Market share: The market segmentation strategy of Smartphone in China

Market share of Xiaomi is growing

To justify, on Wednesday evening, the gigantic loss planned by his group on the fiscal year, Kazuo Hirai, the CEO of Sony, had only an explanation. It is the fault to the Chinese market. "The Chinese producers of devices of middle of the range record a very strong push of their sales in China but they also arrive on the other markets? ", the leader blew who, as those of Samsung or Apple, had not anticipated the explosion of a handle of new Chinese and Indian actors, who the codes of the motive upset.

Based in China or in India by ambitious young people fascinated by the sagas of Steve Jobs and Mark Zuckerberg, Xiaomi, Gionee companies, Micromax, Coolpad, Karbonn remain unknown in West but are about to stand out in the emerging countries of Asia and Africa with huge market share in China for instance.

On the second quarter, the Chinese and Indian sellers checked, for the first time, the majority of the world sales of smartphones with a part of 51 %, explains in his China market segmentation report Daxue Consulting. If many are still on the low-cost market segment, some penetrated into the middle of the range, as Xiaomi or Gionee, and represents an increasing threat for Samsung in term of market share in China. They are focus on market segmentation strategy in China (more information here).

Market segmentation in China is crucial

During the second quarter, Micromax stood out, for the first time, on the China market segment of smartphones as the biggest market share, with a market share estimated by the analysts of Counterpoint Technology at 16,6 %, in front of the world leader Samsung and its 14,4 %. In China, the Korean has also been dethroned on the market segmentation group of smartphones. The Chinese Xiaomi sold, over the period, 15 million units, against 13, 2 million for the South Korean. The ascent is lightning: it shows a 14 % market share, against 5 % one year earlier. And he is already the fifth world producer of telephones. These new actors also push aside podia in South-East Asia and in the Middle East.

In spite of a name which opts for the humility (Xiaomi means «small grain of rice "), the manufacturer of telephones sees big. "? Newspaper Wall Street? " Classified it in the second rank of the list of 37 valued start-up more than 1 billion dollars in the world. Its strength, it is its marketing and its market segmentation strategy in China. In its communication, his forty-year-old CEO, Lei Jun, is openly inspired by Steve Jobs, launching its products to big reinforcement of music and skillfully orchestrated media suspense. Even his relaxed clothes are inspired by the American icon.

What allows him to make a success of a marketing segmentation strategy: although from two to three times cheaper than phone them from brands stars, product Xiaomi remains associated at the idea of rarity. Sold on the Internet via one "? Sales flash ", they tear away in a few minutes. The blogosphere is enthused over these products in the sparkling, partially customizable design. A strategy which Xiaomi well intends to answer in the developed countries.

See also: the Store-checkers

http://www.forbes.com/fdc/welcome_mjx.shtml

https://www.chinavasion.com/china/wholesale/Android_Phones/Normal_Screen_Android_Phones/