Despite the limitations that its distribution system still has (and that will last a few years yet, at least as far as Europe is concerned, according to the latest news), Xiaomi has experienced spectacular growth in a fairly short period of time in fact, without any doubt, thanks to the enormous appeal of the quality / price ratio of its devices, as it happens with the rest of low-cost manufacturers. But wich ones the secret of these low prices? Hugo Barra has revealed it in a recent interview.
A small catalog and long cycles for your devices
The essence of this successful strategy could be summarized, according to Hugo Barra, in these two pillars: a small catalog and long cycles for your devices. In this way, the company can focus on a few smartphones for around two years. It's funny because this is actually just the opposite of what many of the big manufacturers do, whose flagship is renewed annually (semi-annually in the case of Sony) and whose catalogs are sometimes as extensive (Samsung is, of course, the best example) that sometimes it is impossible to have a clear idea of all the models it offers.
The importance of online sales
La Information online, one of the basic identity signs of Xiaomi, is another of the fundamental pieces of the puzzle, and although the company has already tried sales through operators, this is still by far the main marketing channel for its smartphones. We have seen that other low-cost companies grant it, such as OnePlus, although in their case the emphasis is on this aspect of the distribution is even greater (so much so that they have already recognized that they can't even afford to sell without restrictions).
What do you think about it? Do you think it is worth reducing the number of smartphones that are put on sale and extending their life if that can lead to lower prices, or do you prefer the more conventional strategy of the large manufacturers?
Source: techcrunch.com