business

‘Apple of China’ Xiaomi loses the market to its rivals in China

Xiaomi which has the image of ‘Apple of China’ for the kind of stylish phones it delivers is losing the Chinese market to its rivals. According to new data from research firm IDC, Xiaomi’s sale dropped in China by 38% in the second quarter of 2016.

Xiaomi which was launched in 2010, was the officially the world’s most valuable technology startup by the end of 2014. In a short period of time the company become the top-selling brand in China’s hyper-competitive market.

The strategy which helped the company to boost its market was it kept the prices of its product comparatively low. In its early years the company heavily relied on social media, upper executives and its “fans” to spread the word and attract new customers to market its product.

To keep the product prices low the company avoided spending too much on offline advertising, but now it seems this strategy has backfired on Xiaomi as its rivals Oppo and Vivo are spending a large chunk on offline advertisements and celebrity endorsements, plastering billboards on subways and bus stops across China’s second.

Oppo and Vivo grew at a massive 124% and 74% year-on-year this past quarter, while shipments of Xiaomi units declined by almost 40%

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