Xiaomi Targets Chinese in Less Affluent Cities

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November 8, 2014 by ...

China’s tier one cities are the big boys. Places like Beijing, Shanghai Guangzhou. They are usually the capital of the province and have more of everything. More cash, better schools, they are the places that most Chinese want to go.

In developing countries, the differences between a major and minor city can be mind numbing. This is especially true in the PRC. For example, I traveled to a decent size tier two city and had to do without electricity from midnight to noon, I kid you not.

Everyone, it would seem, is racing to the big towns, except for Xiaomi. As you can see from the chart below, Xiaomi has taken a divergent track. They sell the vast majority of their product in China’s poorer cities. This only makes sense when one considers how much money there is in places such as Beijing and Shanghai. Beijing, for instance, has more billionaires than Germany.

Those cities rock the real thing, and to denizens in Beijing and others, Xiaomi is second class. It is an imitation of the real thing, product for aspiring Iphone consumers. A step in the direction of a world class product but not to be confused with one.

Lei Jun, however, does not mind. In fact, he is following the strategy of Mao himself. Instead of battling in the cities, Lei is surrounding them in the countryside.

The chart below tells the tale….(from China Internet Wath)

20141107-235148-85908862.jpg

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4 thoughts on “Xiaomi Targets Chinese in Less Affluent Cities

  1. […] Lei Jun-Xioaomi’s founder, who is not to be confused with Lei Feng, who is dead, stated that he wants to create a company of which all Chinese are proud. It stands to reason that he’d lean on nationalism to further that cause. Such sentiments are on the rise, especially in Xiaomi’s target market- less educated 20-30 year old men hailing from from tier-two and three cities. […]

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  2. […] Xiaomi selling cheap While Xiaomi is now king of the hill in China, it is still a bottom feeder. Although it controls 14% of the market, all of its handsets are positioned at the bottom of the market, as is shown here. Unfortunately for them, this is where competition is the most fierce. Facing competition from the likes of Oppo, Lenovo, Yulong, BBK, ZTE, Meizu and Huawei, Xiaomi must compete on price. […]

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  3. […] the most part Xiaomi’s customers are males who reside in the less affluent areas of China. These people are low-income earners and less educated as well. These people are less […]

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  4. […] this we can see just how wrong the WSJ is. The WSJ got it half right; Xiaomi targets younger consumers, […]

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