April 1, 2020
How Xiaomi broke out of China to go global | CNBC Reports

How Xiaomi broke out of China to go global | CNBC Reports


Xiaomi was started in 2010. Today, it’s one of the world’s
most popular smartphones. In India, it’s number one. So, I’ve come to its headquarters here in
Beijing to understand just how this company grew so rapidly and how it
can maintain its momentum. Xiaomi’s rise has been meteoric. Just nine years after it was founded
and one year after going public, the Chinese company became the youngest
member of the Fortune Global 500. The tech giant is best
known for its smartphones. It’s the world’s fourth most popular smartphone
maker, behind Samsung, Huawei and Apple. But Xiaomi doesn’t
just make phones. Walk into one of Xiaomi’s more than 1,000 global
stores, and you’ll find an array of different devices. Almost anything you can imagine,
they sell here in the Xiaomi store. I see virtual reality, walkie talkies, this device
translates languages, like Chinese to English, voice assistants and smart home
speakers, wearables and even tools. Did I mention they sell everything? Since its early days, Xiaomi’s founders
dreamed of an international footprint. And now, it’s one of a hand full of Chinese companies
who have managed to do what many couldn’t. It broke out of its home
market and went global. Xiaomi’s headcount has grown from about 100 in
2010 to a whopping 17,000 staff members today. This is company orientation where employees learn
about the corporate history and corporate culture before they begin in their roles, and just by
the looks of it, this is quite a lot of people. Its global headquarters in Beijing is
home to about 12,000 employees. I’ve come to Xiaomi’s brand-new headquarters
and it’s so new that you can still see them putting on the finishing touches around
the building and at the base of this lobby you actually see this,
it’s the Xiaomi store. The first thing that I think of when I see this
store, well, it reminds me of an Apple Store. We are different, we are very,
very different than Apple. Xiang Wang is Xiaomi’s Global Senior Vice President
and head of the company’s international business. Apple is a great company, they do
a lot of technology innovation. We are doing the same,
but our model is different. We want to sell as low as possible
instead of selling at a premium price. That business model originates from Xiaomi’s
founder, Chinese entrepreneur Lei Jun. Lei Jun’s vision was to create
a premium smartphone that could compete with the likes of Apple and
Samsung, but at a more affordable price. This allowed Xiaomi to tap into China’s
growing lower end smartphone market, and it wasn’t long before
it did the same abroad. Just look at this graph. In 2015, six percent of Xiaomi’s total revenues
came from outside Mainland China. By 2018, that grew to 40%. The aim? To eventually have half of its total revenue
coming from outside its borders. Xiaomi has achieved that by expanding
into more than 80 markets. but it’s India that is its biggest
overseas success story to date. It launched in the world’s second most populous
country in 2014 where it held flash sales to generate hype
around their phones. It worked. You only entered India
less than four years ago, and you’ve become the number one
smartphone maker, how did that happen? We offer very, very high-performance device,
with a very, very affordable price. Before us, if you want to buy this
smartphone, it was very, very expensive. Our model is to make the best
product but sell as low as possible. That helped Xiaomi pull ahead of Samsung to
become India’s top smartphone brand in 2018. While it still holds today, Chinese rival, BBK
Electronics, which backs Vivo, Oppo and Realme, could be challenging
Xiaomi’s market dominance. Outside of India and China, there’s
an additional 400 retail outlets, including locations in Dubai,
Barcelona, London and Mexico City. We opened our first store in Mexico
City and 4,000 people showed up. Wang argues Xiaomi’s fan culture is what helps set
the company apart from other low-cost competitors. From launch events to meet-ups
for gadget enthusiasts, there have been more than
1,000 Xiaomi fan events to date. Here you have an entire wall dedicated to
fans, things that fans have sent to Xiaomi. We always receive
many, many gifts. Normally they are
technology geeks. A boy and a girl, they met
during our fans event. So the couple in Indonesia met at a Xiaomi
event and named their child, Xiaomi. But the Chinese tech company has
had its share of challenges, too, from temporarily withdrawing from Brazil to losing a trademark case in Europe
against Apple over the name of its tablet. And of course there’s the elephant
in the room, the United States. Xiaomi has long-said it plans
to expand into the U.S. market, but those plans seem to be on hold
thanks to the U.S.-China trade war. U.S. President Donald Trump has openly
scrutinized Xiaomi’s home-grown tech rival, Huawei on multiple occasions. The U.S. market, there
were talks about 2019? The U.S. market actually is, I think in no doubt,
is the most important market, for everyone. We are still very, very young. The
U.S. market is very, very different. We are working very hard trying to design a product for
the U.S. market but still, resources is the big issue. Xiaomi made its name with the
smartphone, but it, like its competitors, is having to diversify as the
smartphone era’s peak winds down. Smartphone shipments have declined for
nine consecutive quarters here in China. So for Xiaomi to continue to grow, it sees its ambitions
beyond the smartphone and beyond China. Actually, we are much more
than a smartphone company. We are the largest consumer
IoT brand in the world. The company is putting much of its
energy into the home of the future. From smart rice cookers
to smart door locks, our homes are going high-tech and
Xiaomi wants to ride that wave. It says it has more than 190
million connected IoT devices. There’s five ways that I can
enter through this smart door. First is through my phone electronically
using something like NFC or bluetooth. And then there’s a number pad,
where I can input a number, there’s also a traditional keyhole here but I’m going
to be super unique and try my fingerprint. There we go. It’s also taking on Samsung and LG with
the launch of this smart refrigerator, which can catagorize your groceries,
play music and even take notes. Xiaomi hopes that every room will
have one of its AI Smart speakers, including the bedroom, so the moment I
walk in, the lights automatically turn on. Let’s see if she recognizes
me with an accent. I got her to recognize me and
she just said, “What’s up?” Earlier when I walked into
the room she told me, “Welcome back home, you
must be very tired, go to sleep.” She has quite a personality. The Mi AI Speaker is Xiaomi’s answer to
the Google Home or the Amazon Echo. While Xiaomi sold nearly three million smart
speakers in the second quarter of 2019, it still trails behind its Chinese
rivals Baidu and Alibaba. This store was open just about two years ago, but
one of the first things I noticed is just across from it, Xiaomi is preparing to open a brand-new
space but this one will be focused on lifestyle products and things
related to the smart home. While many of these products carry the Xiaomi
name, not all are actually made by Xiaomi. Take for instance, air purifier
company SmartMi. It’s one of the 270 startups
that Xiaomi invests in. Xiaomi helped SmartMi in significant ways
because we use Xiaomi channel to sell products. Its products are sold in Xiaomi stores
but also, through its own channels, too. SmartMi has grown to become China’s
number one selling air purifier. Consumers will know, “This product
is really good, its from Xiaomi. Oh, they also have their
own brand called SmartMi.” SmartMi even hopes
to one day go public. And just like Xiaomi, SmartMi is pushing
for success outside of China too. Right now 41,000 of your products are being
used in India, and you can track this in real time. Right. It’s startups like this that have helped
push Xiaomi’s international reach. How do you continue
the momentum? You have to keep the
innovating spirit. The smartphone market is very, very, very competitive.
You have to do a lot of exciting things everyday. Xiaomi turns 10 years old next year and in
under a decade it’s been able to do what many companies here in this country
haven’t done, succeed outside of China. But just how big this company can
get, well that’s anybody’s guess. Hey guys, it’s Uptin.
Thanks for watching! Check out more of our videos and
let us know in the comments, what do you think about
Xiaomi’s rise in global tech? While you’re at it, subscribe to our
channel and I’ll see you next time.

