Topic: BusinessE-Commerce

Last updated: December 13, 2019

Text BoxShapeText BoxText Box
Page Break


We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

India’s telecommunication network is that the second largest within the world by variety of phonephoneusers (both mounted and mobile phone) with one.153 billion subscribers as on thirty one could 2018. it’sone among the bottom decision tariffs within the world enabled by mega medium operators and hyper-competition among them. As on thirty one could 2018. Asian country has the world’s second largest webuser-base with 432 million web subscribers within the country.

Major sectors of the Indian telecommunication trade square measure phonephone, web and tv broadcast trade within the country that is in AN in progress method of reworking into next generation network.employan in depth system of contemporary network components like digital phonephone exchanges, mobile switch networks, media gateways and signalling gateways at the core, interconnected by a good kind of transmission systems exploitation fibre optics or Microwave radio relay networks.

Indian medium trade underwent a high pace of market relaxation and growth since the Nineteen Ninetiesand currently has become the world’s best and one among the quickest growing medium markets. The trade has big over twenty times in only 10 years, from below thirty seven million subscribers within the year 2001 to over 846 million subscribers within the year 2011. Asian country has the second largest itinerantuser base with over 1131 million users as of could 2018.

According to London-based medium trade body GSMA, the medium sector accounted for six.5% of India’s GDP in 2015, or concerning ?9 100000 large integer (US$130 billion), and supported direct employment for two.2 million folks within the country. GSMA estimates that the Indian medium sector can contribute ?14.5 100000 large integer (US$210 billion) to the economy and support three million direct jobs and a couple ofmillion indirect jobs by 2020.


China’s Xiaomi shipped over nine million units, giving it a market share of simply over thirty first, the best ever for a merchant since the primary quarter 2014, once Samsung had a share of thirty third, research firm.
Xiaomi showed a powerful one hundred and fifty fifth annual cargo growth within the half-moon of 2018, widening the gap between itself and Samsung, that shipped just below seven.5 million smartphones, growing by pure gold on last year. Xiaomi is changing into a force to be reckoned with in Bharat. excluding being a number of the most effective price devices on the market, Xiaomi’s smartphones area unit currently accessible in additional places and in larger quantities. The research firm aforementioned that Xiaomi’s recently launched Redmi five, Redmi five and and Redmi 5A have seen runaway success, with the Redmi 5A reaching record sales of three.5 million within the quarter. Xiaomi is currently transportation this value disruption to TVs, another shopper market that’s dominated by heavyweights, like Samsung, Sony and LG. The move can add abundant required equity to its complete and can absolutely have an effect on its longevity within the market. The Indian smartphone market conjointly continues to consolidate, with smaller vendors finding it extraordinarily tough to reach the face of Xiaomi’s growing prominence. the highest four vendors accounted for concerning seventy fifth of all smartphone shipments to Bharat. While around *fr1 the phones sold on-line area unit Xiaomi phones currently, per Counterpoint analysis, the corporate has, over the past few months, begun pushing sales through brick-and-mortar stores, too. As a result, Xiaomi’s share of total sales in Bharat from offline channels has got to double two hundredth within the last year. it’s conjointly worked on making a cult following in Bharat, a move that analysts say helped produce robust stigmatisation at a time once they weren’t even investment abundant in standardadvertising.Xiaomi has established 2 producing facilities in province wherever it manufactures over seventy fifth of the handsets it sells in Bharat. These units area unit run in partnership with Taiwanese physics manufacturer Foxconn. the corporate is currently considering putting in place a 3rd unit to fulfill growing demand. As a result, 3 of the 5 highest commercialism smartphones in Bharat between Gregorian calendar month and Gregorian calendar month were created by Xiaomi.


