Chinese smartphone brand Xiaomi is planning to target India’s premium segment as part of its growth strategy. With a focus on launching experiential flagship handsets, enhanced marketing, and wider distribution, Xiaomi aims to tap into the growing demand for premium smartphones in the country. This move comes as Xiaomi completes 10 years in India and seeks to establish itself as a preferred and pioneering choice for the aspirational Indian consumer.
Xiaomi aims to deliver cutting-edge technology through its flagship handsets, providing users with the latest features and innovations. The company plans to develop a connected ecosystem by expanding its range of smart devices and accessories, offering a seamless and integrated user experience. Xiaomi aims to deliver a comprehensive and immersive experience to its customers, focusing on aspects such as design, user interface, and customer support.
Xiaomi’s decision to enhance its focus on the premium segment is driven by the fast-paced growth of premium smartphones in India. The share of shipments in the premium segment (above $600) increased from 6% in 2022 to 10% in 2023, leading to a 14% year-on-year jump in average selling prices. However, Xiaomi faced challenges in the market dynamics, losing its top smartphone brand position to Samsung in 2022 due to a bloated portfolio of devices that left customers confused. The company also plans to continue investing in marketing initiatives to create awareness and promote its flagship handsets. The company has already displayed large outdoor hoardings of its recent flagship handset, developed in partnership with German camera brand Leica.
RTM Watch’s Take
Xiaomi’s strategic shift towards targeting India’s premium smartphone segment is a calculated move that aligns with the evolving demands of the Indian consumer market. By leveraging its decade-long presence and understanding of the Indian market, Xiaomi aims to position itself as a frontrunner in offering cutting-edge technology and seamless user experiences. However, the brand’s success in this endeavour will hinge not only on delivering innovative products but also on addressing previous missteps, such as product portfolio management, to regain consumer trust and loyalty. As the competition intensifies and consumer preferences evolve, Xiaomi’s ability to adapt and deliver on its promises will ultimately determine its success in capturing a larger share of India’s premium smartphone market.
