The Chinese tech giant was founded in 2010. It creates and invests in smartphones, mobile apps, laptops, earphones, and many more. Now, the nine-years-old company, Xiaomi successfoperates in 80 markets.
Xiaomi success is mainly because by its low price premium smartphone. It gains its first success in China markets. Later, they use the same strategy to win over India’s consumers.
Xiaomi new markets
The giant first overseas foray was in Brazil in 2015. It expanded internationally and operated in more than 80 markets, since then. Consequently, it recently becomes the youngest company on the Fortune Global 500 list.
Xiaomi now owns more than 1,000 retail outlets. That includes cities like Mexico City, Dubai, and London. By that, the giant gains 40% of its total revenue from outside mainland China.
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Previously, Xiaomi planned to expand into the U.S. market in 2019. However, the company now delays the plans amid rising U.S,-China trade tension. Besides, it has also witnessed its homegrown rival, Huawei, faces expansion challenge and is now under scrutiny by Washington over security concerns. Thus, the company will likely hold the plans a little longer.
Growing barriers
Even with its significant growth, Xiaomi has also faced various challenges.
The company now temporarily leave the Brazilian market. They did that due to economic instability and operational issue within the country. Consequently, its high-profile tech executive, Hugo Barra, quitted his job.
Read also: Xiaomi to Enter South Korean Market Deeper
Moreover, the company also lost a trademark to Apple over the Mi Pad’s name. Therefore, its stock has fallen about 45% since it went public on the Hong Kong Exchange in July last year.
Other than that, smartphone shipment has also been declining in both China and globally. But Xiaomi can mitigate an impending sales slump in its phones by pushing into tech-enabled products which enables users to control their appliances with their phones.
Xiaomi claims to have more than 190 million connected devices being used under its ecosystem.
