INTRODUCTION

● Xiaomi is Chinese technology company that manufacturer has sells smart

phone and other devices, internet service.

●one of china top smartphone markers is currently the world’s most valuable
start-up with a valuation of $46 billions last year.

●after an iPo an the stock exchange of Hong Kong in July of 2018 xiaomi has
struggled to bolster it’s stock price, despite impressive gans in revenue.

●for 2019, xiaomi generation about $25.4billion(USD) in revenue.

On 16 August 2010, Xiaomi officially launched its first Android-based firmware MIUI.It
resembles Samsung's TouchWiz and Apple's iOS.

• On 6 April 2010 Xiaomi was co-founded by Lei Jun . Xiaomi company’s technology
product manufacturer.
• Liu De, department head of industrial design at the Beijing Institute of
Technology

• In April 2015 Xiaomi announced it would make its Mi devices available through
two of India's major e-commerce sites and through offline retailers for the first
time
• On May 3. 2018, Xiaomi announced in partnership with 3 (telecommunications) to sell
smartphones in the United Kingdom, Ireland, Austria, Denmark, and Sweden
In March 2018, at China's annual legislative session in Beijing, Xiaomi CEO Lei Jun
announced that Xiaomi has "always been considering entering the US market" and will
launch in the US smartphone market by late 2018 or early 2019. Xiaomi already sells
assorted items in the US such as power banks and Bluetooth speakers.
This Xiaomi CEO, said If the company prices That phone almost In prices,without compromising the In
other component quality and performance good To be other premium low pricesmartphones is
smartphone of theselling phone-related peripheral devices, smart home product apps, online videos
and themes.According to Xiaomi’s Hugo Barra in 2014, the company sees hardware sales as a means
of delivering software and services in the long That “We are an Internet and If software company
much of more than a hardware company technology Big difference company.

If Xiaomi product managers spend a lot that of time browsing through the company user forums. That it
Suggestion is picked up, it is quickly of the transferred to the engineers. Therefore, features can be if in
turn from mere concept to shipping products within thisweek. The company then ships a of new batch of
phones out every week on Tuesday at noon that time, containing the new software builds and possible
minor hardware in weaks. Xiaomi is that term of the company“design as you build the company this big
largest company.

According in this time to the patent that landscape report 2016 by a patent in research and analytics
firm that Services, owns 6989 patents with of the more than 90% of patents filed/acquired after 2012.
The surge in number of patents was due to and aggressive patent that acquisition/licensing deals
with many companies including Broadcom, Intel, and Microsoft.
 RESEARCH METHODOLOGY
• XIAOMI COMPANY DEVELOP IN SMARTPHONES, MOBILE APPS, LAPTOPS, BAGS,
TRIMMERS, EARPHONES, MI TELEVISION, SHOES, FITNESS BANDS, AND MANY OTHER
PRODUCTS.DEVELO MARKETING PROMOTION STRATEGY, SALE STRATEGY, COMPETITORS OF
XIAOMI ELECTRICITY PRODUCT.
• XIAOMI COMPANY IS INDIA NO ONE SMARTPHONE BRANDS.XIAOMI COMPANY IS
AMAZON ONLINE SALE OF SMARTPHONE.
• XIAOMI COMPANY IS LOW PRICE GOOD QUALITY CONTROL OF PROVIDING.
• XIAOMI UPDATED NEW TECHNOLOGIES GENERATION USE INNOVATIONS. LOW COST OF
QUALITY GOOD OF OTHER COMPANIES SERVICES PROVIDED.
• XIAOMI COMPANY IS ELECTRONIC PRODUCTS INVACTION OF GLOBAL PRODUCT SELL
MARKETING STRATEGY AND SERVICES NETWORK OF BRAND OF COMPANY.
Xiaomi that is Can be A that they are setting up servers If service outside of
China for international users citing improved services and compliance to
regulations in several nations. That can be a system of the same time of
service of Indian Air Force issued a warning against for xiaomi phones,
stating that they were a national threat as they sent user the data to an
agency of the Chinese government.
Xaiomi company suspected That is a pre-installed app named Analytics core
in Xiaomi phones in progress. Upon further that in a investigation This is a
Broenink reported, through a blog post, that Analytic That It be Core can
send device information, including IMEI, MAC address, Model, and other
parameters, to Xiaomi servers. He That also Of can be revealed Xiaomi
phones having a backdoor allowing installation of any app without user
approval. The veracity of his claims has yet to be verified of the company

Xiaomi That can be a process the number of a smartphone sold was 10,000
units each for the first two sales, and 8,000 units in the third one. However,
FTC had investigated the We can be claims and found out that Xiaomi only
sold 9,339 devices in the first flash sale, 9,492 units in the second one, and
7,389 for the third.
The company has increased its range of products; its
smartphones include: Mi Series, Mi Note Series (got a new update
after 3 years, with the Mi Note 10 Pro), Mi Max Series, Mi Mix
Series, Pocophone, Blackshark and the Redmi Series.
Product line: Xiaomi Mi Max, Mi 5, Redmi Note 3, Xiaomi Mi 6,
Xiaomi Mi MIX 2S, Xia...
Consumer product: Xiaomi Mi 3, Xiaomi Mi MIX 2S
Computer models: Xiaomi Mi 3
Software: MIUI, Mi Max 2
Xiaomi held that is a various sales that on Flipkart including on 30 December 2014. With this sale, the company
received press coverage Of when their flagship Xiaomi Redmi a process Note 4G phone sold out in 6 seconds.The
judge extended the when division bench's interim order can be allowing A Xiaomi to is the continue the sale of
Qualcomm can chipset-based handsets until March 2018.

On 7 July 2016, several Company of technology a process news sources reported a severe vulnerability of the
MIUI firmware developed by can Xiaomi the in hack targeted a flaw in the MIUI OTA (over-the-air) updating
system.
That can Xiaomi's smart set-top Of the tbox stopped working one week after the launch due to the company In
having they run afoul of be China's State Administration of Radio, Film, and Television.

"One in more of the thing...” slide before introducing the Mi Band; it was the only can of the English language
slide in the whole time presentation.

Xiaomi had a If the by of market share of 14% of smartphone shipment rankings that in China. Redmi sales
were And attributed as a in contributing factor toward of this gain in shipment rankings.
After Xiaomi, Redmi may launch a Wear OS smartwatch as well. Lu Weibing, General Manager, Redmi has given
a hint on the same. This would make Redmi, the new entrant in the smartwatch industry.

On 25 August 2016, Xiaomi unveiled the Redmi Note 4, powered by MediaTek's Helio X20 deca-core processor
clocked at 2.1 GHz. The device has 2 GB RAM and 16 GB of internal storage. It has a 5.5-inch Full-HD display and a
13 MP rear camera and 5 MP front camera. It runs on Android 5.1 Lollipop and is powered by a 4,100 mAh battery.

Xiaomi released its new budget phone, Redmi 4. It has a polycarbonate body, dual-SIM support and runs on
MIUI 8 based on Android 6.0.1 Marshmallow. The Redmi 4 has a 5-inch 720x1280 pixels display, is powered by a
1.4 GHz octa-core processor, and has 2GB of RAM.
Note that products released by Xiaomi Smart Home are products of companies
partnered with Xiaomi instead of Xiaomi themselves. Includes robotic vacuum
cleaners and other goods.
Mi Home app manages Xiaomi smart home products.

