In a couple of interviews and meetings in past one week, Xiaomi CEO Lei Jun has made his intentions about growing the market in India quite audible. From increasing his brand s offline presence from 10 percent to 50 percent in the country, to vowing to create 20,000 jobs in India in next three years in a meeting with Prime Minister Narendra Modi, he has made some very promising bets. Now, in a recent interview with Bloomberg, Jun has announced that Xiaomi will double its investments in India. Also Read - OnePlus Nord CE vs Redmi Note 10 Pro Max: Does 4G still outdo 5G at a lesser price?Also Read - Xiaomi is hiding the front camera on its next Mi flagship smartphone
When Xiaomi entered India about two years ago, that company had invested $500 million in setting up its business here. Now, Lei Jun has pledged another investment of that size in India over the next three to five years. Also Read - Xiaomi 200W fast charging to reduce 20 percent of full battery capacity in 2 years
The past few years have undoubtedly been a little challenging for Xiaomi, with Indians being skeptic about the Chinese brand for the longest time, and before the audience saw and settled for Xiaomi s potential, India saw a fleet of foreign and domestic smartphone makers joining the market. However, over the years Xiaomi has manages to push aside local vendors such as Micromax by hawking cheap yet dependable devices. In the market shipment statistics of 2016, Jun s company ranked behind Samsung in the Indian market, though its home-peers such as Oppo aren t far behind. RELATED: Xiaomi CEO Lei Jun meets Narendra Modi, promises more jobs
And so, despite the test of time, the company s business in India is once again expanding at a healthy clip. We faced many challenges. Many negative reports about us. But it was never as bad as it was made out to be. We have gone back to healthy growth. We will resume rapid growth in the next two years, Jun said in the interview.
Xiaomi expects to double its India revenue to $2 billion in 2017. In 2016, beyond hardware, the company chalked up $1 billion of revenue in 2016 through the 10 million-plus active users of its suite of mobile apps and services, Jun claims. RELATED: Xiaomi targets 50% of its total sales in India to come from offline market: CEO Lei Jun
Further, India being one of the most important markets for Xiaomi, after home-country China, Lei Jun has also stepped on board with Prime Minister Narendra Modi s Make In India initiative. Just about ten days ago, Xiaomi announced its second manufacturing unit in partnership with Taiwanese electronics major Foxconn in Andhra Pradesh. After which, Xiaomi claims it has a combined production capacity of one phone per second during operational hours. Jun also hinted at expanding manufacturing in India, indicating setting up of a third plant in the country. Also, at the Economic Times Global Business Summit 2017, Lei Jun promised to create 20,000 jobs in India in the next three years. RELATED: Xiaomi aims to create 20,000 jobs in India: Founder Lei Jun
In the next two years we want more and more influence in India, Lei said. We want to take more risks in India. But we want to take controlled risks. That includes boosting production closer to projected demand, moving away from its traditional reliance on flash sales to maintain scarcity.
According to analyst firm IDC, Xiaomi India has become the number one selling smartphone brand in the online market, with about 29.3 percent share. Globally, the smartphone market is expected to bounce back from 2016 s record-low growth of 2.5 percent. IDC projects a 4.2 percent rise in shipments this year, boding well for major players including Xiaomi though new Apple and Samsung devices will offer stiff competition. ALSO READ: Xiaomi India to spruce up retail network for rural gains