Android Century
  • Home
  • Android Zone
    • Android Apps
    • Android Games
    • Apps APk Files
    • Games Apk Files
    • Apps Hack Tricks
  • Reviews
  • Fantasy Zone
    • Entertainment
    • Quotes and Status
    • Life Style
    • Home Made Tips
    • Hair Care
    • Skin Care
    • Fantasy Tips
  • Tricks
    • Free Recharge
    • Free Internet
    • shopping Cashback
    • Recharge Cashback
  • Tech
  • Mobiles
  • Gadgets
  • News
  • How To's
  • Software
Breaking
Loading...

Featured post

How to Take Great Photos With Apple's iPhone X

Recent Posts

Labels

  • Android Apk Files
  • Android Apps
  • Android Games
  • Apps Apk Files
  • Entertainment
  • Fantasy Tips
  • Gadgets
  • Hair Care
  • HomeMade Tips
  • How To's
  • News
  • Quotes
  • Quotes & Status
  • Recharge Cashback
  • Recharge Promo Codes
  • Shopping Cashback
  • Technology
  • skin care
Home / News / No longer Apple, Xiaomi CEO Lei Jun now desires to be greater like Costco

No longer Apple, Xiaomi CEO Lei Jun now desires to be greater like Costco

Latest Govt. Jobs 20:41:00 News Edit
Not Apple, Xiaomi CEO Lei Jun now wants to be more like Costco

Xiaomi says it’s misunderstood. Once compared with Apple for its sleek smartphones and charismatic leadership, the Chinese startup is seeking an image makeover as it tries to recover from a sales-growth slide.

And the brand its billionaire co-founder Lei Jun wants to be compared with: Costco Wholesale, the Issaquah, Washington-based warehouse retailer that sells everything from wine and diamond rings to bulging boxes of cereal and fruit at knockdown prices.

Xiaomi’s revenue will probably reach $15 billion this year as the Beijing-based maker of products ranging from pens and air purifiers to TVs and smartphones adopts a new business model and fine-tunes operations, Lei, 47, said in a recent interview.

"We are not Apple,” Lei, clad in a black polo shirt and blue jeans, said at Xiaomi’s Bengaluru office in India, its biggest overseas market. "We have the same value system as Costco. We want users to enjoy better products at an affordable price.”

While Apple commands premium prices and enjoys the highest margins in the brutally competitive $425 billion global smartphone industry, Costco sells merchandise at razor-thin profits while fueling earnings from its 35 million annual memberships. As Xiaomi embraces a new strategy to fuel growth, Lei’s goal is to pull in more revenue from apps and services, which delivered $1 billion in sales from 10 million-plus monthly active users last year.

It’s a far different strategy than the one it used to claim the top spot among China’s smartphone makers and a valuation of $45 billion that made it, briefly, the most valuable startup in the world. Instead of the online flash sales and inexpensively-sourced components that it used to disrupt the mobile industry, Lei wants to bring internet-inspired efficiency to offline commerce. He’s also turning to India to revive Xiaomi’s fortunes as China grows more competitive.

‘Make History’

Here, 20-something workers in denim jeans and T-shirts huddle in groups or sit behind shiny white desks separated by foot-high red, yellow and green partitions. Exposed-brick support columns and tube lights suspended below bare pipes and air-conditioning ducts make the office feel more like it’s inside a Brooklyn loft than an industrial park.

Dozens of circular mobiles swing from the lights, with phrases encouraging staff to "Let’s make history together.” A scattering of motivational cartoons sketched on whiteboards promote Xiaomi’s aims and achievements. Now six years old, Xiaomi’s meteoric rise has been usurped in recent quarters by competitors replicating -- and succeeding at -- the very model that enabled it to vault ahead of Apple and Samsung Electronics Co. in its home market.

The risk for Xiaomi in India is that it will go the same way as China: toppled by rival brands such as Oppo, Huawei and Vivo.

Tarun Pathak, associate director at Counterpoint Research, said Xiaomi is taking a risky approach. The company’s rivals have been able to sell the same number of phones in India, even though their products cost as much as three times more. As Xiaomi seeks to expand sales volumes, it will have to sell more of its high-end models. "Their margins are thin and when they go offline, their expenses will shoot up,” he said.

Modi Meeting

During his third visit to India -- a week-long trip that included a meeting with Prime Minister Narendra Modi -- Lei summoned a town hall-style staff meeting to rally a team he praised for making Xiaomi the No. 1 online-selling smartphone company in the country the past two quarters. Their goal now, he said, was to the cement that position in the next three to five years.

In India, "incomes are low and everyone wants good products,” Lei said in a glass-walled conference room, flanked by several of his top executives. Lei is trying to reignite the buzz in the offline or "new retail” market, he said. "Everyone realizes the online market is very limited.”

In China, Xiaomi accounts for only a 10th of total smartphone sales, Lei estimates, leaving bigger opportunities in the traditional bricks-and-mortar approach. Lei aims to have 1,000 so-called MiHome retail stores with sales topping $10 billion annually in next three years, he said.