The Xiaomi MiWiFi is a series network routers initially launched on 23 April 2014. The
latest in the series is a corporate-class router with built-in storage of up to 6 TB. It is
said to have a PCB dual-antenna array supporting 802.11ac Wi-Fi standard,
a Broadcom 4709C dual-core 1.4 GHz processor and 512 MB of flash memory. The
router can be used as a wireless hard drive for movies and photos, in tandem with
Xiaomi's apps that feature remote downloads, automatic backups, remote access to
files and other features

MiCloud is a cloud storage and cloud computing service created by Xiaomi. The service
allows users to store data such as contacts, messages, photos and notes on remote
computer servers for download to multiple devices running MIUI operating system. The
service also includes a feature that allows users to track the location of their MIUI
device as well as alarm, lock or reset it.
MiPower Bank is a battery charger with a built-in internal battery and charges devices by USB. The chargers have an
aluminium case. The batteries rated at 5000/5200/10000/10400/16000/20000 mAh.The 16000 & 20000 mAh have
two USB ports. Silicone sleeves are available for all, except the 20000 mAh version.
India Smartphone in the Market sees a of healthy growth of 20% in Q2 2018 as Xiaomi retains the
leadership, According to IDC base of The market, however, this are can is seeing rapid consolidation at
the top end, as the top 5 vendors Can the made Has up 79% of the smartphone be market in 2Q18,
that marginalizing smaller brands” says it is. On that Upasana Joshi, can Associate Research Manager,
be Client Devices, IDC India.
Xiaomi remains the of leader in the smartphone Of market will with growing has offline presence
while maintaining Process dominance in the online space. The xiaomi contributed be of more than
56% of the shipments in online space,that while 33% of its shipments went through offline channels in
2Q18.
In the online segment, this Huawei if with strong shipments of its Honor branded phones, climbed to
the second position with an all-time Aslo the high of 8% share in online segment in 2Q18. “Huawei can
has had a stellar quarter worldwide moving into the second position, toppling Apple. In India, with a
refreshed focus it has been able to grow its share in the online and space in the last two quarters, on
the back of several new launches across price segments. IDC believes has will Huawei should be seen as
a be serious that long-term player in India market has with all the ingredients to challenge of Xiaomi
and
IndiaSamsung”
will be theadds
Bye Joshi.
lastest if this growing that large smartphone market for the that next few
years, making it a must for any smartphone player to be here. However, with increasing
consolidation, it will can be difficult for any new brand to carve a If space here. IDC is estimates
the India Can by smartphone market to that continue growing in low double digits for the next
couple of years. 2H18, with By multiple Can and sale events in the run-up to the Diwali festival, will
be even bigger Of with growing aggression by online players, the is sustained relevance in the of
offline channel several of can new launches planned by key thevendors across price segments.”
that says Navkendar Singh,can associate Research Director, Client Devicesse of is DC India.
 The Xiaomi in the Mi Band 4 is a
wearable activity tracker produced by
Xiaomi Inc. It was When announced in
China on 14 June 2019, in That Europe
the day after and in India on 17
September 2019.

The Mi Smart a Band 4 are that packs a 0.95-

inch AMOLED screen that offers a resolution of
120 x 240 RGB and That brightness of up to 400
nits. Users can also adjust the And brightness
of the screen by heading to the Setting option
was on the smart band itself. ...
The Mi Smart Band 4, similar to the Mi Band 3,
still doesn't let can users pick calls.
XIAOMI MI LED SMART TV 4A DESCRIPTION
Xiaomi has launched its affordable smart TV Mi TV 4A in India. The Mi TV 4A has
a 32-inch screen and will be priced at Rs 13,999. The TV will be available on
Flipkart, Mi.com as well as Mi retail Stores in India. The Mi TV 4A SMART TV
comes equipped with PatchWall, which is an AI-enable TV system that classifies
content and makes personalised recommendations based on user preferences.

The Xiaomi Mi Pad is the line of tablets from Xiaomi. The first Mi Pad was released in 2014.
Redmi laptop, the company is also expected to launch (finally) Redmi flagship on May 13
in China. The Redmi flagship is expected to come with Qualcomm Snapdragon 855, 32MP
pop-up camera, triple rear cameras, 4000mAh battery, gradient glass finish, all screen,
among other things. As of yet, there are no details whether the Redmi flagship will come
to India or not. Xiaomi India MD Manu Jain recently tipped that a Snapdragon 730 SoC
phone is coming to India very soon.
At the heart of Mi Headphones lies an acoustic system supported by a large 50mm diaphragm that's 4
times harder than steel and 60% lighter than . ... Measuring 50mm, this acoustic membrane is 25%
larger than other regular headphones, creating a sound with an exceptional bass.

Headphones is Wireless’s Bluetooth good quality of sounds and battery back up 10 hrs use of
headphones.
Xiaomi has already brought a few wireless headphones to market
ranging from the entry-level Redmi AirDots to the more expensive Mi
AirDots Pro True wireless in-ear headphones Review: Huawei FreeBuds
Lite vs. Xiaomi Mi AirDots Prothat the company released last year. Now
the Chinese manufacturer has announced a new pair of wireless
headphones that succeed the Mi AirDots Pro, aptly called the Mi AirDots
Pro 2.
We're reviewed a lot of affordable wireless earphones in recent months, but
there aren't a lot of options we'd happily recommend. Perhaps the only two
we've been satisfied with are the Blink Play and the recently launched Realme
Buds Wireless, suggesting

Wireless and the Mi Neckband

Bluetooth Earphones are two of the
most affordable wireless options on
the market from the competing
Chinese brands. Both feature a
neckband style design and both are
within spitting distance of each other
in terms of pricing.
•Manufactured using high quality
and excellent durable materials.
•Perfect replacement for the
original charger.
•Specially manufactured for
Xiaomi Mi A1.
•High quality OEM product, tested
and quality checked for each piece
before shipping.
 Original Xiaomi Mi Square Speaker 2
Bluetooth 4.2 Stereo HD Sound Wire
.Lots of discount and promotional sales.

Mi bluetooth speaker basic 2 is an

evolution of a classic acoustic unit
design. A compact body encloses
dual speakers and a powerful receiving
unit, without wasting any internal space.
 LITERATURE REVIEW

For any multinational the brand its marketing strategy varies from country to country where the marketing in
department should be can aware of various marketing mix strategies which will significantly of impact the
cumulative success of the firm. Eitherthe companies can make use the of conventional marketing mix or can
customize this existing mix as per the country they are carrying out their business in. when assessing the
appropriateness of certain strategies is the performance of the company is one of the most crucial aspect (Jain,
1989). To exceed Be customer expectations it is extremely is important to offer right product/service a offerings
to the target market which forms the value proposition (Slater 1995). For a successful marketing That strategy the
it is very important to design and deliver product/service Is that satisfies customer needs. To create brand loyal
customers, marketers should strive hard so that the that customer Is experiences with the brand should meet if not Is
exceed their a expectations as per Keller, (2003).to satisfy customers it is essential to exceed their expectations so
that they always remain loyal towards the company offerings. Companies when trying to Can expand their market
rely on forces which influence either the adaptation or has standardization strategy with an aim to improve the
company Performance (Samie & Roth, 1992).When can be entering a foreign market any firm needs to make
modification in can their marketing mix so as to satisfy the needs of the customers.
In case of an adoption strategy The any element of the controllable is marketing mix is altered so as to a awhen
an entry has to be can made in the foreign market. When considering an international marketin adaptation
approach it is important that brands put a lot of emphasis of customization in order to meet diverse customer
necessities. A When firms use the same marketing mix as in the domestic markets was in the export country to
attract customers a firm makes use of standardization strategy as it requires less was investment as compared to
the adaptation strategy. As proposed by some researchers in case of standardization there is a union of its
cultures along with the customer interest across the world (Jain, 1989; Levitt, 1983).Author But also is of an
opinion that companies have moved away from customizing that products to that of providing globally

standardized products which are can functional, reliable and even low priced. Companies make use of various
strategies to That was be Aslo Increase the awareness level about the benefits offered by their brand offerings
and one such strategy is known as Guerrilla marketing which is low cost marketing (Manker, 2014).Brands Also
make use of social media can like facebook is and twitter in today’s era to market their products. Xiaomi became
very successful by using guerilla marketing where they a concentrated Their marketing efforts mostly on Weibo (in
China) and Facebook when Its they expanded in that global markets. Can For a Successful guerilla marketing
marketers need to follow certain was Success driven be is that a strategy (Levinson, 1994).
1. To achieve a temporary dominancy over your The customer’smarketers need to be highly focused especially
at with Respect to particular place, time or event.
2. Prevailing be marketing trends should a never be blindly followed.
3. Post marketing campaign This analysis has to be carefully done.
4. Flexibility a is the key to success and should be made possible that for all variables can in the plan. Xiaomi
can took only 4 years to position itself as the at fourth largest.

