Xiaomi Marketing Strategy & Marketing Mix (4Ps)

Published by MBA Skool Team, Last Updated: August 20, 2021

Marketing Strategy of Xiaomi analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Xiaomi marketing mix, help the brand succeed.

Xiaomi marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us start the Xiaomi Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Xiaomi Product Strategy:

The product strategy and mix in Xiaomi marketing strategy can be explained as follows:

Xiaomi is one the fastest growing consumer electronics companies based out of China. Xiaomi initially started off as a mobile brand but now offers a wide range of consumer electronics products. The products in the collection of Xiaomi are

• Smartphones

• TV

• Notebooks

• Smart devices

• Power bank and charging devices

• Speakers and headphones

• Drones

Xiaomi’s biggest seller are its smartphones with the MI, RedMi & POCO range of products. These products are mostly run on Qualcomm processors in India due to a case pending with the court with Ericsson on the usage of non-Qualcomm products in India. Similarly, it has customized the products to the requirements of the region it operates in to incorporate the local market and political conditions. This shows the strong product portfolio in the marketing mix strategy possessed by Xiaomi. The company got listed on the Hong Kong Stock Exchange in 2018. The brand has also planned to invest $10 billion towards electric cars.


Image: flickr.com/photos/vernieman/


Xiaomi Price/Pricing Strategy:

Below is the pricing strategy in Xiaomi marketing strategy:

Xiaomi sells at low price and offers high quality products.

According to the founder, chairman and CEO their main aim is to sell the products at the price the product is produced without making any profit. So, the strategy being followed by Xiaomi is sell at a low price today and gain later strategy. Their profit generation focus is on the accessories, apps, and services that are to be used with their products. This is a unique pricing strategy in its marketing mix, mostly aimed at gaining a substantial market share. The pricing strategy of Xiaomi has enabled the brand to penetrate into a global market and have a substantial market share. Initially, they started with low end feature phones to enter the market. Now, gradually, Xiaomi has also established itself as a leading smartphone player across the world.


Xiaomi Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read Xiaomi SWOT Analysis, STP & Competitors

Xiaomi Place & Distribution Strategy:

Following is the distribution strategy in the Xiaomi marketing mix:

Xiaomi operates in China, Singapore, India and many other countries mainly in emerging markets of south east Asia. It has a huge presence in many of these countries but major turnover comes from mainland China. Xiaomi mainly sells through online mode though it has made some modifications in some of the emerging markets where it uses retail outlets to sell its products. It operates through ecommerce platforms also in the online market globally.

Xiaomi also operates dedicated stores called Mi home present in Beijing and now being opened in Bangalore. 


Xiaomi Promotion & Advertising Strategy:

The promotional and advertising strategy in the Xiaomi marketing strategy is as follows:

Xiaomi promoted its products by selling high specs at lower price to markets where technology savvy people could not afford high spec products from Xiaomi competitors. They have distinguished themselves by building a strong following around their custom operating system. “Just For Fans”, Xiaomi’s unique initiative where the Xiaomi loyal fans lead the development of the product in every step. Most of the employees of Xiaomi are also previous loyal fans who have become part of the team developing the product. In this way Xiaomi has made sure there is a pull strategy than a push strategy of the products produced by them. Xiaomi also leveraged social media to the fullest and word of mouth. It promoted through micro blogging sites and social networking sites like Facebook and Twitter. They regularly organize flash sales which forced the people to buy them due to the urgency. This caused a hype for the product and there has been alleged reports that some of the products were sold out in 6 minutes. This type of publicity pushed sales for Xiaomi. Another crucial part of Xiaomi’s social media strategy is that it runs Weibo accounts for every product range in China and for facebook in other markets. Xiaomi also organizes fan festivals and local meetups regularly like the concept followed by Harley Davidson to try and create a cult following for Xiaomi products. The fans are encouraged to bring their friends along to these meetings as well. They also combine forces with likeminded companies to promote its products like it did along with Uber to promote its brand. FlipKart being one of the leading online platform helped the publicity of Xiaomi. Xiaomi, has a well-established program under the VIP Users Center. Being a Xiaomi VIP entails getting points with each new purchase, which counts towards your status in the Xiaomi online community as well as for discounts on future purchases. These VIP members are also invited to these local meetups and fan festivals. This conclude the 4Ps marketing mix of Xiaomi.


About Xiaomi:

Xiaomi is a privately owned Chinese electronics company headquartered in Beijing. Xiaomi was founded in 2010 by 8 partners with funding from Temasek Holdings, a Singapore government owned investment company, IDG Capital and Qiming Venture Partners and Qualcomm. Xiaomi is expanding at a very fast pace with operations in more than 30 countries. According to IDC Xiaomi was the third largest smartphone maker in the world and the largest seller of smartphones in China. It is also ranked as the top 7 tech start-ups in the world according to its recent valuation. Xiaomi has a unique concept where it makes changes to its product with the help of feedbacks from fans. This has helped it to reach the customers in ways which other companies could not and is in the verge of becoming a global brand.

The "MI" in the logo stands for “Mobile Internet”. Xiaomi also states Mi as “Mission Impossible due to the severe challenges faced by it during the starting years. The company has more than 20,000 employees spread globally.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

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