Xiaomi’s global dominance is unquestionable. The brand, which focuses on and prioritizes smartphones, has been expanding rapidly, so much that the company actually released an electric vehicle (that’s right, a car!) that was capable of topping 1,000 kilometers on a single charge. The company’s multi-pronged approach to technology has won it accolades – among business peers and consumers.
As Roulette77 India says, variety is key to success, and for a tech company – shifting between ion batteries, electric vehicles, and smartphones this seems to work! Xiaomi’s devices are now popular across India and Europe, and they are not just smartphones, as mentioned. We look into some of the reasons why this is actually the case!
1. Value for the Money
Consumers from all over the world have grown used to buying things cheaply, but recently, a new trend has emerged: consumers are pushing back against cheap things that do not bring any value. This is particularly true for appliances.
At one point, owning a $50 smartphone seemed like an incredible idea, and it had a positive impact on the global economy. After all, who would turn down the opportunity to connect to the Internet, and use advanced banking apps and social media when it practically came at limited costs? In other words, Xiaomi was able to:
- Bring you devices that live up to their cost
- Enhance them with tons of useful features
- Market successfully to millions
However, as battery lives started to shorten, and demand for software grew higher, many developers of electronics realized that cheap would not do it. Trade alliances, such as the European Union, for example, target companies that try to fault consumers by offering them devices that are only good for a few years and covered by a limited warranty.
Now, consumers are becoming far more involved and better aware of what they can expect from producers and willing to switch allegiances. A Whirpool that is only as good as a Xiaomi will not cut it, and brand loyalty will shift to the cheaper brand.
So yes, Xiaomi has been able to clearly establish itself as a valuable brand when it comes to quality, as a result. As Roulette77 Germany puts it, the quality of the game will play a much bigger role in a player’s choice than, say, the brand itself or the entry cost.
They are not wrong.
2. Advancement in Technology
We have established that Xiaomi tends to be a cheaper brand overall, and this is understandable. But how about the actual technological acumen the company brings to the table? As it turns out, Xiaomi’s electronics are getting smarter. As a result, Xiaomi produces devices such as:
| Home appliances | Smart robots, smart hardware, and more |
|---|---|
| Mobile | Smartphones and watches |
| Computers | Tablets |
| Vehicles | EVs |
They may not be top tier in the same sense the top-of-the-range appliances and smartphones will have some very small quality-of-life features, but they are so close to that, without actually knowing for what differences you are looking, you won’t be able to tell at all!
The truth is that Xiaomi as a company has been at the forefront of innovative developments. Somewhat cheaper labor costs in China have made the company far more agile when it builds devices, but the R&D that is actually needed to make the technological leap has been expensive all the same.
Another key role has been that Chinese researchers also tend to be somewhat more productive than their Western counterparts on average, allowing them – and companies such as Xiaomi to close tech gaps quickly.
3. Understanding Consumer Needs
Not least, Xiaomi has been exceptionally good at developing what people need. Although the company has also been somewhat Chinese in appearance – and has relied on, at first, cheaply-made goods, it has quickly reached the same status as Lenovo – a Chinese laptop developer that is quite simply a powerhouse of almost-unmatched quality and ability.
Xiaomi has done well not just by flooding cheap devices, although it has focused heavily on developing a more affordable class of devices that has indeed performed well relative to its cost. Xiaomi understood that people were aware of certain goods but were priced out of them.
The company then decided to not just make cheap devices, but also engineer them in a way that it is cheap to make and ultimately has an immediate added value for the consumers purchasing these items.
So, Xiaomi did not only manage to create a class of quality products that were affordable but also created products that are actually of use and help consumers looking to get the best value for their money. Subsequently, customers in India and Europe were able to onboard with the brand.
4. Building Brand Loyalty
Because some people started by buying cheaper devices from Xiaomi, as they moved to higher income classes, they immediately chose to opt for the higher range of goods offered by the company. Building brand loyalty was not just a meant of pricing – but by able to offer the quality that nurtures spending and loyal customers in the first place!
