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Executive Column: How Xiaomi became a top-selling brand in Indonesia

Xiaomi’s country director says the company is winning over Indonesian millennials and Gen Zers with affordable devices.

Eisya A. Eloksari (The Jakarta Post)
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Sat, September 11, 2021 Published on Sep. 9, 2021 Published on 2021-09-09T13:49:18+07:00

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Executive Column: How Xiaomi became a top-selling brand in Indonesia Xiaomi Indonesia country director Alvin Tse (Courtesy of Xiaomi Indonesia/-)

S

span lang="EN-US" style="mso-ansi-language:EN-US">Smartphones are a basic necessity in an increasingly digital world. According to DataReportal, 98 percent of Indonesian adults owned a smartphone in January 2021, a figure that is expected to grow as regional internet access improves.

Chinese electronics maker Xiaomi became the top-selling smartphone brand in Indonesia with a market share of 28 percent in the second quarter of the year, according to technology market analyst firm Canalys. The same study found that Xiaomi ranked second in global smartphone sales with 52.9 million devices to achieve an 87.4 percent year-on-year (yoy) increase in profit to 6.3 billion yuan (US$975.6 million).

The Jakarta Post’s Eisya A. Eloksari spoke with Xiaomi Indonesia country director Alvin Tse on Aug. 27 about the company’s marketing strategy and the challenges ahead for the smartphone industry.

Question: How has the pandemic affected Xiaomi sales, both globally and in Indonesia?

The overall macro trend is that there was a global decline in smartphone shipments, as many retail stores were in lockdown. People also do not have much disposable income to buy smartphones.

Answer: Thankfully, Xiaomi provides [its] products at affordable prices. So when people see smartphones as essential, they will choose a high-value smartphone as opposed to buying a phone as a status symbol.

In terms of total revenue in Indonesia, Xiaomi surpassed 87.8 billion yuan in the second quarter, marking 64 percent yoy growth.

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