Xiaomi Wants to Be More Like Costco

Xiaomi initially gained international attention with its sleek smartphone designs and flash sales. However, it has since faced challenges from domestic competitors in China. The CEO, Lejeune, is working to redefine Xiaomi's vision by diversifying its product range beyond smartphones, drawing a loose comparison to Costco's model. In India, Xiaomi is focusing on expanding its product offerings and increasing online revenue, despite competition from local brands.

What was one of the key strategies that initially boosted Xiaomi's international presence?

• Conducting flash online sales

• Offering high discounts on all products

• Partnering with local retailers

• Opening numerous physical stores

How does Xiaomi's diversification strategy compare to Costco's business model?

• Xiaomi is expanding its product range while maintaining low costs

• Xiaomi is focusing solely on smartphone sales

• Xiaomi is increasing prices to match premium brands

• Xiaomi is opening more physical stores like Costco

What is a significant difference between Xiaomi and Costco's business models?

• Costco focuses on a single product line

• Xiaomi sells annual memberships

• Costco operates primarily as a retail chain

• Xiaomi aims for high profit margins on each product

What challenge is Xiaomi facing in the Indian market?

• Lack of manufacturing facilities

• Competition from local smartphone brands

• High import taxes

• Limited online presence

What financial goal does Xiaomi have for its online revenue?

• To generate $5 billion

• To achieve $1 billion

• To reach $10 billion

• To maintain current levels