Xiaomi: Could it Disrupt India’s Consumer Electronics Market?
(6 pages of text)
Case (Pub Mat)
China-based Xiaomi entered India’s smartphone industry in 2014. In 2015, it had a meagre market share of 3 per cent, which by the first quarter of 2018 had grown to a 31 per cent market share, making it India’s number one smartphone player. Xiaomi was set to expand its offerings to additional product categories in an effort to disrupt the electronics market in India. How had Xiaomi achieved its phenomenal growth in India in just a few years? Would it be able to maintain its brand image of product reliability as it extended its offerings to additional product categories and continued selling at low price points? Could the strategies that had made Xiaomi the number one smartphone player in India also help it to disrupt other product categories?
This case is intended for graduate- and executive-level courses in brand management, marketing strategy, or marketing management. It is suitable for discussing product strategy, consumer behaviour, cultural aspects of consumer behaviour (e.g., ritualistic consumption), distribution strategy and supply chains (i.e., online distribution), and successful brand extension strategies to other product categories. After working through the case and assignment questions, students will be able to
- discuss the difference created by selling exclusively through online distribution channels;
- understand how a company can succeed outside its home country despite prevailing negative perceptions about products from its home country;
- evaluate the “marketing without advertising” approach and its role in an organization’s success; and
- critically assess the challenges an organization might face as it expands its business to other product categories.
Information, Media & Telecommunications
India, Large, 2019
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