100 thoughts on “How Xiaomi broke out of China to go global | CNBC Reports

  1. Apple at 1/3 of the price, insane. I've used mi max, poco phone for game and Netflix, never look back from my Apple product origin.

  2. Not as expected as told. They don't know how to make the fool proof front touch glass. I have two phone, both if them broken as Chinese toy, while I had Moto G3 , look new and front glass strong (more it fall down than MI). The price for the replacement is hefty. Making Indians fool. May be CNBC got a unit free for advertising them.

  3. If not for Xiaomi I would still be just dreaming about owning a high performance device at such a low cost.

    😘 👍 Thank you Xiaomi.

  4. Dil dukhta hai Indian ki koi company ye jagha kyo nhe le paaye mujha china k phone lena acha nhe lagta wo humara data chori kar rahe hai. But koi option nhe hai India mai uske Alawa

  5. The electric go kart is actually made by Nine bot. It's not just Xiaomi's motto to sell high quality products at affordable price. The entire Chinese industry pursues the same goal.

  6. I have no regrets choosing Xiaomi as my smartphone. Budget friendly with specs wise is what Xiaomi gives to their valued customer.
    – Love from PH 🇵🇭

  7. Most of their products are not available in India and some of them takes more time to reach every corner 🤔

  8. You are welcome to visit Walton High-tech factory in Bangladesh. This is the biggest hightech electronics and home appliances maker in southasia.

  9. xiaomi is just another china company that copy everything. they steals creation not just from other big company, but also bully smaller creators from kick-starter, indigogo etc.

  10. Been changing the brand company for mobile phones for the last 9 year but mi the only phone brand that i bought and use it back to back twice now i m using max2

  11. I like Chinese people, they seem to be very self actualized. As an Indian I have respect for my fellow neighbour.

  12. You can not Imagine how things will be easier when your home is connected by xiaomi ,basically you can get whatever you want by talking to the AI Xiao AI Tong Xue(小爱同学),and compared with Her ,siri is horribly stupid

  13. The usa and Canada market is very hard to get in because people will pay high amounts of money for the best phones on market and apple and Samsung already control the market because it's very hard to move from different that you not use to

  14. Chinese hardware have a two year life. Whatever smartphone you buy from China will fail in two years and replacing the minutest part will cost half the phone's price. It's a ripoff.