MiHome stores will offer just two dozen Xiaomi products, according to Lei. Pointing to a single line of $1 apiece writing pens, two types of air purifiers, and three kinds of smartphones, he says he envisages selling no more than 100 product types in coming years, versus the hundreds, or even thousands of stock-keeping units maintained by some manufacturers.

New Beginning?

"Our toughest times have passed starting this year, and our main strategy now is to bring the internet way of thinking to offline in China,” Lei said. The plan is to integrate multiple links in offline commerce and avoid the bottlenecks that can occur as products move along the supply chain through manufacturing and repair to logistics and sales.

But even the "new retail” strategy risks being copied. Lei spoke publicly about it one morning and the head of an e-retailing behemoth used the same term hours later, he said. Competitors have in the past paid the ultimate price of copying Xiaomi’s approach, Lei said, declining to give names. "One company lost $1 billion last year, maybe even more,” he said. "Game over.”

Microsoft Rival

Lei’s ideas were shaped by past ventures. He previously ran Kingsoft, a software maker that competes with Microsoft’s enterprise software sales in China, and his e-commerce company Joyo.com was acquired by Amazon.com and renamed Amazon China. Lei is convinced his retail plan will revive the growth prospects that helped earn Xiaomi its lofty valuation.

Sales began to stagnate in 2015 and shipments plummeted in China last year, with the company refusing to release 2016 numbers. In January, former international head Hugo Barra left for Facebook, raising questions about Xiaomi’s ability to navigate its way through what Lei had described as "unforgettable” challenges.

In India last week, Lei insisted that revenue never slowed during the past two years, and that "Xiaomi has resumed rapid growth.” Suggestions that the company’s value had sunk to $4 billion "hurt us a lot,” he said, refusing to be drawn into a discussion on its current value.

"It was never as bad as it was made out to be,” he said. "Our investors are not worried. I have explained to them clearly. And to our users, we say, ‘It takes 10 to 15 years. We need time. Trust Mr. Lei.’”

Enough Cash
There is no pressure on cash flow and no need to raise funds, he said, adding: "We have more than enough cash.” Lei declined to comment on whether Xiaomi has any immediate plan for an initial public offering. Right now, he’s focusing on India, including the potential to open physical stores in the nation with the world’s largest youth population.

Xiaomi is planning a third factory in India, where Lei says he’s prepared to take more risks, including doubling investments to $1 billion over the next few years.

"In the next two years, we want more and more influence in India,” Lei said. How he will do that plays on his mind constantly he says, as he reaches for a black backpack and fishes for one of 10 phones inside.

"I keep thinking about how to perfect my products,” Lei says, clutching a phone with a metallic, pale blue finish. "For instance, how come Indians don’t like this ‘Tiffany blue’ colored phone?”

That’s just one of many things that perplexes Lei about the India market. But he’s determined to figure it out: "This is what keeps me awake at night.”
Share on Facebook Share on Twitter Share on Google Plus

RELATED POSTS


LG G7 with iPhone X-like notch

Oppo F7 India launch confirmed

Alcatel 1x with Android Oreo (Go ed...
No longer Apple, Xiaomi CEO Lei Jun now desires to be greater like Costco No longer Apple, Xiaomi CEO Lei Jun now desires to be greater like Costco Reviewed by Latest Govt. Jobs on 20:41:00 Rating: 5

0 comments:

Post a Comment

Newer Post Older Post Home
Subscribe to: Post Comments ( Atom )

Search This Blog

TEST BOOK FOR GOVT ENTRANCE TEST

TEST BOOK FOR GOVT ENTRANCE TEST
Find All Latest book for preparation of SSC,RAILWAYBANK PO,RBI,BANK CLERK,GATE ME,GATE CE are available here in less prices, to check out the books click here

Translate

  • Popular Post
  • Random posts
  • Category

Popular Posts

  • Teen Patti Offer 2018: Refer and Earn Flipkart Vouchers Free
    Teen Patti Offer 2018: Refer and Earn Flipkart Vouchers Free
    Teen Patti Refer & Earn Offer:  Hey Guys! Today I make an article about Teen Patti Referral ...
  • Hands-on with the home windows 10 Creators update for the Xbox One: Beam recreation streaming arrives
    The Windows 10 Creators Update is here, now—yes,  now —but not (officially) on the PC. The ...
  • Taotronics TT-BH22 Headphones Review
    We make it a addiction to now not look up pricing of a product sooner than reviewing and if ...
  • Pentagon strongly condemns North Korea missile test
    The Pentagon on Monday strongly condemned North Korea’s latest missile test, adding that the ...
  • Reliance Jio to offer sharp tariff discounts for customers signing up by March-end
    Reliance Industries' Jio unit will charge a tariff for its services from April, but will offer ...
  • Bank wallets growing faster than e-wallets
    In the  bank  versus  e-wallets  sweepstakes,  lenders  have now gained lost ground. As of ...

