Xiaomi starts international expansion
The Chinese company Xiaomi decided to sell their phones outside of Asia. So, Xiaomi Redmi 2 will be sold in Brazil, at a price of $ 160. This is about two times less than the cost of Samsung and Motorola models that are similar in characteristics and functionality of smartphones from Samsung, Vedomosti reports. “Brazil is the fourth largest smartphone market in the world, and for us it will be the launching pad for entering Latin America,” said the company's vice president, Hugo Barra.
Last year, Xiaomi sold over 60 million smartphones in Asia. At the same time, online communities and “word of mouth” on social networks have become the most important criteria for the success of companies in the region. The company is known for selling its devices only through an online store, which can significantly reduce costs. An interesting feature of Brazilian legislation is the high level of import duties. In order to get around this problem, Xiaomi and Foxconn will collect the company's phones in this particular country.
“The value scheme we are proposing and the business model are ideally suited to Brazilian conditions. We are mainly focused on e-commerce, and people in this country are already used to buying goods via the Internet. Now that the economy is in recession, we have a unique opportunity to emerge in this market, ”commented the company’s plans to Barra.
Experts believe that entering the international market is one of the important conditions for achieving Xiaomi’s plan to sell 100 million smartphones this year. “In China, growth is slowing. The company plans to act very aggressively in Brazil and India. The success of its business will depend on success in these markets, ”said Ben Bajarin, an analyst at Creative Strategies.
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In China, Xiaomi has strong competitors in the face of Huawei and Samsung in the niche of mid-range smartphones. As for Brazil, Samsung has strong positions here, besides Xiaomi will have to compete with the local company Blu.
Last year, Xiaomi sold over 60 million smartphones in Asia. At the same time, online communities and “word of mouth” on social networks have become the most important criteria for the success of companies in the region. The company is known for selling its devices only through an online store, which can significantly reduce costs. An interesting feature of Brazilian legislation is the high level of import duties. In order to get around this problem, Xiaomi and Foxconn will collect the company's phones in this particular country.
“The value scheme we are proposing and the business model are ideally suited to Brazilian conditions. We are mainly focused on e-commerce, and people in this country are already used to buying goods via the Internet. Now that the economy is in recession, we have a unique opportunity to emerge in this market, ”commented the company’s plans to Barra.
Experts believe that entering the international market is one of the important conditions for achieving Xiaomi’s plan to sell 100 million smartphones this year. “In China, growth is slowing. The company plans to act very aggressively in Brazil and India. The success of its business will depend on success in these markets, ”said Ben Bajarin, an analyst at Creative Strategies.
')
In China, Xiaomi has strong competitors in the face of Huawei and Samsung in the niche of mid-range smartphones. As for Brazil, Samsung has strong positions here, besides Xiaomi will have to compete with the local company Blu.
Source: https://habr.com/ru/post/292158/
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