Recently Xiaomi had created a new record in the smartphone market by selling 3 lakh units of their redmi note 5 under 3 minutes on online flash sale. Xiaomi is very cautious in offering the features and value for the money you spent for your phone which creates a huge popularity among xiaomi phones in Indian market. There are some features which made Xiaomi unique from other mobiles xiaomi offers great features than its competetors at a low price along with high performance and descent camera. Founded on 2010 by Lei Jun how Xiaomi able to sell their product under the low price, lets have a look at those Xiaomi Secrets.
They Sell their phones through online:
Xiaomi sell their phones through major shopping sites like Flipkart, amazon etc.. where you can get them at their original price and it will go up if you visit a showroom. They focused mainly on flash sales in which only limited units will be sell in a fixed time by this way they can also prevent the over production disasters. You can also order from their official website. Through online platform they can reduce the price of their phone.
Unlike other brands Xiaomi doesn’t spend money for ads or hiring brand ambassadors as we know other companies do these and are expensive About 20 percentage in the price of other phones are charged from their customers for what they spent on advertisement. Xiaomi customers don’t have to pay for the advertisement because there is none. They do promotions of their product through social platform and their publicity mostly comes from the word of mouth by its satisfied and happy customers.
No warehouses and offline stores:
As Xiaomi focusing on manufacturing limited units and sell them all in a flash sale within a short time. they don’t need warehouses to store their product. Other companies uses Warehouses and logistics which are expensive with human resources and other maintenance costs. They don’t have an offline stores which helps drastically in reducing its cost.
Outsourcing their Hardware:
Xiaomi doesn’t manufacture hardware by their own but they outsource it to another reputed brand Qualcore , they are the experts in hardware manufacturing through this they can reduce the expense of huge manufacturing units and labour.by selling thousands of smartphones in a matter of second they managed to stay away from warehouses.
Nearly Zero profit margin:
Xiaomi get very low profit on each unit it sells, they concentrate more on quantity as they managed to balance by selling large units under a short span of time. Xiaomi don’t have any mediator like a dealer but they have tie up with many e-commerce sites which helps in saving the commission to the dealers. Besides smartphone Xiaomi have other products such as power banks etc..