Smart TVs, BP monitors next: Xiaomi prepares for road ahead after Barra

 

Chinese smartphone major Xiaomi has been in the news throughout last year for different reasons — successful launch of products, tie-ups and investments, and gaining a share in India’s smartphone market. At the turn of the new year, it’s in news again for the exit of its maverick global vice-president, Hugo Barra.

Barra, the face of the Beijing-headquartered company, has been instrumental in taking it to the top three in India. But, despite his exit, Xiaomi must look ahead and prepare a road map for what is expected to be a very competitive year (2017).

The company is looking to expand its portfolio in India in the coming months by venturing into new categories. Products from its global portfolio, such as smart televisions, smart watches 

and blood pressure monitors could be introduced in the country. While, the firm has a wide range of electronic and durable devices, in India it still relies heavily on smartphones. Xiaomi is expected to bring down its dependence on smartphones by launching these products in India this year.

In the smartphone market, the firm is working to come up with a few models in the Rs8,000 to Rs25,000 price range. While, last year it launched Mi5, a flagship device priced at  Rs25,000, it failed to make a mark in the price segment. 

According to Tarun Pathak, analyst, Counterpoint Research, going forward Xiaomi would require to address the issue by introducing more models in the price segment. "In 2017, dynamics of the market may change dramatically. Xiaomi currently gets most of its sales from Rs8,000 to Rs12,000 price segment. However, to be ready for turbulent times ahead it should expand its portfolio," he said.

The firm has already launched Redmi Note 4 at Rs10,000 this year. The device is the next generation of its hugely successful Redmi Note 3 series, which helped it achieve the third spot in December with nine per cent share of the smartphones market in the country. 

According to sources, the firm will launch at least two more models in the months ahead - an upgraded version of the newly launched Note 4 and another device above priced Rs20,000.

Experts said its Chinese peers such as Oppo and Vivo could become a bigger threat for Xiaomi. According to data from Counterpoint Research, Vivo has emerged as the second largest smartphone brand in December quarter. Strong offline presence of other players has helped them while Xiaomi derives only 10 per cent of its sales from brick and mortar stores in India. Flash online sales, which incidentally Xiaomi popularised in India, has heavily contributed to its top line. The first assignment of 250,000 devices of its latest model Redmi Note 4 was sold off within 10 minutes. In 2016, the firm posted nearly Rs6,800 crore sales here.

The exit of Barra, who will be stepping down from his post in early February after serving the company for four years, may create a vacuum which Xiaomi might find tough to fill. 

According to industry experts, Barra's charismatic presence and style of operating had a key role in Xiaomi's rise to prominence. In his own words "disruption and innovation" were keys to Xiaomi's success in a competitive market like India. During his tenure, Xiaomi featured among the top five most-sold smartphone companies globally as well as in India. 

"Barra's presence in any launch or event or even online initiatives always made a difference," a Mi Fan said. Mi Fans are patrons of Xiaomi, named after its brand Mi. This group constantly creates buzz on the internet, including social media and also during phone launch events. As of now, Xiaomi will be banking on its India head Manu Jain who remains a key figure and enjoys considerable fan base.

.