Xiaomi enters the Indian market in 2014 and within a few years, it became the number one smartphone maker in India. It killed the competition and with their competitive pricing, they won the heart of smartphone lovers. They came to Indian when we are about to enter the smartphone revolution and no doubt Xiaomi is smart enough to predict this. With their great market research and excellent marketing strategies they became number one in India and sustained it for many years now. But are they all doing good? Are they respecting your privacy? How does a company grow so fast? Are the following ethical business practices? Let us learn in this article the Dark side of Xioami’s business practices in India and unethical means of killing the competition.
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Xioami introduced flash sale concept in India. This is one of the worst things happen in the eCommerce industry. Since Xioami successes in their strategy, so other players also followed the same. But ultimately who became the victim of this flash sale. If we, The Customer. Unless you adopt any unethical practice or use hacking, you wot be able to buy products in Flash sale. But the worst part is you can still buy the product from the black market by paying a premium. Xioami says that they do flash sale because of production constraints, but even after 5 years In India they still have that constraint? Even after becoming number one vendor they still have constraints? Whom they are fooling? If even after 5 years they could not solve production constraints, then they should stop their business.
The main intention of a flash sale is to create a hype in the market for their sub-quality products. They just create an artificial demand for their products so that people crave for buying it. No doubt Xioami products are good but that does not deserve so much demand. They just fool us in the name of “ Production Constraints”. They always had the correct inventory to meet the demand vs supply algorithm. But their cheap business practices lead them to fool us. This is one of the Dark sides of Xiaomi’s Business practices in India
Please read this disclaimer before going ahead that I am not against Xioami or any of their products. I personally own Xioami phones and based on my experienced I am just sharing my views. That’s all.
Cheap Price ( Really)?
Many people buy Xioami phones because of the cheap price. But are they really cheap? Let’s look at one example. When Redmi Note 5 pro was launched at Rs 14999, it was out for flash sale for more than 6 months. So for sure, many people could not buy it. What they did is, they approached the black market and bought the phone at Rs 18000-20000. Does this price really justify the phone? For sure “Not”. So those people who say Xioami products are cheap to have to think twice and evaluate how much they pay for Xioami phones.
If you follow Xioami Twitter handle, you might see tweets like “ Xioami sold 3 millions of Redmi Y2( For example) in last 7 days”, “ Redmi 6A ( Example) became the number one phone in India”. Their Twitter handles are flooded with these kinds of tweets. Just ask them for relevant data for their claim. They will never tweet you back. Why? Because those claims are fake. They just try to create a hype for their products so that people buy it. You will never find a justified answer for their claims. Is that what the number one smartphone company supposed to do?
I am kind of a person who does not even download an app if it has advertisement. But when I see an advertisement in Xioami phones, I just can’t control what I am not supposed to do. What a Crap? Paying for a phone and they see those crappy ads? Those advertisements get your personal data and send it back to those Chinese servers. They are just playing with our privacy. When someone asked Xiaomi about this, they said that they are showing as because they are selling phones at a cheap price. But can this statement really be justified? Playing with customer data for the sake of money? Increase your phone price and remove those ads, people will buy your phones for sure. But don’t play with someone’s privacy.
In Mechanical engineering, there is a term called ” Product Family Tables” where we can build multiple products by tweaking minor changes to the base product. What that means that all product in the family table will have almost the same look-alike products. Same goes true with Xioami. Most of their phones look almost the same. The Body, camera placement, sensors, build quality, everything is almost the same except small changes ( Like the camera is placed vertical from Horizontal). They don’t invest much in R&D and try to fool people by launching a product every week which basically is the same products.
It’s a joke if we talk about software updates in Xioami phones. Let’s take an example and explain the scenario. Those who own Redmi Note 5 and Note 5 Pro might know Redmi Note 5 does not come with rear camera Portrait mode. In MIUI 10 they have given this “ Portrait” feature in many phones. Even many under Rs 10000 phones also got this update. But Redmi Note 5 did not get that update. You know “ Why”. Because if they give the update in Redmi Note 5, no one will buy Note 5 Pro. And that’s the reason they want to maintain the monopoly. But again is that something that goes well with the number one company? Looks at OnePlus, they still give an update to OnePlus 3.
Probably this is the first time when a top CEO is having a dog-fight with a You Tuber. Those who follow Manu Kumar Jain ( CEO of Xioami India) might have seen his Tweet to Technical Guruji recently. He accused Guruji of being a “ Paid You Tuber” as he attended a Samsung phone launch. Mr Jain might forget that every YouTuber is an individual person and might have his choice of what to attend and what not. As because he sends free review phones to Guruji, does not mean that he owns Guruji. This kind of fight just shows how desperate Xioami is to maintain the monopoly in the Indian market by any unethical means and follow a cheap practice called Xiaomi’s business practices.
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