Why does Xiaomi make everything in the sky?

Tram Ho

Not only does Xiaomi have a phone or a computer, they make a smart home, they also produce underwear, towels, toothbrushes, they even invest in many startup companies to expand the number of products. owned by the company. Why bother working so many dishes?

1. Create hooks to pull users into the ecosystem

Today’s business is not just about products or sales, it is about how many customers are attracted and how well you know their information. With Xiaomi offering a wide range of products to choose from, they can reach you in more places, more industries, all aspects of your life. And once you have used a Xiaomi product, it is likely that you will continue to use this brand for other items. The “returning customers” index will be higher than if you just bought a phone or a computer.

A share from Xiaomi itself is that if they only make one type of product, the phone, it will take 2-3 years for people to return to Xiaomi once. If you do everything, people will come to you very often, even there are Thursday when you have to buy several times, such as towels or brushes or air filters for example. This sales and investment strategy is smart.

2. Create a fan community

If you look at Xiaomi’s communities on Facebook or on their official website, you’ll find that people talk to each other very positively, even engaging and meeting in real life regularly. This type of community is not always available to all, and it is something that helps increase the loyalty as well as help the Xiaomi brand get more word of mouth to the relatives and friends of the “Mi fans”. Another community which is equally strong Xiaomi is Apple and Samsung but mainly created by the user, not organized methodically like Xiaomi’s.

The community will also support and protect Xiaomi products in the debate on social networks or other websites, creating more streams of (mostly positive) opinions for Xiaomi devices. From a media point of view, you don’t need to do anything and a large number of people who are willing to say good things to you are too delicious.

And offering a wide variety of products is a good way to attract fans from a wide range of segments. Maybe you don’t use Xiaomi phones, but you like Mi Home appliances. You may not be using a Xiaomi laptop, but you are using their security camera. And maybe you don’t like Xiaomi hardware, but you use the MIUI interface for your smartphone.

Having a community like Xiaomi is the dream of many brands, especially in emerging markets like Vietnam, India and even China.

3. Earn more profits

You also know that the profit margin of the smartphone segment is not high, Xiaomi even has to be selling at a loss but the company accepts that to attract more customers. And once customers have entered Xiaomi’s ecosystem, they will buy items where Xiaomi can make a profit and create a more sustainable business model.

And you know that once you have data on users and their behavior, Xiaomi can sell credit rating services, aggregate data for market research as well as customer habits. A lot of parties are willing to spend a lot of money to buy these types of data, and it will not cost Xiaomi’s production costs, just personnel and resources to run the data system (which is highly likely that The company is also available).

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4. Give people a reason to go to the Mi Store

Xiaomi once said that if they only sell phones, the chances of Xiaomi meeting you every few years, but if they have a lot of things to display in the Mi Store, and they make a nice, fun store, then you will come to them more times. You can see that through visiting genuine Xiaomi stores in Vietnam today. And having items to display in Mi Store also returns to issues 1 and 2 in this article, mainly to create more trust and capture sales opportunities for you.

That life, nothing is random at all

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Source : Techtalk