Just in time for the company’s fifth anniversary, rising Chinese smartphone maker Xiaomi reported yesterday that it broke its own flash-sale record, selling more than two million phones within 12 hours, reportedly generating around $335 million in revenue. The secret to its success besides hunger marketing? A loyal fan base built from smart marketing.
The flash sale, as part of Xiaomi’s “Mi Fan Festival”, is a tried-and-true tactic for the company to leverage its zealous fan base. Besides flash sales, the company also builds up loyalty by routinely hosting exclusive parties and sponsoring festivals for fans across the country, and systematically rewarding fans that volunteer to answer questions on online community forums.
Moreover, savvy social media marketing has also played a big role in Xiaomi’s outreach and community-building efforts. Xiaomi’s page on the Chinese microblog Weibo currently has over 10.7 million followers, and the company typically announces its flash sales and other updates on its social media platforms as well as on popular messaging app WeChat.
Still, Xiaomi’s ambitious expansion into certain international markets so far has been met with lackluster responses, and a major reason behind such underwhelming performance is that its marketing doesn’t translate well across nations. Without a fan base to hype up its products, Xiaomi suffers from low brand recognition and loyalty in oversea markets. It’ll be interesting to see if the company sticks with its usual marketing tactics, or try something more localized instead.
By now, you have probably heard about Chinese smartphone manufacturer Xiaomi. Heralded as either “the Apple of China” or “Blatant Copycat”, depending on whom you ask, Xiaomi’s meteoric rise in recent years has caught the eyes of western media, even if its target market has been almost exclusively domestic so far. Popular as their products are in mainland China, even outperforming iPhone in a recent study on leading smartphones’ app usage in China, it is not until recently that a few new developments from the company indicate the big ambition of Little Rice (a literal translation of Xiaomi).
Earlier last week, Xiaomi launched Mi 4, its newest offering in smartphones. Boosting a steel frame, IR blaster, top-tier specs and an affordable $320 pricetag, it is a dazzling product that once again raises the bar on “made-in-China” budget phones. More importantly, the “one more thing” that Xiaomi revealed along with Mi 4 is a $13 sleep and fitness tracking wristband named Mi Band. It also promises a battery that lasts up to 30 days and a proximity-based function that unlocks linked Xiaomi phones without password. By introducing such an aggressively priced, multi-functional smart wearable, Xiaomi is not only gaining an unchallenged head-start in the wearable market in China, but also potentially upending the upscale positioning that most wearables seem to employ in the global consumer tech market.
Another indication of Xiaomi’s big ambition is its recent foray into the international market. By striking an exclusive partnership with India’s biggest e-commerce operator Flipkart, Xiaomi has launched its smartphones in the subcontinent, marking its first step in entering the Indian market where Samsung and native brands currently dominates. In addition, Xiaomi is starting sales in 10 new markets including Brazil and Russia, while also reaching out to local e-commerce operators for its expansion to the Philippines and Indonesia. Such an extensive roll-out has turned out fairly successful so far, with Xiaomi reportedly more than doubled its year-on-year sales since the international expansion began.
Formidable as Xiaomi’s rapid growth might seem, the big tech players in the western world don’t need to start worrying about Xiaomi just yet, as the company is still very much focused on markets in the developing countries. Whether its products are quality enough to conquer the global market also remains to be seen. And the company’s long-standing habit of unabashed appropriation of Apple could hinder it from entering the western market where the tech giants are litigious and have deep pockets. Nevertheless, one thing is clear to see: the little rice is aiming big, as the company starts shouting “Xiaomi the money” at the global market.