Smartphone maker Xiaomi is betting big on the Rs. 10,000-Rs. 15,000 device segment to regain its lost market share, a senior official of the company said on Friday.
Xiaomi India President, Muralikrishnan B said that the company has come up with a reset strategy and will focus to be "India's most loved and trusted smartphones" and IoT brand with "focus on efficiency and sustainability with a secure foundation." He said that Xiaomi will operate with a leaner product portfolio and focus on democratising 5G in the country.
"Today most of the 5G devices that are being sold are above Rs. 20,000. There is an increase in penetration in Rs. 15,000-Rs. 20,000 but mass of the market, the belly of the market is going to be in Rs. 10,000-Rs. 15,000 where there is a clear opportunity for Xiaomi to replicate what we did with 4G and recreate that 5G magic," Muralikrishnan said.
According to Counterpoint Research, the Rs. 10,000-Rs. 20,000 price segment had recorded the steepest decline of 34 percent on a year-over-year basis in the March 2023 quarter while smartphones priced above Rs. 45,000 recorded the highest growth of 66 percent.
Muralikrishnan said that the company has been selling smartphones in the price range of Rs. 15,000-Rs. 30,000 as well and the response to the company's devices in the Rs. 10,000-Rs. 15,000 bracket makes it confident to focus on the segment. "Redmi Note 10T 5G, Redmi Note 11T 5G and Redmi 11 Prime 5G which have done exceedingly which gives us confidence that this is the right segment to target for 5G. We will stay true to what Xiaomi is known for, which is a product with the best of specs, the highest quality and honest pricing," he said.
According to market analysts, Xiaomi has recorded a decline in shipments for the last four consecutive quarters.
In the March 2022 quarter, Xiaomi shipments declined by 44 percent on a YoY basis and the company slipped to third position with 16 percent market share, according to Counterpoint Research.
Muralikrishnan said that the company will now grow offline retail reach to boost its business.
He said there will be a razor-sharp focus on not just expanding our distribution reach but also building strong retail capabilities that can help sustain this growth for the long term.
The company plans to double sales promoters at retail stores from 4,000 at present to over 8000 by the end of this year, Muralikrishnan said.
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