of the company shared some graphics where they revealed that an Asian family has approximately 100 Xiaomi devices connected in their respective homes, this is due to the large catalog of products available, these intelligent products allow you to connect to the Internet, thanks to that, they have managed to push the company to another level.
Xiaomi is still looking to boost the brand to other territories
The Chinese manufacturer has larger ambitions, considering integrating the technology sector as a complement to its current business model, said the co-founder of Xiaomi.
Fintech or also known as financial technology will be the key to boost the brand to new territories, this technology is based on the connection of big data, artificial intelligence and security, allowing banking transactions or payments from a smartwatch or a Smartphone thanks to the NFC technology.
Xiaomi will offer loans to SMEs
Another area that Xiaomi wants to exploit, is the granting of loans to small and medium enterprises (SMEs), facilitating these companies a more practical way to obtain credits and loans, and also offer business advice to companies, in this way the Chinese company has direct contact with SMEs, because their understanding and access to data is bigger than most financial institutions, this is due to their extensive knowledge of supply systems, retail, and the delivery time, allowing to determine which company has more options to succeed.
Most likely, these plans will be implemented in India first, due to its large population and the good reception of Xiaomi in the country. The company dominates the market of smartphones and smart TVs in the country. And since the company has previously implemented financial strategies, they have managed to partner with other companies in India.
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