Launching a New Category in the Indian Market

Xiaomi Corporation was founded in April 2010 with the vision - ‘Innovation for Everyone’. We are an
internet company with smartphones and smart hardware connected by an IoT platform at its core. We
are driven by the belief of being a truly user-centric company, and establishing a powerful bond with its
loyal users, also known as Mi Fans. Being the “coolest company” in the hearts of its Mi Fans, we are
committed to continuous innovation, with an unwavering focus on quality and efficiency. The company
relentlessly builds amazing products with honest prices to let everyone in the world enjoy a better life
through innovative technology.

Having established our operations in 2014, we stand as the number one smartphone brand in India for
seven consecutive quarters with a market share of 30.6% as per the latest IDC report for Q1 2019. Xiaomi
India is also the number one smart TV, smart wearables and power bank brand in India, making it the
most loved technology brand in the nation. We are currently the world’s fourth-largest smartphone brand
and the world’s largest hardware incubator with more than 170 million connected devices. We have
international presence across 80+ countries and regions around the world, and have a leading foothold in
many markets.

Good companies make profits, great companies also win over people’s hearts. We pride ourselves even
more in being a technology company with a unique “Mi fan culture.” We have a large global community
of “Mi Fans,” Mi Fans are passionate users who are intensely loyal to our brand, and are highly engaged
on our platform while actively contributing feedback and feature ideas to our product development. In
India, Mi Community is the largest tech fan community with over 16 million monthly active users.

We are one of the few companies in the world witha wide range of categories offering smartphones, smart
home devices, IoT devices, fitness wearables, as well as lifestyle accessories.. Xiaomi also provides MIUI,
Its own OS based on top of Android on all its smartphones (excluding Android One devices) and several
internet services such as Mi Music, Mi Video, Mi Pay etc. Xiaomi sells all its offerings across Mi.com, Mi
Homes and partner platforms who operate on the efficiency of internet.
One of the key reasons of our success is our unique “triathlon” business model, which encompasses
hardware, new retail and internet services. Xiaomi’s achievements so far illustrate the strength and
resilience of our model. Xiaomi entered Fortune Global 500 list in July 2019 and is the youngest company
on the list. Xiaomi also had the biggest tech IPO in the last four years, when it went public on Hong Kong
Stock Exchange in July 2018.

The increase in efficiency comes from optimizing operating costs, especially Sspply chain, sales,
distribution and marketing costs. Xiaomi’s unique business model ensures that we offerinnovative
products that have best specs, are of high quality and priced honestly, which is the foundation of our
users’ trust in us. This is why we pledged that our overall hardware net profit margin will never exceed
5% ensuring that our users get the best of our innovative technology at truly honest pricing.

Xiaomi has the will and determination to revolutionize the industries that we participate in through
relentlessly pursuing innovation in all aspects of the business operations and cost-efficiencies.
As Xiaomi continues to progress, we ask ourselves: what has remained constant in the ever- changing
business world?

Our answer is that users have always expected amazing products at the highest quality and
honest prices.
#Unravel the Opportunities

India is the 2nd largest market for Xiaomi after China. Xiaomi wants to enter new categories with
innovative products and achieve a leadership position. The challenge is to find India specific categories
and design products suited for Indian consumers. For e.g. India is the first country where Xiaomi launched
Mi Beard Trimmer. The trimmer is specifically designed and developed, keeping the Indian consumer in
mind. The focus on product-market fit enabled us to put best-in-class features for the given price point
(Rs. 1199). Mi Beard Trimmer launched on 25th June 2019, and it became the Amazon Bestseller within a
day.

Xiaomi brought Smart TVs into the Indian market by gauging the tremendous demand from the Mi Fan
Community. We carried out an extensive consumer immersion program for over a year. The vision was to
give Indian consumer a real experience of smart TVs at a competitive price. We modified the software by
designing customized API, on-boarded several content partners and modified the hardware to suit the
Indian consumer. E.g. Set-top box integration, partnership with Republic TV and Bloomberg to bring live
news and enhanced stereo sound and brighter display. Xiaomi is the No. 1 Smart TV brand with a 39%
market share in Q1-2019.

Figure 1: Xiaomi Ecosystem developed from Smartphones to IoT devices and now Lifestyle.
Xiaomi can consider entering a wide variety of categories across the spectrum of personal devices /
gadgets, Consumer electronics/durables and lifestyle products all of which have the common thread of
best specs, highest quality and honest pricing. Some examples:

1. Large Appliances:
a. Washing Machine
b. Refrigerator
c. Air Conditioner

2. Small Appliances:
a. Ceiling / Pedestal Fans
b. Steam / Pressing Irons
c. Water Purifier

3. Kitchen Appliances
a. Smart faucet
b. Mixers & Grinders
c. Smart Cooker

4. Personal Grooming
a. Hair Dryer
b. Smart Mirror
c. Electric Toothbrush

5. Smart Homes
a. Smart Video Door Bell
b. Smart Lights
c. Home Energy Monitor

6. Miscellaneous

Pick a product category of your choice, where Xiaomi can disrupt the market. Any product which is not
mentioned in the above category is a miscellaneous product.
#Disrupt

A group of young consultants (you) have been given the task of choosing one category where Xiaomi
should launch a product. The category and the product should be aligned with Xiaomi’s philosophy.

The proposal should be a 4-slide PowerPoint presentation or 2 page Word Document which covers the
following:
1. Which category should Xiaomi enter and why?
2. Which product from the chosen category should be launched? Define the product in terms of
features.
3. What is the competitive landscape in the chosen category?
4. What would be the key consumer insight that would help craft a mix for the selected product
category in terms of price, size etc.?
5. What will be the key value proposition for the consumer? How can Xiaomi disrupt the market
dynamics?
6. What will be the annual size of the opportunity with the proposal mix in the selected product
category?
7. Why does Xiaomi have the right to win in the specific category/product chosen?

ALWAYS BELIEVE THAT

SOMETHING WONDERFUL IS
ABOUT TO HAPPEN