Xiaomi's Cheap Marketing Tricks and How Flipkart is Cashing on it

Should Companies avoid Exclusive launches on Single Ecommerce platform?


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Party Monger

Skilled
Jul 15, 2007
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Its their strategy, Its working for them, keeping them in news. Why are you guys getting your undies in a bunch? :O

What's with the name calling and "playing games"? If you don't want to be a pawn of their strategy find another phone to buy. Useless outrage. You might bust an artery or two if you guys outrage like this everytime :p
 

ivhere

Adept
Aug 15, 2011
499
190
81
They don't want to sell their mobiles this time actually, Because they are selling mi3 at loss. Xiaomi just want to create huge buzz about it's brand name in India without spending anything on marketing.

Look at zauba.com, import price itself is ₹12,927/- so after paying import duty+vat to our Govt. they are selling these at loss. Think yourself it is just their marketing strategy to keep prices low, create buzz, get known in India as a brand without hiring Hugh Jackman or Mahendra Singh Dhoni.
 

swatkats

Skilled
Jul 16, 2011
4,001
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Hyderabad
^ That 12927 looks to be with import duty on taxes that is 6%. if you apply VAT + Import duty it would cross 14.4k.

Mobile Price with import duty 6%: 12927
State VAT 5.5% : 710
Standard Delivery charges : 40​
------------------------------------------------
Total : 13680​


Flipkart's profit: 320 Bucks. Xiaomi's Spends nothing on advertisement.



Looking back I find Moto products launches were well organized and properly promoted.
 
Last edited:

ivhere

Adept
Aug 15, 2011
499
190
81
^ That 12927 looks to be with import duty on taxes
Are you sure that price included import duty. IMO it is declared value of item for customs and duty would be levied on that price. Just look at other phones data such as Iphone 5s 16gb is declared at ₹22,840/- even Moto g only costs ₹10,319/- to import.

Import duty for HS Code:85171290 is 11.43%, So in my calculations
Mobile Price: 12927
Duty @11.43: 1477
Vat @5.5: 792
Total: ₹15196

and they are losing near about ₹1200 on every sale.
 

Spacescreamer

ex-Mod
Jan 23, 2006
4,314
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The FTC said Xiaomi Taiwan's decision to close online sales with some Redmi phones still in its inventory
also curtailed consumers' ability to purchase them.


Chinese stuff.. never far from controversy eh.
 

alekhkhanna

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May 29, 2008
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The_Falcon

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Nov 29, 2009
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I dont agree that it was a cheap marketing strategey, infact it was a smart one. If iPhone/Sony and ither bigwigs etc. adopt the same marketing route; people would be awed and oohed by it, but if a unknown brand does it, its labelled as cheap! Its the same thing as saying if America kills 1000 people - its in the name of justice and if any other country does it - its genocide!
 

alekhkhanna

Skilled
May 29, 2008
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I dont agree that it was a cheap marketing strategey, infact it was a smart one. If iPhone/Sony and ither bigwigs etc. adopt the same marketing route; people would be awed and oohed by it, but if a unknown brand does it, its labelled as cheap! Its the same thing as saying if America kills 1000 people - its in the name of justice and if any other country does it - its genocide!
Absolutely ! It's a brilliant marketing strategy. You create a perpetual artificial demand for the item. Just brilliant !
 

avi

Skilled
Nov 23, 2010
4,188
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It's indeed marketing strategy. And even google does it. Google Domains is invite only and very are using them now