Chinese smartphone maker Xiaomi restructures to put more focus on its home market
- Xiaomi’s reorganisation comes after it revealed that over 40 per cent of its revenues were generated overseas during the third quarter
Xiaomi, the world’s fourth biggest smartphone maker, has unveiled a restructuring that will create a new China team to put more focus on and “enhance investment in the China market”.
Xiaomi co-founder and head of the TV sector Wang Chuan has been named as president of the new China region, according to an internal letter seen by the Post. Chinese news portal Sina News reported the reorganisation letter earlier on Thursday.
Xiaomi’s reorganisation comes after it revealed that 43.9 per cent of its revenues were generated overseas during the third quarter ended September. The smartphone and appliance maker previously said it wanted overseas markets to account for half for its revenues. With Xiaomi drawing close to its overseas goals, it is moving to strengthen its domestic market.
Over the same period, China’s contribution to Xiaomi’s overall wearables shipments dropped to 61 per cent whereas this figure was typically around 80 per cent before, according to research firm IDC. This was due to Xiaomi's significant expansion in overseas markets including India, Europe, Africa and the Middle East, the researcher said. Xiaomi ranked first in wearables shipments globally in the third quarter.
Xiaomi has been actively expanding into overseas markets through offline channels as well, with offline stores already established in Spain, France, Italy and Mexico.
Xiaomi ranked fourth in China’s smartphone market share in the third quarter, after bigger players such as Huawei, Oppo and Vivo, according to Counterpoint Research. Xiaomi’s China market share decreased to 13 per cent from 14 per cent a year earlier.
Earlier this month, Xiaomi said it was teaming up with Swedish home furniture powerhouse Ikea to produce smart lighting products for the Chinese market.
Through this collaboration, lighting products can be controlled through smart speakers – including Xiaomi’s voice assistant Xiao Ai – which is currently only available for Mandarin speakers, although Xiaomi said the venture would not be limited to only the mainland China market.