Market 20 Nov
The smartphone industry is quite a volatile place to be in especially considering the immense competition and range and the vast range of consumer base. While there are people who buy $1500 smartphone, the majority can’t even afford a $200 smartphone. During the last few years, Chinese smartphone manufacturers have really taken the industry by surprise, considering their growth rate and deeper market penetration.
Xiaomi was one of those companies that got a surge in their business back in 2013 and enjoyed applaudable rise up until 2016 where its growth begins to slow down. And that was due to various reasons among which the company's policy and lack of experience in the supply chain are talked about. Xiaomi introduced online-only flash sales which weren’t quite a healthy decision for the company. While smartphones available in the online-only flash sales got sold out within 24 hours of the sale going live in most cases, the company wasn’t able to keep up with the supply.
Market 26 Oct
While on the other hand, competitors like Oppo and Vivo took charge and offered similar offline sales getting deeper penetration into the market. The company at least knows where they lacked and are not performing well and have begun internal training to improve the competence of the team. The company’s executive statement as shared in the image above shows how Xiaomi is tackling with this situation that they're facing from within.