Xiaomi has emerged because the leading smartphone marketer in Asian country in terms of shipments for 2 consecutive quarters currently, in step with International knowledge Corporation’s (IDC) latest hunter, printed fourteen might, for Q1 2018. The Chinese phone maker currently features a market share of thirty.3%, up from 26.8% in December quarter, whereas Samsung that command twenty four.2% of the market in half-moon, currently features a market share of twenty five.1%. The IDC report is in line with Counterpoint Research’s latest report for identical quarter, despite the fact thatthe numbers vary a bit. in step with Counterpoint report, Xiaomi’s market share in alphabetic character2018 was thirty one.1%, whereas Samsung’s market share was twenty six.2% Xiaomi’s continuing concentrate on offline growth has improved the brand’s visibility in Asian countrywhereas a series of recent launches like the Redmi Note five and Redmi 5A supplementary to their market share within the March quarter, claims the IDC report. The Indian smartphone market continues to be dominated by Chinese firms, crystal rectifier by Xiaomi thatcontinues to be at the highest for second straight quarter

Xiaomi currently controls twenty three.5% of the Indian smartphone market, that ties it with Samsung because the high smartphone whole within the country, says the IDC report.–621×[email protected]–621×[email protected]


Total year-over-year international smartphone shipments exaggerated a pair of p.c, reaching 345.5 million units within the half-moon of 2018. However, seasonality took its toll, driving cargo volume down by elevenp.c quarter over quarter.

Most smartphone manufacturer’s unit shipments slashed within the half-moon of 2018 from the previous year, except Huawei, that grew fourteen p.c, and Xiaomi, that grew 129 p.c. whereas the market leaders remained constant because the previous year, Xiaomi has currently secured the fourth position for 2consecutive quarters — pushing Oppo and Vivo to fifth and sixth position within the unit cargo ranking

Chinese smartphone maker Xiaomi secures $1 billion syndicated loan, as China’s technical school companieslook to diversify their businesses thanks to holdup in e-commerce growth

The global syndicate of top-tier banks could be a sturdy endorsement of Xiaomi by the international capital markets,” Shou Zi Chew, CFO at Xiaomi, said. The strategy to form Associate in Nursing offline retail presence marks a departure from Xiaomi’s well-liked on-line flash-sales model which—by making a robust”pull”—catapulted the smartphone complete to the second spot in Asian nation, in terms of units sold-out. Flash sales ask a brief amount once a product or product area unit sold-out for significant discounts.

According to IDC’s quarterly mobile hunter report, Xiaomi’s market share in Asian nation rose to fourteen.2% within the January-March quarter—second solely to Samsung that includes a twenty eight.1% share—as it fended off aggressive Chinese competitors Oppo and Vivo and therefore the home-grown Micromax

Smartphone shipments from Oppo and Vivo, on the opposite hand, declined for the second consecutive quarter, though each corporations delivered

Smartphone shipments from Oppo and Vivo, on the opposite hand, declined for the second consecutive quarter, though each corporations delivered double-digit growth till the third quarter of 2017. Saturation in China, their native smartphone market, beside vital hurdles from overseas enlargement, caused shipments for each corporations to say no.

Since the second quarter of 2017, Xiaomi has been growing before the market. The company’s targetincreasing offline distribution — via further Mi stores and retail collaborations in China and Asian nation — has began to pay off.

NEW DELHI: Asian nation has pipped the North American nation to become the world’s second-largest smartphone market at the top of the third quarter, consistent with 2 analysis companies,

Which conjointly aforesaid China’s Xiaomi is predicted to finish Korean major Samsung’s four and a 0.5 year reign at the highest presently.

Singapore-based Canalys aforesaid during a report that the Indian smartphone market grew by twenty thirdyear-on-year within the July-September quarter to high forty million units, fuelled principally by Xiaomi, thatlogged Associate in Nursing over 290% increase in.

This situation is even additional widespread in Asian country, that is that the fastest-growing smartphone market within the world. Asian country reportedly accounts for nearly thirty million smartphone purchases quarterly, and this proportion keeps increasing many times a year. per IDC and therefore the Ericsson quality Report, mobile subscriptions in Asian country area unit expected to rise to one.4 billion by 2021.

