Chinese smartphone company Xiaomi has outlined its priorities for the Indian market, focusing on premiumisation, AIoT (artificial intelligence of things), and an omnichannel sales strategy. Xiaomi aims to capture a substantial share of the premium smartphone segment in India over the next three years. The company recognizes the positive outlook on spending by the middle class and the growth potential of the premium smartphone market, largely driven by 5G technology. By offering premium features and experiences, Xiaomi aims to position itself as an aspirational brand for Indian consumers.
The company plans to leverage its R&D investments in generative AI and explore new capabilities as chipsets develop. Xiaomi aims to provide users with seamless connectivity and smart home solutions, enhancing their overall experience with Xiaomi products. Xiaomi recognizes the importance of diversifying its sales channels and reducing reliance on online channels. The company has been expanding its offline retail presence to reach a wider customer base. By synergizing its omnichannel sales strategy, Xiaomi aims to provide customers with a seamless shopping experience, whether online or offline.
The Indian smartphone market is expected to grow in single-digit percentages in 2024, primarily driven by the adoption of 5G technology. Xiaomi aims to be at the forefront of this growth and regain its dominant market share. However, the company faces stiff competition from major rivals such as Samsung, Vivo, Oppo, and Apple. Xiaomi, once the market leader, lost its crown to Samsung in early 2023 but has since climbed back to the number two position.
RTM Watch’s Take
Xiaomi’s strategic priorities in India reflect the company’s commitment to capturing the premium smartphone market and providing an integrated AIoT experience for users. By focusing on premiumisation, Xiaomi aims to position itself as an aspirational brand and cater to the growing demand for high-end smartphones. The company’s emphasis on AIoT integration aligns with the increasing trend of smart home adoption in India. Xiaomi’s omnichannel sales strategy demonstrates its adaptability and willingness to diversify its distribution channels. As competition intensifies in the Indian smartphone market, Xiaomi’s success will depend on its ability to deliver innovative products and exceptional customer experiences.
