Due in large part to the saturated Chinese market and intense competitions in the mid-range and value line segment, Xiaomi's smartphone sales slowed down to a 21% growth in the first half of 2015, according to MIC (Market Intelligence and Consulting Institute), an ICT research institute based in Taiwan. As Xiaomi's leadership in China is not yet well-established, the company has to carry out business transformation in order to stay competitive.
Xiaomi's Smartphone Shipments, 2011-2015
Source: Xiaomi, compiled by MIC, February 2016
"For now, Xiaomi is trying to change their 'hunger marketing' strategy and the image this strategy has created. To do so, the company is returning to the traditional process of value chain activities: production first, then comes inventory and delivery. They are also working with online e-commerce platforms T-mall, JD.com, and Suning, and increasing the number of offline stores to enhance consumer experience,” explains Aaron Lin, industry analyst with MIC.
As for product deployment, Xiaomi has launched Xiaomi Note Pro version (at 3,299 RMB or US$503), extending its product lineup into higher-end segment to challenge Apple, Samsung SX, and Huawei PX series. These strategies aim to reduce the risks of dwindling sales as a result of the hyper competitions in the value line segment of the Chinese smartphone market.
To see more about this report, please visit: China's Disruptor: How Xiaomi Succeeds in the Smartphone Market
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