Xiaomi: the Smartphone Powerhouse turned into A Prominent IoT Provider

Xiaomi, A Chinese-based multinational electronics company has had its ups and downs since the beginning of its journey. When the conglomerate entered the fiercely competitive smartphone market in 2010, it ever so slightly had a positive response. The company, then only presented an Android-based operating system and wasn’t indulged in selling smartphones as it didn’t launch one.

Despite the comprehending struggles of seven years, the company broke all the records and became the world’s largest smartphone-making company; generating an annual revenue of $15 million. The clock has just ticked at the right time as its smartphone comes with a vast utility of features and was available at affordable rates. A vast revenue generation was incorporated from its customers in India as the customers started beaming the need for a smartphone.

How was Xiaomi able to grow so explosively and what lessons can other companies learn from Xiaomi rise?Accelerating its growth rate, Xiaomi transformed into a gigantic force of IoT devices, generating an extravagant revenue of $37 billion by selling more than 210 million IoT devices across 90 countries. The confining aspect for the company has been its modulation strategy. Instead of competing head-on, Xiaomi courted tech-savvy smartphone users by providing them with free software and building a fully-fledged online community to engage with them. This helps the company to carve out feedback from the customers on what they liked and what aspects needed an upgrade.

The large segment of the consumers loved the unprecedented attention being provided by a tech firm and were highly gauged to provide the company with suggestions to better the quality and the features. The co-development process enhanced Xiaomi brand awareness and likability and prepared a segment of potential consumers for the entry of Xiaomi phones, without spending money on traditional advertising.