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After investigating the townships in Henan Province, Lei Jun announced that Xiaomi’s mobile phone “goes to the countrysideâ€!
Over the last couple of years, Xiaomi had been heavily focused on its online strategy, which led to them missing out on the significant shift happening in the county and township markets. This oversight allowed competitors like OPPO and Vivo to surge ahead, eventually pushing Xiaomi out of the top five spots globally. However, starting from the second quarter of this year, Xiaomi's smartphone sales began to recover, climbing back into the top five positions worldwide.
Lei Jun recently pointed out that e-commerce currently represents just 10% of total retail sales. That means 90% of purchases still happen offline. Even if you managed to dominate the online space entirely, you’d still only capture a fraction of the overall market. Clearly, expanding offline was crucial for Xiaomi to reclaim lost ground.
In light of this, Lei Jun himself ventured into rural areas to conduct field research. Yesterday afternoon, he visited a small mobile phone store in a township located in Yichuan County, Luoyang City, Henan Province. There, he engaged in conversations with local shop owners to better understand the demands and preferences of consumers in these regions.
Following this visit, Lei Jun made a public announcement stating, "We will soon start focusing on promoting our products in smaller towns and villages so that high-quality, affordable devices become accessible to everyone."
It’s worth noting that capturing the county and township markets won’t happen overnight. Historically, these spaces have been strongholds for brands like OPPO and Vivo, who’ve spent considerable time and effort building their presence there through marketing campaigns and extensive distribution networks. It’ll be interesting to observe how Xiaomi navigates this landscape moving forward.
Attached are images from Lei Jun’s recent trip showcasing his interaction with local residents and businesspeople. [Image description: Lei Jun speaking with a shopkeeper in a bustling marketplace; another image shows him examining various mobile phone models displayed in the store.]
This move signifies a strategic pivot for Xiaomi as they aim to reestablish themselves not only as a tech innovator but also as a brand deeply connected to everyday consumers across all segments of society. Time will tell whether this bold initiative pays off and solidifies Xiaomi’s position once again among the leading players in the global smartphone industry.