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Xiaomi Aims to Reshape Brazil Smartphone Market

July 6, 2015

Parmy Olson, writing at Forbes, on Xioami’s recent entry into the Brazil smartphone market:

Barra believes that Brazilians will change the way they buy phones though, and implies that’ll partly be because of Xiaomi’s presence. “By the end of this year, depending on who you ask, probably one out of every five phones sold in Brazil will be sold online. This is a similar number already happening in India where between 20% and 25% of smartphone sales are happening online. I think we had something to do this with this acceleration since entering the market last summer. Things will evolve. People will buy online.” […]

Brazil’s smartphone market is about half the size of India’s but it’s the fourth-fastest growing market in the world, meaning success here could make a meaningful impact on Xiaomi’s global sales. Barra concedes that Brazil is a challenging and “very competitive” market, and one where Samsung controls half of all smartphone shipments. But Xiaomi’s big selling point is its price. At $160 the Redmi 2 is half the price of comparable phones by the company’s local competitors in Brazil.

Xiaomi prefers online distribution; it helps Xiaomi deliver a lower price to consumers. Brazil is a good market for Xiaomi to try and replicate its online distribution success: it has high demand for smartphones, plenty of consumers that can access the Internet and pay for goods online, and a reasonable number that actually do. Now, Xioami may well end up using both on-line and retail channels, as it has in India. But the odds are also high that it helps shift a meaningful amount of demand to online channels.

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Filed Under: Brazil, Distribution, Smartphones, Xiaomi

Xiaomi’s “Pick Mi” Service for Device Servicing

July 1, 2015

One of the interesting facets from Xioami’s launch in Brazil is its “Pick Mi” service (below). Curiously, it’s aimed at product service. TBD if Xiaomi intends to expand its scope to include home delivery. Note that the language is generic, referring to “devices”, rather than only to smartphones. A simple nod to the fact that Xiaomi sells a range of consumer electronics.

From Xioami’s press release (at the bottom of this link):

As Xiaomi hits the ground running in Brazil, it is offering a unique home pickup service called “Pick Mi”. This allows users to send in devices for servicing when necessary, without having to leave their homes. Details are available on Mi Brazil’s official website.

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Filed Under: Brazil, Distribution, Smartphones, Xiaomi

Xiaomi Enters Brazil Smartphone Market

June 30, 2015

Loretta Chao, for the Wall Street Journal:

Chinese smartphone maker Xiaomi Inc. announced its first foray outside Asia on Tuesday with the launch of its latest device, the Redmi 2, in Brazil. […]

In Brazil, the company’s low price is crucial, as it currently only has plans to sell its phones directly online, and doesn’t yet have plans to distribute through retail stores where most Brazilians buy smartphones, said Reinaldo Sakis, analyst for IDC in Sao Paulo. […]

The company’s entry into Brazil will also be a test of its ability to draw users with little exposure to Chinese culture, and who can barely pronounce its name (sh-YEOW-mee), which means “little grain of rice” in Chinese.

And from Brad Haynes, for Reuters:

Xiaomi’s global vice-president, Hugo Barra, said in an interview on Tuesday that Brazil was “stage one of our Latin America launch,” pointing to Mexico and Colombia as logical next steps in the region, although he declined to say when.

One of the most-telegraphed and anticipated moves in the smartphone industry.

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Filed Under: Brazil, Distribution, Smartphones, Xiaomi

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