XIAOMI, Inc

Always believe that something wonderful is about to happen.

- Xiaomi Mantra -

70 Million Xiaomi’s actual smartphones

sold in 2015, directly to customers.

#1 in CHINA By smartphone shipments 2015

15% 14.50%

13.40%

8% 8.10%

Xiaomi Huawei Apple OPPO Vivo

#5 in Wordwide Market Share 2015

23%

16.20%

7.40%

5% 4.90%

Samsung Apple Huawei Lenovo Xiaomi

#2 in World’s Most Valued Tech Startup

#2 in

50 SMARTEST COMPANY 2015*

#1 TESLA MOTOR

#2 XIAOMI #3 ILLUMINA #4 ALIBABA

*) MIT Tech Review

mobile internet

Mi Product Milestones

2011/12

Launch MIUI, Mi One, & Mi

2. Value reached up to

4 Bio.

2013

Launch Mi 3. Estimated value 10 Bio

2014/15

Launch Redmi, Mi 4, Mi Band,

Mi Box, Mi Wifi, Mi Yi, Mi Pad, Mi Smart

TV

2010

Xiaomi founded.

Profit from internet

marketing.

Value at 250 Mio in 8 months

2016

MIUI 8, Mi 5, Mi Mix, Mi Camera, Mi Yi M1, Mi

Drone, MiJia Smarthome, Mi VR, Mi Water & Air

Purifier, Mi Robot Vacuum

Current value at 46 Bio

XIAOMI BEST PRACTICES

1. World Class Executive 2. Innovative marketing 3. Dinamic-pragmatic supply

chain management & manufacturing

4. Future expansion

#1

WORLD CLASS EXECUTIVES

Xiaomi Executives

Experienced from Microsoft, Motorola, Kingsoft, Sina, & Google.

Responsible for developing MIUI ecosystem (Mi Cloud, Mi Theme, Mi Credit, etc), R&D, hardware design, & software development.

HUGO BARRA

VP Global ex Google Android Product Management

#2

INNOVATIVE MARKETING

Xiaomi sells online directly to customers

from their own websites

Social Media Marketing & Customer Participation via

Mi Fans, Mi Festival, Mi Forum

Less advertising, endorsement, and no marketing agencies. More user generated content from social media.

Experience Store

#3

SUPPLY CHAIN & MANUFACTURING

• No excess inventory, tighter supply control • Shortens procurement process & lower cost

by sourcing from Asia Pacific vendor (etc Sharp, Sony) • Reduce shipping cost by locating warehouse

near e-commerce companies

SUPPLY CHAIN STRATEGY

• Strong partnership with Invitec & Foxconn (also Apple vendor) • Essentially using same component for new phone

• Support longer product life cycles with software update, spare part & service support.

• Resulting big enough profit margin to keep customer price low.

MANUFACTURING

#4

FUTURE EXPANSION

FACING THE GIANTS Xiaomi actually is gaining niche market by offering high end Android

devices using many of the same components from Samsung & Apple, but at very attractive price.

But, they also have to look out their native competitors like Huawei, Oppo, & Vivo.

GLOBAL EXPANSION

• Depends on Xiaomi ability to replicate and adapt their business model in other region. So far, India has done well.

• Comply with regional regulations regarding local material substance.

Xiaomi’s Future Ecosystem

Internet of Things

ESTABLISHED IDEAL

START UP

HIGH SCALE

LOW SCALE

LOW EMPATHY

HIGH EMPATHY

#customeroriented

THANK YOU

Arya Pamungkas animum.fortuna@gmail.com