India is that the world’s third largest smartphone market, and conjointly continues to carry its position of being the largest feature phone market globally. 2017 has been Associate in Nursing exceptional year for this class because it witnessed a seventeen % annual growth once declining for 3 consecutive years. whereas feature phones stay relevant to an outsized client base in Asian country, the Indian telecommunication operator Reliance Jio shipped large shipments of 4G enabled feature phones taking the leadership position on its maiden quarter during this class. This resulted in a very total of 164 million feature phone shipments in 2017 from one hundred forty million a year agone. In 2017Q4, vendors shipped a complete of fifty six million units within the 2017Q4 creating it the highest-ever shipments in a very single quarter. The class registered an enormous sixty seven % year-over-year (YoY) growth and thirty three %growth from the previous quarter.

Commenting on the key trends of 2017Q4, Upasana Joshi, Senior analyst, IDC {india|India|Republic of Asian country|Bharat|Asian country|Asian nation} “Xiaomi taking a lead over Samsung within the smartphone market and Reliance Jio rising because the leading feature telephone service in India were the 2 key highlights of the half-moon of 2017. Joshi adds more “The growth of each the vendors was propelled by their aggressive valuation. Xiaomi’s offline growth and better promoting spends were different key factors for the vendor’s high shipments within the seasonally low quarter.”


India’s mobile handset industry’s revenue up 22% to ? 1.4 lakh crore in 2016;containerId=prAP43569518;elementId=54720052;attachmentId=47309151

The International information Corporation (IDC) has same that it expects the worldwide smartphone market to require a dip once more in 2018 before achieving growth from 2019. The market had suffered a fall by zero.3% within the year 2017. As per the International information Corporation (IDC) Worldwide Quarterly portable huntsman, in 2018 the smartphone shipments are often expected to call zero.2% to 1.462 billion units. this implies that the market might come in more decline in 2018, when the autumn in units from one.469 billion in 2016 to one.465 billion in 2017. However, the forecast additionally says that the smartphone market can recover at the speed of roughly three-dimensional annually from 2019 and also theshipments might boost to one.654 billion in 2022. IDCalso foreseen that the five-year compound annual rateCAGR are a pair of.5%

The Chinese smartphone market born by four.9% year over year and was the most important reason behind the 2017 drop. Things don’t seem to be wanting to enhance within the future as IDC predicts that the Chinese market goes to suffer a decline by another seven.1% in 2018 before speed down in 2019. In sharp distinction to the Chinese market, the Asia/Pacific market is predicted to grow and in Asian country, the expansion percentages forecast is Bastille Day and 16 PF for 2018 and 2019 severally.
The strategy of the Chinese OEMs can currently be to sell the majority of their low-end devices in Asian country. Till now, most of the Chinese OEM’s are ready to bypass the new {india|India|Republic of Asian country|Bharat|Asian country|Asian nation} import tariffs by going for final device assembly at native India producing plants. however virtually each part continues to be being sourced from China.
The other regions of growth embrace the center East, continent and geographic area. IDC predicts that the buyer defrayal in these regions can rise despite the economic challenges.

The other impetus which will amendment the worldwide smartphone sale state of affairs are the entry of 5G smartphones within the world market. in keeping with IDC, second-half of the year 2019 can see the appearance of the primary business 5G phones and by 2020, they’ll count amongst roughly seven-membered of all the smartphones. The 5G devices’ share, IDC said, ought to grow to eighteen of total volumes by 2022.


Xiaomi started its journey within the movable market in 2010 with a Mi speak chat application and afterward discharged Mi1 in 2011. that point nobody even thought that it might provide competition to giants like Apple and Samsung.

Xiaomi’s Growth

Xiaomi raised additional revenue than its U.S counterparts and it started with huge investments from numerous investors that drove the expansion.

The company’s sales redoubled from seven.19 million units in 2011 to sixty one.2 million units in two014.

