Building the ecosystem for consumer IoT

Xiaomi Corporation was founded in April 2010 with the vision - ‘Innovation for Everyone’. We are an
internet company with smartphones and smart hardware connected by an IoT platform at its core.
We are driven by the belief of being a truly user-centric company, and establishing a powerful bond
with its loyal users, also known as Mi Fans. Being the “coolest company” in the hearts of its Mi Fans,
we are committed to continuous innovation, with an unwavering focus on quality and efficiency. The
company relentlessly builds amazing products with honest prices to let everyone in the world enjoy a
better life through innovative technology.

Having established our operations in 2014, we stand as the number one smartphone brand in India
for 12 consecutive quarters with a market share of 29.4% as per the latest IDC report for Q2 2020.
Xiaomi India is also the number one smart TV, smart wearables and power bank brand in India, making
it the most loved technology brand in the nation. We are currently among the Top 5 smartphone
brand and the world’s largest hardware incubator with more than 271 million connected devices. We
have international presence across 80+ countries and regions around the world, and have a leading
foothold in many markets.

Good companies make profits, great companies also win over people’s hearts. We pride ourselves
even more in being a technology company with a unique “Mi fan culture.” We have a large global
community of “Mi Fans,” Mi Fans are passionate users who are intensely loyal to our brand, and are
highly engaged on our platform while actively contributing feedback and feature ideas to our product
development. In India, Mi Community is the largest tech fan community with over 16 million monthly
active users.

We are one of the few companies in the world with a wide range of categories offering smartphones,
smart home devices, IoT devices, fitness wearables, as well as lifestyle accessories.. Xiaomi also
provides MIUI, Its own OS based on top of Android on all its smartphones (excluding Android One
devices) and several internet services such as Mi Music, Mi Pay etc. Xiaomi sells all its offerings across
Mi.com, Mi Homes and partner platforms who operate on the efficiency of internet.

One of the key reasons of our success is our unique “triathlon” business model, which encompasses
hardware, new retail and internet services. Xiaomi’s achievements so far illustrate the strength and
resilience of our model. Xiaomi entered Fortune Global 500 list in July 2019 and is the youngest
company on the list. Xiaomi also had the biggest tech IPO in the last four years, when it went public
on Hong Kong Stock Exchange in July 2018. Xiaomi got listed among World’s top innovative companies
according to rankings by BCG and Derwent.

Xiaomi’s core strategy for the next decade will be “Smartphone x AIoT”. As intelligent connectivity
becomes more integrated into our lives, our “Smartphone x AIoT” core strategy will reap synergistic
benefits.
 #From10ToInfinity
We at Xiaomi India are preparing for the next decade. India is the 2nd largest market for Xiaomi after
China. The new generation in India is growing up in more connected world. The challenge is to build
products and services, which are more integrated and suited for the Indian consumer.

If you follow technology, you must have heard about the term “Ecosystem”. What is an Ecosystem?
Ecosystem refers to a system of products or platforms that are complimented by applications. The
dynamic interactions between people, hardware, platform and services make the space for symbiotic
change beyond incremental changes. As they say “Some of parts is greater than the whole.”

Xiaomi brought Smart TVs into the Indian market. The vision was to provide an unmatched viewing
experience to the Indian consumer. Thus, apart from great hardware a whole ecosystem was
developed. We modified the software (Patchwall) by designing customized API, on-boarded several
content partners and modified the hardware to suit the Indian consumer. E.g. Set-top box integration,
partnership with Republic TV and Bloomberg to bring live news and enhanced stereo sound and
brighter display. Recently, we launched Mi TV stick and Mi Box, which can convert your regular TV into
a smart TV. We also brought in Mi Sound bar to make your audio experience even better. Xiaomi is
the No. 1 Smart TV brand with a 30% market share in Q1-2020.

Figure 1: Xiaomi Ecosystem devices

Xiaomi can consider entering a product category or an strategic partnership for the existing
categories (mentioned in the diagram) to build an ecosystem.
 #Rethink the ecosystem
A group of young consultants (you) have been given the task of expanding Xiaomi’s Consumer IoT
business (Products or Services). The primary task is to recommended product categories or services
where we can marry the amazing hardware with emerging technology trends. The chosen use case
should be aligned with Xiaomi’s philosophy.

The proposal should be a 4-slide PowerPoint presentation or 2 page Word Document which covers
the following:

1. Which use case (product category or services) Xiaomi should focus on to drive the Consumer
IoT business?
2. Explain the chosen use case in terms of:

a. Value creation
b. Key consumer insight
c. Features and scope
d. Competitive landscape

3. What is the market opportunity in the chosen use case?

4. Why does Xiaomi have the right to win in the chosen use case?

Always believe that something wonderful is about to happen.