Xiaomi, A True Empire?
In the past 2015, Xiaomi did not achieve sales target of 80 million products sold in the market, has caused a significant direct impact on profitability was in place, both to reduce the number of components from the line component supply partners. As Mr. Alberto MOEL analyst at Sanford C Bernstein said: "Xiaomi business model like Apple and they grow very fast, but not as good as Apple. Xiaomi no growth anymore. "
Flash Sale Are Not Achieve Efficiency
With the strategy of "cheap" would be the key factor for competitive success or failure of different phone lines, Xiaomi really only achieved high success in the early years, but it is not really effective in recent times. Xiaomi business forms used type flash sales (quick format - accept lower returns to capital quickly recovered in a very short time, in order to quickly reinvest in new products) and focus on the production made some certain product lines to produce the most optimal price.
Return brand Xiaomi, Redmi Note 2 line recently has achieved a lot of success thanks to a very cheap price compared with the configuration, to achieve better sales. Redmi Note 2 pretty good configuration in the midrange segment is currently being offered at a price of about $ 133. Knowing that this product line has pretty good sales, but the tradeoff is lower rates, meant lower profits should not really bring major resources for Xiaomi. It should be stressed more, Xiaomi revenue up to $ 4.3 billion USD but profit is only about $ 56 million USD in 2013, the rate of return by 1/10 than the Samsung and Apple. Therefore, the company should have separate ways, to higher profits rather than simply a sales item.
5 Years For A Foundation
Xiaomi's story will be mentioned more in the future, in the history of the global smartphone industry. Not everyone can do the same thing as the Chinese company, which is not brand new starting point as Xiaomi proud. Certainly so!
However, to continue to reap success, Xiaomi need to build yourself a strong platform, an operating system similar to what Samsung and Apple have ever shown. A smartphone so far only common identifiable brand, not perfectly located in profits, the company must know the balance between the two main elements of the industry is the most advanced. Apple and Samsung, the two brands stand out Xiaomi take steps to freeze over but they have a lot more solid.
Samsung albeit not get good revenue from the high-end smartphones but higher margins helped the company stand and impressive sales. Besides, the model developed various devices also help the Korean giant have been a total turnover well, even surpassing expectations. Apple is a different case, if Xiaomi is the new star in the sky, then Apple may be regarded as the North Star, shines brightly. Apple's platform is everyone wants to own their equipment, luxury and worth every penny.
Xiaomi is the foundation of what? It is counting on the cheap equipment, perfect sound, suitable for many people, is the desire of users all over the world wish Xiaomi provide products for their country. However, if we continue to put profits into the final position in the business criteria probably the so-called basis of Xiaomi will never steady. No one can be sure a thing as Samsung, Huawei, HTC, or the names at the same weight as Oppo, Meizu ignore margins and to play with Xiaomi a gamble every hand. Then, Xiaomi will more miserable. Therefore, making a name for 5 years, should be maintained and Xiaomi own garden became a true empire.
A True Empire?
From its founding to the present, Xiaomi always aims themselves vigorously as Apple and Samsung. As a result, the company has achieved success by the end of October 2015 to 3rd position, just behind Apple and Samsung, surpassing other brands such as HTC and Sony, even the big names earlier at home is Lenovo and Huawei. But the success and business strategy of Xiaomi has not been followed in subsequent years. In addition to China's economy after 15 years of decline, Xiaomi facing fierce competition from rivals such as Huawei, Lenovo, and Gionee. Because manufacturers have the same hometown with Xiaomi has applied the same business strategy, providing customers with product design eye-catching, pretty good performance for relatively cheap prices.
Because of the other brands in China have sales like Xiaomi style focuses on low prices, leading to fierce competition over. Clearly, former capital Xiaomi users are most interested in cheap rates, seem to be fading as the producer and homeland are doing this same thing. Data from Canalys, Huawei mainly in China during the period from May 6 - 9 in 2015, "surpassing" the Xiaomi. In addition, Apple also showed record sales in China since the iPhone 6 launch.
If only based on business segments phone, Xiaomi very difficult to grow up to be, by the criteria of its business was no longer appropriate. Perhaps, Xiaomi itself well aware of this, there have been positive moves in recent times. Concrete evidence, Xiaomi investment in production startups such products as smart bulbs, mini battery chargers, power sockets, help increase sales on e-commerce sites Mi.com. Most important, it is the health meter Mi Band with very high sales.
Instead of Conclusion
Created on 6 April 2010 by 8 partners, Xiaomi achieved success when girls sell out huge numbers of those cheap phone with fairly good configuration. However, recently, Xiaomi has achieved great success from this product line, by these other brands have a "copied" formula of business strategy.
Fortunately, Xiaomi still has other business products, not just focus on each of the line smartphone, specially created to be good sales with equipment for measuring health Mi Band. Therefore, the expansion of production of other devices help has sounder path Xiaomi, this meant a real Empire not only dramatic every smartphone segment. Since then, this new brand has been a foundation for yourself to build a solid future.
A true Empire will be formed a shooting star or just a horizontal sky smartphone industry is full of stars?
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