Xiaomi is already one of the strongest brands in the world in the smartphone sector, as evidenced also by the second place achieved in the Italian market in 2021. But he is not satisfied, and aims even higher. To declare it on his Weibo profile, without too many words, is the founder and CEO of the Chinese giant, Lei Jun:
Our goal is to reach Apple in terms of products and experience, from all points of view, and to become the largest high-end smartphone brand in China over the next three years.
And three years are also the time window set by Xiaomi to reach the other goal, the one on a global scale, placing itself on the top of the world: a decidedly ambitious vision not only for the proportions but also for the particularly short timescales compared to the size of the company.
It is interesting to note that at the center of Lei Jun’s words are high-end smartphones, whereas Xiaomi – especially in the West – has instead built its success on mid-range or even cheaper products. In short, the company is moving forward towards a change of paradigm: also because it is the flagship that guarantees the greatest profit margins.
ONE MATTER
In reference to the fight at the top of the market, not surprisingly, Lei Jun uses a war metaphor, speaking of a ” life and death ” question, absolutely crucial for the company to continue on a path of growth. With the current business model, obviously, the expansion margins are now minimal, and therefore we need to push in other directions.
But how does Xiaomi intend to achieve these goals? First of all by investing in research and development in the short term: Lei Jun also specified that 100 billion yuan, or the equivalent of 13.8 billion euros, have been allocated for the next five years.
And to imitate Cupertino’s winning model, the strategy plans to open over 20,000 new retail stores in China between now and 2025, which will add to the 10,000 already active in the country.