Xiaomi India eyes increased localization, Apple-like ecosystem
Apple-like ecosystem and increasing the localization of its supply chain. “Localisation of our manufacturing is created by a combination of supplies from abroad, as well as from India," Muralikrishnan B, presdent, Xiaomi India, told Mint. “Today, we continue to have conversations to figure out how more of our supply chain partners, based in China or elsewhere, come and set up shop in India.
This is an ongoing conversation where the suppliers evaluate their move based on market potential, commercials, approvals and more. Almost 50-60% of the non-semiconductor bill of materials gets sourced locally which includes mechanics, fingerprint and camera modules, and more." Along with the localisation plan, Xiaomi India has a three-year plan to revive its market share across various product categories. The company's sales dipped after leading the market for five straight quarters until the end of 2022.
“We’re looking at 2024 to rebound after hitting a speed bump in 2022 and going through a recovery phase last year. Now, our three-year strategy for India includes changing buyer perception in premium price ranges, create a complete device ecosystem, and focus equally on online and offline sales channels. This is helping—in the first three months this year, the smartphone market grew 15%, while our shipment grew 29% during this period," said the top executive, known among his peers as Murali.
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