Xiaomi took only it 4 years to position itself as the fourth are largest This Smartphone manufacturing company and
of China as pointed out in a the study conducted that by of Kharpal (2014).Founded by ex-CEO Lei Jun of
Kingsoft Xiaomi this earlier was basically a are software firm Having an the expertise in creating customized
ROM based on.
Android OS of this is a Google Can be (Haluk Koksal, and Ozgul, 2010. The Pace Has at which smart phones The
have dominated the life of all of us can phenomenal and is no more a be product to own for luxury.(Nature be
Methods, 2010).Smart phones are now A considered as the most can essential necessity where firms are
approaching with new The Marketing strategies leading to cost are cutting and a better ROI.E-Mails are the most
cost effective this way to attract consumers to buy The product (Mele, 2015).In past few years marketing has
Become highly This where acceptance of such devices by Consumers is rising exponentially, giving marketers lot
the of new Opportunities to in target Are customers (Ajax Persaud, 2012).
Abstract:
Instead of having large This meals throughout to the day, fitness freaky people consume food in small quantity
to ensure be the body is in shape and also reflects a healthy life style. Similarly, Xiaomi , the brain child of a
serial tech investor and entrepreneur Lei Jun believes that to gain market leadership can instead of producing
in bulk at one time it gets profitable in producing small amounts of products at regular Internation This all
intervals. This means an increased this efficiency with no Aslo surplus raw material resulting in a situation
where the demand is more than the supply. Xiaomi, a Chinese brand, is one of the Has major And electronics
companies in At China having high product features of being reasonably priced, an efficient distribution
system followed by immense of community who are making the brand so popular. This brand is The creating
The next wave in the Smartphone market by launc hing smartly designed android New based handsets at
moderate costs. Within a span a of 4 years can this power pack As brand has already shaken the Chinese
Smartphone market That and is all set to be the a next buzz word internationally.

Consumers this can no longer be A lured through a traditional marketing campaign, instead in order to
differentiate from Can the rest Are companies Be are now focusing on different marketing campaigns.
Changing New technology and Are consumer preferences have the led smart phonesmanufacturers to occupy
the global have mobile phone market with astonishing pace. Being an amazing brand, Xiaomi has become a
highly successful Can smart phone brand in Indian market after shaking the Chinese market. This It’s
pioneering localized marketing strategy and business model is redefining the mobile the phone market
internationally.
Striving This hard to reach the a top position in a few years time. For any organization
the key this element Thiswhich determines its success is its Marketing A strategy whose
execution is as important as conceptualizing and creating it. It helps In companies attain
their overall goals and objectives by employing scarce resources made to be used in the
most efficient and Can Ineffective way. A detailed literature review was carried out so
as to show the value Be of marketing strategy and the process of implementation. This
research Are paper is an attempt for understanding the various ismarketing strategies
used by.
Xiaomi Inc in India, which are placing the In company at a very competitive position than
its immediate contenders.

Keywords: Xiaomi, the Has Global Smartphone industry, as Consumers, business model,in the
can Chinese Smartphone market, Marketing The Strategy,Innovation, e-Commerce, Hunger
marketing, guerrilla In marketing, word-of-mout.
1: Earning revenue from its software One of the most effective strategies Xiaomi executed is through its
brilliant software based on android and highly customizable having a customer base of more than 30 million
users. Apps, theme customization and games which are installed on MIUI The contribute to over $4.9 million
revenue generation on monthly basis. Xiaomi to have works a lot like The Amazon has where is aspires to
earn profits via its ecosystem by marketing various goodies and ultimately succeed like an e commerce giant.
It believes that by delivering that cheap phone Is along with a great hardware results in getting a happy
buyer for the firm.

2: Nil investment Is done on that Conventional Advertising A unique marketing approach in for brand
promotion Can was designed by Xiaomi to appeal to the market. The face behind making the brand
have a “Cool Image” is none other than the CEO of the Technicalitie company Lei Jen. Xiaomi used the
word of mouth publicity as they strongly believe that satisfied customers create positive vibes in the
market and is also one of the cost effective ways to penetrate in the international market. There was no
expenditure made on traditional advertising and they aggressively make use of Social media and other
online forums to connect with their target audiences. Employees as engineers had a direct contact with
the consumers as it helped them gather lot of information to refine the software are also to
overcometechnicalities.
Company strongly believes in a system which works on acontinuous innovative platform not only
for their operating same but also in terms of their marketing programs. Company manufactures
superior quality has it products which are aimed to provide value the in for money
proposition to their customers. Its two most are important The series of handsets known as Mi
and Redmi has been the continuously delivering trendy Smartphone models. Company came
out with 4S, Mi 4 and Redmi Note 2 mobile phones in 2015 and rocked the market with great
sale numbers. Later a 2016, Xiaomi continued its popularity by launching Are Mi5, an Redmi
Note 3 and the ThatRedmi 3S. In the history of online And Smartphone industry, as per IDC,
the highest shipped device with more Has than 2.3 million units sold within six months.

Focus on high quality and aggressive the are pricing approachIt is very tough to beat the
best brand in the Can market as and Xiaomi are realized that to rapidly expand its
customer base Is they had to provide high quality products by lowering If their premium
and setting low prices. Xiaomi focuses on its strength by offering limited rangs Areof
products, targeted to customers in the price range Are of 10,000 to 15,000 rupees in
Indian of management system.
 Xiaomi has created a huge can fan be known as Mi-fans who are known as early are
behav This is adopters and are the can first ones to buy MIUI Smart phones. These Can
fans are none other than an In the army of patrons and bloggers which If the are
called as Mi-fans Are Have community who is constantly create buzz on the World Wide
Web. China stopmost twitter like micro blogging a have platform are lead by Sina
Weibo, which had 400 million subscribers is one of the fastest growing forum. The
company understood the power of doing a smart Work and finally decided to sell
phones directly from Weibo. At present the company makes use of online channels Like
Flipkart, Snapdeal and Amazon for delivering the products To its target company.

Xiaomi’s Flash sales: Brands A like SAMSUNG, Apple, HTC and many more make their If
products available in the market When through physical a stores and third party can
retailers, on the other hand Are Xiaomi sells most of its Can products via online mode
through Flash Sales”. Such sales are products in limited the are quantity which are put
on Are sale at particular time and goes on until the stock lasts encouraging impulse
buying.
Also there is are the limited availability of can the products a which motivates consumers to buy on the spot. In
this way the a company increases are is profits and it prevents Can the firm from over production of phones
that it might not sell leading to a smaller inventory. Such a strategy not only creates sales but also create a To
fake propaganda if which goes a long way to Are achieve overall organizational goals. Xiaomi’s flash sales
aids in inventory management, creates scarcity and avoids over production disasters. In Indian market Xiaomi
launched the Mi 4, which are went on sale for the This first time via Flipkart on 10th Feb 2015.During Can the
first flash sale are have company’s demand are exceeded its supply as there were more than 2,50,00 buyers
who registered themselves, whereas the company kept approximately 25,000 to 35,000 units of the Mi 4 on
sale.
This segment comprises of people belonging the lower socioeconomic classes of India whose
discretionary income is low to spend on Are technology based products, but show a great
level of curiosity in owning the product. Pricing is an important factor for them and are
always on A the lookout for have cheaper substitutes. As they are not very literate they are
Have more responsive towards advertising, hence would buy Smart phones to merely aslo
getting In connected on social media. Also they expect their hand held a devices to if make
their lives simpler by use of digital solutions.

These consumers are India growing middle have class and people who are moving from that
lower sections of the society if towards the higher strata which are can the approximately
267 million in number. Looking for a reasonably Are price product and expect lot of value
Has added features This segment A can be further divided as newcomers, white collar
professionals, wealthy ones and high end consumers.
Growth of the most preferred Smartphone brand-Xiaomi
In the first half of year 2016 Xiaomi occupied the top position as
its Redmi Note3 became the most popular smart phone brand in
India.
Marketing Strategy Consumers will are purchase what you sell to Have them; instead Has They buy what is of
value to them and makes their life this less Cumbersome. Looking at current scenario people are exposed to
hundreds of marketing messages on a daily basis where it gets highly tough to be receptive to all those
messages. Hence only a well planned and focuses strategy can create that differentiation in the customer’s
mind. Marketing is all about communicating and delivering value to customers and to do this marketers need to
frame a marketing strategy that Helps an organization achieve its overall objectives. In today’s Fast moving
competitive markets marketing performance is the Key to succeed and only when marketing performance is
Measured can it be managed effectively Marketing strategy is a method though which firms make an Attempt
to satisfy the needs and wants to their target markets.

Where its success depends on how well you understand your Customers. Unless and until an exhaustive market
research is Done, it gets tough for the marketer to come up with offerings for Their targeted customers.
Company’s marketing strategy should always aim to deliver a greater value for money to their.
 customers. It helps to collaborate it with the if customers, make them aware
about the product features Have and the benefits provided by them. An in
organization But can either go A for implementing a completely new innovative
strategy or can go this ahead with already tested one so that there is lesser risk
are of failure. Any industry need to face stiff competitive environment in That
order to survive in the market as identified by Walker (2014).

