Company plans to launch a new product category every year after launching its smart TV last year
Xiaomi India, which has disrupted the mobile phone industry, is now aiming to be one of the top five brands that will change the face of technology in the country.
As India is on the cusp of a technological shift with 4G and internet of things (IoT) making inroads, the market offers a huge potential for the company.
The Chinese major, which entered India about five years back, now plans to launch a new product category every year. “We are working on categories such as smart ACs, washing machines, refrigerators, laptops, water purifiers and other smart consumer appliances which we have in China. We might bring one or more such products this year,” Xiaomi India MD and Xiaomi Global vice president Manu Jain told DNA Money.
Last year, the company had launched its smart TVs. “We are here for the long term, for the next 20, 30, 50, 100 years or more...at the leadership level in India and globally, we are building a brand that people would really love and admire and become a household name. We want to be among the top five technology companies in India. It is not an easy journey and will not happen overnight,” he said.
The mobile firm also expects the next level of growth to come from the offline segment.
The company on Tuesday launched Mi Pay, its UPI-based payment system, which will compete with Google Pay, WhatsApp payment platform and Paytm.
The beta version of Mi Pay was launched in December last year. Mi Pay will be available soon through Mi Apps store. Xiaomi has partnered National Payments Corporation of India (NPCI) and ICICI Bank to launch Mi Pay in India. Users can make payments to other Mi Pay users, or through UPI ID and bank accounts as well. Xiaomi also offers QR code option for transactions on Mi Pay.
It also announced a new entry-level smartphone series in India -- Redmi Go priced at Rs 4,499. The handsets are their first Android Go smartphone and aimed at tapping the feature phone users.
There are about 400 million users who are on feature phones, and out of this around 100 million users in some way or the other can be tapped into the Redmi fold. “The idea is to tap these 100 million users with Redmi Go series,” Jain said.
It also announced the opening of its seventh manufacturing plant in India in partnership with Flex Ltd. Currently, 99% of Xiaomi's smartphones sold locally are made in India.
Xiaomi is also bringing the component ecosystem to India. The company said about 65% of the smartphone value is sourced locally and may increase going forward, although Jain did not elaborate on the company's target on the local sourcing of mobile phones. However, its smartphone chargers, USB cables and batteries are nearly 100% locally sourced.
Xiaomi, which has also dislodged Samsung from its top position in the mobile industry, is now focusing on the offline market to push growth. It already enjoys the top position in the online market.
Offline retail is still a huge segment with nearly 40% of the offline market focused in rural regions, Jain said.
Last year on October 29, Xiaomi opened 500 retail points – MI stores in a single day in rural areas – which will cover areas as far as Moreh, 650 km from Guwahati located on India-Burma border and just 100 meters away from Burma and Aalo (Along) in Arunachal Pradesh, the last town of India bordering China.
Xiaomi India plans to open 5,000+ MI Stores across the country by end of 2019. The new MI stores will serve as Xiaomi's prime retail stores situated in several towns ranging from Tier 3, 4, 5 and below. These stores will sell all the products from Xiaomi stable, be it smartphones, TVs and other consumer products, the company said.
Faisal Kawoosa, a technology expert, says around 40% of mobiles – feature phones and smartphones -- will continue to be sold online while rest will be through the offline medium.
SMART MOVE
- Rs 4,499 – Price of entry-level smartphone series under Redmi Go
- 400 mn – Feature phone users in India
- 100 mn – Users Xiaomi targets for its Redmi Go series
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