Random Posts

  • Ringing Bells Mobile Freedom 251 adds cash on delivery option
    Ringing Bells Mobile Freedom 251 adds cash on delivery option
    28.02.2016 - 0 Comments
    Ringing Bells Mobile Freedom 251 adds cash on delivery option: The most controversial smart phone, the…
  • 11 methods To Transition returned To work After a vacation
    11 methods To Transition returned To work After a vacation
    26.05.2016 - 0 Comments
    If there's anything more heart wrenching than going back to work after a vacation, please let me know.…
  • 1More Triple Driver Review
    1More Triple Driver Review
    18.02.2018 - 0 Comments
    The market is flooded with the a plethora of products when it comes to headphones – especially under the…
  • No, artificial Intelligence will no longer kill the phone: Apple’s Phil Schiller
    No, artificial Intelligence will no longer kill the phone: Apple’s Phil Schiller
    03.04.2017 - 0 Comments
    Apple’s Philip Schiller told indianexpress.com that even as artificial intelligence becomes better, the…
  • Flipkart reportedly in talks to raise $1.5Bn from Microsoft & others 2017
    Flipkart reportedly in talks to raise $1.5Bn from Microsoft & others 2017
    22.02.2017 - 0 Comments
    India's largest e-commerce marketplace Flipkart is in talks to raise $1.5 billion from…

Labels

Android Apk Files Android Apps Android Games Apps Apk Files Apps Hack Tricks Entertainment Free Internet Freecharge Gadgets Games Apk Files How To's Laptops Guide Mobiles Reviews Technology Viral's android zone free recharge

Entertainment

Tricks

Popular Posts

  • Teen Patti Offer 2018: Refer and Earn Flipkart Vouchers Free
    Teen Patti Offer 2018: Refer and Earn Flipkart Vouchers Free
    Teen Patti Refer & ...
  • Hands-on with the home windows 10 Creators update for the Xbox One: Beam recreation streaming arrives
    The Windows ...
  • Steam Now Supports PS4's DualShock 4 Controller
    HIGHLIGHTS ...
  • Lenovo Yoga Book launched in India at Rs 49,990: First Impressions
    Lenovo  has ...
  • This $15 stand turns your Apple Watch into a mini Macintosh
    For all those  ...
  • Jio effect: Telcos may have to cut data rates 2017
    India's big  ...
  • Grow Hair Faster: How to Make Hair Grow Faster Naturally
    Every woman wants ...

Random Posts

  • These chatbots will take care of HR tasks
    These chatbots will take care of HR tasks
    11.03.2017 - 0 Comments
    A senior manager at lnMobi recently received a popup alert on his computer screen to “catch up“ with Ruchi,…
  • Facebook Buys Passwords From Black Market. Heres Why That Is a Good Thing
    Facebook Buys Passwords From Black Market. Heres Why That Is a Good Thing
    12.11.2016 - 0 Comments
    Ever got irritated when Facebook asked you to re-think a password for your account even if you typed in…
  • Best gadgets for dog owners
    Best gadgets for dog owners
    17.01.2017 - 0 Comments
    The right gadgets can help you to keep an eye on your dog, no matter where you may be! Technology has made…
  • Sony Cybershot DSC HX350 camera review
    Sony Cybershot DSC HX350 camera review
    23.03.2017 - 0 Comments
    The Sony HX350 looks like any other bridge camera we have seen in recent times, and there have been a few of…
  • Health Care Success launches Tango fitness bands in India
    Health Care Success launches Tango fitness bands in India
    04.02.2017 - 0 Comments
    Health Care Success has launched its range of activity monitors under the brand name Tango in India. The…

Most Popular

  • Teen Patti Offer 2018: Refer and Earn Flipkart Vouchers Free
    Teen Patti Offer 2018: Refer and Earn Flipkart Vouchers Free
    Teen Patti Refer & ...
  • SAMSUNG GALAXY J7 (2016) REVIEWS
    SAMSUNG GALAXY J7 (2016) REVIEWS
    SAMSUNG GALAXY J ...
  • Top 5 Best SmartPhones under 7000 Rs (March 2017)
    Looking for the ...
  • Apple, IBM, Cisco are huge because of Indians, do not deny them H-1B visa: RBI Governor Urjit Patel
    ...
  • SAMSUNG GALAXY J7 (2016) Specifications
    SAMSUNG GALAXY J ...
  • BlackBerry Teases Marshmallow Beta Testing for Priv by Next Week
    Blackberry ...
  • LG Q6 Review
    LG Q6 Review
    2017 is ...

Contact Form

Name

Email *

Message *

Offers Zone

Created By Android Century Distributed by Android Century
  • Home
  • About us
  • Contact us
  • Privacy policy
  • Terms of use
  • Advertise here
Subscribe Via Email Subscribe To Android Century By Email And Get Free Updates. ;-)


Your email address is safe with us!