Smart phones are a rage these days. Ever other person owns a smart phone and thus they are being manufactured on a large scale. Similarly Xiaomi, a famous Chinese smart phone maker, is soon trying to develop a complete e-commerce business model related to its phones and other similar devices. Manu Kumar Jain, head of Xiaomi India, said that they are currently working on making investments in start up technologies so that they can well develop the e-commerce ecosystem.
Xiaomi gadgets are mainly sold through the prominent e-commerce websites like Flipkart, Amazon or Snapdeal. Mi.com, Xiaomi’s own portal also makes business as many smart phones are bought from here too. This has helped the company earn great revenue and thus expand their products. In a recent interview in a media interaction in Hyderabad, Jain was of the view that all the investment made will help in setting up their e-commerce business, logistics and warehouse. They have provisions for the people to buy products through their private website. Although they have not done much marketing of their website, it has fetched many buyers in a short span of time.
Xiaomi is scaling heights of success since it is receiving more than 100 orders a day from throughout the world. This is enough to compel the manufacturers to set up a research and development centre in South India, especially Bangalore. This will help them to expand their network and thus gain profit through manufacturing facility and exclusive sales. Thus, they can manage the orders well and give way to more orders in a day, increasing their sales and profit in parallel.
However, Jain is unsure of the budget required for this plan. He is not in the position to disclose the budget details which will help the company to expand. When he was interviewed about the proposed manufacturing facility, his response was that they are in talks with many state government officials who can help them or give them an idea about setting up the plant. He has decided that the company won’t directly deal with the manufacturing of phones. Instead it will go for a contractual manufacturer and get this job done.
To start with, smartphone manufacturing company Xiaomi is taking efforts to invest in a few start up companies. Jain said that they are currently in talks with certain tech companies. Although they are start ups, they have great deal of planning and preparation to go though such deals. Moreover, they won’t ask for higher amounts. They are the ones who are established in the markets and have gone through one or two rounds of funding and generating revenues.
According to the statistics, Xiaomi had sold over a million smart phones when it came into market. It is the fifth largest competitor in the domestic markets whose share is about 4 percent. Thus, this 5 year old company is indeed scaling heights of success by selling almost 61.1 million units globally last year.