Xiaomi is ranked the most innovative Chinese company (35th globally) in 2014 according to BCG’s 2014 global innovation survey. Tencent (47th) and Huawei (50th) also made it to the BCG “The Most Innovative Companies” Top 50 list.
BCG saw only a 2 percentage point decline in the priority of innovation from 2013 to 2014—and a 3% decline in the proportion of respondent organizations that are spending more on innovation in 2014 than in 2013. Xiaomi is one of the only three new companies that joined BCG’s “Most Innovative Companies” list with Hitachi, and Salesforce.com.
Xiaomi, claiming as Apple of China, has been extremely successful after three years of set up. Xiaomi sold out 18.7 million smartphones in 2013, an increase of 160%; and, it achieved the same results in the 3rd quarter of 2014. Xiaomi sold 57.36 million mobile phones in three years. The total sales in the first half 2014 reached 26.11 million units generating a total revenue of RMB 33 billion. According to IHS iSuppli, Xiaomi is now the third largest phone manufacturer in the world.
Xiaomi, founded on 6 April 2010 by Lei Jun, focused their resources on online and mobile channels forgoing expensive retail outlets and sells mobile phones directly to consumers in China. It offers batches of 200,000 to 300,000 phones at a time, and they often sell out in minutes, which is a common marketing tactic employed by Xiaomi.
Xiaomi is active on Weibo, Wechat, Baidu Tieba, QQ, and other online forums. When it was just founded, their staff spent a lot of time on forums, making comments, and posting. And they also searched for senior users in forums and picked out 100 out of 1000 to join their operating system design and feedback. Read more here on Xiaomi’s marketing success.
Xiaomi is also great at developing elegant products at low prices.