By the end of 2016, Manu Jain, the Indian head of Xiaomi mobiles, realized that the company needs manufacturing power to dominate the country. Xiaomi mobiles are already popular among a lot of people in both India and abroad.
You can call it as one of the best budget smartphone brands too. But the company was facing tough times to meet up the demand. Xiaomi had a third-party manufacturing agreement with Foxconn which has a factory in Andhra Pradesh. Still, it didn’t help a lot.
If you look at the statistics, Xiaomi was the fifth biggest smartphone seller in the first quarter of 2016. By 4th quarter of 2016, it captured 10.7% of the Indian smartphone market and became the second best seller. In this year, Jain decided to add one more manufacturing unit for Xiaomi.
It will be bigger than the previous one. In this new facility, the manufacturing of Xiaomi smartphones already started a few weeks ago. They are assembling 95% of the Xiaomi smartphones except for the Mi5.
The marketing strategy for Xiaomi mobiles
The company is going to meet some unaccounted demands. It will also import handsets to maintain pace with the market. India is $1 billion market in revenue and the largest after China. The company is expecting to reach global sales of $15 billion in 2017. The second factory of Xiaomi mobiles in Andhra Pradesh will manufacture one phone per second.
For Xiaomi, this might just be the perfect solution. The reason is, most of the Xiaomi smartphones are sold within seconds of availability in online stores. According to Jain, Xiaomi is already running 100% utilization. He also said, with the Redmi Note 4, they sold 1 million in 45 days. But if there were more in stock, they could have sold more because the demand was high.
The company is also broadening its base beyond the online model. The company also partnered with Big C Mobiles, Poorvika Mobiles, and Sagarika Mobile to make Redmi Note 4 available in more than 700 retail stores. They are also doing city level distribution in cities like Delhi, Jaipur, and Chandigarh. Jain also said they will only bring those products that will work in India.