Business News

Subscribe to Business News feed Business News
The Economic Times: Breaking news, views, reviews, cricket from across India
Updated: 19 min 17 sec ago

Xiaomi taps into Indians' thirst for 'premium'

February 19, 2024 - 3:29pm
Xiaomi plans to target India’s burgeoning premium segment to fuel its next phase of growth in the country, with an increased focus on launching experiential flagship handsets, with enhanced marketing and wider distribution tapping into more retail stores, a top company executive said.The Chinese handset brand, which is set to complete 10 years in India, will be pivoting towards becoming a premium brand after a focus on democratising 4G technology through budget handsets made it India’s top handset brand till recently in 2022 when Samsung overtook.“10 years of democratising technology has got us a long way. How do we craft the route forward? We said perhaps what got us here is not going to get us there,” Xiaomi India president Muralikrishnan B told ET.He said the company has crafted a strategy to cater towards the growing aspiration of the nation, in a bid to be the “preferred and pioneering choice for the aspirational Indian,” the executive said, adding that the company will be following a three-pillar premiumisation strategy over the next three years.The strategy includes delivering cutting edge technology, developing a connected ecosystem, and delivering what the executive called “total experience” to the customer.The recalibration in the company’s India strategy stems from the fast-paced growth of premium smartphones driven by bank financing and a maturing user base. According to IDC India, the share of shipments in the premium segment (above $600) increased from 6% in 2022 to 10% 2023, leading to a 14% on-year jump in average selling prices to a record $255.The company was earlier caught off-guard with the change in market dynamics in 2022 when it lost the crown of being the top smartphone brand to Samsung, which Muralikrishnan earlier admitted was due to a bloated portfolio of devices that left customers confused, leading to an inventory pile-up.Analysts had warned that the company’s business model centering around razor-thin margins and leveraging volumes in sales by positioning itself as an affordable brand will put further pressure on its margins.“We have been profitable pretty much for all years of our operations in India. More than profitability, I think it’s important to address the opportunity that aspirational India provides,” Muralikrishnan said, adding that the move is more strategic to make a meaningful presence in this segment.“I’m not expecting all of a sudden double digit share in this, but over a period of time, I’m sure we will get to that specific stage in this country,” he added.The executive said that while the company did not face a challenge of liquidating its planned volumes in the premium segment so far, it should have focused on the segment in a more concerted manner a few years earlier.“Now that we are at the cusp of our 10th anniversary in India, this actually presents a great opportunity for us to chart out the roadmap that we need to take for the next few years. And we marry that with what’s happening to the economy, the consumer and the competition. Hence, we have taken up our premiumisation journey as the single biggest priority for us to foster for the next few years,” Muralikrishnan said.Market trackers have also flagged the company’s dependence on online channels as a reason for losing market share. Shipments to online channels dropped by 6% in 2023, while its share of shipments dropped to 49% in 2023, ceding dominance to brick and mortar offline stores, as per IDC.The executive said the company will continue to invest in enhancing its marketing presence. Large outdoor hoardings of the company’s most recent flagship handset, made in partnership with German camera brand Leica, as an example of that.“There will be investments required in marketing. We will continue doing that. We will continue investing in terms of enhancing our width of distribution and offline retail, enhancing our quality of experience by investing in in-shop and other visual merchandise, and increasing our manned outlets,” he said.That said, the company is not looking to increase its headcount. ET reported in June 2023 that the company is slashing its headcount to less than 1,000 amid an organisation rejig and intense scrutiny by government agencies.“I think we are very optimally structured to take care of all these plans and goals,” the executive said.
Categories: Business News

What are India's key asks at WTO ministerial

February 19, 2024 - 3:23pm
Categories: Business News

CVC selling Healthcare Global stake & more

February 19, 2024 - 2:34pm
Categories: Business News

Shivaji: The mighty ruler also founded Indian Navy

February 19, 2024 - 2:32pm
Categories: Business News

Why rupee was most stable emerging market currency

February 19, 2024 - 2:00pm
Categories: Business News

China seen cutting mortgage reference rate

February 19, 2024 - 1:13pm
Categories: Business News

K'taka CM gets SC relief as SC stays proceedings

February 19, 2024 - 1:07pm
Categories: Business News

India not an EM, it has already emerged: FII

February 19, 2024 - 1:01pm
Categories: Business News

Man buys Rs 1 lakh Ather scooter with Rs 10 coins

February 19, 2024 - 12:54pm
Categories: Business News

Gautam Duggad on the next big risk in this bull run

February 19, 2024 - 12:27pm
Categories: Business News

Tide aims to revolutionise SME finance in India

February 19, 2024 - 12:09pm
Categories: Business News

Pages

  Udhyog Mitra, Bihar   Trade Mark Registration   Bihar : Facts & Views   Trade Fair  


  Invest Bihar