Xiaomi's Dual-Brand Strategy Claims Satisfactory Results


#kamisukareviewXiaomi continued to implement their dual-brand strategy that produced satisfying results in the first quarter of 2020. The shipping of Mi 10 and Mi 10 Pro exceeded 1 million units within two months after it was launched in February 2020.

The Redmi brand continues to introduce competitive products in various price ranges. Redmi introduces the K series flagship namely Redmi K30 Pro and Redmi K30 Pro Zoom Edition.

Reflecting on the very popular Redmi Note 8 series, with the second best global sales in the first quarter of 2020 based on reports according to Canalys, Xiaomi launched the Redmi Note 9S and Redmi Note 9 Pro in the international market.

Xiaomi's Dual-Brand Strategy Success, Revenue Is Growing

In the first quarter of 2020, Xiaomi's revenue from the smart phone segment reached 30.3 billion renminbi (or 62.7 trillion Rupiah *), growing 12.3 percent YoY; mobile phone shipments reached 29.2 million units in the same period, up 4.7 percent year on year.

According to Canalys, in the same period Xiaomi was ranked fourth globally in terms of smartphone shipments and its market share grew to 11.1 percent, making Xiaomi one of two of the top five global smart phone companies that maintains annual growth related to shipping.

Encouraged by premium smartphone models, the average selling price (ASP) of Xiaomi phones rose 7.2 percent YoY in the first quarter of 2020, and the ASP of phones in mainland China and overseas markets increased 18.7 percent and 13, 7 percent in sequence.

Xiaomi's Revenue from Outside China Soars

Thanks to the dual-brand strategy, Xiaomi's revenue from outside China increased 47.8% year on year to 24.8 billion renminbi (or 51.4 trillion Rupiah *) in the first quarter 2020 or contributed 50 percent of total revenue. This achievement occurred for the first time.

In the first quarter of 2020, Xiaomi mobile phones controlled about 31.2 percent of shipments in India, and ranked first for 11 consecutive quarters, according to IDC reports.

Based on Canalys' report, Xiaomi was ranked first in smartphone shipments in Nepal for the first time in the first quarter of 2020 with a 30.9 percent market share, equivalent to the accumulated market share of the second and third ranked mobile brands.

For the European market, Xiaomi smart phone shipments grew 58.3% year on year, contributed 14.3% market share and ranked in the top four. Xiaomi is also ranked in the top four in Italy, France and Germany.

Still quoting from Canalys' report, Xiaomi smartphone shipments in Western Europe increased 79.3% year on year. In Spain, Xiaomi became the number one cellphone company in shipping with a 28 percent market share.

Shipments of smart phones to the Latin American market recorded growth of up to 236.1% year on year, placing Xiaomi in the top five, achieving that contrary to stagnant market conditions. In addition, smartphone shipments in the Middle East and Africa grew 55.2 percent and 284.9 percent respectively.

Coronavirus Pandemic Disorders

Xiaomi is doing everything in its power to combat the coronavirus. Xiaomi became the first internet company to fight a pandemic in Hubei Province by donating and delivering medical equipment to more than 30 hospitals in the province.

In addition to fighting the pandemic in China, Xiaomi is actively helping global emergencies and making donations in the form of medical equipment including masks, personal protective equipment and ventilators to more than 30 countries around the world.

In mainland China, as the impact of the pandemic begins to subside, sales of Xiaomi's main products are recovering. The Group is actively working with supply chain partners to help them restore production capacity.

Production in mainland China has been largely resumed, and market demand for smart phones is recovering in a short time. Since April, shipments of mobile phones to mainland China have returned to pre-pandemic levels, and shipments of smart TVs have generally recovered.

For markets outside China, Xiaomi's broad global reach allows the Group to mobilize resources in various markets to respond to the pandemic. As restrictions began to be lifted for some regions, sales slowly recovered.

In the third week of May, the number of cell phone activations on the European market has recovered by 90 percent compared to the weekly average in January 2020.



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