Xiaomi clocked US $15 bn revenue in 7 years, Facebook took 12 years: Manu Jain
At the Pitch Madison Advertising Report event, Jain, Xiaomi Vice President, MD, talked about building the brand with minimal marketing expenditure
Xiaomi has been a game changer in the world of smartphones ever since it entered the Indian market. Only three years after entering the India marker, the smartphone vendor has a market share of 27 per cent for Q4 2018. While for FY 2018, it is 28 per cent.
Manu Kumar Jain has been leading Xiaomi India since 2014 and the company has achieved a huge success which also results in Xiaomi becoming the India’s biggest smartphone vendor. At the Pitch Madison summit, Xiaomi Vice President, MD, Manu Kumar Jain spoke about Xiaomi: Innovation at its best. He also spoke about how they built the brand with their minimal marketing expenditure.
“When we launched this company 9 years ago, we wanted to change how people consumed mobile internet. We started in April 2010 and it started with the biggest statement i.e. innovation for everyone. We wanted to launch high quality products, we wanted to make them accessible so that everybody could enjoy technology. Our business models are lot more evolved, the first product that we built almost 9 years ago was an operating system that we called the MIUI, then we built boost of internet services like MI Entertainment, MI Movies, MI Music etc.”
Jain shared three basic principles that the brand follows. “Whenever we think of launching hardware device, these are the three basic principles that we follow: great in specifications, great in quality and honest pricing. Honest pricing doesn’t mean that it has to be the lowest selling price, it means that we cut off all the possible costs like distribution, marketing capital, inventory etc.”
Talking about brand achievements, Jain says, “We are the second largest market in the world, world largest consumer IOT platform and probably the fastest growing tech company. In 2018, we had set a target for ourselves by shipping 100 million units, and we achieved that. To reach US$ 15 billion revenue Google took 9 years, Facebook took 12 years, Ali Baba took 17 years, Apple took 20 years but Xiaomi reached that in just about 7 years.”
“Today, we have more than 100 million internet connected devices. We also have fitness bands, we are the largest fitness device company in the world. Apart from that, we also have smart scooters, smart cycles, smart washing machine, smart TV, probably that is why we were rated as one of the smartest company of the world,” he added.
Sharing the insights about Xiaomi India’s jouney, Jain said, “Xiaomi India started in July 2014, we started from a very small room with only 6 people. So the first phone that we launched was Mi 3. I remember at that point of time I met a lot of tech experts, telecom experts. And one of the biggest CEOs told me that Xiaomi can never succeed in India. On asking why, he said it was because Xiaomi was a difficult name to pronounce and because we were thinking of selling it online when the entire market was offline. So, the first business plan was very simple of bringing 10,000 phones and selling 10,000 phones. We went through our Facebook page and saw 10,000 people were following us. The first sale was on July 22, 2014, on Flipkart and the site crashed. Flipkart crashed for the first time in its history. About half a million people turned up to buy these 10,000 phones.”
Talking about the brand’s offline journey, Jain said: “In 2017, we ventured into the offline segment. We launched our first offline store in a 600 sqft store in a mall in Bangalore. On the first day of the launch, we had more than 10,000 Mi Fans and we did around Rs 5 crore sale in one day, that’s when we started building a lot of stores across the country.”
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