Xiaomi about the company, business and the Indian fans

16.11.2014

Recently the executives of Xiaomi, the company that impressed the world with its explosive growth and became the world's third company among manufacturers of smartphones, shared their views on the development of its business and the market of electronic devices in general.
The founder, core shareholder and CEO of Xiaomi Lei Jun and the president of the company Lin Bin participated in the conversation with reporters.
Being asked whether the company intends to expand its activities to produce electric cars, Lin Bin said that their task is more modest: it is about giving every person in the world the opportunity to enjoy the achievements of technology and technical progress. Three activities of Xiaomi are producing smartphones, systems of "smart" TVs, including the console Mi Box; producing means of communication in the form of Mi Wi Fi router and similar devices; and producing various gadgets that require much attention.
"Let's take a look at one separate smartphone - it contains more than 1000 components. We negotiate with multiple suppliers, it is truly a huge effort"- said Lin Bin. Many Xiaomi devices combine unique technology developed by Xiaomi - the firmware MIUI, with the creation of which Mi- business has began. The range of devices manufactured by Xiaomi is constantly getting longer, but electric cars are not of the company's interest. At least, not yet.

Constant comparison of Xiaomi products with Apple devices simultaneously flatter and annoy the management of Chinese electronics industry flagship.

 Lin Bin put an end to constant comparison of Xiaomi smartphones and Apple products by asking Apple designer Jonathan Quince to use Mi smartphone for one week. Then he will be able to evaluate the true merits of Mi products and finally stop arguing.

It seems like the moment when Xiaomi outgrows Apple and stops paying attention on criticism of their colleagues from Cupertino is about to come.

At least, in the best manufacturers rating Xiaomi is separated from Apple by only one Korean giant - Samsung. 

Xiaomi makes active expansion in the world market. Now the company's management plans are to capture Singapore, Malaysia and India markets. According to Lin Bin, the fans of MIUI firmware and Mi smartphones help a lot. They translate the interface into their own languages to actively disseminate information about new products, combined into a community and thus reach many marketing goals. "Attention to the loyal fans, encouraging their activities is the cornerstone of Xiaomi marketing strategy" - says the president of the company.

The billionaire and an experienced businessman Lei Jun joined  the conversation being asked whether Xiaomi is going to enter the IPO.

He claimed about his patriotism and pride for the Chinese business that continues to show unprecedented before growth rate.

"I've been into corporative segment into 25 years and I've been involved in the listing for 4 times. Listing is more than just a phase. My goal is to create a company that will make its users, employees and shareholders happy" - Lei Jun said. He also noted that it is at least improperly to compare Xiaomi with another companies, such as, for example, Alibaba that successfully released on the IPO. These companies have completely different business models.

The conversation also touched a dispute between Lei Jun and president of Gree Electric Dong Minzhu.

The essence of the dispute for those who are uninitiated into the intricacies of Chinese business, is unknown, but it is likely that it concerns the industrial growth of the two companies. Lei Jun argues that Xiaomi is fully able to catch up on Gree capitalization growth and profits, as the first company develops explosively, and the other uses the classical model of development. Lei Jun plans to reach the level of 60 million smartphones of sales in 2014  (and this, judging by the figures, will be achieved). The following year the company aims to reach the level of 100 million. With such indicators Xiaomi may fully become the leader of the Chinese industry.

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