  15. How? Just copy Apple's (or every other company's) ideas but sell the copycat products for less money since they don't need to do any R&D or design anything.

  16. I'm watching this on my 300 dollar Mi 9t pro with a SD855. Thank you Xiaomi for challenging Apple and Samsung and the rest of your competition to bring the best specs at reasonable prices.

  17. This is why I love Xiaomi. They make good products at cheap prices compared to other products with same functionality and most of the time with great specs.

  18. Chinese government is very communistic oppressing Tibetans , Hongkongers , Taiwan , and Tinanmen Square issue in their history , now the ethnic groups , Auiger Muslims , Tibetans , relious institutions . I favor Mr. Trump for U.S – trade War against China . Ex President Clinton was not wise to introduce China the US technological industries inventions and success in tech industry and China being accepted in World Trade Organizations. Please research on what happened after somebody in the US sports industry tweete these , Freedom for Hongkong , We are for a free Hongkong . Do not buy anything China made , they are notorious for just plain profits without caring for even their own. Citizens , no freedom of speech , persecutions , their life is only focused on making as much money they can get , that is all what is in their minds , putting poison in the food they export , causing a lot of disease . Some Chinese are good people , but are freedom loving . They work hard with integrity . Read on the history of the Chinese people , on what is happening now in the South Western China Seas . In South Pacific islands do Vanuato and Fiji. Pres . Trump is right . Not only does China want to be the superpower in economy but in militarization , which is a real threat to freedom loving countries and democracy in the whole world . America and its allies have all the genius and abilities to discover supertechnolonocal advancements and industries . That is why we who are freedom loving should study hard , work hard in our fields and professions for progress and prosperity .

  19. Indians as we want cheap and better performance phone,Xaomi taped into it… Tomorrow if Apple does it we will migrate to it but Apple wants to be show off thing so no one will take it

  20. I am using Xiaomi Redmi note 8 since one month, and I am really happy with that , however i was Apple user since 10 years !

  21. Never underestimate people's desire to NOT spend a fortune on every single gadget they own…. Also that door at 6:10 was impressive!

  22. the phones from xiaomi are not expensive and durable with 120 euro i bought the mi 5x in 2017 and it still works perfectly
    xiaomi gives best quality compared to investment

  23. 1:57 "We are very very different " I like how cost effective Xiaomi products are, but that is just straight up lying. They are popular because they always copy others, Apple, Samsung, Bosch etc.

  24. Chinese steal lot of technology by scaring and forcing apple and Google and Samsung all three manufacturers in china ,even their show room is a copy cat of apple store in America in 1991 , unlike we believe indians are with Chinese especially this hindu facist government of bjp cannot be trusted even after many attacks from Chinese army and taken away Indian land they still have some softness to china ,carefull western governments dealing with india , we dont know what is in their minds and must be carefull they are not all Ghandhis and yoga and piece loving as we like to think otherwise hindu mobs led by bjp wont kill especially Christians((also destroying and burning even churches and institutions that is American indian Christians telling us with evidence we have to take it to our mind this is happening in india , even Christians have problems with new modi law against Christians church they cannot take any money we are giving them they have some bloody foriegn exchange laws made by this fascists mody ,so we must control all hindus comming to west and spreading hinduism in Europe and both north and south Americas )) and killing poor dalits and untouchables in the name of holly cow meat eating , but even the bjp party bosses has partnership in companys doing exports of cattle meat from india and biggest danger is bjp party has plans to destabilize indian democracy founded written constitution by Mahatma Gandhij himself ,we need to help people who believe in democracy in india and piece loving people in india and "definitely dont create next china in India" then it will be more harder to stop them unless we see where is hindu fascism and elections going in india .if this is a phasing out sienario and democracy is full fledged then we dont have to concern but this bjp fascist continues to be strengthened then we have a biggest opponent in india after hitler and Mussolini and we must deal with a facist india with full power and with dreaded economic weapons ,also dont forget india is joined with china and Russia to make a international currency to destabilize American dollar ,see where this government going .All western governments take note.

  25. Can anyone tell me how Xiaomu keeps the cost that low while still "being innovative"? Because what I see is "utilization" of existing technology from other companies while avoiding operation in patent-conflicting regions & being backed up by national economy.
    It's business model against that of Huawei would be an interesting comparison to do.
    P.S. Not an expert in this aspect. Please tell me more if I'm wrong.

Leave a Reply

Your email address will not be published. Required fields are marked *