Xiaomi To Target High-End Market, Leaving Cost-Effectiveness Behind
Chinese smartphone maker Xiaomi is planning to rebrand itself to target a higher-end audience. Lei Jun, Xiaomi’s founder and CEO posted on Weibo on March 9, claiming that Xiaomi will no longer be restrained by “cost-effectiveness”. Instead, Xiaomi will aim to provide a high-quality and luxury experience in the future. Lu Weibing, Xiaomi’s Chinese District President and CEO of Xiaomi’s spin-off brand Redmi reposted the message and commented: “Redmi will take on the responsibility to produce affordable smartphones”.
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Xiaomi launched its newest flagships, the Mi 10 and Mi 10 Pro, on February 13 through an online event. The new model is widely seen as an attempt by Xiaomi to raise its average sales price (ASP) while upscaling its target audience. According to Chen Meng, an analyst from CITIC Securities, the Mi 10 could serve as a promising start for Xiaomi’s entry into the high-end market.
Previously, among all the shipments of Xiaomi group, the more affordable Redmi series has made up the majority, resulting in the lowest ASP among the 4 biggest Chinese smartphone brands (Huawei, Oppo, Vivo and Xiaomi).
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This is not the first time Xiaomi executives have expressed the company’s ambition to upscale the brand. Back in February, Lu Weibing claimed on Weibo: “In terms of competition, Xiaomi will compete directly with Huawei. And without a doubt, Xiaomi’s Mi series and MIX series will be competing with Huawei’s P/Mate Series and iPhones, respectively.”
Launched in September 2019, Xiaomi’s MIX series debuted its first model, the Mi MIX Alpha, a futuristic smartphone featuring a “surround screen” that wraps almost entirely around the phone. On March 10, Chang Cheng, Xiaomi’s newly appointed VP posted on Weibo asking users to provide suggestions for the MIX series, the most expensive and high-end product line from Xiaomi group. Many netizens’ comments reflected their expectations for more groundbreaking designs from the series.
