Transcript
XIAOMI, Inc
Always believe that something wonderful is about to happen.
- Xiaomi Mantra -
70 Million Xiaomi’s actual smartphones
sold in 2015, directly to customers.
#1 in CHINA By smartphone shipments 2015
15% 14.50%
13.40%
8% 8.10%
Xiaomi Huawei Apple OPPO Vivo
#5 in Wordwide Market Share 2015
23%
16.20%
7.40%
5% 4.90%
Samsung Apple Huawei Lenovo Xiaomi
#2 in World’s Most Valued Tech Startup
#2 in
50 SMARTEST COMPANY 2015*
#1 TESLA MOTOR
#2 XIAOMI #3 ILLUMINA #4 ALIBABA
*) MIT Tech Review
mobile internet
Mi Product Milestones
2011/12
Launch MIUI, Mi One, & Mi
2. Value reached up to
4 Bio.
2013
Launch Mi 3. Estimated value 10 Bio
2014/15
Launch Redmi, Mi 4, Mi Band,
Mi Box, Mi Wifi, Mi Yi, Mi Pad, Mi Smart
TV
2010
Xiaomi founded.
Profit from internet
marketing.
Value at 250 Mio in 8 months
2016
MIUI 8, Mi 5, Mi Mix, Mi Camera, Mi Yi M1, Mi
Drone, MiJia Smarthome, Mi VR, Mi Water & Air
Purifier, Mi Robot Vacuum
Current value at 46 Bio
XIAOMI BEST PRACTICES
1. World Class Executive 2. Innovative marketing 3. Dinamic-pragmatic supply
chain management & manufacturing
4. Future expansion
#1
WORLD CLASS EXECUTIVES
Xiaomi Executives
Experienced from Microsoft, Motorola, Kingsoft, Sina, & Google.
Responsible for developing MIUI ecosystem (Mi Cloud, Mi Theme, Mi Credit, etc), R&D, hardware design, & software development.
HUGO BARRA
VP Global ex Google Android Product Management
#2
INNOVATIVE MARKETING
Xiaomi sells online directly to customers
from their own websites
Social Media Marketing & Customer Participation via
Mi Fans, Mi Festival, Mi Forum
Less advertising, endorsement, and no marketing agencies. More user generated content from social media.
Experience Store
#3
SUPPLY CHAIN & MANUFACTURING
• No excess inventory, tighter supply control • Shortens procurement process & lower cost
by sourcing from Asia Pacific vendor (etc Sharp, Sony) • Reduce shipping cost by locating warehouse
near e-commerce companies
SUPPLY CHAIN STRATEGY
• Strong partnership with Invitec & Foxconn (also Apple vendor) • Essentially using same component for new phone
• Support longer product life cycles with software update, spare part & service support.
• Resulting big enough profit margin to keep customer price low.
MANUFACTURING
#4
FUTURE EXPANSION
FACING THE GIANTS Xiaomi actually is gaining niche market by offering high end Android
devices using many of the same components from Samsung & Apple, but at very attractive price.
But, they also have to look out their native competitors like Huawei, Oppo, & Vivo.
GLOBAL EXPANSION
• Depends on Xiaomi ability to replicate and adapt their business model in other region. So far, India has done well.
• Comply with regional regulations regarding local material substance.
Xiaomi’s Future Ecosystem
Internet of Things
ESTABLISHED IDEAL
START UP
HIGH SCALE
LOW SCALE
LOW EMPATHY
HIGH EMPATHY
#customeroriented
THANK YOU
Arya Pamungkas animum.fortuna@gmail.com
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