Xiaomi bets big on sub-Rs 15,000 device segment to regain market share

Smartphone maker Xiaomi is betting big on the Rs 10,000-15,000 device segment to regain its lost market share, a senior company official said on Friday.

Xiaomi India President Muralikrishnan B said the company has come up with a reset strategy and will focus on becoming “India’s most loved and trusted smartphones” and IoT brand with “a focus on efficiency and sustainability with a secure foundation.” He said Xiaomi will operate with a leaner product portfolio and focus on democratizing 5G in the country.

“Today, most of the 5G devices that are being sold are above Rs. 20,000. There is an increase in penetration in Rs. 15,000-Rs. 20,000, but the mass of the market, the belly of the market, will be in Rs. 10,000-Rs. 15,000, where there is a clear opportunity for Xiaomi to replicate what we did with 4G and recreate that 5G magic,” Muralikrishnan said.

According to Counterpoint Research, the price segment between Rs. 10,000 and Rs. 20,000 saw the largest decline of 34 percent YoY in the March 2023 quarter, while smartphones priced above Rs. 45,000 saw the highest growth of 66 percent.

Muralikrishnan said the company sells smartphones in the price range of Rs. 15,000-Rs. 30,000 and the response to the company’s devices in the Rs. 10,000-Rs. 15,000 bracket makes it certain to target the segment. “Redmi Note 10T 5G, Redmi Note 11T 5G and Redmi 11 Prime 5G have done exceptionally well, which gives us confidence that this is the right segment to target for 5G. We remain true to what Xiaomi is known for, which is a product with best-in-class specifications, highest quality and fair pricing,” he said.

According to market analysts, Xiaomi has recorded a decline in shipments for the past four consecutive quarters.

According to Counterpoint Research, Xiaomi’s shipments fell 44 percent year-on-year in the March 2022 quarter, dropping the company to the third position with a market share of 16 percent.

Muralikrishnan said the company now wants to expand its offline retail reach to increase its sales.

He said that we will not only focus heavily on expanding our distribution reach, but also on building strong retail capabilities that can sustain this growth in the long term.

The company plans to double the number of sales promoters in physical stores from 4,000 now to over 8,000 by the end of this year, Muralikrishnan said.