Why is Xiaomi so cheap even with high specs?

Jan 18, 2019 11:13 AM 0 Answers
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Muhammad Zeeshan
- Aug 02, 2019 03:52 PM

Have you ever seen a Xiaomi advertising on-

  1. A roadside billboard.
  2. Between your TV programs.
  3. In radio shows.
  4. On random websites.

Xiaomi saves all this MARKETING money to save the cost of their products, instead they have a subtle and clever way of advertising-

By announcing the “online shopping” days where the items comes with some freebies or they sell for 1$ .

Till late they did not have any dedicated physical stores present in any place except for China. Imagine the amount of money saved by not promoting your brand on TV and not employing people to manage your stores and managing all your sales online.

If you have ever been to their service center, they have a clever but practical approach there – they will rarely “repair” your device if you go to their service center. If the device is under warranty, they will replace it with a new one in most of the cases.

As per the stats, less than 10% of consumers need to go to service centers during the warranty period. If the number is so low, and you have a huge production where you can easily re-use the parts of faulty units, why bother to hire people to repair them?

Another reason – They are made / assembled and owned by Chinese. Which means lower investment costs because of huge
scale of production.

EDIT : To all who believe the claim of Xiaomi not having dedicated stores is not true, please read the answer again and notice the usage of ‘Till Late’ there 🙂

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