Xiaomi unveils its new financial services plans

Xiaomi has grown exponentially in recent years, positioning itself as one of the best brands of smartphones in the world and becoming the number 1 brand in India. Earlier this year the Chinese company joined the stock market, raising a total of 4.72 million dollars in the Initial Public Offering (IPO), the company had in the last year a huge growth compared to other years, and so far this year, this could outperform the others.

Hardware, retail businesses, and the Internet

retail businesses

Hong Feng, the co-founder of Xiaomi made a statement during the Fintech week in Hong Kong, where he said that the success that the company has achieved is due to three factors, ‘ hardware, retail businesses, and Internet connection’.

Xiaomi has a large hardware business since over the years they have been able to create a series of devices that have achieved great popularity, such as the Smart Mi  Power Bank and the smart band Mi Band Huami, which have become in a whole sensation. The company stands out for offering high-quality products at reasonable prices, without neglecting the aesthetic aspects.

According to Hong Feng’s statements, the manufacturing cost is the same as the other brands, but they manage to deliver the devices directly into the hands of consumers by more affordable means.

This is where minority businesses enter because that is the reason why the Chinese manufacturer can offer affordable prices since through retail channels, which should be clarified that are highly effective, have been able to provide users with prices. lower compared to its competitors.

The co-founder of the company shared some graphics where they revealed that an Asian family has approximately 100 Xiaomi devices connected in their respective homes, this is due to the large catalog offered by the brand, these intelligent products allow you to connect to the internet, thanks to They have managed to push the company to another level.

Xiaomi is still looking to boost the brand to other territories

Xiaomi Logo

The Chinese manufacturer has larger ambitions, considering integrating the financial technology sector as a complement to its current business model, said the co-founder of Xiaomi.

Fintech or also known as financial technology will be the key to boost the brand to new territories, this technology is based on the connection of big data, artificial intelligence and security, allowing in this way to make banking transactions or payments from a smartwatch or a telephone smart by means of NFC technology.

Xiaomi intends to offer loans to SMEs

Another area that Xiaomi wants to exploit is the granting of loans to small and medium enterprises (SMEs), establishing a way to provide these companies with a more practical way of obtaining loans, and also wish to offer advice to those companies that want to sell in a retailer, in this way the Chinese company has direct contact with SMEs, because their understanding and access to data is greater than financial institutions, this is due to their extensive knowledge of supply systems, retail, and the delivery time, allowing to determine which company will succeed.

Most likely that these plans are implemented first in India, due to its large population and that Xiaomi has a good reception, already in itself, the company dominates the market of smartphones and smart TVs in the country. And this has not been all since the company has previously implemented financial plans, they have managed to partner with other companies in India.

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Samuel Afolabi is a lazy tech-savvy that loves writing almost all tech-related kinds of stuff. He is the Editor-in-Chief of TechVaz. You can connect with him socially :)

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