In Gregorian calendar month of 2014, the corporate declared a funding spherical of $1.1 billion. Russia-based venture firm DST and Singapore-based GIC each participated within the spherical, that brought Xiaomi’s valuation up from $10 billion to a walloping $45 billion, giving the corporate a great deal to measure up to.


The rapid climb of Xiaomi in India within the last 2 quarters has surprised Samsung the South Korean bigbecause it dethroned Samsung from the highest spot.

The Chinese natural philosophy and code company doesn’t have massive, secret warehouses in Indiawherever it’s storing unsold inventory and is really marketing sensible phones quicker than the otherwhole within the country creating it a raging product.

The co-founder of Xiaomi Lei Jun aforementioned that he dislikable Xiaomi’s comparison with Apple as he thought it absolutely was a lot of like associate degree e- commerce company like Amazon as Xiaomi has its own e-store and additionally includes a front on Alibaba’s Tmall.

The reason for such quick growth of Xiaomi will be -:

Selling on-line -: Xiaomi not like several sensible telco relied on its on-line store sales. the corporate didn’t’ had to pay the price of maintaining and building venues. In 2012, seventy two of sales were done on-line.

Flash sales to make demand-: the corporate releases its phones in flash sales to extend the promotion of the phone whereas keeping a minimum stock. With phones that stayed on the shelves for extended than average, the corporate cut long-run deals and solid partnerships with suppliers.

Building a loyal client base- the corporate designed a disciple base through on-line channels like Weibo (China’s Twitter) as well as its strategy to unharness phones in little batches. Xiaomi relied on these vocal fans to review the new devices and MIUI.

These ways didn’t simply provided success in China. It additionally tested to be associate degree all-mainsset up for deploying smartphones in rising markets.

Low value sensible phones- the rationale Xiaomi was such a hit in India was as a result of it understood the Indian sensible phone users. They wished a cheap sensible phone while not having to compromise with the specifics and that’s what it gave to them. That’s the rationale Xiaomi is India’s most marketing sensiblephone.


Xiaomi, the Chinese smartphone company established in 2010, had quickly grab the Chinese market.

So currently Xiaomi able to enter in India however competition exists everyplace. Xiaomi was troubled to satisfy India’s quick growing demand for mobiles at the same time as its second native producing facility found out in partnership with Foxconn can log on. most vital challenge that Xiaomi baby-faced in India is demand and provide, offer is a smaller amount than the demand in order that they set to setup an extraunit however it takes while therefore to beat the matter they set to sell different product like small USB OTG adaptors, Bluetooth devices etc. it absolutely was right of taken that step as they are doing not wish to loose the market.

While several Indians square measure victimization Xiaomi devices, several different customers square measure discontent by the shortage of devices. Xiaomi sells ninetieth of its devices in India by e-commerce web site and in partnership with Flipkart and Amazon. the corporate presently controls over half-hour of the web smartphone market within the country however still they’re not satisfy. In China at just the oncethey were over fifty per cent of the web market share.

Demand for product is obtaining additional however they need shortage therefore Xiaomi same to open the offline store in India, Competitors Oppo and Vivo {are also|also square measure|are} there and India’s ancient offline prices are terribly high and potency is low. So, they have to rent plenty of promoters and Bollywood stars and advertise everyplace. Then conjointly they set to induce offline services.

At last on first March 2018 Smartphone whole Xiaomi opened its 1st ever Mi Home expertise Store in national capital.

This has solely been attainable because of the large support that they need received from Mi Fans over the years as a result of they offers highest quality at AN honest valuation.

Continuing with the goal they created new innovation to any or all, Xiaomi recently launched 3 exciting product in Indian market – Redmi Note five, Redmi Note five professional and also the much-awaited Mi junction rectifier TV.

They launched product are obtainable for purchase from twenty two Feb 2018 across and e-commerce website like Flipkart and also the company sold over three hundred thousand units of Redmi note five and Redmi Note five professional within the 1st 3 minutes of the web sale.

