At the end of last year, Xiaomi completed a feat that other manufacturers failed in the past 6 years in India: beyond Samsung to become the largest smartphone brand in India. This is an important moment for the Chinese manufacturer, especially in the light of millet 3 years ago to start selling mobile phones.
Xiaomi started slowly in India, and because the share of online offline market was snatched by OPPO and vivo, the financial situation of Xiaomi in 2016 was rather bad. Millet from the beginning of last year began to self - adjust, emulate Samsung's business model, and then quickly rise, by the end of the year to achieve the results of surpassing Samsung.
Let's see what millet is doing, and surpassing Samsung has become the largest smartphone brand in India.
Leading the mobile phone market
At any time, Samsung has more than 10 cheap smartphones to sell on the market. This company has provided massive equipment to India market, and the difference between different models is not large, which helped it get tens of millions of smart phone sales. Now, millet is doing it.
Over the past 6 months, we have seen millet released the millet A1 based on Android One, the red rice Y1 and Y1 Lite focused on self timer, the entry-level red rice 5A, the red rice Note 5 and the red rice Note 5 Pro.
According to the current situation, Xiaomi will not change this strategy in the short term. We will see red rice 5 listed later this month. Next is Xiaomi Mix 2S, the product will be released in March 27th. The mobile phone is likely to enter the India market as the millet is gradually developing the high-end smartphone market.
From the point of view of the internal hardware configuration, red rice Note 5 is exactly the same as its previous generation, and the most important change is that it changed into a 18:9 screen. In the past 4 years, Samsung has been selling this screen in India, and has launched a series of Galaxy J models than smart phones. The hardware configuration between different models is almost the same.
Still, Samsung has successfully sold tens of millions of Galaxy J phones, the best - selling Samsung mobile phone in India for years. Millet is now taking the same route, but there is a key difference: red rice Note mobile phone is very popular, and it is not assembled with spare parts.
For example, red rice Note 4 became the most cost-effective mobile phone in India last year, while the price of red rice Note 5 is lower than that. Xiaomi hopes to guarantee that this year it will also offer a low-cost model of less than 10 thousand rupees (153 dollars) for low-income consumers in India this year.
At the same time, Samsung is also insisting on the iterative upgrading of the product model. Its On7 Prime, launched for red rice Note 5, retails at Amazon's India station for only 12999 rupees (about $199.6). Although Samsung launched the mobile phone two months ago, its hardware specifications had almost nothing changed compared with its 2016 models. The same mobile phone was also called Galaxy J7 Prime. Samsung has also launched another online version of the mobile phone called Galaxy On Nxt.
On7 Prime is equipped with a 5.5 inch Full HD screen, including 8 Cortex A53 core Exynos 7870 chipset, 13 million pixel rear camera, 64GB internal storage and 3300 Ma capacity battery. For the new models launched in 2018, the new contents include 13 million pixel cameras, 4GB RAM, and the Samsung Mall function that collate multiple list of e-commerce outlets in one location.
When the J7 Prime was launched in 2016, it was not the fastest low-end smartphone, the On7 Prime, inheriting all of its configurations. So the phone was designed out of date and lacked the basic configuration of environmental light sensors and gyroscopes. And the screen is still dull TFT display screen.
As the retail price of On7 Prime is 1000 rupees higher than the red rice Note 5, it is easy to see why Samsung will lose millet in the low end mobile market.
But it's not a smooth sailing.
Although the rapid development in India, but we found that millet is still inadequate in a field, that is, the problem of sales channels. Xiaomi continues to sell mobile phones through limited time rush buying, which means that most customers who are interested in new models and have registered have not been able to get the latest models.
For example, more than 2 million people were registered for the first open sales of red rice Note 5 Pro, but millet provided only 300 thousand mobile phones. These phones are snapped out in a few minutes, and the same happens every time they are open. Xiaomi said that it will increase the sales channels and supply of mobile phones, so that consumers can buy their phones online, but obviously, there is still much work to do in this field.
It's one thing to have a good product that countless people are flocking to, and it's another thing to make sure it can be bought by a customer through a certain channel. Millet also needs to redouble its efforts to ensure that it does not lose to its competitors in this respect.
Strengthening local manufacturing capacity
Another area of concern for millet in the past two years is local manufacturing. As the government of India began to levy taxes on mobile phones imported to the country, all smart phone manufacturers were building local factories to compete effectively.
Millet has two factories in India, and all its red rice phones are assembled locally in India. Millet is preparing to build third factories to increase its mobile phone production, and it has also invested in an independent factory that produces mobile power.
Samsung is the first company to seriously consider the establishment of a local manufacturing plant. It has been selling locally made mobile phones in India for some time. This can provide a unique pricing advantage for it.
Millet is also focusing on local manufacturing, hoping to ensure that it maintains its advantage in product pricing.
Marching into the new category of products
Millet is still trying to expand the range of its India product portfolio to improve the diversity of its products. It has already launched millet TV in India. For a long time, millet fans have been waiting for this product. The 55 inch millet TV 4 is equipped with a 10 - bit 4K screen, with a price of only 40 thousand rupees, far below the price of similar products from Samsung, SONY and LG.
As far as its value is concerned, millet has not positioned its products in the high-end OLED TV market. Instead, it aims at similar products launched by Vu, Micromax and other cheap TV brands. This is a wise move, because millet TV has a better quality and a recommendation engine.
Pave the way for more products
If millet is behind the move of Mi Home in Chennai, it may indicate that the manufacturer is going to introduce its lifestyle products to India this year. Millet millet in India last year launched air purifier, but it is in the domestic market sales of products Chinese intelligent Home Furnishing far more than these, intelligent mobile phone as its way of life, millet products are high quality and inexpensive, provides a series of dazzling.
With the advent of television products and the coming of millet ecological products, millet is preparing to meet challenges in the field of new categories of products. There is a rumor that millet will be in the first public offering later this year, so it will certainly increase its market share as much as possible before it is listed.
Only time can prove whether Xiaomi can compete effectively in the field that it wants to enter. If everything is like its smart phone business, there will be no problem.