What makes a startup special? The most common trait found amongst all of the successful startups is all of them had a crazy, stupid and audacious idea. Despite the huge competition present these startups tried something new and instead of taking the competition head on, sidestepped and created a market for themselves. One such startup is Xiaomi.
Founded in 2010 in China, Xiaomi is the fifth largest smartphone maker in the world and has witnessed a strong growth in China. The company has also experienced a good demand for its smartphones in the emerging Asia-Pacific region. As of 2015, the company generated over $20 billion in revenue. The company has now ventured beyond smartphones into other smart home devices.
Xiaomi took an odd and innovative way and decided not to make money from selling mobiles instead opting to make money from ecommerce and various services. It sounds weird at first but the company has been largely successful in implementing this idea. Xiaomi purely relies on online distribution unlike other smartphone makers who ship their goods to physical retail stores. The most fascinating thing about Xiaomi is that, it sells smartphones at or near cost.
The company uses the policy of producing in small batches which in turn saves money required for warehousing and also enables them to make quick changes in the products. This policy becomes very important as the company relies heavily on user feedback. The combination of these practices has driven the prices of its product down. The consumers get value for money as their devices usually punch above their pricing points.
The Xiaomi’s policy to heavily rely on customer feedback seems to have paid off as the users are flattered their suggestions made it into the product. Owing to this Xiaomi has become one of the very few consumer electronics company to have a devoted following.