Author(s)

Baixi Lu

Corresponding Author

Baixi Lu

ABSTRACT

Along with the rapid development of IoT, smart home becomes an indispensable part in many high tech companies. Strong support and motivation is given by the government as smart home industry follows the global trend of eco-friendly and low-carbon. Although many consumers are unaware of the convenience and significance of smart home, with its increasing widespread popularity, smart home industry will have a long-term growth in the future. Xiaomi, as one of the leading mobile brands in China, launched a variety of smart home devices in 2013-2014, gradually takes up the most market share in China, The marketing strategies including cost lead strategy, differentiation strategy along with its strategic cooperation will be detailed analyzed in this paper. To better understand its success in Chinese market, Xiaomi’s VIE ownership structure and its unique dual-layer equity structure will be evaluated in the second part. Possible suggestions and recommendations to minimize the risks of Xiaomi will be provided at the end of this paper.

KEYWORDS

Marketing strategy, Xiaomi company, finance, smart home