Hunger Marketing, Flash sale and Cost Optimization strategy of Xiaomi Inc. - setting a new trend through Etailing

The scenario of world's manufacturing industry has greatly changed both in its approach and methodology. The world's biggest so-called manufacturing companies today may not be manufacturing even a pin in their premises. Companies like Apple and Xiaomi, which don't manufacture even a single component of mobile phones they sell, are among the Top 10 manufactures of cellphones internationally, today. The asset light model of Xiaomi allows it to leverage the assets of other companies. It allows Xiaomi to access the best sources out there, actually most of who are suppliers to the leading phone companies of the world. The ‘100% R&D and 0% manufacturing’ strategy of Apple with its synergistic integration of software and hardware made Apple the numero uno of the Corporate world.

These companies have stretched the limits of costing to unimaginable possibilities through innovative strategies and have elevated costing to the core strategy of their organizations. This article intends to discuss how the Chinese firm Xiaomi used hunger marketing strategy to cut marketing costs to a small fraction. Companies like LeEco, which entered the Indian Market with disruption strategy but with costing strategies that are diametrically opposite to that of Xiaomi, had to eat a humble pie.