Xiaomi brand internationalization including illustrationsscreenshots for examples of standardization and adjustment

--- Page 1 --- Table of Contents Introduction Xiaomi is one of the world''''s top technology brands. It was founded in 2010 in China. Over the past decade, the company has continuously expanded its market and affirmed its position in the smartphone industry and other technology products. By 2023, Xiaomi became the third largest smartphone manufacturer in the world, just after Apple and Samsung, with a global market share of 13.4% (Strategy Analytics 2023). Xiaomi''''s international strategy includes both standardization and flexible adjustments to suit the needs and consumer trends of each market, from the US to Vietnam, creating an impressive success story. Main content 2.1. Brand Equity Tracking 2.1.1. Awareness of the Xiaomi brand Brand awareness is one of the most important factors in building brand value (Mirzaei 2012). On social media, Xiaomi has also achieved an impressive presence. Xiaomi''''s official Facebook page has over 16 million followers (Figure 1), while its Twitter account had 13.5 million followers as of July 2024 (Figure 2). These are very large numbers compared to many competitors, showing Xiaomi''''s high awareness on popular social media platforms. Figure 1. Fanpage của Xiaomi Figure 2. Twitter của Xiaomi According to data from Strategy Analytics, Xiaomi is currently the 3rd largest smartphone brand in the world, after only Samsung and Apple. In the third quarter of 2021, Xiaomi sold 44.3 million phones, accounting for 11% of the global market share (Figure 3) (Strategy Analytics 2021). This shows that Xiaomi''''s brand awareness and usage is increasing significantly on a global scale. Figure 3. Global Smartphone Market Share To track brand awareness, Xiaomi can use digital tools such as Google Trends, Brand24 and Semrush (Appendix 1). Combining these tools helps provide a comprehensive view of the level of awareness in the digital space. Xiaomi also needs to analyze the demographic characteristics of users. According to a 2018 study, 69% of Xiaomi users are male, with the 30-34 age group accounting for the highest percentage (31.7%) (GizmoChina 2018). Although the data may have changed, it still provides suggestions about the target audience for marketing campaigns. 2.1.2. Xiaomi brand associations Xiaomi''''s brand associations have been strongly built through effective communication and marketing strategies (Sohaib et al 2023) . In the media, Xiaomi is often associated with the image of an innovative technology brand, with high-quality products but affordable prices. According to a 2021 survey by Counterpoint Research, 67% of Xiaomi users said they chose the brand because of its reasonable price, while 58% appreciated the product quality (Counterpoint Research 2021). --- Page 2 --- Xiaomi has also been successful in building a brand image close to young users through creative marketing campaigns on social networks. The company regularly organizes online and offline events to interact with the user community, creating a loyal fan community called "Mi Fans" (Figure 4) (Xiaomi Corporation 2023). Figure 4. Xiaomi Fan Festival A consumer opinion survey conducted by market research firm IDC in 2022 showed that 72% of users associate Xiaomi with technological innovation, 65% associate it with good value for money, and 58% associate it with attractive product design (IDC 2022). This shows that Xiaomi has succeeded in building a multi-dimensional brand image, not only focusing on the price factor but also on technology and design. 2.1.3. Loyalty to the Xiaomi brand Brand loyalty is one of the most important factors for the long-term success of any business, and Xiaomi is no exception. Through analyzing repeat purchase data and online interactions, it can be seen that Xiaomi has built a significant loyal user community. According to Xiaomi''''s 2022 annual report, the company''''s customer retention rate reached 62% globally, higher than the industry average of 82/100 (Figure 5) (Xiaomi Corporation 2023). This shows that a large percentage of Xiaomi customers continue to shop and use the brand''''s products. Figure 5. Xiaomi''''s customer retention rate Online interaction is also an important indicator of customer loyalty. Xiaomi has built a strong user community on online platforms. For example, Xiaomi''''s official Facebook page has over 16 million followers, while its Twitter account has over 4 million followers (as of July 2024). This shows a high level of interaction and interest from users towards the brand. Xiaomi''''s loyalty program, called "Mi Fans Club", plays an important role in building and maintaining customer loyalty. This program offers many attractive incentives such as reward points for each purchase, early access to new products, and exclusive events for members. According to a 2022 survey by Counterpoint Research, 78% of Mi Fans Club members said they were highly likely to buy Xiaomi products in the future, compared to 45% for non-members (Counterpoint Research 2024). 2.2. Brand Internationalization 2.2.1. Standardization in Xiaomi''''s internationalization strategy Xiaomi has applied a strong standardization strategy in its internationalization process, especially in aspects related to brand positioning, product design and pricing strategy (Zhang et al 2023). In markets such as the US, Australia and Vietnam, Xiaomi maintains a consistent brand image, focusing on providing high-end technology products at affordable prices. The slogan "Affordable Innovation for Everyone" is used consistently around the world, demonstrating the commitment to bring advanced technology to all users (Xiaomi Global 2023). Figure 6. Slogan "Affordable Innovation for Everyone" In terms of product design, Xiaomi applies a unified design language across its product lines. For example, the Redmi Note and Mi series have similar designs and features in all three of these markets, differing only in hardware configurations to meet the specific needs of each segment (Figure 7) (Counterpoint Research 2024). The pricing strategy is also standardized, with Xiaomi maintaining a competitive pricing policy globally. According to an IDC report (2023), in all three markets of the US, Australia and Vietnam, Xiaomi maintains its position as the smartphone manufacturer with the best value, with an average price 15-20% lower than its competitors in the same segment. Figure 7. Product Design There are many reasons behind Xiaomi''''s standardization strategy in the internationalization process. First, standardization helps Xiaomi save significant costs. By using the same design and manufacturing process for multiple markets, Xiaomi can leverage economies of scale, reduce manufacturing costs and increase profits. According to a McKinsey report (2022), technology companies applying a standardization strategy can save 20-30% in manufacturing costs. Second, standardization helps Xiaomi build a strong and consistent global brand. By maintaining a consistent image and marketing message globally, Xiaomi can create a recognizable and trustworthy brand in every market.

