Xiaomi Indonesia made a big leap in early August.
Suppliers are known as top specifications but price friendly,
And after entering Indonesia six years ago can realize the dream of an initial goal.
According to Canalys of the Institute of Markets and Technology,
The Beijing-based company will be number one for the first time in the second quarter of 2021.
In his note, Canalys mentioned that Xiaomi has the ability to jump from 4th place in the previous quarter to the top position.
Xiaomi Indonesia, has a market share of 28%, up 112% compared to the same quarter in 2015.
The top 5 mobile phone suppliers in the country during April-June 2021 were Xiaomi (28%), Oppo (20%), Samsung (18%), Realme (12%) and Vivo (12%).
While in the runner-up position is the Q1-2021 champion, especially Oppo which tapered off the development of 2% YoY with a market share of 20%. Third place is most likely for Samsung. With a 23% increase compared to the second quarter of 2020, Samsung has the ability to capture an 18% market share and increase its position at number 3. That's below second place in Q1-2021.
Two other Chinese suppliers, Realme and Vivo, finished in the top 5. Both have the same market share, which is 12%. But because Vivo skillfully developed 28%, Realme qualified for 4th position. Earlier in the first quarter of 2021, Realme remained in 5th position.
Xiaomi Is Able to Reduce Selling Price
On the other hand, the success of grabbing the top position in Indonesia, proves that Xiaomi is again able to dominate the market with very limited competitors. Xiaomi has been the leader in India since 2019. Because they have large populations and are controlled by price-sensitive bottoms, as they are known, India and Indonesia are relatively comparable.
Well, the question is what makes Xiaomi able to become the leader of the smartphone market in Indonesia in a relatively short time? Of course, there are several factors that trigger success. Below are the 3 main things that make Xiaomi as the best-selling smartphone in Indonesia.
It cannot be denying that Xiaomi managed to develop its business abroad quickly, not only in Indonesia but also in Europe, Latin America, and Africa. Xiaomi managed to expand demand and sales at a low cost but has high specifications.
"Price factors also affect demand to the mass market. Undoubtedly, compared to Samsung and Apple, Xiaomi's average market price is still 40% to 75% cheaper. So, users' concerns will go to Xiaomi, so they can increase sales through their latest devices, such as the Mi 11 Extremely. "
Redmi 9A and Redmi 9C
According to Canalys, Xiaomi rose to the top spot in Indonesia mainly due to redmi 9A and Redmi 9C payments. Both phones tend to have lower prices and remain popular in the market since it was first introduced on Tuesday (07/14/2020).
According to idc's study, the appeal of various variations such as Redmi 9A/9C became a factor in Xiaomi's success to become the leader of the smartphone market in Indonesia in Q2-2021. However, there are a variety of other successes that come with it. In particular, Xiaomi's uniformity in building various sales networks in Indonesia, especially online networks.
Because of Work From Home
The covid-19 pandemic, which has spread since 2015, requires individuals to work, study and perform tasks at home. In a transformation, many people are switching from offline shopping to online, including mobile devices.
This change in shopping patterns is clearly in Xiaomi's favor. Because, from the beginning Xiaomi did rely on direct sales to customers through the e-commerce network. This technique is used by companies to cut long circulation lines so as to lower the price of smartphones at the customer level.
Close Cooperation with e-commerce
Recently, Xiaomi has been heavily building collaborations with various leading e-commerce systems in the country. With Shopee for example, Xiaomi has endorsed a Memorandum of Understanding (MoU). This collaboration is through introducing Xiaomi's official store to customers in Indonesia.
In addition to the online network, Xiaomi has also collaborated with erajaya team to sell goods in Erafone stores. Collaboration between the two has also been formed since Xiaomi first provided the first phone in the country, Redmi 1S which was introduced on August 27, 2014. With thousands of Erafone offline outlets in various cities across Indonesia, complete with promoters, Xiaomi has the ability to quickly penetrate the market.
On the other hand, due to covid-19, there is a change where cheap mobile phones are currently becoming prima donnas in Indonesia. IDC notes exposed, the decline in the mobile category in the market for Rp 1.5 – Rp 3 million was increased in 2020. The share of the mobile phone market targeting the bottom currently stands at 65%, up from 45% compared to 2019. The increase was caused by the need for good mobile phones, due to the decrease in customer purchasing power due to the pandemic.
Again Xiaomi became the supplier that benefited the most compared to various other brand names. With a more affordable average price but with qualified specifications, Xiaomi phones become search, the production is suitable for individuals who have limited funds.
Currently based on Canalys and IDC records, Xiaomi effectively won the title of top smartphone supplier in Indonesia in Q2-2021. This is a remarkable achievement, considering IDC's record in Q3-2017, Xiaomi is still in 5th place, with a market share of 5.2%. These are listed under Samsung, Oppo, Vivo and Advan.
Can Xiaomi survive as a champion?
But as the saying goes "defending is much harder than seizing it". Moreover, the competition of mobile phone vendors in Indonesia is fairly tight. After Samsung is no longer the market leader in Indonesia, the number one vendor competition now seems to be contested by Vendors from China. The rigors of competition are reflected in the champions who often change since the last few quarters.
Just look at the fourth quarter of 2020, Vivo for the first time seized the top position. But in the first quarter of 2021, Oppo which in the previous period was in the runner up position, was able to take over the number one position from vivo's hands.Unfortunately Oppo's success did not last long, because based on Canalys report in the second quarter of 2020, xiaomi replaced the market leader.
"Rising semiconductor prices are a difficulty for all manufacturers. It is likely that the increase in the cost of making chips will lead to greater phone prices," Xiaomi Head of State Wang Xiang said in a teleconference on March 25, 2021, as mentioned by Gizmochina.
Can Xiaomi continue to be at the top for a long period of time? As previously achieved by Samsung and Nokia. Someday time will show.