Xiaomi India Chief Operating Officer Sudhin Mathur told Mint In the interview.
Mathur said the company’s goal is to differentiate itself through software, improve the user experience of smartphones, and bring advanced artificial intelligence (AI) capabilities to a more affordable price point.
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“We have No. 1. But in a business, quantity is not as important as revenue and profitability. From the previous years, the bigger direction may be No. 1. Now, as consumers’ preferences for mid-to-high prices continue to change, our strategy is shifting even more, as we still need to build brand excellence there and estimate that 2025 smartphones are flat.
Xiaomi aims at the target ₹From 2017 to 2022, the company has led the Indian smartphone market for nearly five years, purely a massive sales in the budget sector, so the 20,000 smartphone segments are of great significance. Analysts say the company now has some weaknesses in its current market share due to increased competition and challenges in offline retail branding business.
Tarun Pathak, Research Director at Counterpoint India, said: “For Xiaomi, most sales come from the mass market (sub-markets) ₹15,000). To focus on the premium segment, they need to work on offline retail locations and improve brand messaging that they have done well lately. ”
According to Pathak, the strategy of focusing on products with higher average selling prices (ASPs) works well for Xiaomi in China and improves its retail image, which also comes from the launch of its electric vehicle SUVs. However, in India, as many brands are on premium strategies, the company will have strong competition where the company sells higher-priced, functional products.
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Even if Xiaomi focuses more on premium products, it will continue to have product influence within the price range ₹Matthew said, 6,500. Xiaomi Technology India’s revenue fell 3.3% year-on-year in fiscal 24 ₹25,816 million, while its net profit increased by 21% ₹According to business intelligence company Tofler, $28.8 billion.
According to Counterpoint India estimates, Xiaomi’s market share in quantity is 24% in 2021, down to 17% in 2024. In the January-March quarter, the company’s share was estimated to have dropped to 12%, according to CounterPoint. A few years ago, the chaotic portfolio of smartphones also led to Xiaomi’s inventory and lower sales, which hurt its market share.
“In 2022 we have about 28 products in our portfolio, and now we have 10 products, almost one-third. Now we have fewer but more impactful and better products now, which is after innovations between the price segments,” Mathur said.
In India, Xiaomi produces smartphones, smart TVs, smart watches and audio products through contract manufacturing partners such as Dixon Technologies, Byd, Optiemus Electronics and DBG.
According to Mathur, 99% of Xiaomi smartphones and 100% of TVs in India are made. “Our local manufacturing strategy is moving in the right direction and as we continue to launch new products, we will try and make sure they are locally produced,” Mathur said. He added that the company has no plans to export from India, and the focus of the local manufacturing industry is only to serve domestic demand.
The company launched its first locally-made smartwatch, Redmi Watch Move, in the country on Monday. The price of smart watches is ₹Mathur said 1,999 people were produced at the Optiemus plant in Noida, saving 22% of import taxes through local manufacturing.
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Asked about the possibility of participating in the newly introduced component incentive scheme, Mathur said: “We are still evaluating and we will see what options and opportunities are. Currently, 35% of non-PCB (printed circuit board) (BOM) (BOM) (BOM) (plugable, charger, plastic, etc.) are locally sourced.”
For brands such as Xiaomi, local manufacturing and procurement of components can also help reduce costs. The company will continue its local manufacturing model through its Electronic Manufacturing Services (EMS) provider. “The pricing benefits are gained (through localization) and we pass it on to the end customer,” Mathur said.
Last month, the government initiated ₹The $229.19 billion (i.e. $2.7 billion) plan, which will provide incentives for up to 10% of turnover and can provide up to 25% of capital expenditure in the electronic components manufacturing industry that set up the country.
