We could still remember the first exposure to Xiaomi was by ordering online their smartphones many years ago. They managed to create a cult branding as most of their smartphones are sold within minutes during those days. It is not surprising as they have most of the features of an iPhone but yet is trading at a fifth of their price.
Source: Xiaomi Homepage
Xiaomi has since evolved from the early days and has now in their product catalogue, a mind-boggling amount of household appliances and gadgets, on top of their smartphone range. The household appliances are connected to the Mi Home and the data analytics from the usage of the products would be Xiaomi's edge compared to their competitors.
The more prominent products in their line-up will be smartphones, smartwatches, robot vacuum cleaners, smart tv, fridge, air-conditioners, laptops and washing machines. Their products are in more than 80 markets.
Xiaomi's vision is not to make huge profits from the sale of hardware as they have explicitly stated they would not surpass a net profit margin of 5%.
With their good value and quality products, they hope to link all the devices to their ecosystem, they would then be able to monetize from the strength of their ecosystem.
This strategy is similar to Gillette selling the shaver cheaply and earning huge margins from the sale of blades.
Here is the link for the full article:
https://thebigfatwhale.com/king-of-internet-of-things-xiaomi/
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