Since its birth in 2010 the truth is that Xiaomi has always lived in the limelight . His aggressive staging, with terminals at demolition prices and in very limited runs, give good faith of it from the beginning, turning their launches into races and long lines in his native country, China.
Years later and after waiting until despairing, finally the international markets we have received the guys from Lei Jun with open arms, although with limited catalogs, while we wait already this year 2018 to Xiaomi Mi 7 , future brand standard bearer, and a phone for gamers called Black Shark that we will meet officially tomorrow.
Xiaomi is news, however, not because of leaks or anticipated images of its upcoming releases, which also exist, but by the words of its CEO, Lei Jun , which surprised everyone, strangers and loved ones in an interview share with all of us the formula of your success .
Xiaomi already works on an expected IPO , and perhaps for that reason the CEO of the firm has begun to share details about his company that will try to convince the toughest investors. Be that as it may, the truth is that the manufacturer wants to opt become the number one in China in the next ten quarters , and that is undoubtedly the biggest short-term goal of a Xiaomi already accustomed to success.
In all safety, however, the most difficult thing for Xiaomi will not be selling many phones, but explaining them the formula of “do not be greedy” that promulgates Lei Jun to cement the foundations of your company’s success to the toughest investors, who will expect benefits and dividends from the first minute.
The maximum leader of Xiaomi believes, however, in his words, as much as make them appear in the company’s statutes , that nowadays not only sells electronic devices in China, but also backpacks, pens, towels and practically all kinds of objects that we can imagine.
We must stop the greed trend and gain the confidence of consumers. So now we are deliberating, and I think we can write this in the company’s statute, that we will not exceed, forever, a certain number of percentage points in profits with our hardware.
Our goal is to earn one or two percent, and we want all consumers who buy our products do not doubt it.
The CEO of Xiaomi has not been satisfied with stating that his company will never be greedy – we will see how he sells that to investors – but he added that their products usually have a price up to 50 percent lower than their direct competition if we look for devices of similar qualities and benefits.
Lei Jun also explained that instead of making great profits with the sale of hardware, his goal was to earn more money with services , undoubtedly center of the experience of a smartphone today. An affirmation that perhaps reassures the markets more in the face of an emerging stock market.
Speak experts and analysts, who say that the successful Chinese manufacturer aims for a Initial public offering on the Hong Kong stock market in the very short term , surely throughout this same year:
Xiaomi believes that hardware is only a means to an end, with the goal of being an Internet company and making money with services. However, making money today with hardware can be key to staying alive in this environment, before the Xiaomi ecosystem starts to bear fruit.
Kiranjeet Kaur, research manager at IDC
He did not want to recognize Lei Jun, who has not affirmed or denied the negotiations for this OPV, but has wanted to make it clear that in the coming years smartphones will account for a much smaller share of revenues of your company, which already works with a vast catalog of different products and consumer goods.
It is worth remembering a Xiaomi that in its beginnings was the start-up most valuable private in the world , reaching valuations of about 46,000 million dollars in 2014. Today, the Chinese manufacturer has invested in more than 100 companies that are already partners at the time of launching products, from suitcases to towels passing through light bulbs and notebooks, although the main business is still smartphones.
Xiaomi is already number one in the market in India ** with more than 8 million phones sold in the last quarter of 2017, 27 percent of the market, and ** continues to grow in China adding now also international markets , which has finally decided to arrive officially.
2018 is a very important year for Xiaomi , maybe that’s why the manufacturer presented for the first time stand own in the Mobile World Congress, later updating his smartphone more prestacional with a My MIX 2S that will open the way to many more novelties.
Even so, Gartner analysts such as CK Lu have claimed that relying on small profit margins and very high rotations is a risk , and that if Xiaomi failed in one or two models, it would have problems immediately. The Chinese firm must spread risks, and in the development of its services on the Internet is the key .
For the moment, Lei Jun has announced very ambitious goals for his company, which will seek Regain first place in sales volume in the complicated Chinese market , where Oppo and Vivo have intensified the battle by expanding their stores and investing aggressively in marketing.
Continue its international expansion It will also be very important, although the manufacturing and logistics chain must be ready to assume growth, and in addition from Xiaomi do not forget the consumer :
What I want to achieve is that when consumers need a Xiaomi, they can close their eyes and buy it thinking that it is an absolutely high quality device that has a very low price.
In Andro4all | The Xiaomi Black Shark appears on video one day before its presentation
Via | South China Morning Post
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