Xiaomi is a brand from China. Xiaomi started the fight in the smartphone competition for the entry-level class. At that time, there Redmi 1S which directly invaded many people, outside Indonesia.
In mid-2015, at the Recode Code Conference held in California, Hugo Barra revealed the secrets of their company. He explained Xiaomi's business strategy that successfully dominate the market in a short time thanks to the selling price of affordable products compared to other vendors.
In addition, Hugo Barra confirmed that it is not too focused on looking for big profits in the early days of marketing. The selling price set by Xiaomi, recognized by Hugo Barra, is only slightly higher than their production costs.
This in itself corresponds to the 'ethnic Chinese business concept', ie 'not why profit is thin, most importantly in demand'.
As more and more products are sold, the brand awarness will increase as time goes by.
Here are some reviews why xiaomi is so cheap and easy to sell:
The First
Reason why Xiaomi is cheap is because Xiaomi saves on advertising costs. Xiaomi only rely on the promotion of word of mouth consumers who are satisfied with the product, and of course promotion through social media is free. So that Promotion costs can be suppressed, and diverted for other things more useful. Hayo, Surely you've never seen an Xiaomi wara-wiri ad on National TV like Samsung's Rivals right?
The Second
Reason is that Xiaomi has a very strong marketing strategy. That makes the product exclusivity and limited edition. Xiaomi only produces products in very limited quantities, so the Consumers will hunt this Xiaomi product. And certainly every production of HP Xiaomi, will be sold out in a fast period. So the cost of care because stocks of buried goods can be eliminated.
The Third
Reason that Xiaomi is not neko-neko targeting the predicted market will not welcome his arrival. Xiaomi is only targeting a market that will welcome his arrival. As in Indonesia, so its products can be sold very, very fast. And the money will spin rapidly, so although the profit is small, but the production costs can be covered with high sales amount.
The Fourth
Reason why Xiaomi can be red but the quality is good, is because of the friendship connections of the owner. Boss Xiaomi namely Hugo Bara who used to be a former Boss Google has a very close friendship with the manufacturers of hardware components one of which is Qualcomm. So even though cheap HP Xiaomi use Qualcomm classmate processor which is used by other HP more expensive.
For example, Xiaomi Mi 1 which released August 2011 ago. Xiaomi prime phone has a high specification of its time, such as dual core processor and 8 megapixel camera. But the price is only in the range of USD 310, about half of smartphone global vendors with the same spec.