this episode of Android Q&A is brought
to you by Full Sail University so
Shelby's received a lot of positive
press lately and it's well deserved
sleek design decent prices and better
yet soon they're gonna start selling
directly to consumers at least here in
the West you'll be able to buy the
phones online and sidestep the carrier
but what could halt
Yami's rise to glory let's talk about
that
all right let's get this out of the way
first it's pronounced Xiaomi how do I
know given here MQ Guevara VP of Xiaomi
global my name is Benin I'm co-founder
and president Yami the meteoric rise of
Xiaomi has been generating plenty of
headlines lately according to IDC
shammies dominated the Chinese
smartphone market in the last six months
of 2014
beating heavyweights like Apple and
Samsung as well as compatriots like
Huawei and Lenovo for a company that
released its first smartphone in 2011
sales of more than 60 million
smartphones and evaluation of 45 billion
dollars by the end of 2015
can hardly fail to impress now shammies
number one possible pitfall is gotta be
apples lawyers part of Shelby's rise in
China can be explained by its early
strategy of simply copying Apple if you
can get past the similar aesthetic there
are some very obvious differences
between them show me clearly has a
different attitude towards design
customization and many other facets of
its mobile device business but it has
shamelessly aped Apple when it comes to
marketing as Business Insider pointed
out the CEO certainly seemed to be
inspired by Jobs with his onstage
presentations and quote one more thing
slide but the company has also closely
emulated Apple's marketing it doesn't
just copy Apple it also uses copyrighted
photos in its marketing all this is
gonna get good
now what gets away with this in China
but it won't get away with it in
countries with stronger IP laws if Apple
could win in court against Samsung then
Xiaomi has very little chance Microsoft
and other Android OEMs also won't
hesitate to have a go if they see an
opportunity now the second possible
pitfall is all this new marketing in the
West could get lost in translation
realistically Xiaomi will have to
completely reimagine its marketing
approach here in the West it has relied
on close relationships with its fan base
and more than a hundred million users
enjoy weekly updates to a custom ROM it
has made a huge deal out of listening to
its customers and giving them what they
want
can it replicate this success outside of
China Xiaomi recently boasted about 40
million active forum users and
500,000 new posts on a good day the fans
drive the design the excitement and the
hype word of mouth recommendations on
social networking sites flash sales with
limited stock reduce risk and generate
more marketing buzz now in my mind
personally this is the biggest possible
pitfall for Xiaomi there is a big
cultural chasm that they have to cross
to market successfully here in the West
and it's not just a Chinese companies
Western companies have tried to go into
China and had the same problem they just
can't market their idea effectively
because there's such a different
cultural shift as someone who married
into a totally different culture I can
tell you even after you know 16 years in
many ways we're still like like this
it's hard to meet halfway and
communicate in a way that both sides
appreciate and value it'll be
interesting to see how Xiaomi does it
now some of you may be thinking hey Jase
what are you talking about we got Sony
Samsung HTC LG all these Asian companies
that have done fantastic jobs in
marketing of the West look at Honda and
Toyota
they're extremely popular here the most
popular cars here than even our domestic
cars
yes but they've had decades to do that
many decades and most of their marketing
teams are Western so they've had the
time to do that has Xiaomi had the time
to do that they did hire Hugo Barra who
was an executive at Google that was a
fantastic thing but they need to do a
lot more of that to make this cultural
connection now let's talk about the next
pitfall which is also possibly the
greatest opportunity and that's selling
their devices online only Xiaomi sells
devices directly to consumers online
it's a model that's accepted in many
markets but the US and much of Europe is
still dominated by carriers and long
term contract deals it can be very tough
for OEMs to strike deals with carriers
if you want shelf space than they want
to cut they want design input they want
to put bloatware on the phone now even
mother Google has had limited success
selling its Nexus devices online even
though the device itself is very
successful the amount of sales that
they've got online is still relatively
small a smaller piece of the pie
so show me was to be successful selling
things online like this at scale they
would be the first ones to do it now
let's talk about those wafer-thin
profits the lower cost of Xiaomi devices
is an obvious attraction for many
consumers but will Western markets bind
to the accessories and app ecosystem
they may ship with Xiaomi apps in China
but worldwide Xiaomi is a Google partner
and it's Android devices carry Google's
apps and the Play Store can it hope to
turn a profit without these additional
income streams now the last pitfall is
an ironic one because it's copycat
competition ironically given the
criticism often leveled at Xiaomi one of
the biggest risks could be the
competition copying it Huawei has
already emulated the online-only
approach with the honor line other than
a head start in China
what does Xiaomi have that other OEMs
don't in terms of strategy given that it
would be starting from scratch in the US
how is it going to differentiate itself
so what do you guys think what is Xiaomi
secret to success here in the West love
to hear it in the comments below now I
know some of you out there are some
pretty hardcore geeks and if you are
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army my name is Jace love to connect
with you right here on Google+ or
Twitter I read all of them and respond
to as many as I can
you don't forget about my brothers my
brethren in Android now last week I was
talking about ashes the history of Nexus
written with one of our Android
authority staff I will link it up there
it's right there right now cuz it's live
when I talked about before it wasn't
live I thought it was supposed to be but
it didn't go up yet and you don't want
to forget about the rest of my brothers
over there I shall see you tomorrow for
another Q&A see that
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