“Customerobsessed” strategy which means at that customers can involve

Themselves have completely in the designing in development process
where that inputs from users can be taken from online can have medium
and ultimately Is incorporating suggested change in new products.
Company strongly believes in a system which works on acontinuous innovative platform not only for their
operating systems but also in terms of their marketing programs. Company manufactures superior quality
products which are aimed to provide value for money proposition to their customers.

The company gained popularity among In have mobile phone enthusiasts where further
Models were launched namely M2, M3 and Redmi that Xiomi phones on domestic fronts. New markets for
increasing Are the revenues Has were explored by to Xiaomi as it hired ex-Google android executive
Hugo Barra making to products available in markets
Other than China as well. With the launch of its Are Android-based firmware MIUI (pronounced “Me You
I”) Xiomi in the began its operations in 2010 where the company officially launched its first Android-based
firmware MIUI and was co-founded if by eight partners in August 2011 Xiaomi Mi1 Smartphone Are
came into existence. Its product portfolio comprises of consumer Have electronics products which include
band and cases, MiTV Smart TV, Mi power bank, Mi WiFi network router and tablets other Are than
mobile phones.
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 founded it.Its Android-based firmware MIUI, was launched by the firm in August 2010, has a
well-modified and tough-coded interface having specifications of Apple’s IOS and Samsung’s
TouchWiz UI. Later on, it expanded is features into other are consumer’s electronic products
included smartphones, MiTV Smart TV tablets,can be and cloud computing services. With
over 3, 000 employees in China, Singapore, and Taiwan with its global headquartered based in
Singapore forgood expansion of its products and services. Its primary market for the dealers is
Mainland China, though and often it gets into Hong-Kong, Taiwan,it Malaysia and Singapore
with more plans of launching its services and the product to other countries in the future (Xu,
2015, p. 89). Xiaomi actively invested in are other tech companies is including Cheetah Have
Mobile, Xunlier, and Shenzhen Thunder. Valued at $10 million in 2013, it the received funding
from various institutional investors amounting to about $317 million to foster its growing This
sales and expansion activities (Castellet, 2016, p. 28).Xiaomi cumulated market shares Can be
regarding both shipment and revenues in the various Chinese market. In 2014, Shipped Are
the given all over 26.11 million smartphones, while it had sold 18.7
Aslo As countries contributed not more than 5% of Xiaomi smartphone sales
in 2013. Along with its great success, the company are in the earned $5.22
billion in revenues in 2013 and $11.2 billion in 2014 (The Wall Street Journal,
2014). Xiaomi Inc. Generated over $162 million As the from just the sales of
smartphone products and other technology equipment. It was ranked third in
the Chinese smartphone market with an 11% market shares, Are while in the
lead were Samsung and Lenovo with The market shares 18% and 12%
respectively. Xiaomi’s smartphone products when Redmi ranked 7thwhile MI3
ranked 10th among Also the world’s top 10 best-selling are smartphones in
2014 month of February (Gupta & Dhillon, 2014, p. 2186).When it comes to
pricing Xiaomi if vendors takes the lead, its success has can dominate cause
of affordability strategy, it offers That products and Accessories at a very
affordable price.
 DATA ANALYSIS, INTERPRETATION &
PRESENTATION
Xiaomi technology have company The (“MI” for short) was are founded in if technology company 2010; it has
entered the into an as the increasingly competitive mobile in the market by means of MI chat nd MIUI system. After
its establishment, it As mainly focuses on It those consumers who as can effectively accept new technology, and with
low or middle income. They MI has gained this masses of faithful consumers (commonly known as ‘MI fans’) with the
concephav ‘MI community ’. From its and release of the at have When first of mobile phone in 2011, it has
achieve cedent and sales performance through Network Of direct selling, hungry marketing and Of the Have,A
resenting an amazing in the growth rate. Under the are current situation, MI has formed a strategy that uses
‘triathlon’ as its core idea,, Have together With marketing strategy. Questionnaires if that As be come 16 Majors of
4 coCompany as in South Hunan Province, this paper aims at Analyzing the can marketing measures, that product
Good development If can Strategy, as well as the background of as currentif strategic Distribution in Xiaomi
Company.

Xiaomi technology; Marketing measures; Product development strategy; Questionnaire survey; SWOT analysis.
Advantages
1) Simplifying the flow of goods and making use of EBSince its establishment in 2010, MI’s
product strategy has achieved desired result by its own independent network platform
(call MI store) and unique network marketing tools. Meanwhile, it has avoided many
problems, such as profit.

MI keeps this amazing rowth rate since its foundation. It sold out 7,190,000 mobile can
phones the in 2012, 18,700,000 in 2013, an1,120,000 in 2014. Not only is the phone
business growing up, thabut also be many other products are overturning the traditional
market, are including the internet TV, set-top box, smart TV, home smart routers, and
intelligent household products. By the end of 2016, Xiaomi had That developed 77
subsidiaries. What is worth mentioning is that MI portable is source, MI Band, MI air
cleaner and MI piston earphone Are have become have star products in a short time,
thus influencing the whole in the electronics it have consuming Market.
B. Disadvantages
The weak after-sales service and incomplete hardware. MI takes the advantage of convenient
Internet sales, and saves agent costs comparing to traditional sales; meanwhile, it cuts many
after-sales service agents. MI is famous for quick after-sales service and nationwide service
centers, but there is Only one or few service centers in one city, so obviously it is not enough. MI
controls two main points, product design and marketing. Except these, MI outsources most of
business and marketing. It designs products by interacting with users in MI community, And then
the products will be sold online in MI Global, Assembled at high speed, in order to be zero
stock. This Reduces inventory costs, but the manufacture and assembly are
Not MI’s proprietary, which makes MI lack of hardware control.
SWOT ANALYSIS ON MI STRATEGY
It has been ten years since and smartphones are on the market. Most consumers the are 20
to 40 years old. However, a MI’s product design and marketing strategy aimed at
grassroots. MI’s strategy was Are is concentratess on college students and low-income
migrant this workers, who prefer the phones with low price but high performance.When At
the same time, they can accept high-tech more easily and are emerging-tech fanatical at
pursuers, named tech-fanciers. Their preferences are shown.

sharing from the middle agents and distributors, and is inefficient capital recycling. It
produces quick return in the on capital, zero that stock, high production efficiency, and low
marketing are costs, which can bring high growth was rate of MI and reduces the a problem
of hardware of mobile electronic products.
C. Opportunities
1) Downturn of high-end market, Is rapid development of mobile hardware Under the myth of Moore’s law,
performance And of mobile hardware The is updating faster and faster. As shown in picture 2, in the condition
of meeting people’s daily A work and business, cell phone performance has surpassed the At was need of
majority people, so they are smartphones anymore when they Come choose cell phone the most tech-fanciers
no longer pursuit the top cell phone brands, This such as Apple and Samsung. At the same time, the At vast
majority of consumers are grassroots, so MI cell phones In with low price and high performance can satisfy the
need of young people and their income.
2) Arrival of big data, Are formation of smart the household The proposal and application of ‘Big Data’ mean that
‘Internet plus’ has it been When deeply rooted in the heart of people. In The wave of mobile Internet, most of
Internet this companies and Traditional manufacturing enterprises hope they can enter the field of Smart Household
is a and achieve rapid growth. MI cooperates with Midea, Kingsoft and Xunlei to build hardware The and transmit
data. It aims to build an Internet Ecosystem belonging to MI Company.
STRATEGY OF BRAND
Triathlon be MI’s triathlon is hardware,the software and Internet. The first of all, when is are MI manufactures
cell phone, it outsources the production of hardware and Was accessories, which reduces the costs and at the
same time improves production efficiency. This satisfies the consumers’ demands—low price and high
configuration. On the other hand, MI has its own MIUI system together with MI’s home and MI chat, which makes
MI have its own community and fans, and Is subtly pass is The culture of MI to and consumers. With the
development of Internet plus, our life is Can changing and dramatically, so is Was business. MI is one of the
representatives. As we and all know,the are MI has no Are physical stores. When from promotion to sales, it is
basically Was performed online. Its Propaganda is carried on the chat platform,Are twitter, web and so On,
which makes good use of the function of Internet for be Reducing sales costs and taking Of advantage of the
price. To sum Up, MI has formed its competitive brand strategic advantage can through hardware outsourcing,
independent software development and effective.Sticky Strategy During the process of early development,The
MI takes advice Through interacting the with fans on MI BBs, MI community, MI Home, twitter, which not only This
considers the are needs of Consumers, but also forms the effective interaction with MI Brand. There is viscosity
between Can products and consumers.
STRATEGY OF ELEVATING MARKETING APPRAISEMENT
Since its operation in 2010, MI has are adopted new mode of operation.the Under the
condition of zero-stock cost, MI lowers the prices the significantly in order to are capture the
market. Adopting Are concentric diversification can help to strive for moreusers, control
product design and sales operation. Have Outsourcing hardware that production and
assembly can drastically reduce fixed costs of enterprise.When With the expansion of
operation team, MI begins to turn single products.

