Marketing Strategy Of Xiaomi In Indian Market And Its Implications For Domestic Mobile Phones

With the development of the Internet and the popularity of smartphones,many manufacturers have entered the smartphone industry.Manufacturing capabilities,research and development of smartphones in China are becoming increasingly mature;the supply chain and industrial chain are becoming more and more consummate.Despite China's huge market share,smartphone companies are under increasing pressure from strong competitors from domestic smartphone makers such as Huawei,Vivo and OPPO.To maintain profit growth,smartphone companies should step towards the international market.According to the research data,the global mobile phone industry is slowing down,but the growth rate of the Indian mobile phone market remains high.India's smartphone market possesses huge potential and is expanding year by year.Due to historical background,limited living standards and other reasons,Indians are sensitive to the price of smartphones,not keen on high-end smartphones.They prefer low-price and high-performance phones,hence,cost-effective phones such as Xiaomi are prevalent in India.Xiaomi has risen quickly to the top of the bestseller list of the Indian smartphone market with its high market share since the fourth quarter of 2017.Its success is not accidental but inevitable.This thesis conducts a detailed analysis of the current situation of mobile phone in India,the development environment of Xiaomi in India on the basis of PEST analysis.At the same time,this thesis analyzes Xiaomi's marketing strategies in India in detail,and puts forward the problems encountered in India and corresponding solutions.In the end,this thesis has an in-depth analysis of the secrets of Xiaomi's success in India.This thesis is divided into six chapters.The first chapter is an introduction.The second chapter is literature review.This chapter primarily describes the related literature and marketing theory of multinational enterprises in overseas expansion.Confronted with the demand of huge international market,it is the optimal choice to expand the scale of enterprises through occupying the new overseas market.More and more economic experts begin to study the mode and marketing strategies of enterprises who successfully enter new markets.The success of transnational marketing determines whether an enterprise can gain a foothold in another new country.The third chapter mainly analyzes the current Indian mobile phone market,and focuses on the analysis of Xiaomi's development in India and its marketing environment.Chinese manufacturers account for four of the top five smartphone makers in India and the top five are Xiaomi,Samsung,Vivo,OPPO and Realme successively.With the popularity of smartphones,the huge market demand,preferential policies and economic environment in India,Xiaomi's entry into the Indian market also follows the trend.Xiaomi has become the number one mobile phone brand in India for two consecutive years since 2018.Chapter four analyzes Xiaomi's marketing strategies in terms of product,price,sales channels and promotion,so that readers can have a more comprehensive understanding of Xiaomi in India.Xiaomi has gained fans all over the India with its cost-effective phones and precision marketing.This craze comes from Xiaomi's success not only comes from strategic decision,but also its product and price advantages,efficient marketing channels and correct promotion strategies.Xiaomi products have a higher cost performance,mature marketing system and high-quality customer service.In addition,Xiaomi is willing to invest heavily in the Indian business,which indicates India is no less a market than China for Xiaokmi.However,in terms of the current development situation in India,there are still some problems and challenges,such as offline sales problems,patent issues and increasingly fierce competition in the mobile phone market.Moreover,the political relationship between China and India certainly influences the development of Xiaomi in India.Xiaomi still needs to take strategic measures to meet the challenges,like increasing investment in research and development,enhancing innovation ability,developing offline sales channels,testing the high-end market and gradually building a complete mobile phone industry chain.The last chapter mainly illustrates some inspiration brought by the development of Xiaomi in India and suggestions for Chinese enterprises to go abroad.This chapter summarizes Xiaomi's successful experience in India,such as localization,product cost performance,marketing strategies,customer value and strategic cooperation.In terms of localization,Xiaomi relies on hiring local talents,building factories in India and developing software suitable for Indians to consolidate its position.High-quality products are the premise to expand the overseas market.Xiaomi relies on the characteristics of high quality and low price to obtain a large number of Mi fans.From perspectives of marketing strategies,Internet marketing,experience marketing and word of mouth marketing have become the classic marketing methods of Xiaomi;if the enterprise wants to survive in the fierce and brutal market,it must establish a customer-oriented business philosophy;Xiaomi's strategic cooperation with local companies is one of the key factors for its success.In addition to learning from Xiaomi's successful experience,domestic enterprises also need to make strategic deployment in expanding the international market:selecting emerging markets with potential,improving online and offline channels,establishing a sound brand management mechanism,and enhancing the R&D and innovation capabilities of enterprises.It is hoped that this thesis can help Chinese enterprises acquire successful experience and failure lessons in the process of internationalization,and provide certain referential value for domestic brands to enter the overseas market.