How Xiaomi become highest selling smartphone manufacturer?

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Chinese manufacturer Xiaomi’s Redmi Note 3 has become the highest selling smartphone in India’s online market. It is not because of great specifications and technical specifications, no! According to IDC’s Monthly Smartphone Tracker, just five months after the launch of the phone in market, it has sold 1.75 million units. The phones sold is almost twice the volume of the second-highest online shipped smartphone in India. As per the numbers, 1 out of every 9 smartphones shipped in the country, 1 is a Redmi Note 3. – read here

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Why is this huge gap? What is the reason that Xiaomi has bought other competitors to its knees in terms of competition over sales figure? Is it due to the awesome specification? Is it due to the brilliant performance? It could be rather due to its low price factor, is it? No, the answer is simple, It is due to a simple concept of marketing – right product, right niche, right channel of marketing.

Let’s start from the right product and right niche part :

Xiaomi knew very well that there are a few players in the high cost mobile segment and the loyalty was very strong. They knew that millions of dollars comes from this high end segment but billions of dollars lies in the pocket of middle class men in India. Therefore, they stepped into the segment of users where a budget of Rs 4,000 to Rs 14,000 lies. They made a product with high end specification and used a special way to reduce the cost of manufacturing. The product was ready and that too with a color which no one India like on a smartphone, white.

Marketing Channel which led Xiaomi to success :

Xiaomi’s success lies in the fact that it opted for 3 major streams of marketing. These are – influencers, Affiliate network and ecommerce. The hype was made for a product which already had its competitors like Micromax, Lava etc. in India.

1. Influencers network

Like twitter, blog publishers functions as influencers. They already have a large fan following, all they need to do was to project how good Xiaomi was. Since these publishers not only influence normal readers but also the small publishers as well, the content was modulated and promoted again and again for free on numerous small blogs till the “word spread” like wildfire. Brand image was built in short span of time and Xiaomi was not only anticipated but also respected as a company coming with some white fire.

2. Affiliate Network was something it explored to its full potential

Affiliate networks works on various models like CPC, CPL, CPA, CPV etc. Xiaomi approached them and put forward a condition that if a sale comes through you, you will get a share of the sale. It was a mind blowing proposition from Xiaomi as rarely a smartphone company approach to give a share from its sale to the publishers.

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This was rather the best decision made by the company as it not only promoted the brand for sales but it also made the publishers of deals and coupons site to speak about the awesomeness of the product, compelling to visit and buy the product on ecommerce sites. It was a great decision and the perfect marketing channel which made the decision fruitful and led to the foundation of ‘a billion dollar ‘ sale in India.

3. It used Ecommerce channel

Since all of the earlier two channels proved efficient and effective in all ways, now it was time to sell the product. Xiaomi didn’t went on to do that in simple omnichannel way, no, it made itself available for sale only through Flipkart initially. A new term was introduced in Indian smartphone industry which no one ever could have heard of before, Flash Sale. The phone made several records and several benchmarks. It became the epitome of the Indian smartphone industry and craze never faded.

The most important things among all this, I would rather say that the most important core proposition which was maintained throughout the whole process was a Great Product offering. Nothing beats a great product, word of mouth spread like fire because those who used it felt delighted.

Crux : Xiaomi found its niche, made a brilliant product in accordance to the niche with lowest price possible, found the right channel of marketing and gave excellent after sale service.

Kudos Xiaomi, you redefined competition.

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