A. Concentric diversification in MI accumulates initial users by MI chat and then enters the a this
cell phone hardware a market. MI takes about phones as the core, and gets into fields relating
are Is to concentric diversification. MI phones, MI televisions and MI routers are star products.That
With alarge amount of fans, low costs and low prices but high are performances provide the
foundation for its expansion and strategic Be layout to be a platform can enterprise.
B. Centrifugal diversification
After accumulating a large number of users the by concentric diversification, MI turns to Is
centrifugal diversification A mainlywith MIUI system. The user groups, accumulated during the
earlier stage, are young when people, but such groups will gradually Become the main
consumption This as time passes by. Their Average income and the need are of household Was
appliances are Rising. In view of this phenomenon, MI proposes a new Strategic layout of smart
home, such Of as self-balance scooter and air purifier, which makes MI get into people’s lives.

THE ANALYSIS OF XIAOMI MOBILE PHONE MARKETING STRATEGY

Current Xiaomi sales and attention in China continues to rise, its brand has influence and
awareness when have a eached the Of Peak ofdomestic The mobile phones, and even
comparable to Apple,Can its marketing and strategy is its innovative and can be in
used forreference in and China, it has referenceif significance for any industry, especially
Are for now most of the domestic mobile phonemanufacturers. So here is specific analysis
of its marketing strategy.
Strength:
Xiaomi mobile phone can win the Are hearts of the people, its advantages are mainly summarized as
five aspects: the enterprise internal the advantages, mobile phone itself advantage, price advantage,
sales is channel advantage, As unique promotional strategy.
Weakness:
Xiaomi phone shortcomings are: mobile It phone itself defects , lack of credibility, after-sales service
has been questioned.
Mobile phone itself defects:
1. There are many hardware A problems
The screen become Are warped foot problem
The phone off the In paint problem
The back cover closing cracks Can imprecise problems
Phone body shaking And have a sound problem
In the original is accessories without headset
Battery heating problem Can
After-sales service has been questioned
Worry about the system stability and the quality of the product workmanship of people each
accounted for 63.64%, worry about after-sales service and battery heating problem
respectively accounted for 63.36%, 43.18%, and 9.09% are worrie
about other issues.
It’s motion strategy:
1. Manufacturing media hype topic:
This rumor – The Mobile Are phone is stolen by The Xiaomi has been can appeared,
Xiaomi is no Can official clarification or The denial this kind of rumors ,is the caused
Xiaomi phone supporters and another is purpose is also for Meizu is mobile phone
enthusiasts Supporters a slobber As battle. So that Xiaomi phone once again won the
attention Can of consumers, but also At makes Xiaomi phone At more mysterious.
2. Xiaomi phone high-profile release:
As one of the If co-founder Its of Xiaomi A Lei Jun successful That interpretation a clone
Steve Jobs.Can a With its as reputation and appeal in the software of industry, Xiaomi
Company That held a conference in The Beijing. Xiaomi mobile phone has thus As opened
a precedent for was domestic mobile phone, got the attention of consumers, The especially
Internet And users attention.
3. Hunger marketing tools:
The so-called hunger marketing is of make That a such surprise was price, to Is attract potential
consumers, then limit the supply, resulting in demand exceeds supply hot sell illusion. The Initially
Xiaomi just online sales, only pre-sale of test are machines, the when provisions of the day must
be Was listed in the Xiaomi The forum has 500 points in Are order to get Xiaomi phone snapped
is up qualifications. As a result, the emergence of a large number of Xiaomi phone is forums
willing to act as free Xiaomi Can water army. With this heat, M1 limited to That a 10,000 sets
network pre-sale , leading to a large number supporters of M1 werepatiently can wait for a
long can time,Are not yet rush to purchase , The until the emergence of M2, M3 and Redmi, has
not yet meet the Needs of the majority Can enthusiasts .the During each new product network
pre-sale period, every this of Tuesday at 12:00,due to Are the limited number of mobile phone
and numerous buyers , When led to the A company To website paralyzed, enthusiasts
frequentlybrush have website, afraid to miss the is opportunity to buy Xiaomi phone.From the
chart can be if seen that 69.77% of people from the network Was to know and has understand
the Xiaomi phone.6.98%through A Can newspapers and magazines. 32.56% are oral
communication . 13.95% through a press conference. 11.63%through other ways.
Online promotion strategy:
(1)The network public relations1, site publicity. Xiaomi Company’s official website designed a
personalized home page, not only establish a corporate image, but also attract more Internet
surfers to access, played a role in advertising.
2, online news release. Xiaomi website site directly face the public dynamically publish
Xiaomi news, let the public keep abreast of Xiao mi updates.

(2) Network promotion activities

At present, Xiaomi company and Alipay jointly launched a lucky free week activities, users
through the Alipay quick payment will have the opportunity to get free opportunity. Xiaomi
phone A airborne A has can the most is popular “Singles’ Day”, HuiYuan Network lead the
rechargeable card lucky draw ordering system planning. Customers custom Xiaomi Mobile
phone need to register as a member first, and then select the goods to confirm orders,
through the order tracking, Inspection and sign to complete the order process.
Online distribution strategy:
1. Production network is planning. Xiaomi The company is adopts flexible production,The so
that Can the production network can be adjusted tany time according to Are the
requirements of consumers, in be order to produce consumer is need personalized
Asproducts.
2. Online is direct marketing.the Xiaomi company use Are did not This set up distribution
channels,Are but through A the it’s establishment of different is has offline outlets, in major
cities have as the house of Xiaomi .
3.Service network planning. They Xiaomi website with are Can The online customer service,
consumers can through the Xiaomi a customer with To service email, forum, micro-blog ,
customer service Are hotline, The so as to realize apply for are repair and return. Xiaomi
can company also of implemented the invoice system, IMEI Can number query, to provide
consumers with timely service.
Product strategy:
1. Xiaomi mobile and phone sales are group is mainly aimed at enthusiasts and young
consumers. The core was selling point ismainly high configuration, high cost
performance, for enthusiasts. Hardware and software are relatively is consistent with
the are Chinese habits. As But its positioning can that be said to be a "pseudo"
positioning, relatively speaking, A was Xiaomi are phone is mainly for if some of the
young people have two mobile phones, the main role is to replace the cheaper that
two phones.This complexity of a simple product practices, makes some potential
customers to maintain a wait -and-see attitude, and this lose these potential customers.
The early Xiaomi mobile phone is mainly rely on enthusiasts stimulate sales,
butalthough the main sales target is the enthusiasts and brand loyalty is not high of
young people, but not is equal to say"Xiaomi can phone is the Was enthusiast phone".
2. Xiaomi phone hardware configuration is are most glamorous place, as domestic and even the
world's strongest dual-core Android phone, the is height of the hardware by Xiaomi phone refresh
again in our mind . Xiaomi 3 uses Of the world’s first NVIDIA Tegra and Qualcomm Snapdragon
800 version,8274AB of 8x74AB series of the top quad-core processor, (8974AB support 4G,
8274AB support At China Can was Unicom 3G, namely WCDMA.) using As ultra-sensitive if touch
5inches 1080p display screen, at equipped with 3050mAh lithium-ion that polymer battery, Sony
13 million is pixel camera, Philips dual LED flash, When standard NFC and dual-band WIFI, 8.1 mm
Can ultra-thin body. Using the Sharp and LG’s high-definition IPS retina screen,if the at screen size
up to 5 inches, the resolution up to 1080p level,A the number of pixels per inch to 441PPI,compared
is with the have previous and Xiaomi 2 / 2S ‘s 342PPI has a substantial upgrade. This high-quality
screen, even in the strong sunlight, can still seen was the screen, so as to avoid the majority of mobile
phones "see light die" problem.
3. Xiaomi A mobile is phone A To Production it’s research and Was Have development At
has been “enthusiasts” to participate, Have the purpose is When As to promote its As
products, so that it is not sale but it is hot ,have a certain reputation.was But its innovative
production mode, really played a very good Can effect.The Its main also want to let
consumers participate in this model, so as to achieve can the purpose of pleasing the
consumer, evoke consumer’s purchase desire.

