how they doing it?
But even though Xiaomi maintains low prices for its phones, it’s still able to extract some profit from their sale.
“I think they are making at least 100 dollars of profit with the Mi 3,”
Xiaomi doesn’t spend money on traditional advertisements. It does not have a major network of its own physical stores it needs to staff and maintain. Instead, it has done away with those costs, and largely sells its phones directly to consumers through e-commerce.
Limited sale offerings
Whether or not you can actually get your hands on a Xiaomi phone is another matter. When the Mi 3 initially went on sale last October, the first batch of 100,000 units sold out in less than two minutes.
The company faces less risk by managing a smaller inventory. It also lets Xiaomi gradually ramp up production as component costs decline over time.
Chinese vendors including Huawei, ZTE and others are also building similar high-end products for low prices and using online channels to drum up sales, she added.
As for Xiaomi, the company plans on taking that same business model outside of China. This year, it’s targeting 10 foreign markets including countries in Southeast Asia as well as Brazil, Mexico and Russia.
Xiaomi following:-
gpmt-- Gross Profit Margin Target
Mathematically, GPMT = (Price of the product – Cost of the goods and services being sold) / Price of the product.
Manufacturing strategy of Xiaomi:-
It sources components itself and deals with these sellers with a different strategy. Xiaomi also bets on ‘Moore’s Law’. Unlike other bigger players who discontinue their models after 6-8 months in the market, Xiaomi sells it products for upto 18-20 months after launch. This means that, in accordance with Moore, the price of the individual components go down while the price of the phone remains constant throughout.
Owner of Xiaomi already Forbes face:-
Source WIKIPEDIA +MI
Lei Jun (雷军) (born 16 December 1969) is a Chinese businessman who is known for founding Xiaomi Inc, one of China's largest technology companies. He is often referred to as the 'Steve Jobs' of China for making several world changing companies and revolutionising multiple industries. Along with Alibaba Founder Jack Ma, Lei Jun is the face of China Inc.
Lei's net worth is estimated to be 35 billion US dollars since he owns 77.8% of Xiaomi, which is a $45 billion company. In 2011, Lei was ranked #201 on Forbes list of China’s 400 Richest. In 2014, he was named Businessman of the Year by Forbes.
Future of xiaomi :-
The company has raised $1.1 billion at a valuation of $45 billion and is investing in everything from online video content to wearables and smart-home technologies and products.
Zuckerberg wish to invest in xiaomi.
This behemoth mobile manufacturer coming to India with big plans if Indian survivors likes Lava, Karbonn and Micromax not expecting that a onlne sales will damage there physical sales of products tight seat belts on guys because this giant dragon can fire on local players via Indian Ecommerce help Flipkart....
Think big ..awesome Brand
