Bangalore comes up with interesting information about Xiaomi's commercial strategy in India. In an interview, Managing Director Lei Jun said the Chinese phone and home appliance manufacturer will invest up to $ 1 billion in Indian 100 startup over the next five years with the goal of creating an App ecosystem around to your brand of smartphones.
You said that Xiaomi Corp. and its affiliated Shunwei Capital, which have already acquired shares in six Indian Internet companies, including Hungama and KrazyBee, will invest in activities such as content, financial technology, hyperlocal services (including mobile phone repairs ) and production, in order to increase the spread of mobile internet in the country.
"In China, over the last four years we have invested 4 billions of dollars in over 300 companies. Over the next five years we will invest in other 100 companies in India. In practice, we will replicate China's most successful ecosystem business model in India. We will have all kinds of services and products, perfectly integrated with each other. This is the Xiaomi business model. We focus directly on some key aspects, while for the rest we let our partners take care of it. We have achieved incredible results over seven years thanks to this partnership / affiliate model, "she said.
Xiaomi, one of the most valuable private technology companies in the world, is the largest Chinese investor in India after the two giants Alibaba Group Holding Ltd and Tencent Holdings Ltd. If the company achieves its investment goal, it would become one of the largest internet investors. in India. Unlike Alibaba and Tencent, Xiaomi is looking for investments that expand the use of the mobile internet by creating a link between users and phones, in a smartphone market that today sees customers poco “Loyal” to the brands, constantly looking for the next novelty. By providing entertainment content and other exclusive services, Xiaomi hopes to make its smartphones more useful and interesting for its customers, differentiating its offer from those of rivals such as Samsung, Vivo, Oppo and others.
"We are interested in any app that increases the frequency of use of smartphones, with the goal of expanding mobile Internet access. We only select minority shares with the aim of working closely (from a commercial point of view) with these companies, "she said.
Xiaomi, who entered India in 2014, covered 23,5% of smartphone shipments in the country in the September quarter, according to IDC research company, becoming the number one smartphone manufacturer in India and winning a tough head-to-head deal with Samsung it attested to a similar market share in the same period. However, in the three previous months, the Chinese producer's market share was 17%.
Xiaomi, who increased share capital to a $ 45 $ 2014 valuation, sells its phones to around 60 countries. India is the largest market in the company outside China, where it markets a wide variety of products including televisions, smartwatches, air purifiers, water purifiers, etc. and will introduce new ones in the next two quarters, she said.
The current evaluation of Xiaomi makes Lei Jun not only a successful "serial" entrepreneur, but also one of the richest men in China. Among his previous businesses was Joyo, an online book retailer bought by Amazon when he entered China.
She closes by highlighting how the company's further strategies will be shared at the right times. "To date, we are not going to give more information. Being a public company has its advantages and disadvantages. We can make IPOs when we feel confident. At present we have enough liquidity. We did not record losses except in the 2015, when we lost something because of the global expansion. "
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