Reasons why xiaomi is cheaper than the rest

Xiaomi is one of the brands that has gained more popularity in recent years. The Chinese company founded in 2010 is known for its smartphones, although it is not the only thing they produce. In recent times they have diversified their product offer more and more. We can find electric scooters, bicycles, smartwatches, stabilizers for video or they even sell underwear. A wide selection as you can see. Reasons that have led them to achieve a notable worldwide impact.

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Reasons why Xiaomi is cheaper than the rest

Despite all the products they sell, the Chinese brand is known for offering quality smartphones that have nothing to envy from the main manufacturers. And also, in general they tend to offer lower prices than their competitors have. This makes many question the way in which Xiaomi achieves this. How can they be cheaper than the rest and offer identical quality mobiles? Fortunately, we have some answers to this question.

We reveal some of the main reasons why Xiaomi is cheaper than the rest and has managed to conquer the market. And in this way, position itself as one of the best-selling brands in the world. Do you already have any ideas about these reasons?

Why is Xiaomi cheaper? Discover the reasons

There are a number of reasons that make this possible. Most of them are part of the company's business and marketing strategy, which is undoubtedly working very well so far. Do you want to discover these reasons?

Firstly, it should be noted that the company is committed to reducing its expenses as much as possible. Xiaomi does not use advertising in conventional media such as television. They know that the cost of advertising in this type of media is high and is not too effective. In addition, its main sales channel is through the internet. The Chinese company hardly has physical stores. This represents a huge saving in rentals and / or purchases of premises, and also the salaries of employees. By selling online, the costs are significantly reduced.

Another aspect to keep in mind is that the company measures its expansion with great care. Instead of entering all markets at the same time, they are carefully selecting markets. In this way they are firmly established in new markets without the need for large investments. Thus they have entered India, Mexico or Russia. In addition, thanks to online sales, they can sell to any market without having to make significant investments or financial efforts.

Low prices and tight margins

This is the other key strategy of the company. If you see the specifications of many of the Xiaomi smartphones, they have a quality that you do not have to envy to brands like Samsung or Apple. But if you look at the price of the devices that the Chinese company sells, in many cases the price is less than half. The company is committed to making designs that belong to the high range with significantly lower prices.

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Reduced prices that make the margins with which the company operates much narrower. This ensures that you can reach a very wide audience at high speed. But not surprisingly, we must find more ways to earn income. In this sense, Xiaomi has known how to bet on software. How? Making users consume more and more applications or games in their store. In this way they constantly generate income, which in some way counteract the narrow margins with which the Chinese company operates. A strategy that is quite common in companies of the Asian giant, and that so far is working correctly for Xiaomi.

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As you can see Xiaomi has opted for an aggressive strategy. Offer quality products at reduced prices. In this way they have been a clear competitor for the main high-end brands in the Chinese market. Their strategy has taken effect because they have positioned themselves as one of the best-selling brands in their country of origin. It remains to be seen whether this strategy will be sustainable and viable for the future, in which it will surely reach the European and American markets officially, and not through online sales. Did you expect that these were the reasons why Xiaomi is cheaper?