SWOT analysis of Xiaomi

Strengths within the SWOT analysis of Xiaomi
One of the biggest Smartphone maker – Xiaomi is one in all the biggest smartphone manufacturers within the world. it’s aforesaid to be the fifth largest smartphone manufacturer as of 2017. Originating from China, the Smartphones area unit factory-made in large quantities and have wide acceptance across the globe.
Highest commercialism Smartphone – The REDMI Note four became the best commercialism smartphone in Asian country and China and much in five hundredth of the Asian market. This shows that Xiaomi is powerfully rising within the smartphone market and has already overwhelmed many giants.
Huge China and Asia market on the market – Another profit to Xiaomi is that the total Asian market is their playground. As China lies inside Asia and as Chinese mobile brands area unit extremely penetrated within the Asian markets, Xiaomi still features a ton of ground to explore.
Penetrative rating – Xiaomi has the strongest penetrative rating advantage as a result of it typically uses marketing techniques and avoids dealer and distributor margins.

Weaknesses among the SWOT analysis of Xiaomi
Offline Distribution – Xiaomi principally sold through the flash sale but generally, it completely was difficultfor patrons to urge their hands on a REDMI or MI model phone. this may be as a results of their offline distribution is not up to mark and Xiaomi phones sell principally via E-commerce.
Advertising and mercantilism spends – The advertising and mercantilism spends of the entire is very low. the entire launches ATL campaigns solely arising with a fresh product. However, the advertising is erratic at the simplest and is not consistent.
Brand image and Equity – as a results of the advertising and mercantilism efforts unit poor, the entireimage is not so good as Samsung or Apple or various such competitors. the merchandise portfolio of Xiaomi is in addition restricted that a lot of effects the entire image. Service centers too unit restricted and eachone these factors contribute to the low whole equity and name.
Low Skimming value – whereas various smartphone manufacturers survive on skimming value, Xiaomi launches its own phones at low prices among the flash sales. As a result, it cannot build the foremost of the skimming value or the advantage is not as profitable as a result of it’d be for Samsung or Apple or varioussuch high-end brands.

Opportunities within the SWOT analysis of Xiaomi
Expansion – Covering the developing countries and also the rising markets ought to be the priority for Xiaomi. because it principally follows on-line sales model, that is changing into standard in severalcountries, it ought to expand to countries wherever E-commerce mode of purchase is well established or within the method of firm.
Distribution – Besides on-line distribution, Xiaomi conjointly has to consider offline distribution if it ever needs to be consistent like a number of its prime competitors. Offline distribution would conjointly mean higher expenses and so an increase in worth. however it’ll facilitate the complete to form a long image and equity.
Brand Building – complete building ways like ads, Trade promotions, ATL campaigns and BTL campaigns ought to be launched as frequently as attainable to make a more robust complete image. Xiaomi is waybehind Oppo and Vivo wherever BTL Campaigns area unit involved.
Product Portfolio – Product portfolio of Xiaomi is proscribed and it’s two major series that truly contribute to the whole revenue of the complete. increasing the merchandise portfolio can facilitate the complete in complete building further as in obtaining higher revenues.

Threats within the SWOT analysis of Xiaomi
Competition – Oppo and Vivo area unit two of the largest competitors for Xiaomi as a result of they’rethemselves from China and have a similar producing benefits like Xiaomi. Besides this, Oppo and Vivo have a robust offline presence and have immense distribution network. Thus, they’re an enormous threat to Xiaomi.
Service – the dearth of service centers cherish the amount of sales by the complete could be a worrying datum. Xiaomi has to increase its sales and repair centers each if it needs to retain its customers.
Brand Differentiation is absent – The smartphone section has become such complete differentiation is changing into terribly troublesome. every complete is arising with product that area unit nearly similar, thereby creating it troublesome for the client to decide on one complete over alternative. this can become particularly troublesome once additional and additional brands come back from China.


I'm Piter!

Would you like to get a custom essay? How about receiving a customized one?

Check it out