Xiaomi is a fierce competitor today in the smartphone and electronics market, creating products whose demands are high enough to rival those of the demands for an Apple or Samsung product. Founded in 2010, Xiaomi is world famous today, and is a major brand name in many countries across the world. Here are 5 reasons why Xiaomi’s marketing strategy works.
One of the major reasons Xiaomi’s predicts are so popular is because it offers them at affordable prices. Take Xiaomi’s smartphones range for example, they all come pre-loaded with the finest features and newest technical upgrades, rivalling those of smartphones by companies like Samsung, Apple, Nokia, etc.
But what sets Xiaomi apart from these other brands is the fact that their pricing is much more affordable.
Hype Through Artificial Scarcity
Nothing draws a customer’s attention like the apparent demand and value of a product. Or in better terms, the sooner the product isn’t available to everyone, the higher the customer’s want to buy it.
Xiaomi’s marketing strategy included this technique as well, wherein they created artificial demand and inadequacy during the launch of their products, claiming that their products were sold out in a very short duration of time since they were first put up for sales. This increased the consumer’s interest in those products and owning the became a brand statement rather than an actual investment in a product.
Razor And Razorblade Pricing Technique
One of the most popular and efficient pricing techniques today, the razor and razorblade pricing technique creates more business for a company by selling a product at a price that is considered a ‘loss’ but this product is sold alongside another product and the sales from both combined together help the company gain ample returns.
Xiaomi has employed this technique of pricing for very long, marketing its products in such a way that most of them are sold as combos or suggest combos.
There’s A Time And Place For Everything
Another marketing tactic by Xiaomi has been to release or announce new products at the right time and in the right places. This is very helpful in not only generating sales but also understanding and learning what the competition is like and where there is potential for success and failure in the market.
Xiaomi has an active presence in digital marketing and marketing on social media sites. They not only advertise and drive up sales for their products through social media, they also use data generated from user engagement on their social media platforms to further invest in R&D as well as take into consideration what their users would like to see in future products.