In the initial days of this year, Xiaomi Group experienced an astonishing surge in the Hong Kong stock market, with its stock price soaring over 8%, pushing its market capitalization past 900 billion HKD and heading towards the coveted trillion markMany analysts and investors are now branding Xiaomi as the biggest dark horse in China's technology market for 2024, even likening it to the "Tesla of Hong Kong stocks." The company has also made headlines recently with significant revisions to its annual automobile delivery records.

Originally aiming for a target of 100,000 vehicle deliveries, Xiaomi revised this figure three times: first to 120,000, and ultimately achieving 135,000 vehicles delivered by the end of the yearThe Xiaomi SU7 marks the beginning, as the company plans to launch at least three more series of vehicles in the coming yearsAs we look toward 2025, questions linger: will Xiaomi's automotive miracles continue? What specific strategies and details should we be watching for? Today, let's explore Xiaomi and its prospects for the upcoming year.

When one thinks of Xiaomi, marketing strategies often come to mind

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Many associate the brand with hype, topic creation, and the ability to generate buzz— and indeed, these descriptors do hold waterFor example, on New Year's Eve 2024, while many others were hosted by lavish galas, Lei Jun, Xiaomi's founder, engaged the public in a four-hour live-stream marathon that not only showcased the company’s achievements but also tackled sensitive topics such as age discrimination in hiring.

In the vibrant landscapes of platforms like Douyin and Weibo, Lei Jun certainly stood out as one of the most effective live-stream sales representatives of the nightXiaomis marketing prowess, regardless of one’s personal feelings toward the products, cannot be deniedIn an age where traditional marketing methods are increasingly overshadowed by digital strategies, Xiaomi's methods are resonating strongly across the digital, automotive, and technology realms.

Historically, car manufacturers relied heavily on traditional advertising channels such as television ads and elaborate showrooms

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They capitalized on massive auto shows during national holidays to showcase their vehicles, often solidifying brand loyalty from industry giants like BMW, Volkswagen, and ToyotaIn contrast, today’s landscape of internet marketing puts traditional practices to shame.

For instance, during the initial launch of Xiaomi, the company achieved an order volume exceeding 10,000 cars in just four minutesIn half an hour, this figure grew to over 50,000, hitting a staggering 89,000 within four hours—a feat unimaginable in the past.

In the current market reality, companies that fail to adopt effective traffic-building strategies find it increasingly challenging to surviveTake the case of the brand Jihu Automobile; despite its appealing products, they faced a substantial downturn

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Was it simply that their vehicles weren't attractive enough, or were they priced too high? It's not that straightforward.

When we examine companies like Tesla and others leading the pack—ranging from Hongmeng Zhixing to Li Auto, NIO, and Xpeng—the company's founders mostly hail from the internet sector and are adept at capturing trafficXiaomi's approach to traffic and marketing stands out as a carefully orchestrated scheme, an open secret well understood in the industry.

Initially, many traditional car manufacturing executives dismissed Xiaomi’s marketing tactics as beneath the industry, maintaining a condescending stance toward the newer brandHowever, with the explosive demand for Xiaomi’s vehicles, and the subsequent decline in traditional car sales, these executives began to take notice and adapt their strategies, with many launching their own marketing efforts to stay in the game.

One notable difference between traditional advertising and modern internet strategies lies in consumer choice

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In conventional media, advertisements inundate viewers without their consentConversely, online, if consumers aren’t interested, they simply scroll pastThis creates a two-way street where success hinges on genuinely engaging audiences.

Notably, not everyone excels at live streamingManufacturers’ executives frequently grapple with connecting authentically with audiences during their broadcastsViewers can often sense when a presenter is not genuineOn the contrary, during his lengthy live streams, Lei Jun appears confident and composed, consistently maintaining an engaging presence.

Often, during live events to deliver new vehicles, he would personally thank fans, open doors for them, and express gratitude towards support receivedThese gestures reveal not just a marketing strategy but a genuine acknowledgment of the relationship between the brand and consumers

In an environment where respect fosters loyalty, it's evident that Lei Jun is conscious of this dynamic.

Humility and authenticity remain timeless marketing techniques that resonate with audiencesA simple yet powerful strategy that Xiaomi employs effectively, contributing significantly to its brand's runaway success.

However, Xiaomi's wins extend beyond marketing aloneRecently, discussions around the long payment terms prevalent among electric vehicle manufacturers and their impact on suppliers ignited debates onlineFor instance, while brands like Leap Motor face payment turnover periods of around 202 days, Xiaomi managed impressively shorter terms of just 82 days, placing it among industry leaders in financial health.

This efficiency is remarkable and speaks to Xiaomi's effective supply chain practices and financial management capabilities

In contrast, many competing brands, despite selling cars at lower prices, face escalating ecological challenges within the automotive industry, leading to a precarious competition where quality may be compromised.

Xiaomi’s adept handling of account periods not only showcases their business fortitude but also aligns them with industry giants like Tesla, reflecting robust management that fosters a sustainable ecosystemHealthy supplier relationships contribute to a thriving automotive environment that ultimately ensures consumer trust.

Amidst its advancements, some may argue that Xiaomi's surge isn't solely attributable to its car division; its phone and IoT product ecosystems contribute significantlyIndeed, Xiaomi is one of the few companies where automotive innovation reciprocates value back to the mobile segment, creating a unique synergy.

Following the notable success of the SU7, Xiaomi has grown its physical retail presence, launching an impressive number of flagship stores across major urban areas

The move naturally draws a premium clientele, presenting upscale mobile product opportunities among the IoT range.

Additionally, initiatives to open up their smart home technology have yielded positive feedback from both consumers and international reviewers, showcasing Xiaomi’s adaptability and commitment to enhancing its overseas foothold.

Interestingly, despite Xiaomi's established presence in China, internationally, especially in regions like Europe and Southeast Asia, brand perception skews more positive, with many consumers associating Xiaomi with premium qualityThis shift hints at significant growth opportunities should Xiaomi continue its trajectory of innovation.

Ultimately, China, with its vast market potential, thrives on a diverse ecosystem of companies and innovationThe industry needs progressive visionaries, akin to Lei Jun, who embody a spirit of entrepreneurship that embraces adaptation