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Mauro Lbi Crestani: How Xiaomi conquered the Chinese market ?


By Mauro Libi Crestani. Xiaomi is the Chinese word for "millet". In 2011, its CEO Lei Jun suggested there are more meanings than just the "millet and rice."  He linked the "Xiao" part to the Buddhist concept that "a single grain of rice of a Buddhist is as great as a mountain," suggesting Xiaomi wants to work from the little things, instead of starting by striving for perfection,  while "mi" is an acronym for Mobile Internet and also Mission Impossible, referring to the obstacles encountered in starting the company.

Number one in the smartphone market is a fight between Sony and Apple. Xiaomi started its company in just 2010, so it is new to the market. At present it in the fourth place for world sales and the amazing part is that it is only selling presently in the Asian market.

This company is a private company that started in China. Now starting a business in China is not easy. People usually buy with a simple min-set. They buy what they know. Xiaomi right from the start set several business initiatives that they wanted to hold to.

One of their initiatives was of ‘value’. In selling the Xiaomi smartphone, Xiaomi employs a strategy that is very unlike other smartphone makers such as Samsung and Apple. Lei Jun, Xiaomi CEO, said that the company prices the phone almost at bill-of-material prices, without compromising the component quality and performance compared to other premium smartphones.

How can they use such quality and charge such a low price, almost half of what they other companies charge for the same comparative phone. This they accomplish by using  an initiative of ‘good will’.  Xiaomi does not own a single physical store and instead sells exclusively from its own online store. It also did away with traditional advertising and relies on social networking services as well as its own customers to help advertise its products.Xiaomi reaches out to customers through parties and social media. Xiaomi has achieved this success partly by making its customers feel part of an exclusive club, such as by throwing parties for them every few weeks across China. It has spun a dream of social advancement for China’s vast numbers of young people, a dream of luxuries from the developed world now within reach.



Another initiative is one of ‘customer satisfaction’. In terms of building a strong and loyal consumer base, Xiaomi’s approach involves listening closely to customer feedback, having them test out upcoming features themselves, and building an extensive online community.


Xiaomi now has a dream of going global and becoming the number one seller of smartphones. They would like to keep their initiatives that have worked in China and apply them in every country. Some say it is because the China economy is not as strong as it was a few years ago and that they need to go global. For whatever reason, it would be interesting to see if what works in China would also work worldwide.


Mr. Lei, the CEO and founder,  has declared not only that he wants Xiaomi to be world’s largest smartphone maker within a decade, but that he wants to bring all the trappings of the good life to developing-world consumers for bargain prices, from television sets to smart light bulbs. By Mauro Libi Crestani.


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