You probably know that mi phones are cheaper compared to other phones that offer the same specs. Xiaomi is a Chinese brand founded in April 2010 and headquarters in Beijing. Apart from smartphones, this company manufactures other products such as mobile apps, earphones, shoes, and fitness bands to name a few.
Xiaomi released its first phone in 2011 and became China's largest smartphone company in 2014. Now, it is the fourth smartphone manufacturing company after Apple, Samsung, and Huawei.
Xiaomi was launched the first time in India with MI3 and most of the buyers encountered the scenario of laughter. It was all due to the myth that Chinese phones are not of good quality but Xiaomi became able to wipe that myth within 5 years and developed a good reputation. As of now, it has won the heart of millions of smartphone users worldwide.
Now, let's explore some hidden secrets that Xiaomi has adopted to offer high specs smartphone at a cheap price.
Source: indiatvnews.com
Why is Xiaomi so cheap even with high specs?
1. Quick and large-sized production
Products alignment and Products platforms across various countries is the main reason for Xiaomi's success. Established brands like Apple and Samsung offer almost similar models in most of their operating countries. This helps them to achieve real economies of scale.
It allows them to squeeze margins of suppliers and promise them a bigger volume in turns. They became able to establish their first factories in India to take advantage of Make-In-India programs.
2. Direct online sales without monetary advertisements
Xiaomi has learned to save money. It does not invest in any advertisements and relies on the social media network and mouth-to-mouth publicity.
This principle works quite well and effectively. It focuses more on selling products through online platforms like Amazon and Flipkart rather than approaching the retailers and shopkeepers. They also sell their phones through some other stores like Airtel store and mobile store which does not involve any retailer's margin in between.
3. Use of social influencers
Xiaomi, I think is the first brand that has been successful to use social influencers in an excellent manner. They frequently conduct parties, conferences, and take customer's feedback seriously.
Xiaomi will keep on calling you for feedback and involvement if you are a well-know social influencer. This overall process creates a buzz in social media and gains lots of customers without expensive advertisements, thus minimizing cost.
4. Flash sales policy
A company with a flash sales policy produces limited numbers of smartphones, assume around 4-5 thousand with the aim of selling it immediately offering flash sales.
This policy helps to eradicate the maintenance cost of inventory and storage and allows them to earn a good profit without going through the phase of loss.
Many times, this policy has been criticized by fans as they fail to fulfill their demands due to limited stocks.
5. Always provides in-flavor models
Xiaomi always makes sure that they target the market right and never experiment with old technology or processors.
These new technologies and processor provides a lot of favors from customers and bloggers. Today in the era of evolving technologies, customers always prefer the latest technology and purchase them only by observing what is under the hood.
6. Expansion out of local boundaries
Xiaomi has extended its boundaries and wings to other countries like Brazil, Southeast Asia, Mexico, India, etc rather than selling it to a small customer base.
This company is expanding slowly and imprinting good impressions in several countries.
7. The policy of scarcity creates demand
Initially, they ensure to supply lower than the market's demand. This creates lots of gossip among the customers that they weren't able to receive the phone from the company's flash sales.
This issue gets a peak in social media and in turn the company gets good publicity. People will know about the company and the company will be able to generate larger sales.
8.Better reliability
Chinese products have failed to establish a good reputation especially in under-developing and developing countries. Chinese hardware in most of the products is quite disgusting and unreliable.
But it is not the case in mi smartphones as they have offered good hardware and their service centers are quite appreciated.
9. No Bloatware
The space occupied by preinstalled apps is known as bloatware. Most of the smartphones come with lots of preinstalled apps and are non-removable.
But mi phones come with very few apps and are removable so that you can avail of some extra space.
10. No warranty void on rooting
This is one of the most unique features offered by mi phones. You won't lose your phone's warranty even if you root your device.
Indian smartphone marker YU Televentures has also followed no warranty void on rooting strategy.
Conclusion
From the above explanation, we can conclude that Xiaomi phones are goodly affordable along with great specifications. The performance of mi phones is also great with excellent hardware quality. Their unique features like no warranty void on rooting have attracted large customers towards them. It is very clear that Xiaomi is so cheap even with high specs.
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