Gionee Vs Xiaomi Contrasting Strategy Similar Goals

 The story of two Chinese smartphone companies which have done exceedingly well in the Indian Smartphone market. The leaders Mr Arvind Vohra of Gionee thinks absolutely different to Manu Kumar Jain of Xiaomi.

Gionee Vs Xiaomi Contrasting Strategy Similar Goals
Gionee Vs Xiaomi Contrasting Strategy Similar Goals

Why Gionee has become a Success ?

Strategy for Gionee has been very different compared to all the new companies which have ventured in Indian market to sell smartphones. Gionee has focused purely on the brick and mortar model. The key to achieving higher sales for Gionee has been sale of smartphones through retail. They have never offered any smartphone through flash sale or have not done any direct tie up with any online portal to sell smartphone.  Surprised but it is true.

The smartphones sold online by Gionee are offered by the channel partners, retailers and distributors. Gionee has never done a direct tie up to sell any smartphone on Flipkart, Amazon or Snapdeal. In the world which is madly running to grasp the e-commerce saga, a man thinks differently – Mr. Arvind Vohra (MD and CEO of Gionee).

The Mesmerizing Founder of Gionee India – MR. ARVIND VOHRA

He has a different leadership style and a very different thought process. He believes in physical sales through a store, consumer experience, need to talk to a person when buying a product. The ability and power of physical stores and distribution which can make his company successful.  Currently Gionee has 5-6% share in the Indian market,  he wants to reach 10%.

Arvind Vohra was a regular guy doing a regular Job till 2008, when the entrepreneurship bug bit him. He worked towards launching Gionee in India and currently holds 26% of shares in the Gionee India. Multiple rounds of travel to China and partnering with Gionee led to it’s launch in 2013.

The expansion and sales growth he attribute to his channel partners and believe that the best he will treat his channel partners, more loyal they will be to the brand. He learned this from his father a sales stalwart.

Arvind Vohra is committed to Gionee as much as he is committed to his daily exercise ritual to get up at 6 in the morning and exercise for 1.5 hours daily. He says” you need a fit body to carry out all the tasks that the demanding job of entrepreneur requires”. He never carries cash or gadgets, and like to keep things simple and clean. You will not find unread emails in my inbox.

The sounds to drive Gionee to the next level reverberate in his  ears, instead of music. He likes to read Jeffery Archer but have not read it also in a while.

Gionee also plans to start manufacturing the new smartphones in India the P and M series of budget mobiles. There are plans to invest 300 crores($50 million)  on setting up a new manufacturing facility in India, yet not confirmed.

He mocks about the Flash sale model without naming anyone. “ You register for a smartphone days before actual sale”, On sales day get the message “ We are sorry, try your luck next time” .  We will never do this to Gionee customers.

He believes in conventional TV ads and media Ads , Gionee has a huge budget close to 100 crore for ATL and BTL advertisements.  We have seen so many Gionee ads, have you ever seen a Xiaomi TV Ad?

Xiaomi’s Manu Kumar Jain don’t concur with Mr. Arvind Vohra

Xiaomi on Contrast have a web only flash sale model or if the devices are in abundance can be bought right away.

Manu Kumar Jain or Lei Jun lead Xiaomi was launched in 2014 and has gathered massive fan following in India for Xiaomi. The company focus on online sales and had an exclusive partnership when they launched the coveted Mi3. The first flash sale happened and in seconds they sold the 20,000 smartphones recalls Manu Kumar Jain.

His family members and friends were not able to buy the smartphone. They were not sure what will be the response for a Chinese brand with an internet only model in India. But it turned out to be vastly successful.

Mr. Manu Kumar Jain is a Co-founder of popular aggregator website Jabong. His online and web- experience comes handy in deciding strategy for Xiaomi in India. Xiaomi has become an household name and is one of the favorite brand for youth and lot of office goers.

All this happened without spending any money on the expensive TV commercials or getting famous celebrities as brand ambassadors. They have a minimal budget for all this. Yet they have a very strong presence on social media, they have used facebook and twitter like no other brand in India. From teasers to trailers to tweets giving little information, tech news sites writing posts about the brand and fans enjoying every bit of engagement.

Lei Jun the global head of Xiaomi came down to India for the launch of it’s new smartphone Mi4i which shows India is a key market for Xiaomi and next level of growth can come from the Indian market. The earlier tie up was only Flipkart exclusive now Xiaomi has started partnering more e-commerce portals like Amazon. They are expanding in the Indian market both reach and distribution.

Not only smartphones but Xiaomi is launching new product lines like wrist fitness band, Mi power bank in the Indian market to expand further. Xiaomi also plans to invest in India and may shift some of the manufacturing to India if leaks are to be believed.

Both Gionee and Xiaomi have contrasting strategies, with Xiaomi rules the online world, Gionee has established strong hold in retail. The aim for both is to reach the 10% market share in the Indian market, we will wait and see which company is able to do it faster.

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