Table of Contents

Table of Contents 1

Introduction 2

Main content 2

2.1 Brand Equity Tracking 2

2.1.1 Awareness of the Xiaomi brand 2

2.1.2 Xiaomi brand associations 4

2.1.3 Loyalty to the Xiaomi brand 5

2.2 Brand Internationalization 6

2.2.1 Standardization in Xiaomi's internationalization strategy 6

2.2.2 Adaptation in Xiaomi's internationalization strategy 8

2.2.3 Including illustrations/screenshots for examples of standardization and adjustment 9

Conclusion 11

References 11

Appendix 14

Introduction Xiaomi is one of the world's top technology brands It was founded in 2010 in China Over the past decade, the company has continuously expanded its market and affirmed its position in the smartphone industry and other technology products By 2023, Xiaomi became the third largest smartphone manufacturer in the world, just after Apple and Samsung, with a global market share of 13.4% (Strategy Analytics 2023) Xiaomi's international strategy includes both standardization and flexible adjustments to suit the needs and consumer trends of each market, from the US to Vietnam, creating an impressive success story

Main content 2.1 Brand Equity Tracking

2.1.1 Awareness of the Xiaomi brand

Brand awareness is one of the most important factors in building brand value (Mirzaei 2012) On social media, Xiaomi has also achieved an impressive presence Xiaomi's official Facebook page has over 16 million followers (Figure 1), while its Twitter account had 13.5 million followers as of July 2024 (Figure 2) These are very large numbers compared to many competitors, showing Xiaomi's high awareness on popular social media platforms

Figure 1 Fanpage của Xiaomi

Figure 2 Twitter của Xiaomi According to data from Strategy Analytics, Xiaomi is currently the 3rd largest smartphone brand in the world, after only Samsung and Apple In the third quarter of 2021, Xiaomi sold 44.3 million phones, accounting for 11% of the global market share (Figure 3) (Strategy Analytics 2021) This shows that Xiaomi's brand awareness and usage is increasing significantly on a global scale

