According to a top India executive, Xiaomi India’s shift in strategy to have a clear focus is beginning to pay off, and the company’s performance in the second half of 2023 will be better than it was the previous year. The official also stated that the strong consumer attitude will continue to deliver benefits.
“We are content with our current position and the work that still has to be done on the brand journey. President of Xiaomi India Muralikrishnan B told ET, “We have made great progress in rejuvenating the brand and making it connect with the masses.” “And in the last nine months, we rate ourselves fairly decently in terms of how we have executed this.”
By simplifying the margin structure and concentrating on the 5G market for devices under Rs. 15,000, the brand has improved its retail skills, according to Muralikrishnan, who also mentioned that Xiaomi was the most popular smartphone brand in August.
According to Muralikrishnan, Xiaomi will benefit even more from the nine-month performance and the holiday season, which will present the company with an “opportunity” to do even better in 2024. Gaining and keeping consumers’ confidence is more significant than gaining market share. Establishing a successful, long-lasting, and effective company is equally crucial. Making decisions after you’ve made these two obvious decisions is quite easy.
He went on to say that the corporation has benefited from fixing the error of releasing an excessive number of smartphone models in 2021–2022.
According to Canalys data, Xiaomi shipped 7.6 million smartphone units in the third quarter, compared to market leader Samsung’s 7.9 million units shipped. This represents a narrowing of the gap between the two companies. Vivo dropped to third place with a 17% market share, behind Realme (13%) and Oppo (10%), in that order.
Estimates from Counterpoint Research show that Xiaomi came close to taking the top spot again, but was unable to do so because of the disparity in supply and demand.
Even if the company performed well from July to September, Muralikrishnan stated that the corporation is not considering taking the lead anytime soon and is instead concentrating on carrying out its plan.
“Xiaomi redesigned themselves, and it appears they capitalised on their advantages. As a result, the Redmi 12 5G was created. Were it not for the disparity in supply and demand, they could have sold more. In addition, by concentrating on entering the mid-tier portfolio, they were able to increase volumes and finished the quarter in close second place, according to Counterpoint’s research director Tarun Pathak.
However, Pathak believes that in addition to concentrating on the mid-to-premium market, where they find it difficult to compete with Vivo and Samsung, they need also concentrate more on the channel strategy in line with their already established approach.
The Xiaomi executive stated that the company is constructing its premiumization strategy in the price range of Rs 25,000–Rs 40,000, but that all price points, including those below Rs 10,000, are equally significant. “Our entry to the mid-level segment has always been our strength.”
Over the past few years, Xiaomi has encountered opposition from Indian authorities such as the Income Tax Department and the Enforcement Directorate.
When asked if the leadership of India changed the operational plan in response to the current cases, Muralikrishnan stated that a major priority was upholding open lines of communication and fostering trust with physical, online, and service partners. Building trust with partners and enlisting their support is a crucial component of our strategy, according to the statement.