Xiaomi sets ambitious target of 70 crore device shipments by 2034 in India
As Chinese consumer electronics major Xiaomi celebrates its 10th year anniversary in India, it has set an ambitious target of doubling its devices' shipments by the end of the next decade.
In the last 10 years, Xiaomi has sold more than 35 crore devices and among them, smartphone accounts for 25 crore plus units.
The company forayed in to Indian market with a line of ultra affordable Redmi, and Mi series smartphones in July 2014. It’s online-only flash sale strategy worked really well in building the hype among customers for its devices. The devices, which were initially available in few thousands in stocks, were lapped up in seconds.
Within three years of its entry, Xiaomi managed to improved its inventory by stitching up ties with Foxconn for local assembling of devices. And, in no time dislodged Samsung to become the top player among smartphones. It managed to maintain the lead for the next half decade (up to 2022).
It used similar strategy with smart TVs too and reaped instant success. But, since then, Xiaomi has been on a downward trend. Post Covid-19 lockdown period, the company saw change in top management and also faced intense scrutiny by Enforcement Directorate over alleged violations of FEMA (Foreign Exchange Management Act) rules. Even other Chinese players Vivo and OPPO too, faced the heat from ED.
As things are getting sorted, Xiaomi is rebooting its India strategy. Based on change in market dynamics and customer behaviour, the company has set its eye on the premium smartphone category, said Muralikrishna B, president, Xiaomi India, during the roundtable meeting with the press on the eve of the 10th anniversary in Bengaluru.
This year, Xiaomi launched Civi 14 series (Rs 40,000), Xiaomi 14, 14 Ultra in the Rs 65,000-Rs 1,00,000 range.
Customers will see less of Redmi phones under Rs 10,000 price bracket as company sees it not feasible anymore as components' prices and inflation have increased. It is difficult to maintain the build quality and profit margin is too thin to sustain.
Use of 5G modems in phones has also led to dramatic increase in average selling price. For Redmi Note 4G series, including other Android phones which started with under Rs 10,000 range, the ASP is now touching Rs 21,000 (for base models).
“In the last 10 years, Xiaomi has been at the forefront of 4G revolution. Someday, when the history of the smartphone industry is written, I am sure there will at least be a page dedicated to how Xiaomi Redmi Note 4G sparked the entire 4G revolution and enabled millions of people access fast internet. And, also played a great part in building India’s digital infrastructure faster,” said Muralikrishna B.
Redmi Note 13 Pro 5G.
Credit: DH Photo/KVN Rohit
Having said that Xiaomi will continue to bring affordable phone, but the focus will be in the Rs 10,000-15,000 price range and ultra-premium segment. By 2034, Xiaomi aims to reach the 70 crore plus device shipments target in India.
Xiaomi India's president added that company will further deepen the relationship with German imaging pioneer Leica to bring advanced camera capabilities in its premium phones.
As far as generative Artificial Intelligence capabilities are concerned, Xiaomi will take it slow and focus on general AI and Machine Learning (ML) features such as smart drip battery charging tech that ensures batteries degrade at lower speed and the device will be able to serve the customer for several years.
Xiaomi to increase partnerships with local manufacturers
Muralikrishna said that Xiaomi will try to expand local procurement of components for phones, smart TVs and Internet-of-Things (IoT) devices such as earphones and smartwatches.
Besides Foxconn, it has built ties with local manufacturer Dixon Technologies, Optimus, BYD and more.
By the end of 2023, Xiaomi had managed to source 33 per cent of the non-semiconductor components for its phones. And, in next couple of years, it plans to increase to 55 per cent.
When will Xiaomi Electric Vehicle (EV) make its foray in to India?
Credit: Reuters
Xiaomi launched its first-ever EV SU7 (Super Ultra 7) this year in China, but is unlikely to come to India anytime soon. Founder and CEO founder Lei Jun has revealed that the company will focus on China market for at least three years.
However, in future, provided there is a conducive environment in India, Xiaomi is expected to bring EV.
In the meantime, Xiaomi will increase the product portfolio in robot vacuum cleaners and Air Purifier categories.
To mark the 10th anniversary of the company, Xiaomi is launching multiple products — Redmi 13 5G, Redmi Buds 5C, Xiaomi RVC X10 robot vacuum cleaner, Pocket Power Bank 10000mAh and Power Bank 4i 10000mAh. Also, the company is expected to showcase EV SU7 in Bengaluru on July 9.
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