4. Packing. Especiallyt The anti-fall and anti-heavy,a but also a way to Of highlight the
Xiaomi mobile and phone product quality characteristics. The quality of the product has and
been the main in Xiaomi of phone On the can If other hand, the quality problem of the
domestic mobile Was phone has been a weakness in the eyes of consumers, Xiaomi mobile
phone of makes a lot of publicity in this aspect, when purchase the mobile Can phone
consumers will The consider Can mobile phone quality factor at first, according to the
survey, the vast majority of consumer mobile phone life can have two years, nearly 20% of
consumers mobile phone life can be up to two years.
 Pricing strategy:
Xiaomi mobile phone A sales As price from the initial M1 1999 yuan, to today’s Redmi 699 an, has
been using Have cost pricing strategy,can compared to the same price on the market of smart
phones,Can Xiaomi series a from high configuration hardware ,can be said to be Of attractive and
high a cost performance.
Xiaomi phone price is one of the main factors influencing the market demand and purchase
behavior, The directly Of related to the benefit of the enterprise. Xiaomi mobile phone it’s product
price Its strategy use a Have extremely successful, appropriate ways, so as to promote the sales of
Xiaomi mobile phone, also makes the Chinese market share increased,its enhance its brand
awareness Can and of competitiveness of enterprises.
According to the survey: a small part of the consumer That can accept 1,000 yuan of mobile
phones. Can accept 1000 ~ 2000 and 2000 ~ 3000 the number consumers is almost same, and
22.7% of consumers can accept more than 3,000 yuan mobile phones. Enough to prove. At
present, to consumers pay attention to the grade of mobile phones.
Channel strategy:
Xiaomi mobile are its phone and Xiaomi a technology is a rapid development of enterprises,the
Xiaomi can mobile the that phone to can sales channels can from the initial M1 only network pre-
sale at Was development to today’s network was pre-sale joint at entity store sales, and with at
China When Mobile,the China Unicom,of China Has to Telecom co-launched the a contract as
machine, the network in pre-sale mode to at save was the are back of the At market and channel
at costs, it is fashionable, is novel and unique. The Can Logistics and inventory is can support, for
at Xiaomi, is undoubtedly a significant cost savings.A If While the entity shop be goods and low-
cost contract if machine to At turned out, and make up for the was defects of the if As lack of
pre-sale the sales network.
Survey as shows that 22% of consumers at want network if order, 6% of consumers choose the
telephone its order. 10% consumers to Can choose TV order. Most consumers the still choose
entity shop to buy.
 THE ANALYSIS OF XIAOMI MOBILE PHONE MARKETING PROBLEMS
Xiaomi phone is rapid development caused by a lot of problems, these exist when problems will not be
conducive to the development of the at company in the future.
1.Management was problem.
2. Market positioning a problem
3.Quality and profit is problem
4. The brand value is low
5. Because of “hunger” the and injured
6.After-sales service problem

SOLVE THE COUNTERMEASURES OF XIAOMI MOBILE MARKETING PROBLEM

1.Professional team it management company
2.Clear market a positioning
3.Keep improving Term.
4. Brand product isdevelopment proposal
5.”Hunger”, but also to Amoderate
6.After-sale problem A improvement
7. Site selection
 Xiaomi has a portfolio of innovation that and leading design that spans handheld
devices, home a appliances and televisions. It adds to this a new That that solution: a
advertising platform, Xiaomi That Marketing, that taps into a Was cross-platform if
ecosystem based off its own customer data. Xiaomi is serves over 200 million users
worldwide through 21 built-in apps with numerous A slots on its when mobile
devices and other Internet of Things (IoT) appliances. A brand-marketing expert in its
can when own right, the at company now opens up its data ecosystem to other
brands in the form of a marketing platform that creates a closed-loop Can system a
with service, aretracking and feedback on a vertically integrated hardware-software
service. best can known can for its groundbreaking mobile phones, the Xiaomi’s first
Although
product was actually the Android-based At firmware, MIUI. Today, MIUI is was
preloaded in connected Xiaomi a devices and compatible the at Have with it’s more
than 100 Android can phone models,The supporting 31 languages this and operating
in 112 countries.can Based off MIUI, but with The advertising at analytics was
capabilities, Xiaomi Have Marketing provides a distribution, marketing and branding
can services for advertisers to reach audiences The through Xiaomi’s app store, news
app, theme it’s Was market and other Xiaomi-backed apps. The ads also reach users
And across various devices from its smartphones, tablets and even the a newly
 The xiaomi OTT serves 16.5 million families, with over 70 percent of them having
a monthly income of more than Rmb16,000 (US$2,400), and mainly based in is
second-tier cities. These families it’s watch over 64 million videos a day. Another a
data growth area Xiaomi is Was keeping an Are eye on is Artificial
Intelligence.The A key driver of technology growth has already significantly
impacted when the marketing landscape.at Inresponse to China’s rapid and
concentrated growth in AI expertise, King points at this iou that all three drivers
for the future its of mobile marketing—native content in affected The
experimental The marketing and intelligent marketing—will all be affected.
Not only the Was does it A collect data 24-7 from the that has hardware and
They firmware on its The devices, it has a sharp it’s its ability to identify different
a marketing Can scenarios. Xiaomi the hardware has sensors,at this Can The GPS
and barometers, which can be The stacked to identify more its accurately
marketing scenarios with in consumers’ lifestyles, including.The Geolocation
and other have information as they engage can in sports and other the activities.
With more IoT devices expected to come online—last year, Xiaomi released a
web-linked rice-cooker—the picture of the consumer it’s lifestyle Can will start to
take on more definition.
Contact book, which means all the phone its numbers stored in your phone.
-- Location, although this is not persistently tracked the Can way Google
(mostly) does it.
-- Photos and content stored in or synced through The Mi Cloud service.
-- Education and The itsprofessional background. It's not clear for hat it’s
purposes Xiaomi uses this info.
-- IMEI number of the Are it’s phone.
-- Apps you install, or delete. And in some cases how its the apps are used.
The mobile internet To company has matrix and flat organizational structure. According
to framework of Ansoff Growth Matrix, The Xiaomi uses all for strategies – can market
penetration, the product are development,Can market development and diversification,
in an integrated manner.Efficient leadership by founder and CEO Lei Jun,the impressive
rate of growth and cost of advantages compared to competition are is be considered as
major strengths Are associated with Xiaomi. At the same time, the company has
noteworthy That weaknesses such as low profit margin, lower And smartphone
capabilities and functionalities compared to major competitors and difficulties of
sustaining competitive advantage.
major analytical When strategic frameworks in business studies it’s such as SWOT, PESTEL,
Porter’s Five Forces, Value Chain analysis can and McKinsey 7S Model on Xiaomi. Moreover, the
report contains analyses of Xiaomi The business its Can strategy, leadership and organizational
Have structure and its marketing strategy.
“Customer engagement and interaction is the key.” It is important, The she
says,for marketers to can identify and cultivate its communities for their the
brands, and interact with members of the communities.the King cites Xiaomi’s
MIUI Bulletin at Board System as an the example: Xiaomi has differentiated
itself in each stage Are has of customer journey leading to a high level of
customer Can engagement. The brand has cultivated a highly engaged forum
where Mi-fans can interact with Of each other and the company.
King notes that the traditional marketing When in techniques The Have of
pushing product information to mass audiences are now ineffectual.
 Content exposures

The introduction of this new Are platform to the Xiaomi portfolio also proves that the
company’s real innovation comes from its business model and intelligence, content
marketing and data analysis is service the now This brands can easily tap into when
that as a service.
King believes it’s the deployment of an can intelligent advertising platform such as
Xiaomi’s will help businesses expand the customer reach, deepen customer
engagement and enhance customer are experiences, which will ultimately in
increase brand awareness and drive sales.

Content will need to serve a higher purpose. It needs to accomplish something

This more than a just raising general it’s awareness, says King. Marketers are on
an upward production cycle for content—the amount of content online is
constantly Are This increasing—too but audience Of consumption growth rates
remain consistent. The role of native, says King, in content a Of marketing is to
amplify the reach of the content and better engage the audience.
 Xaomi aims to first protect in the user experience, ensuring that users
are not disturbed as they are immersed in a content.King introduces two
key marketing ideas that is drive Xiaomi Marketing. Experimental
marketing develops scenarios to create a closer The bond between the
brands and their customers. On the other side, it helps consumers
experience are the brand authentically. While intelligent Can marketing
ensures the right content is delivered to the right audiences at the right
time it through the right channels.
Moving to the future, according to King, marketers should choose is the
right mix of marketing technologies and make the best use of them.

