Xiaomi is not a smartphone company, in fact it defines itself as a technology products company, geared to the internet of things. But it is not to be denied that her mobile devices draw much attention and were responsible for a great growth of the company in these few years of existence.
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One number that shows the company's strategy well, and that she doesn't just live on smartphones, is that she launched 44 gadget products in 3 months.
With its many sub-brands, Mijia as a major IOT, the company sells everything, electric cooker, clothes washer, alarm clock, smart bracelet, fingerprint lock, blender, air purifier, and the list goes a long way. .
We recently published an article telling Xiaomi's story and took the opportunity to explain how the Chinese company makes its profit. To sum up, the company tries to sell its smartphones without a high profit range, paying little more than the cost of manufacturing the parts and raising money through its interface built on top of the Android operating system, MIUI.
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This way she can get a large number of people to have their smartphones and make a profit by displaying ads on the systems. And why invest in various technological devices? Vice President Wang Xiang explained the idea behind Xiaomi's expansion.
"Buying a smartphone or smart TV is something that occurs infrequently. How often do you need to go back to the store? But what if you also need a Bluetooth speaker headset and a smart rice cooker, or the cheapest and most popular scrubber?" from China and each of these products not only perform well but also at lower prices than others in its category? Our ecosystem even gives our consumers some new products they didn't even know existed so they keep coming back to the store to see what we have again. "Wang Xiang, Vice President of Xiaomi
The idea of the company, according to the executive, to win a large number of people for several different technological products. This strategy is largely based on the growing trend of connected homes in home automation.
So we always see an attempt by the company to create its own ecosystem, you can connect all your devices through the Mi Home app, which makes it convenient to keep buying smart products from Xiaomi only and stick with it.
The company wants to consolidate with IoT devices and has already announced its coming to Brazil
According to Gizmochina, last year Xiaomi's financial reports pointed out that Xiaomi's biggest profit came from Internet service subscriptions and advertisements. It also comments that the smartphone market is declining, which makes this diversification strategy even more important.
In this article, I also comment on the company's business plan to invest in promising startups in China to launch excellent products that solve mainly Chinese problems and can sell many products at aggressive prices. This is how she managed to get an air purifier, today the best selling in China.