Xiaomi President Responds to Critics of Company’s Pricing Strategy
Chinese smartphone-maker and AIoT powerhouse, Xiaomi, has been under siege recently by internet users accusing the company of harming the image of China-made goods. Netizens are unhappy with Xiaomi’s products being inexpensive both domestically and globally.
A Weibo blogger @信通小熊猫 doubted that people from developed countries would ever become fans of a company selling cheap products and also questioned Xiaomi’s ability to allocate enough resources for R&D with such pricing.
Lu Weibing, who was recently promoted to president of Xiaomi China, responded to those unsure of his company’s ability to succeed globally by drawing their attention to the fact that Walmart, IKEA, Costco, Uniqlo and other brands have continuously performed well in developed countries despite being considered cheap.
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He also suggested that people read Xiaomi’s financial reports if they have doubts in the company’s money making and R&D capabilities. “Xiaomi‘s employees are talents from top universities in the world, and they wouldn’t be attracted to our company without high salaries,” underscored Lu.
According to Xiaomi’s financial records, the company has maintained profitability in the past two years. In 2018, Xiaomi‘s adjusted net profit reached 8.5 billion yuan. Xiaomi‘s investment in R&D also increased. Lei Jun, the founder of the company, has said that Xiaomi‘s investment in research and development this year is expected to reach about 7 billion yuan, an increase of about 20% year-on-year.
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