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An American in China

Archive for August 4th, 2014

China’s Comrade ‘Red’ Phone Coming to Steal Data Near You

Posted by w_thames_the_d on August 4, 2014

Here is an article on China’s Xiaomi epic marketing blunder.

This is Xiaomi’s communist red mascot. No kidding…

“I just have to write this article because, well, because Xiaomi deserves it.

Xiaomi, pronounced like the ‘show’ in shower and ‘me’, is the China’s hottest cell phone. It is basically a low end model which uses flash sales in order to keep demand high. This works well in the PRC where it sold 100k units in under two minutes their first time to market.

Since then, Xiaomi has been rocking the sales. It had goaled to sell 40 million units this year but Lei Jun, aka ‘mini me Jobs’ wants more. Now he is pushing to peddle 60 million units.

Their online only sales model is a clone of Dell and they have no ‘real’ stores. In addition, Xiaomi has virtually no sales force and spend less than 1% on marketing. The company is making some very innovative moves, but perhaps they might want to rethink not having a marketing staff.

The reasons are many, but lets start with that little incident where it was proven the ‘Redmi’ was covertly calling Beijing and copying them your pics and messages. That is the type of faux pas which can torpedo a firm. So far, Xiaomi seems unconcerned and responded with a ‘Don’t worry about it, we will get back to you on that.’ Not the type of reply I expect from the firm producing a device handling my credit card and other personal information. In a word, they could use someone to help fight fires like this which are bound to erupt….”



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