Xiaomi, China’s fastest selling mobile device manufacturer, and the world’s third largest smartphone maker next only to Samsung and Apple, will be breaking ground in the US as part of its global expansion strategy.
But instead of bringing along its increasingly popular Mi smartphones and tablets, it will be taking baby steps in the process by launching and making available for retail stateside headphones, earphones, and smart bands.
Modern Readers pointed out that company Co-Founder and President Li Bin confirmed the official entry of Xiaomi in the US as well as its plans to introduce into the market its accessories to include headphones, earphones, and smart bands.
Calculated entry
The company will be taking it slow, nice and easy since it still has to learn a lot from the US market. It is a calculated entry with the intention of making a feel of the market first before planning and implementing the next phase of its business strategy.
Xiaomi would not be selling its more popular and profitable consumer electronic devices like smartphones and tablets because it cannot compete using its selling point of low cost because it has to factor in as well the typical US carrier business model, in addition to other reasons of course.
So Xiaomi will just be contenting itself with MIUI operating system and user interface accessories, the way the company is doing outside of its home market in China.
The idea for the calculated business strategy of Xiaomi is to find a connection to the buyers or a hook to the consumers so that when it becomes a household name in the foreign market, it can then introduce its other products.
Xiaomi plans to use fan expos and social media interactions to market its accessories to consumers including headphones, earphones and smart bands. It will then use consumer feedback on its products to make revisions in its business approach as necessary.
The company used the exact same approach in making a name for itself in China and India. Company President Li Bin and Vice President Hugo Barra are both optimistic that the same strategy will also work in the US market.
Best kept secret
Xiaomi is regarded today as the consumer electronics industry’s best kept secret in the world. Barely five years into the business, the company has become the fastest selling mobile device maker in China, outperforming even Samsuing in the Chinese market.
Now valued at US$45 billion, Xiaomi has cemented its business largely through direct sales, with its smartphones and tablet lines as its primary drivers.
But it would not be bringing the devices with its foray into the US market, working first to ensure that it gets a niche among Americans before rolling out its cash cow devices the way it did in its home country and India.