Xiaomi has outlined its strategy going forward at its annual party in Beijing, saying it will have two core areas: smartphones and AIoT (AI + IoT). The company will invest CNY 10 billion in AIoT in the next five years, in order to grow further its base of 132 million connected devices, founder and CEO Lei Jun said.
Xiaomi claims it's already the world’s largest consumer IoT platform. The more than 132 million smart devices on its platform (excluding mobile phones and laptops) includes more than 20 million daily active devices as of the end of September. The company's recent tie-up with Chinese consumer electronics group TCL will help it expand further in the home appliances market, to products such as air conditioners and washing machines.
In addition to new connected devices, the company aims to consolidate its growing share of the smartphone market. In 2019, Xiaomi’s smartphone business will continue to focus on innovation and quality, as well as to optimize its product portfolio, the group said.
Multi-brand, international expansion
It also confirmed a new branding strategy, using the brands Redmi, Poco, Black Shark and Meitu to target different market segments. Redmi was named this week its low-cost brand with the launch of the Redmi Note 7 smartphone. The main Mi brand will focus on the mid- to high-end smartphone markets and new retail channels.
The Chinese company said it's also not finished with its international expansion. In Q3 2018, markets outside China accounted for nearly 44 percent of Xiaomi's revenues, and the company said it plans further expansion in Europe and Latin America this year. This includes expanding its retail channels, bot online and offline.