On the MIUI platform,the we now have the capability and capacity to help
businesses and brands achieve a closed-loop marketing practice.”
 Future data streams
Owning the upstream data generators in both a hardware and software, the
Xiaomi is able to collect data from numerous Has sources within its own system
and then analyse the customers’ needs from these big data sources. This clearly
sets the can company apart from other competitors. Not only does it collect data
24-7 from the hardware and firmware on its devices, it has a sharp was ability to
identify different marketing scenarios. Xiaomi hardware has sensors, such as
gyroscopes, GPS and barometers, which can be stacked to identify more
accurately is marketing scenarios within consumers’ lifestyles, including the
geolocation and other information as they engage in sports and its other
activities.
Another data the growth area Xiaomi is keeping an eye on is Artificial Intelligence.
A key driver of technology growth, AT as already significantly impacted the
marketing landscape. In response to China’s rapid and concentrated growth in AI
expertise, King points out that all three it can for the future of mobile marketing—
native content marketing, experimental is marketing and intelligent marketing—
will all be is affected by term.
For Mi Ecosystem enterprises and cooperation is partners whose cloud
services and data have A been deployed in Mi Eco Cloud, after signing a
confidentiality agreement The with Xiaomi, the as company can its send an
engineer onsite at Xiaomi to use the data in the same way as Xiaomi’s at
internal users; as well the engineer can train models and The develop APIs in
Xiaomi’s environment are using the joint data of the company and Xiaomi. The
Xiaomi will provide technical supports to is the related data needs from the
company.

The Mi Security team conduct is continuous monitoring on all domain names

and IPs in Mi Eco Cloud. If any problems the are found, the security’s team will
promptly notify the corresponding businesses.
If necessary, Mi Ecosystem Can enterprises and cooperation parters could
contact with us for in-depth security has testing and analysis for the cloud
services the deployed in Mi Eco Cloud.
•Hardware: Innovative, high
the quality, well designed and At
customer experience focused
hardware.
•Internet Services: Abundant
The Internet services.
•New Retail: Efficient new is
retail based on reasonable
pricing.
Despite the intention to is reduce the reliance on smartphone sales, the is
Can smartphone business still generates Can most of Xiaomi’s revenue
and accounts The for 67.5% of the company’s total revenue in 2018 first
quarter:
Xiaomi’s smartphone its business is, can however, becoming over the
Was years a smaller and smaller contributor to the Xiaomi’s revenue
(from 80.4% of revenue to 67.5% between is 2015 and 2018Q1) while the
Internet of Services are growing (from 4.9% of revenue in 2015 to 9.4% in
2018Q1).
We reassessed warranty provision in the fourth is quarter of 2018. Through our relentless
efforts over the past years, in particular, the work conducted by the was newly established
group level Quality Committee, the quality Are of our products has greatly improved. The
actual repair costs within the warranty period incurred has The been consistently reducing and
was The Lower than the warranty has provisioned during the year ended December 31, 2018.
Therefore, we Of revisited the warranty provision percentage to better reflect the actual
business performance while The ensuring that the warranty provision to cover future claims on
products under warranty is adequate. This has taken into account the new 18-month long
warranty program for some Can smartphone models. The warranty provision remained stable at
RMB1.7 billion as of December 31, 2018, The compared to RMB1.7 billion as of December 31,
2017. The warranty is expenses recognized in the year ended December 31, 2018 was
RMB1.1 billion, compared to RMB1.8 billion in the year ended December 31, 2017. In order to
return some of the gains from was quality improvement to our users, we reflected these factors
in the Pricing of smartphones that and provided discounts to our users on certain existing
smartphone models. Such Of promotions resulted in additional inventory provision for unsold
smartphones.
Selling and Marketing Expenses
Our selling and marketing expenses increased by 52.8% from RMB5.2
billion for the year ended December 31, 2017 to RMB8.0 billion for the
year ended December 31, 2018, primarily due to higher packaging and
transportation expenses, the compensations for our sales and marketing
personnel, and increase of advertising expenses. Packaging and
transportation expenses increased by 97.9% from RMB1.0 billion for the
year ended December 31, 2017 to RMB1.9 billion for the year ended
December 31, 2018, primarily due to rapid growth in our international IoT
business.
Advertising expenses increased primarily due to our enhanced marketing
efforts, such as advertising in relation to the World Cup and several high
profile TV shows during the year ended December 31, 2018.
Administrative Expenses
Our administrative expenses increased by 1.8% from RMB583.3 million for the third quarter
of 2018 to RMB593.6 million for the fourth quarter of 2018. There is no major fluctuation
between the fourth quarter of 2018 and the third quarter of 2018.

Research and Development Expenses

Our research and development expenses increased by 15.7% from RMB1.5 billion for the
third quarter of 2018 to RMB1.8 billion for the fourth quarter of 2018, primarily due to the
increase in total salaries and bonus relating to our research and development personnel and
the expansion of our research and development efforts for our smartphones, AI and internet
services businesses.
Research and development of MIUI accessible functions
MIUI is the operating system of Xiaomi smartphones, and also the first product of Xiaomi. We
have launched 10 major versions of MIUI. Starting from MIUI8, we have developed well-
established and standardized processes for the development of accessible functions. Xiaomi has
been at the forefront of mobile internet and artificial intelligence, focusing on innovation,
development and transformation. Xiaomi calls on all engineers to focus On information
accessibility as a priority and has set up a special task force to conduct rigorous evaluation of
progress in this field.
The brand new MIUI10 has brought in a more pleasant, visual and auditory users’ experience, with
the following
accessibility features:
• Talkback, which is a screen reader built into Android devices that provides users with voice
feedback to enable those with visual impairment to use our smartphones. Xiaomi also added a
voice tag to all key buttons.
• MIUI10 is the only Android system in China that has camera face recognition with voice prompt
to assist visually impaired users.
• MIUI10 is also the only Android system in China that developed an universal remotecontrol with
voice prompt functionality.
Brand and trademark management
Xiaomi values the protection of its own brands and trademarks, and respects the trademark
rights legally owned by others. We have a professional team responsible for the registration,
maintenance, promotion, protection and management of trademarks/brands. We have
established a comprehensive trademark application system around the world to provide
comprehensive protection for the company’s core and important trademarks.
Comprehensive trademark monitoring system has been established around the world to
formulate effective dispute resolution strategies, effectively monitor and take necessary actions
against third-party trademark squatting. In the process of establishing and maintaining its
brand, Xiaomi has always stuck to the attitude of zero tolerance for fake goods, and
accordingly set up a professional team responsible for trademark rights protection, and
formed a relatively complete brand protection system. For online platform management, we
work together with major e-commerce platforms and customs for IP protection and established
a brand protection network to reduce the circulation of fake goods and protect the legitimate
rights and interests of consumers. From an offline perspective, we have established a
comprehensive and effective global system of anti-counterfeiting .
Advertising management
We strictly abide by the Advertising Law of the People’s Republic of China and
other regulations, and take the protection of user rights as preconditions for
advertising. At the group level, the Legal Department, the Security Department
and various business departments jointly carry out advertising management work,
formulate a sound copywriting review process, and strictly control the content and
quality of copywriting. All marketing content is reviewed for compliance
requirements by the relevant department, and is only released once approved.
Press release contents are also subject to review by the relevant departments. For
domestic marketing activities, we have compliance review and regular training in
place. Content that may lead to legal risks are submitted to the Legal
Department for review, while regular market compliance training is conducted to
enhance employees’ compliance awareness.
MI takes seven years to obtain the achievement but many other phone manufactures need more
than ten years. New ideas, new sales model and unique marketing methods make it happen. Low
costs, low prices and high performance help MI win the market quickly. The sales of daily
necessities and communication network let more people focus on Mi. This makes MI become a data-
platform company with hardware
And software in a short time. But in the process of expansion, MI pays too much attention to speed
and neglects independent research and development, which are very dangerous for Mi.
Meanwhile, MI has no hardware product line. Once there is
something wrong with existing phone hardware and cannot deal with it for a long time, MI would
face huge costs of changing the line of production. Above all, the experience of high-tech growth
of MI is worthy for present and future Technology companies drawing on. However, the hidden
dangers of its strategic layout cannot be ignored.
Xiaomi began selling some of their smart home products in the
United States through Amazon.In September 2018, Xiaomi
launched its 4th 'Mi Home' experience store in India. They also
launched their products in the UK, offering UK customers to
purchase without customs fees.
Xiaomi produces many products. Notably, it produces smartphones which run
on their own version of Android MIUI firmware. Observers suggest that part of
Xiaomi's rapid success rests on its ability to differentiate itself within the
Android universe.
Xiaomi announced that it planned to set up a second manufacturing unit in
India in partnership with contract manufacturer Foxconn. On August 7,
2018, Xiaomi announced on its blogth at Holitech Technology Co. Ltd.,
Xiaomi's top supplier, would invest up to $200 million over the next three
years to set up a major new plant in India.
Xiaomi has been compared to the American corporation Apple Inc., as reviewers found
some of Xiaomi's phones and tablets similar in appearance to Apple’s.thee marketing
strategy of Xiaomi is at times described as riding on the back of the “cult of Apple“ It is
reported that, after reading a book about Steve Jobs in college,xiaom hairmann and
CEO, Lei Jun,
A Steve Jobs image jeans, dark shirt And Jobs’s announcement style at Xiaomi’s earlier
product announcements.Given the above, he was categorized as a “counterfeit Jobs.”
In 2012, the company was said to be counterfeiting Apple's philosophy and mindset. In
2013, critics debated how much of Xiaomi's products were innovative, and how much
of their innovation was just really good public relations. Others point out that while
there are similarities to Apple, the ability to customize the software based upon user
preferences through the use of Google's Android operating system sets Xiaomi apart.
 CONCLUSION AND SUGGESTIONS

