Like Apple, Xiaomi has developed its own cult following of “fans”. But what does the future hold for one of the hottest companies of the moment? CKGSB Associate Professor of Strategic Management Teng Bingsheng has the answers.
Anyone with even a passing interest in the vibrant Chinese tech scene will have heard of the stunning rise of Chinese smartphone maker Xiaomi. After raising $1.1 billion from investors at the end of last year, it was declared the most-valuable start-up, overtaking Uber with a valuation of $45 billion – not bad for a company that released its first phone less than four years ago.
As the world scrabbles to find out more about the explosive growth of this innovative Chinese company, media outlets have been turning to CKGSB Associate Dean Teng Bingsheng, whose recent case study on the firm has quickly marked him out as an expert. Speaking to the Associated Press in a recent article that has been republished more than 350 times in outlets including NBC, ABC, Yahoo Finance, the Daily Mail, the Washington Post and The San Francisco Chronicle, Teng said:
“(Xiaomi Phones) may not be the best product out there but a product with the best combination: a very affordable price and good quality”.
Previously, Teng had warned Forbes that Xiaomi could not afford to rest on its laurels, despite its incredible rise, since Huawei and others were already looking to overhaul it:
“Xiaomi still has its advantages in the foreseeable future, but it may be forced to spend more on advertising after the next three years, as other brands catch up.”
But for now, Xiaomi remains the hottest start-up around, and a prime example of a domestic firm that the Chinese government is keen to promote, as Teng told the South China Morning Post in another recent article on the cash incentives given to Chinese start-ups in an official bid to boost the economy.
“Chinese Mobile Sensation Dips Toes in US with Accessories”, Associated Press
“China Nurturing Start-ups with Cash Incentives to Boost Economy”, South China Morning Post