Xiaomi has been in the market for almost 6 years, and during these years it has won hearts of more than 150 million customers. Many can wonder how this company could succeed in this short period of time. It turns out there is no secret but the sincere attitude towards its customers. Obviously, nothing would have happened without internet. It turns out the key to success is hidden in using internet for fair purposes. As Xiaomi CEO, Lei Jun said in his latest interview, ‘internet is very cheap in terms of using to enhance the operational efficiency of all aspects’.
The main idea of these words is many manufacturers have changed their business model in order to save on commissions and sell themselves. As Lei Jun said, if a product costs 100 yuan, it will be available at online stores for 105 yuan, while intermediary companies will require about 2 or 3 hundred yuan for the same product.
Seems nothing bad is there to let other companies earn on your products, but Lei Jun believes high price tags affect the product quality. ‘Many customers can’t afford themselves to get this or that product due to high pricing. Therefore, manufacturers would have poor sales, which will bring to cutting corners not to lose money.’ But Xiaomi doesn’t think so – the company believes ‘a customer is a friend not the God. So they should be involved in the process of making and enhancing newer products. There are over 150 million Mi fans, and most of them have participated in development and design of new products.‘
As for now, Xiaomi has decided to focus on product quality improvement rather than sales numbers. So increased user support is the main goal. For example, Xiaomi has focused on increasing investment in core technology, research and development. As a result, the company filed over 3700 invention patents including over 2000 international patents. Internet helped it in this deal. But the company always keeps focus on the technical innovations. So we can conclude Xiaomi’s key to success is the smart combination of internet and investment in technical innovations.
Source: Xiaomi today