Earlier this month, Xiaomi announced that it is spinning off REDMI into a separate brand while separating it from the Mi brand. REDMI joins POCO as the 2nd sub-brand that manufacturers niche budget smartphones. The 1st phone (Redmi Note 7) under the independent REDMI brand was launched on January 10th.
So far, Xiaomi has launched premium phones under the Mi lineup of smartphones and the budget/value for money phones under the Redmi series. Poco series, which caters to budget flagships, falls between these two.
The move to spin off brands is not a new one. HUAWEI did the same with its HONOR brand of phones and more recently, OPPO launched REALME to focus on the entry-level and budget segment phones to cater to the price sensitive Indian market.
That said, why would Xiaomi do that? There could be a few reasons for this. The first one is the more apparent one. While Redmi series would continue to operate in the segment it already rules, the Mi series would concentrate on launching high-end (more expensive) flagships. The super success of the Redmi phones, owing to inexpensive phones, has led everyone to believe that Xiaomi is a budget brand. This move will allow Xiaomi to launch aspirational / lifestyle products under the Mi series at a higher price.
The other reason is not very different from the first one but important for Xiaomi. In India, Xiaomi is largely considered as a phone brand. However, the brand offers a lot more in China and in other select markets. Xiamoi has invested in several tech start-ups to offer a varied range of products that include robot-vacuum cleaners, security cameras, fitness bands, smartwatches, air-purifier smart lights etc. The Mi line up of TVs is also a recent addition to the long list of products. While the narrative so far has been to undercut the more expensive alternatives by offering great value for money, this move will allow Mi to slowly start charging a little premium.
On the product front, Xiaomi has already started positioning itself as a lifestyle brand in India, Over the last 12 - 18 months, the company has launched a slew of products including, backpacks, neck pillows, luggage, pollution mask, pens, security camera and a soundbar. All these products have a unique understated design language. They look and feel premium. These products have done reasonably well. Considering that the brand has done such a good job with its lifestyle portfolio, the move of Mi launching its premium line-up of lifestyle products would be a smooth one.
While Redmi will continue to be the torchbearer on the financial growth front (after all Xiaomi only makes 5% profits off its smartphone business), the lifestyle range will surely help the company grow (both financially and product -portfolio wise) over a period of time. This will help Xiamoi in both solidifying its financial structure and it will also come across a lifestyle brand that offers a huge portfolio of smart electronics and lifestyle products that simplify life. Xiaomi would want to own the whole ecosystem in an Indian household.
Take my example for instance. My household has 5 smartphones ( 3 Redmi, 1 Mi & 1 Poco), 1 air-purifier, 1 VR headset, security camera, soundbar, earphones, pens, suitcase, power bank that belong to Xiaomi. I am also planning to purchase a Mi TV for my bedroom!
Looking at Xiaomi's Chinese portfolio, it soon will cater to almost every need of an average Indian consumer. Having owned and loved Xiaomi products for a while now, I can only look forward with glee to see the brand grow and become a force to reckon with across the globe.
So far, Xiaomi has launched premium phones under the Mi lineup of smartphones and the budget/value for money phones under the Redmi series. Poco series, which caters to budget flagships, falls between these two.
The move to spin off brands is not a new one. HUAWEI did the same with its HONOR brand of phones and more recently, OPPO launched REALME to focus on the entry-level and budget segment phones to cater to the price sensitive Indian market.
That said, why would Xiaomi do that? There could be a few reasons for this. The first one is the more apparent one. While Redmi series would continue to operate in the segment it already rules, the Mi series would concentrate on launching high-end (more expensive) flagships. The super success of the Redmi phones, owing to inexpensive phones, has led everyone to believe that Xiaomi is a budget brand. This move will allow Xiaomi to launch aspirational / lifestyle products under the Mi series at a higher price.
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| Mi India lifestyle product page |
The other reason is not very different from the first one but important for Xiaomi. In India, Xiaomi is largely considered as a phone brand. However, the brand offers a lot more in China and in other select markets. Xiamoi has invested in several tech start-ups to offer a varied range of products that include robot-vacuum cleaners, security cameras, fitness bands, smartwatches, air-purifier smart lights etc. The Mi line up of TVs is also a recent addition to the long list of products. While the narrative so far has been to undercut the more expensive alternatives by offering great value for money, this move will allow Mi to slowly start charging a little premium.
On the product front, Xiaomi has already started positioning itself as a lifestyle brand in India, Over the last 12 - 18 months, the company has launched a slew of products including, backpacks, neck pillows, luggage, pollution mask, pens, security camera and a soundbar. All these products have a unique understated design language. They look and feel premium. These products have done reasonably well. Considering that the brand has done such a good job with its lifestyle portfolio, the move of Mi launching its premium line-up of lifestyle products would be a smooth one.
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| Xiaomi portfolio |
While Redmi will continue to be the torchbearer on the financial growth front (after all Xiaomi only makes 5% profits off its smartphone business), the lifestyle range will surely help the company grow (both financially and product -portfolio wise) over a period of time. This will help Xiamoi in both solidifying its financial structure and it will also come across a lifestyle brand that offers a huge portfolio of smart electronics and lifestyle products that simplify life. Xiaomi would want to own the whole ecosystem in an Indian household.
Take my example for instance. My household has 5 smartphones ( 3 Redmi, 1 Mi & 1 Poco), 1 air-purifier, 1 VR headset, security camera, soundbar, earphones, pens, suitcase, power bank that belong to Xiaomi. I am also planning to purchase a Mi TV for my bedroom!
Looking at Xiaomi's Chinese portfolio, it soon will cater to almost every need of an average Indian consumer. Having owned and loved Xiaomi products for a while now, I can only look forward with glee to see the brand grow and become a force to reckon with across the globe.
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