It has been 8 months since the release of the SU7 for Xiaomi Auto, but when it comes to Xiaomi Auto's overseas plan, it can be traced back to 9 months ago. At that time, the Xiaomi Su7 had not yet announced the price, but it had already put the overseas on the agenda. China Exportsemi has specially analyzed and discussed this matter (related reading: pricing is pending, Xiaomi Auto has planned overseas strategy). Nowadays, "Xiaomi cars going to sea" has once again attracted widespread attention. I have to say that Xiaomi cars are really going to sea, and they are well-deserved in action!
As part of the Xiaomi Group's globalization strategy, Xiaomi Auto not only relies on traditional product exports, but also plans to establish a strong sales and service network through the large-scale opening of Xiaomi Home stores overseas. It is expected that Xiaomi will open 10,000 Xiaomi Homes around the world in the next five years, an ambitious goal that marks Xiaomi's ambitions in the international market, which is not only an important step in the company's global layout, but also a key strategy for it to increase brand recognition and market share in the fierce competition.
Ⅰ. the deepening of the globalization strategy
Xiaomi Group's globalization strategy has entered the "mode of going overseas". In the second stage, we will gradually shift from the output of products and brands to the global expansion of business models and ecological chains. According to Lu Weibing, president of Xiaomi Group, in the past few years, Xiaomi has successfully promoted its smart hardware and consumer electronics products to the global market by continuously promoting products and brands going overseas. In the third quarter of 2024, Xiaomi Group's revenue was 92.51 billion yuan, a year-on-year increase of 30.5%, indicating the strong growth momentum of its global business.
At this stage, Xiaomi is not only focusing on promoting its products to the global market, but also focusing on promoting its unique business model on a global scale, including the integration of eco-chain products and the application of technologies such as smart home and the Internet of Things. The deepening of this strategy has laid a solid foundation for Xiaomi Auto's overseas plan, enabling it to promote the global promotion of new energy vehicles through the channel of Xiaomi Home stores.
Ⅱ. the market layout and sales channels
The overseas sales of Xiaomi Auto will rely on the channel of Xiaomi Home. At present, Xiaomi has more than 100 directly-operated stores overseas, which not only carry the role of Xiaomi brand promotion, but also an important carrier of sales, service and user experience. Through this combination of online and offline methods, Xiaomi is able to better connect with consumers around the world.
Lu Weibing, president of Xiaomi Group, has publicly stated that Xiaomi plans to open 10,000 Xiaomi Home stores around the world in the next five years. This plan will enable Xiaomi to establish a large retail and service network around the world, further enhancing its brand influence and market penetration. It is worth noting that Xiaomi Home is not only a sales platform, but also undertakes multiple functions such as brand promotion, after-sales service, and user education. Xiaomi hopes to use the multi-functional platform of Mi Home to closely connect automotive products and other consumer electronics products with consumers' lives and enhance brand stickiness.
Figure: Xiaomi Auto accelerates its plan to go overseas, and plans to open 10,000 Xiaomi Homes in 5 years
Ⅲ. Challenges and opportunities of autonomous driving technology
In Xiaomi's overseas plan, autonomous driving technology is undoubtedly a key competitiveness. In order to cope with the different needs and regulatory challenges of autonomous driving technology in overseas markets, Xiaomi has added a number of positions in its autonomous driving department, especially in terms of regulatory certification and technology implementation. Overseas countries have different road regulations and driving habits, and the application of autonomous driving technology needs to be customized according to local regulations, which puts forward higher requirements for Xiaomi's technology research and development.
Xiaomi's accumulation of autonomous driving technology gives it the potential to take the lead in the global market. In order to ensure that the technology can be implemented smoothly and meet international standards, Xiaomi Auto has also cooperated with a number of international institutions to conduct technical verification. In addition, Xiaomi is also increasing R&D investment to promote faster progress and application of autonomous driving technology.
Ⅳ. market response testing and small batch sales
Before officially entering the overseas market, Xiaomi Auto plans to conduct small-batch market tests in multiple overseas regions. This strategy can help Xiaomi Auto better understand the needs and preferences of consumers in different regions, and accumulate valuable experience for subsequent large-scale sales. Based on the test results, Xiaomi Auto will optimize product design, adjust market strategy, and gradually expand sales according to local market conditions.
With small batch sales, Xiaomi Auto is not only able to test consumer acceptance of its products, but also to discover and solve possible problems in practice. This strategy is to ensure that its global expansion can proceed steadily, avoiding the waste of resources and market mistakes caused by blind expansion.
Ⅴ. the challenge of brand power and market share
Although Xiaomi has a certain brand influence in overseas markets, its market share in the high-net-worth consumer market is still low. Xiaomi Auto's SU7 is positioned as a high-end model, with a price of more than 200,000 yuan. If it is exported to overseas markets, in addition to raw materials and manufacturing costs, it is also necessary to take into account customs duties and transportation costs, which will further increase the selling price of the SU7. The overseas high-end market has high requirements for brand recognition, which is a big challenge for Xiaomi.
In addition, high-end consumers have higher requirements for the quality and performance of automobiles, and how to ensure the consistency of Xiaomi cars in terms of quality, technology and user experience will directly affect its performance in overseas markets. In order to overcome this challenge, Xiaomi may need to conduct more brand building and user education overseas to further enhance its brand presence.
Ⅵ. Conclusions and prospects
Xiaomi Auto's overseas plan demonstrates the ambition of its globalization strategy, and by relying on the channel of Xiaomi Home stores, equipped with powerful autonomous driving technology, Xiaomi Auto is expected to occupy a place in the global market. However, challenges in brand building, high-net-worth market share, and localized operations are still challenges that Xiaomi needs to face in its global expansion.
As Xiaomi gradually expands its sales network in overseas markets and continuously optimizes its technology and market strategy, the future of Xiaomi Auto is still full of potential. In the next few years, especially breakthroughs in autonomous driving technology and brand promotion, will directly determine the competitiveness of Xiaomi cars in the global market. Whether Xiaomi can successfully achieve its ambitious goal of opening 10,000 Xiaomi Home stores within 5 years and occupy a place in the global new energy vehicle market is worth paying close attention to by the industry and investors.
Through a comprehensive analysis of Xiaomi's overseas plans, it can be seen that its ambitions and potential in the global market can be seen. In the future, with the continuous progress of technology and the further expansion of the market, Xiaomi Auto is expected to emerge in the international market.
Data & Provenance
1. Xiaomi Group's revenue in the third quarter of 2024: 92.51 billion yuan, a year-on-year increase of 30.5% (source: Xiaomi financial report).
2. The number of Xiaomi's directly operated stores overseas: more than 100 (source: Xiaomi's official website).
3. Xiaomi plans to open 10,000 Xiaomi Home stores within 5 years: according to Lu Weibing, president of Xiaomi Group, publicly stated.
4. Xiaomi SU7 pricing: The domestic price is more than 200,000 yuan (source: Xiaomi's official release information).
5. Xiaomi's autonomous driving technology division's overseas market layout: Multiple positions have been added to meet the regulatory needs of overseas markets (source: internal company report).
