Rice cookers, electric scooters, toothbrushes, speakers, smart shoes, robot vacuum cleaners, suitcases … it is 2018 and Xiaomi is the great Chinese bazaar par excellence. As incredible as it may seem, the Asian firm began its business journey only 8 years ago and in that time it has managed to launch a huge catalog of products ranging from technology to lifestyle.
Your secret? A network of almost 100 Chinese startups in which it has invested for the development of its products. The one that interests us today is Shanghai Runmi Technology Co. Ltd., a luggage, footwear and sportswear company. They are the makers of this amazing $ 79 heated jacket that could become a best seller this winter. Winter is coming.
Smartphones are Xiaomi’s Trojan horse to introduce everything else
But to talk about Shanghai Runmi Technology Co. Ltd it is first necessary to contextualize its existence within that huge and curious business structure that is Xiaomi. Xiaomi’s story begins with the Xiaomi Mi1 smartphone, which is now in the seventh generation (the Xiaomi Mi 8). In between, gadgets of all kinds.
Given its huge catalog of products, it is not surprising that Xiaomi does not consider itself a smartphone company, of which they claim to obtain less than 5% profit, because where they obtain a profit margin is in other less glamorous products such as their rice cookers or air purifiers. The objective of selling smartphones is to make a brandThey are the Trojan horse of everything that follows.
However, Xiaomi sells so many mobile phones in the world that it is already in the top 5 and rising. This fact means that although its profit margin is low, the sale of smartphones is responsible for more than half of its sales revenue.
However, the evolution of their income shows a trend towards diversification oriented towards internet services, internet of things and lifestyle. Precisely Xiaomi’s lifestyle area is the one that has grown the most in recent years and the one that interests us the most.
Within that category of “IoT and lifestyle” is Mi Ecosystem, which according to the international Xiaomi spokesperson, already exceeds 100 million connected devices, constituting the largest community in the world. Y Xiaomi is only responsible for distributing them.
If you are a regular at the brand, names like Mijia (its well-known electric scooter), Yeelight (smart bulbs) or Roborock (robot vacuum cleaner) will sound familiar. None of them are manufactured by Xiaomi, but their developer companies were once startups in which Xiaomi invested. Each one makes a specific product line and Xiaomi does the rest. According to Xiaomi’s own website, This spider web is made up of 89 companies.
Of the nearly 100 companies that make up the Mi ecosystem, RunMi – Shanghai Runmi Technology Co., Ltd ranks in the top 10 for revenue. And it is that Runmi not only manufactures that heated jacket. Runmi is the suitcase company.
RunMi – Shanghai Runmi Technology Co., Ltd.
According to Xiaomi itself, RunMi – Shanghai Runmi Technology Co., Ltd. is the first consumer goods company within the Mi Ecosystem. An even more important achievement if we take into account that this firm is only three years old. In fact, It only took one year to become one of the top ten top-earning companies in Mi for sale thanks your sub-brand, 90Fun.
And what exactly does RunMi – Shanghai Runmi Technology Co., Ltd. sell through “90”? As detailed on its website, its reason for being is “to provide users with complete travel solutions at competitive prices”, however Runmi also has the 90 Points sub-brand, which in addition to luggage also designs and manufactures footwear and other sportswear To wear.
Although the birth of RunMi – Shanghai Runmi Technology Co., Ltd. dates back to 2015, we have to go back a decade in time to the birth of Korrun, a luggage manufacturer located in Fengxian, Shanghai. One of Korrun’s strengths was in the R + D + i area, which led him to develop his own designs, which he marketed through alliances with powerful clients such as HP, ASUS, Lenovo, Dell, Decathlon or Samsonite.
In 2015, RunMi – Shanghai Runmi Technology Co., Ltd. was created as a result of Korrun’s collaboration with Xiaomi. Hence the launch of their own lifestyle brands: 90FUN and 90 points. Its brand values consist of “being attractive, practical, reasonably priced and easy to use.” A year later, 90FUN products are consolidated as one of the best sellers during Singles’ Day, a Chinese folk festival that takes place on November 11.
The success of “90” has crossed borders and, although many of its products are not yet officially marketed in Spain, they are well known. If there is something for which RunMi is famous for its travel bags. However, it also manufactures running shoes, backpacks, clothing bags and accessories.
One of its most popular products is its rigid suitcase (82.27 euros), with an aluminum telescopic handle and a polycarbonate exterior, four wheels and a TSA approved lock. It is available in various colors and sizes.
In addition to the suitcase format, 90FUN has urban backpacks, folding waterproof backpacks, toiletry bags, waterproof backpacks, wallets …
Regarding streetwear, 90 points and 90FUN sell jeans, jackets, sweatshirts, boots and sneakers, among others. Quality garments with good design to continue diversifying your market.
Xiaomi’s key to success: diversify and you will win
Considering the blazing growth of Runmi and the trajectory of Xiaomi, it seems that for the moment its business model based on a business symbiosis works like a large well-oiled machinery.
Divide and conquer, a maxim attributed to Julio César that fits perfectly with Xiaomi’s strategy, both in the diversification of its product portfolio and in its commitment to expanding the business fabric of the Xiaomi ecosystem.
When a startup “marries” Xiaomi, it receives an economic injection and adopts the vision of creating high-quality products at reasonable prices, reducing its profit margins. However, Xiaomi exercises supervision without interference, keeping the specialized staff and the how know of the project, something that according to Liu De, the co-founder of Xiaomi, translates into a greater incentive to expand your market share under the Xiaomi umbrella.
Lei Jun, Xiaomi’s CEO and one of its founders, is so proud of his corporate strategy that he wants to write it down within Xiaomi’s business mission so that no one “spoils it in the next few years.” And it is that the attractive Xiaomi smartphones they are the hook of everything that comes after.
LoL Patch 14.6: Riot reveals the next Crystallis…
BTS member Suga’s concert film D-Day will be released in…
This is why game journalists are “bad” at video games
The Gentlemen on Netflix – Should you watch the film…
Shogun release schedule: When is episode 4 coming out? |…
The new Assassin’s Creed title moves away from the game, clues…
The use of AI in board games causes a new scandal
Fortnite Chapter 5 Season 2: Mythical weapons, bosses and…
Halo Infinite: A new map with Operation Cyber Showdown III
New LoL High Noon skins: release date, champions and more