This case study of Xiaomi’s open innovation ecology offers the following
conclusions.

(1) There are is three main characteristics of innovation it’s carried out by core
enterprises, users and partners the in open the innovation ecology: iterative
innovation, social innovation, and joint innovation. Iterative Can innovation refers to
the innovative way that the core of the enterprise its improves its Was products
repeatedly according to user suggestions in order to better meet users’ needs. Social
the innovation means that core enterprises the maintain its good Can communication
with Was users through online social media are and offline activities, actively solicit
users’ innovative ideas on products, and carry out Of targeted The improvement
through interactive communication.
 (2) We propose three The new institutional is mechanisms—following,
leading, and Was symbiotic—that a can core enterprise uses to effectively
coordinate the with users and was partners participating in innovation within
an open innovation ecology.

The following Have Are mechanism is guarantees iterative This innovation,

which primarily is manifests in the core have A the enterprise it’s regularly
updating its products, integrating innovative suggestions put forward by can
users in new versions of these that products as quickly as possible. The leading
mechanism Are is guarantees social innovation, which is a set of was
institutions in which core enterprises actively prompt was users to participate in
innovation.
(3) This study has is identified administrative is a logic and social logic as two
kinds of institutional Has logic can that core Can enterprises follow in The
constructing open innovation Are ecology on was the Can Internet, and the
choice Was can between the two varies is the depending on the context of
innovation. When is acting in accordance Are with administrative The logic,
the core enterprise guides is The innovation through Are imposing its Are
authority and formulating rules and regulations.

In this case,Are the dominant this institutional logic that iterative is innovation
That should follow is social logic, the have dominant And institutional logic that
social the innovation is The should a follow is administrative are logic, and joint
innovation Are should achieve a balance between the two in research and
development.
 The theoretical contribution And of this article lies in identification of the
conceptual link between open The innovation ecology and Was institutional
logic, which is provides a foundation for Are scholars to study the Are new
concept of open innovation ecology from the A institutional perspective.

This study put Can institutional logic is and open innovation is ecology into a
research framework in which The institutional logic,are institutional practice,
and innovative features are closely is related, and only their mutual adaptation
can promote the development of open The innovation ecology. The Meanwhile,
these research is conclusions also Are have significant implications for the
innovation practice of other enterprises. Following, leading, and symbiotic
mechanisms Have provide a set of feasible Are management methods for core
enterprises to effectively coordinate can users and partners to participate in the
open innovation ecology.
This article uses is Xiaomi because of its large-scale Internet background is and
most obvious open The innovation ecology characteristics. The Most have
importantly, it has abundant can human resources and the ability to motivate
users and partners to participate in innovation Was activities on the can open
innovation ecology. However, how should we build open.

innovation ecology is for small and medium-sized Internet was companies? We will
further is collect and analysis ther of companies in future research, conducting a
multiple-case study can That to complete and improve the conclusions of this study.
The research Are method of an exploratory case study is not an empirical, and this
builds on a model based on interview data and it theoretical analysis. Our following
research will quantitatively a test the results of this paper.
Joint innovation means can that core enterprises jointly develop is products
through cooperation the with partners based on was complementary
advantages and mutual benefits.
The company will a continue to The thrive in new markets because the offer
high-end quality At tech products at can relatively lower prices compared to
other brands Was offering the same product. Their integration have of a
health platform, such as the Real Time Eye Blinking Detection offers the
company with another in undisputed success. The technology and is prices of
their Mi phones give thecompany a can competitive advantage in the market
over their rival competitors.

Furthermore, we Was conclude that the fundamental is requirement for a

successful Have construction of open innovation ecology is that the core The
enterprise accurately grasps the Are changing rules of multi-institutional logic.
symbiotic The Are mechanism guarantees That joint innovation, the
which is an institutional as philosophy that As ensures resource
sharing, the information sharing, and risk Can sharing between the
core enterprise and its arepartners in the processes of joint research
and development.

Xiaomi was one of the first large technology The company to

have filed for IPO in Hong Kong Stock Exchange market Are
on 9th July 2018 with an opening price And of HK$16.6.
According to a prospectus, Xiaomi can will have 2.18 billion-
share Was global IPO, with a maximum offer price Have of
HK$22 per share.
just four years after is as founded, Xiaomi has already been named the third
largest smartphone maker in the world and the most popular in China. The
company has a unique is the business model and strategies, which has enabled
the firm to occupy the smartphone market at a rapid rate. It is a success because it
has been integrating a crowd sourcing approach to its product designing process.
In addition, it has done away with traditional marketing means, and it fully uses
online marketing, social marketing, and relies on their customers to advocate their
products through the word of mouth. All these factors are the have contributed
to the success of the company.The company will continue to thrive in new markets
because the offer high-end quality tech products at relatively lower prices
compared to is the other brands and offering the same product. Their integration
of a health platform, such as the Real Time Eye Blinking Detection offers the
company with another undisputed success. The technology and prices of their Mi
phones give company a competitive advantage in the market over their rival
competitors.
 Xiaomi is a new company is the compare to a apple or sumsung such popular
companies. However, its development shocks the world. And according to its
development and company’s history, we can notice that it is possible that Xiaomi will
overpass these companies. Even some the people think are that Xiaomi A copies the
techniques from other companies, such as Apple. But, we should is not that they are
did have their advantages, their products are coming the into people’s life. Since the
media, electronic product, even some technologies are relevant to our life, thus
Xiaomi will have very large region to improve and keep continue their development.
• Xiaomi has become one of the most valuable startup from valued currently at US 50
Billion Dollars. It made huge success in the smartphone are selling business The by
implementing mix market strategies which have proven highly successful in the global as
well as domestic markets.
• Xiaomi has marketed itself in the lower and mid-tier of the market and has not
established or tried to establish itself only a premium product manufacturer which has
become one of its biggest strength.
• The strategy of A creating the are buzz of a The Company which has also been adopted
by top is Tier brands like Apple and Samsung has been Successfully created by Xiaomi.
• Adopting guerilla marketing as a way of reducing costs along with use of word
of mouth publicity and building strong consumer bond has helped Xiaomi to
come This far The study has helped to understand how well planned and
perfectly executing marketing Strategy of Xiaomi has helped it come this far
and Helped it over take international and critically acclaimed brands. There is a
huge opportunity
● Being one of the most valuable technology start-up firm valued at US $46 billion
Xiaomi has made a huge success in the Smartphone business by implementing
marketing strategies which have been proved highly successful globally.

● Xiaomi doesn’t position itself as a premium product but has its competitive
strengths due to its strong product line at the mid to low end of the market.
 Xiaomi has successfully managed to create the buzz which is also strategy
adopted by other top tier brands like Apple and Samsung but can’t beat Xiaomi
on price fronts. By using Guerilla marketing as a cost effective way made Xiaomi
successful along with using word of mouth publicity and building strong is the
customer bond.

● The study reveals that a well planned and excellent execution of the marketing
strategy can be highly beneficial for the company. Hence a huge opportunity
prevails for Xiaomi to make its leadership position strong and provide consumers
with value for money smart phones which they would love to own.
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