Figure 3 Global Smartphone Market Share

To track brand awareness, Xiaomi can use digital tools such as Google Trends, Brand24 and Semrush (Appendix 1) Combining these tools helps provide a comprehensive view of the level of awareness in the digital space Xiaomi also needs to analyze the demographic characteristics of users According to a 2018 study, 69% of Xiaomi users are male, with the 30-34 age group accounting for the highest percentage (31.7%) (GizmoChina 2018) Although the data may have changed, it still provides suggestions about the target audience for marketing campaigns

2.1.2 Xiaomi brand associations

Xiaomi's brand associations have been strongly built through effective communication and marketing strategies (Sohaib et al 2023) In the media, Xiaomi is often associated with the image of an innovative technology brand, with high-quality products but affordable prices According to a 2021 survey by Counterpoint Research, 67% of Xiaomi users said they chose the brand because of its reasonable price, while 58% appreciated the product quality (Counterpoint Research 2021)

Xiaomi has also been successful in building a brand image close to young users through creative marketing campaigns on social networks The company regularly organizes online and

offline events to interact with the user community, creating a loyal fan community called "Mi Fans" (Figure 4) (Xiaomi Corporation 2023)

Figure 4 Xiaomi Fan Festival

A consumer opinion survey conducted by market research firm IDC in 2022 showed that 72% of users associate Xiaomi with technological innovation, 65% associate it with good value for money, and 58% associate it with attractive product design (IDC 2022) This shows that Xiaomi has succeeded in building a multi-dimensional brand image, not only focusing on the price factor but also on technology and design

2.1.3 Loyalty to the Xiaomi brand

Brand loyalty is one of the most important factors for the long-term success of any business, and Xiaomi is no exception Through analyzing repeat purchase data and online interactions, it can be seen that Xiaomi has built a significant loyal user community According to Xiaomi's 2022 annual report, the company's customer retention rate reached 62% globally, higher than the industry average of 82/100 (Figure 5) (Xiaomi Corporation 2023) This shows that a large percentage of Xiaomi customers continue to shop and use the brand's products

Figure 5 Xiaomi's customer retention rate Online interaction is also an important indicator of customer loyalty Xiaomi has built a strong user community on online platforms For example, Xiaomi's official Facebook page has over 16 million followers, while its Twitter account has over 4 million followers (as of July 2024) This shows a high level of interaction and interest from users towards the brand

Xiaomi's loyalty program, called "Mi Fans Club", plays an important role in building and maintaining customer loyalty This program offers many attractive incentives such as reward points for each purchase, early access to new products, and exclusive events for members According to a 2022 survey by Counterpoint Research, 78% of Mi Fans Club members said they were highly likely to buy Xiaomi products in the future, compared to 45% for non-members (Counterpoint Research 2024)

2.2 Brand Internationalization

2.2.1 Standardization in Xiaomi's internationalization strategy

Xiaomi has applied a strong standardization strategy in its internationalization process, especially in aspects related to brand positioning, product design and pricing strategy (Zhang et al 2023) In markets such as the US, Australia and Vietnam, Xiaomi maintains a consistent brand image, focusing on providing high-end technology products at affordable prices The slogan

"Affordable Innovation for Everyone" is used consistently around the world, demonstrating the commitment to bring advanced technology to all users (Xiaomi Global 2023)

Figure 6 Slogan "Affordable Innovation for Everyone"

In terms of product design, Xiaomi applies a unified design language across its product lines For example, the Redmi Note and Mi series have similar designs and features in all three of these markets, differing only in hardware configurations to meet the specific needs of each segment (Figure 7) (Counterpoint Research 2024) The pricing strategy is also standardized, with Xiaomi maintaining a competitive pricing policy globally According to an IDC report (2023), in all three markets of the US, Australia and Vietnam, Xiaomi maintains its position as the smartphone manufacturer with the best value, with an average price 15-20% lower than its competitors in the same segment

