Xiaomi (Xiao = “little”, mi + “rice”) is one of China’s biggest electronics companies that designs, develops and sells cellphones, mobile apps and consumer electronics. To sell its smartphones, the company employs a strategy that prices them almost at bill-of-material prices. To profi t from the narrow margins and further reduce overhead costs, it sells exclusively through online stores, doing away with traditional advertising reliant on social media and word-of-mouth. Xiaomi made a big splash recently, launching it’s killer smartphone Mi3 in India exclusively on fl ipkart. At INR 14k, Xiaomi made the point that high-end smartphones can be sold for low prices. It sold 95,000 Mi3s over six fl ash sales, where the lots got sold out in a matter of seconds, disappointing thousands who still await to get their hands on the phone. Aft er this incredible success story, the company is intent on scripting another, with the launch of it’s new Redmi 1S, for which registrations have already opened on fl ipkart. Flash sales start 2PM september 2nd onwards. Th ough the Redmi 1S was announced at a price-point of INR 6,999, as of goint to print Xiaomi has reduced the price to INR Rs 5,999.
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