On the one hand, Xiaomi’s share price, which has been hovering for two years, is finally back above the issue price; on the other hand, it has held on to the Indian market sales champion for three years but has given way to Samsung again. On October 29th Countrypoint Research, an authoritative market research firm, released data on mobile phone sales in India for the third quarter of 2020.
Original title: Xiaomi “lost” India
Wen/DoNews columnist Chen Shaoliang
Samsung’s smartphone market share in India has increased by 4 percentage points, outscoring Xiaomi by 24 per cent, putting it back at the top of the country’s market. It seems that Xiaomi’s first overseas market, India, is still being strongly competitive with its old rival Samsung. Has Xiaomi encountered a bottleneck in India?
2020 can be said to be Xiaomi ten years of development history of the opportunity of the year, it can be said that after more than six years of transformation, sales back to the world’s third position, mature Xiaomi has become the global mobile phone market can not be ignored a competitor, in the mobile phone supply chain market has never reached the current height. This is Xiaomi’s joy, but also the joy of the labor model Lei Jun after ten years of hard work.
But the worry is that today’s Xiaomi is no longer the “born for fever” product. Xiaomi’s market layout logic is that the first step to open the domestic market, in the domestic market sales decline, India and Southeast Asia market strong rise, smooth sailing, Xiaomi opened Japan, Europe, the Americas market, so that Xiaomi brand blossomed all over the world. On the face of it, Xiaomi is all the way up, but in reality Xiaomi is copying the trajectory of the domestic market every step of the way, and now the title of India’s sales crown gives way to Samsung’s explanation that Xiaomi’s biggest overseas market, the Indian market, is in crisis.
As a result, today’s Xiaomi is mixed, with Xiaomi’s listed U.S. group now worth $1.7 trillion, but Xiaomi is still struggling on the $500 billion level. In fact, in the author’s opinion, Xiaomi is not a product without the United States, nor is there no market competitiveness, but Xiaomi told the story to the capital market so far let the outside market do not understand, which also determines Xiaomi that Tencent multiplied by Apple’s market value of the ideal is unrealistic, because the capital market does not pay. Lei Jun has publicly promised that Xiaomi hardware comprehensive profit margin of no more than 5%, this author really can not see clearly, also do not understand.
Looking at all the listed companies in the world, those companies that move to price-earnings ratios of dozens of times, hundreds of times, the final landing is very high profit margins. Most of the rice flour here will say that Xiaomi can make money from software. The ideal is beautiful, but the reality is very bone-chilling. Ten years, Xiaomi made the software how much, Xiaomi rely on software and how much money, in fact, is not the rice powder mouth said. Letting wool out of pigs seems like a classic interpretation of the Internet’s core business rules, but it doesn’t apply to Xiaomi.
We try to ask those who pay for Xiaomi products, what percentage of the population because Xiaomi’s software is good and decided to choose to pay for Xiaomi? Therefore, the essence of Xiaomi is to rely on hardware to earn profits, in the product has a good brand effect, and constantly improve the profit of individual products, in order to form a positive cycle.
Xiaomi once again into the product circle
In the last two years, Xiaomi digital product line finally get rid of the shackles of cost-effective, can compete with the highest-end products in the mobile phone market, this credit belongs to Redmi’s boss Lu Weibing, the author believes that Lu Weibing is Xiaomi Avengers Alliance members so far the best performance of that one, K series, the successful pursuit of cost-effective and performance of the part of the group successfully demoted to Redmi’s K series products. This is Lu Weibing’s greatest credit.
But redmi now seems to restart the machine sea tactics, fell on the machine sea tactics failed the previous generation I think is Xiaomi’s former master Meizu. The biggest problem of machine-sea tactics is the gradual blurring of product characteristics in the user’s psychology, which finally affects the influence and sales volume of the whole brand. The fundamental reasons for the decline in the domestic market and now in India are the blurring of brand identity. Xiaomi time to reflect on how long-term in a market to operate a product, but repeatedly to expand new markets, otherwise in the end are futile, their own market, but only early education of users.