July 2, 2015 at 14:56Xiaomi begins international expansion
The Chinese company Xiaomi decided to sell its 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 similar in characteristics and functionality of the smartphone models from Samsung and Motorola, - write "Vedomosti". “Brazil is the fourth largest smartphone market in the world, and for us it will become the launching pad for entering Latin America,” said Hugo Barra, vice president of the company.
Xiaomi sold more than 60 million smartphones in Asia last year. At the same time, online communities and “word-of-mouth marketing” in social networks have become the most important criteria for the company's success 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 country.
“Our proposed value chain and business model are ideally suited to Brazilian conditions. We focus mainly on e-commerce, and people in this country are already used to buying goods over the Internet. Now, when the economy is in recession, we have a unique opportunity to appear on this market, ”Barra commented on the company's plans.
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 continued growth of her business will depend on success in these markets, ”said Ben Badzharin, 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 a strong position here, in addition, Xiaomi will have to compete with the local company Blu.
Xiaomi sold more than 60 million smartphones in Asia last year. At the same time, online communities and “word-of-mouth marketing” in social networks have become the most important criteria for the company's success 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 country.
“Our proposed value chain and business model are ideally suited to Brazilian conditions. We focus mainly on e-commerce, and people in this country are already used to buying goods over the Internet. Now, when the economy is in recession, we have a unique opportunity to appear on this market, ”Barra commented on the company's plans.
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 continued growth of her business will depend on success in these markets, ”said Ben Badzharin, 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 a strong position here, in addition, Xiaomi will have to compete with the local company Blu.