Tsinghua – Xiaomi Business Project About Xiaomi Xiaomi was founded in 2010 by entrepreneur Lei Jun, who believes that high-quality technology doesn't need to cost a fortune. We create remarkable hardware, software, and internet services for and with the help of our Mi fans. We incorporate their feedback into our product range, which currently includes the Mi Mix 2, Mi Note 3, Mi 6, Mi 5X, Mi Max 2, Redmi 5 Plus, Redmi 5, Redmi Note 5A, Redmi 5A, Mi TV, Mi Band and other accessories. With more than 90 million handsets sold in 2017, and products launched in India, Indonesia, Russia, Spain, Singapore, Malaysia, Xiaomi is expanding its footprint across the world to become a global brand. About Xiaomi India Xiaomi expanded to India in July 2014. We were warmly welcomed by Mi fans when we launched with our flagship device - Mi 3. Every week a few hundred thousand people would turn up for the sale, and we went out of stock in mere seconds on multiple occasions. To date, Xiaomi has sold over 30M smartphones in India. Xiaomi started selling its products exclusively on Flipkart, but has now expanded to include five online partners in total — Flipkart, Amazon, Snapdeal, Tata Cliq and Paytm. We also sell through our e-commerce portal called Mi.com and today we have more than 10 Million installs of our Mi Store app on Google Play. We have opened many Mi Homes in major cities and also engaged with some offline distributors with a direct-to-retail model. According to IDC, Xiaomi became the 5th-largest smartphone company in India with a 4% market share in Q4 2014, a result that was achieved in just five months. It also reached 1 million devices sold in India in December 2014. Recently in Q4 2017, Xiaomi continued to be the No. 1 smartphone brand in India with 25% market share as per Counterpoint. We initiated our Make in India program in January 2015, and within 6 months set up a plant in Sri City, Andhra Pradesh with Foxconn. Currently more than 95% of our devices sold in India are made in India. Xiaomi has been dominant in the price band from 5k to 15k INR. However, we’re capturing a limited market share in the high end segment (>20k INR) and the super low end segment (<5k INR). So it’s becoming more and more significant for us to consider whether we should expand into those segments. If yes, what should we do to achieve a good market share there? 1. Project 1: how to win in the high end market? What’re the strategies Xiaomi India should take to be top 3 brands in India’s high end segment (above 20k INR) in one year? Project Scope Market overview Macro environment Smartphone industry Customer analysis >20k INR segment overview Market trends: New technologies in 2018 flagship phones (full display, AI, etc.) Key competitor analysis OnePlus Samsung Xiaomi’s strategy Product Branding Sales channel Documents can be shared (with NDA signed) IDC monthly reports & GFK monthly reports Xiaomi India’s smartphone sales performance in 2017 2. Project 2: should we attack <5k segment? The average selling price is going up all the time and people are upgrading their phones more and more frequently. Is it still necessary to dive into the very low end market? If we still need to, what strategies we should take? Project Scope Market overview Macro environment Smartphone industry & feature phone industry Customer analysis <5k INR segment overview Market Trends: Feature phone shifting to smartphone Android Go, Reliance Jio Phone Key competitor analysis Transsion India local brands Xiaomi’s strategy Whether we should attack this segment? Product Branding Sales channel Documents can be shared (with NDA signed) IDC monthly reports & GFK monthly reports Xiaomi India’s smartphone sales performance in 2017 Company tutor Andrew Li Sales & Operations Manager, India market Email: [email protected] Mobile: +86 13401161004 Address: No.68, Qinghe Middle Street, Haidian District, Beijing, 100085 .