China’s Xiaomi Conquers 80 Markets, Now Largest In India
Founded in 2010, China's Xiaomi has diversified in more than 80 markets after its first venture out into the Brazilian region in 2015. To date, the Chinese electronics company has more than 1,000 stores worldwide, including in key business districts in Mexico City, Dubai, and London.
Although headquartered in Beijing, 40% of Xiaomi's total revenue has been coming from outside mainland China, according to CNBC. A significant portion of that is coming from India where the company has risen as the most popular smartphone, according to the International Data Corporation.
Xiaomi has shipped more than 100 million units of smartphones in India since its first venture into the Southeast Asian country five years ago. The country has since become Xiaomi's most important market that its plans at present are most centered on how to improve and strengthen its hold there.
The Chinese electronics company, understandably, wouldn't let go of its clutch in India as it is now one of the world's rapidly growing economy and the world's second-largest smartphone market at that. Still, Xiaomi has a smart strategy at play by focusing all its efforts on meeting the demands of the "budget-conscious" buyers. Most units it ships in India are priced at below $200 and the company is wise to only target profit of not more than 5%.
True to its commitment in India, Xiaomi announced plans of building 10,000 more stores in the country, pumping more jobs into its labor sector along the way. To date, Xiaomi brought 20,000 jobs in the country of which women accounted for the vast majority.
Elsewhere, industry observers are saying that tech companies are the ones to be gravely affected by the ongoing China-US trade war. Xiaomi, however, has played smartly, diversifying its portfolio of products beyond smartphones. It also introduced refrigerators, air purifiers, and rice cookers. These Xiaomi appliances are connected to smartphones and date, the company has connected more than 190 million devices under its smartphone app.
With this strategy wisely played, Xiaomi has recently become the youngest company included on the Fortune Global 500 list.
As proof of its success, Xiaomi reported RMB52.0 billion in revenue for its second-quarter in 2019, up by 14.8% compared to the same period last year. The company's smartphone segment recorded RMB32.0 billion in revenue while its IoT and lifestyle products segment increased by 44.0% to RMB14.9 billion. The company is sitting in total cash resources of RMB51.1 billion as of June 30.