Xiaomi is Constructing a New Factory in India
COVID-19 and China
Leijun with Jain. Photo: Credit to Xiaomi

Indian Media ET Telecom reported on Apr 28, 2019, that Xiaomi announced the new Indian manufacture factory founded by Xiaomi’s components partner has made significant progress. Manu Jain, the president of Xiaomi India said that due to the Indian general election, the progress of the construction of the new factory has been delayed. The foundation of the new factory would be completed several months later, after the general election. According to Manu Jain, the main focus of Xiaomi’s manufacture is the Indian domestic market. However, in the future, Xiaomi’s products would be open for exporting. In 2019 Q1, Xiaomi’s smartphones rank 1st in terms of shipments and occupied more than 30% market share. With the help of the new component partners, Xiaomi is strengthening its manufacture ability in India. Xiaomi has established 7 factories in India, which 2 of them produces mobile chargers. Currently, Xiaomi is considering establishing a factory that products smart TV.

Jain said that the increasing shipment of Xiaomi’s smartphone is supported by Xiaomi’s Internet business. In the future, Xiaomi’s Internet business might have greater potential. “We believe that Xiaomi’s Internet business will keep increasing. The mobile payment or financial service could generate billions of USD in India. The transaction size of India’s UPI shows that Indian’s mobile payment is a great opportunity.” Jain said. Currently, Xiaomi has published lots of Internet service platforms including MiPay, Mi Music, Mi Video, Mi Credit and the E-commerce platform. In addition, Xiaomi published MIUI, which is an operating system based on Android. Jain said that these services are published only in China and India, and Mi Pay is designed for India market for the first time. Mi Music, as well as other services, are specifically designed for India.

Xiaomi wants to transfer the content service into income, with high-quality contents and advertisement-based mode. Jain said that “we do have income from advertisements because we need to pay for the contents, and our content operation requires a large cost.” Jain explained that Xiaomi is testing how to benefits both the users and content providers. As a Xiaomi’s user, a one-time payment is enough for Xiaomi to offer all kinds of resources from the mobile phone platform.           

Beyond this, Xiaomi India has established its R&D team for IoT devices, smartphones, and MIUI. Recently, Xiaomi has invested INR 3.5 billion (around CNY 240 million) into Xiaomi India, most part of which were invested in the construction of research and development team, and the content and payment business. Jain said that Xiaomi also invested more on the retail businesses in Indian rural area. In terms of IoT business, Jain said that Xiaomi is publishing new IoT devices in the Indian market. In 2019 Q2, besides the publications of new models of smartphones, other IoT devices such as washing machines, laptops, water purifiers, air conditioners would be published.  As the Xiaomi’s most important overseas market, India’s rapid development brings a great extra revenue to the Internet magnate. Going abroad is one of the most important strategies of Xiaomi and will be paid more attention in the future.

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