Figure 7 Product Design There are many reasons behind Xiaomi's standardization strategy in the internationalization process First, standardization helps Xiaomi save significant costs By using the same design and manufacturing process for multiple markets, Xiaomi can leverage economies

of scale, reduce manufacturing costs and increase profits According to a McKinsey report (2022), technology companies applying a standardization strategy can save 20-30% in manufacturing costs Second, standardization helps Xiaomi build a strong and consistent global

brand By maintaining a consistent image and marketing message globally, Xiaomi can create a recognizable and trustworthy brand in every market

2.2.2 Adaptation in Xiaomi's internationalization strategy

In the internationalization process, Xiaomi has made many important adjustments to suit the specifics of each local market These adjustments demonstrate Xiaomi's flexibility and agility

in adapting to diverse business environments globally

In the US market, one of the biggest challenges for Xiaomi is intellectual property and legal barriers To deal with this, Xiaomi has adjusted its strategy by focusing on IoT products and smart devices instead of smartphones According to an IDC report, Xiaomi's smart wearable device sales in the US increased by 68% in 2022 compared to the previous year (IDC 2023) This shows that Xiaomi has succeeded in repositioning its brand in the US market, from a cheap smartphone manufacturer to a diversified technology company

For the Vietnamese market, Xiaomi has made many significant adjustments to suit the cultural and economic characteristics of this market One of the most important adjustments is the development of products that meet the needs of Vietnamese consumers, such as smartphones with large battery capacity and high-quality selfie cameras According to a report by GfK, Xiaomi captured 10.77% of the smartphone market share in Vietnam in the first quarter of 2021, ranking third in the market (Mytour.vn 2021) In addition, Xiaomi has also increased investment

in after-sales services and expanded its network of warranty centers to meet the needs of Vietnamese customers

Figure 8 Xiaomi posts outstanding business results in first quarter

These adjustments by Xiaomi stem from many reasons First, differences in legal regulations and business environment between countries require Xiaomi to make appropriate adjustments For example, focusing on IoT products in the US is to avoid legal barriers related to smartphones Second, differences in consumer culture and shopping habits between markets are also an important factor The offline distribution strategy in Australia and the development of products suitable to the needs of Vietnamese people are typical examples Finally, the level of competition and characteristics of competitors in each market also require Xiaomi to make appropriate strategic adjustments

2.2.3 Including illustrations/screenshots for examples of standardization and adjustment

Standardization:

Figure 9 Standardization of Facebook Fanapge Figure 9: Screenshot of Xiaomi's Facebook homepage in Vietnam and Xiaomi's global homepage This comparison will show consistency in interface design, logo, and overall layout across markets

Figure 10 Slogan "Innovation for Everyone"

Figure 3: Screenshots of the slogan "Innovation for Everyone" appearing on Xiaomi's websites and marketing materials in different countries, illustrating the maintenance of a consistent brand message

Adjust:

Figure 11 Price adjustments Figure 11: Comparison of the selling price of a Xiaomi phone model (e.g Redmi Note 13 Pro 5G) in Vietnam and in the Chinese market (e.g India), showing the price adjustment to suit each market

These images will help illustrate Xiaomi's standardization and adjustment strategies in the process of internationalization, especially in the Vietnamese market They represent how Xiaomi balances maintaining a consistent global brand and adapting to the specifics of each local market

Conclusion Xiaomi has built significant brand strength by providing high-quality products at affordable prices Xiaomi's brand performance is reflected in its leading position in the smartphone market and its global sales growth However, the brand needs further improvement in building customer loyalty in demanding markets such as the US In the internationalization process, Xiaomi has applied both standardization and adjustment systems to suit local markets The standardization strategy brings competitive advantage and cost savings, while adjustment makes the brand more appealing to the specific needs of each territory The combination of these two methods has helped Xiaomi prevent fierce competition and achieve certain successes in expanding international markets

Word count: 1650

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