In 2017, the Chinese company launched itself into the international market with a firm commitment to offering very interesting products at a very low price, obtaining one of the best quality-price ratios on the market. In a few years, the firm was among the manufacturers that sold the most and it was difficult to find users who had a bad experience. Now, the situation in 2024 is completely different, because inflation and rising component prices can put the stability of the company at risk, which is based on very small profit margins. We are going to analyze below the challenges that the Haidian-based firm has.
Duality of catalogs
Perhaps one of the most serious problems that Xiaomi has is the catalog duality that you have in your portfolio. Little by little, Xiaomi has been reducing the number of products it has launched on the market with the aim of having a market that is a little more compact and that is not very confusing for the consumer because there are a large number of products that are often swallowed up. among them.
Also, it has been filing the differences between the global market and the home market. For example, the Xiaomi foldable is not sold in Europe and is sold in China. What does its centrality mean? Samsung continues to dominate the foldable mobile phone market.
Xiaomi is a company that has been inspired by Apple at all times and physical stores are one of the most differentiated aspects of Apple. In this sense, the Chinese company wants to open new stores throughout the country, but the most important thing is keep the stores it currently has.
Unlike Apple, Xiaomi opened stores everywhere, causing one of the main principles of the economy to be fulfilled: supply and demand. You can have a very large demand spread across the majority of provincial capitals in Spain (well, in Córdoba and Granada I think there is no official Xiaomi store and there never was one). The retail bubble began to decline, disappearing much of the network it generated.
This is one of the worst feelings for a company, seeing how your headquarters close, so one of the challenges that the Haidian giant has in 2024 is recover a little the lost rhythm with the physical headquarters.
Apple has invested billions of dollars in developing Project Titan, with the aim of launching a revolutionary and electric car to fully enter a market that will surely be one of the pillars of the company and the world, because unfortunately, we are destroying the world.
Xiaomi, it seems that it also wants to launch its own electric car and it is not to follow the same move of the American company, but because it is aware that the mobile phone market may fall sooner rather than later and needs to branch out its income.
However, developing a car is not easy at all and the legislation that must be complied with in countries within Europe is very complex. Despite this, Xiaomi continues with its program and the Xiaomi S7 will be the company’s first car, being the first telephone company in the world to launch its own mobile unit.
Both firms have reference to Tesla, but it is important to keep in mind that the company run by Elon Musk was making losses for many years and was practically bankrupt. Be careful because a bad decision in a company can end up taking everything with it.