The Rise and Rise of Xiaomi in India - Next Big Brand
Case Study

The Rise and Rise of Xiaomi in India

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Written by Sourav
[email protected] | | Published on: February-16-2019 04:32 PM

From its launch in India in 2014, Xiaomi Smartphones have become one of the top affordable smartphone brands in the country. The Chinese brand now competes with big names like Samsung and Apple. This is because it offers a build quality that is on par with these premium brands. They also use great technology to make their phones add value to a customer’s purchase. It is its widespread acceptance in India, along with other countries, that has contributed to the brand experiencing soaring sales. In this article, let us look at the exponential rise of this budget smartphone in India.

Financial performance of the brand

During its second year in India, Xiaomi experienced losses worth 46.9 Crore and generated 1,046 Crore. At this time, the brand was still establishing itself in the Indian market. It had to work hard to break the myth of low quality that came with the fact that it was manufactured in China. Interestingly, Xiaomi did not use any advertising campaigns to do so. They relied solely on word-of-mouth and the customer’s experience. Another factor that led to this brand experiencing great sales was that they offered their products through online flash sales. These sales would barely last a minute without their products selling out and created a huge desire amongst consumers to buy their phones.

By 2017, Xiaomi had generated a revenue of 8,379 Crore INR. Their sales surged by a whopping 696% and they also gained profits worth 169.3 Crore INR. This trend continued until 2018 when Xiaomi emerged as a market leader. During the first quarter of 2018, 30 million smartphones were shipped to the country. Out of these, Xiaomi had the largest market share – 25%. This was followed by Samsung and other brands.

Currently, after receiving great feedback from consumers regarding the Note 5 and 6, Xiaomi is all set to launch the Note 7 on 28 February. The smartphone has already seen 1 million units sold in China within 3 weeks of being launched. It will probably see similar levels of success in India too. So far, what we know about this phone is that it has a 48 MP camera along with a second 5 MP camera, a 6.3 inch HD screen, 2.2 GHz Snapdragon 660 Octacore processor, and a 13 MP selfie camera. Moreover, it also as a 4,000 mAh battery capacity. The phone is said to priced competitively, with the starting price being 10,400 INR, however, this is not confirmed.

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Why do Indian customers love Xiaomi so much?

There are many reasons why the brand has enjoyed so much success in India. Some of these are as follows:

  • Customizable OS: Xiaomi’s OS is called MUI and is based on Android. However, unlike Android, the OS offers a ton of opportunities for customization. The OS comes with regular updates too and is quite fast.
  • No bloatware: Many smartphones come with pre-installed apps that cannot be removed. But this is not the case with Xiaomi. The lack of these pre-installed apps helps keep the RAM memory free for whatever the user wants to download.
  • Affordability: Most of the smartphones sold by Xiaomi fall under the affordable bracket. While a few short years ago, phones priced at 10,000/- were known for their unreliability, Xiaomi has changed this perception entirely. Their smartphones perform on par with more expensive models. As a result, they bring the consumer value for money.
  • Great camera: Xiaomi’s camera comes with optical image stabilizers, a feature that you generally find in high-end phones. The brand has always made it a point to use a great camera because they know that the average customer values this feature of a phone a lot.
  • Great build: Even though Xiaomi is a budget smartphone, the build it offers is great. There is nothing flimsy about this phone.

Growth Avenues

Xiaomi is a brand with growth and expansion on its mind. It wants to enter the lifestyle segment and has recently begun selling shoes in India. The brand also sells bag packs too and has seen the decent performance in sales in these avenues. It is clear that they want to infiltrate every aspect of their consumer’s lifestyle!

About the author



Excellent story-teller, with a background in SEO and Digital Marketing.
Likes to write and give form to opinion and incidents.


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