At this moment in life, we all know “Xiaomi”, the brand that in a few years came to dethrone the best-selling companies worldwide, but how did it do it? Well, according to Xiaomi itself, they have a business model called “Triathlon”, which has been so successful, that it allowed them to be the third-largest manufacturer in LATAM.
What is this famous “Triathlon”?
From the beginning, we must know that Xiaomi was created by engineers and designers, who focused on creating innovative devices, also opting for their efficiency, and within this, they decided to adopt a model that is divided into three pillars that could work for any company in this branch:
- Smart hardware, all focused on high quality and spectacular designs, seeking a superior user experience
- New retail, this allows you to reach customers with products at affordable prices
- Attractive and efficient Internet services
Products adaptable to your lifestyle (Smartphones and AIoT)
One of the main aspects that allowed Xiaomi to scale by leaps and bounds, is to implement the term AIoT, which is the Artificial Intelligence of Things, which allowed it to reach bronze medals in sales around the world, even reaching almost to have the gold, managing to have the exorbitant number of 374.5 million connected smart devices (leaving aside cell phones and laptops).
According to Canalsys, Xiaomi smartphone shipments were among the top five in 65 markets for the second quarter of 2021, in addition to 22 more, it managed to be the first, offering high-quality equipment at prices that did not exceed 7 thousand pesos, with specifications of others that exceed 14 thousand pesos.
An improved distribution system
In order to cover many more markets and reach practically anywhere in the world, they decided on an omnichannel retail distribution, which focuses on much more organic advertising strategies, which allowed them to reach the right and ideal users, who, through word of mouth, recommended Xiaomi products, without having to pay extra for this.
This is how from the beginning, the brand of Chinese origin, began to sell online, maximizing efficiency and allowing them to build a digital relationship with anyone in the world, creating their own communities where their sales consultants or staff helped to respond. the doubts of the users. For 2015, they decided to start with Xiaomi Stores, but only until they positioned themselves in online sales.
Internet services, superior to the competition
Although in Mexico we still do not enjoy these services, in some parts of the world, they already have exponential growth, achieving a growth of 50% year-on-year, exceeding 900 million yuan, which would be close to 2,858,580,000 million pesos, representing 13.8 % of total internet revenues worldwide. In this way, this user base allowed them to expand to foreign markets, even creating partnerships such as Google and Facebook, to give a complete experience to their customers.
In summary
This business model, roughly explained, allowed Xiaomi to become one of the main and most important companies worldwide, offering quality products, and at lower prices compared to its competition; on the other hand, the inclusion of retail markets made their sales channels highly efficient, combining online sales with face-to-face sales.
And finally, by adding its internet services, the company would get involved and interact with the users of its platform, increasing loyalty and opportunities to monetize even more, without a doubt, we are facing the company that could change the world with endless products. that they already have and those that remain to reach the rest of the world.