Mobile technology giant Xiami is now planning to enter into internet streaming services market in India, company will offer streaming of movies and videos to the users in India. Company is planning to enter into music, digital payment and applications market. According to the reports company will start offers services likes of Netflix, Amazon Prime, Spotify, Paytm and Google Pay.
This way company will enter into the internet monetization market by offering various services to the client in India. This market is already matured and it will be tough competition for Xiaomi to enter this market.
As per the mobile market data Xiaomi has already beating Samsung in smartphones market. Now Xiaomi wants to offer these new internet based services to generate revenue.
Such services are being offered by well established companies like Netflix, Amazon Prime, Spotify, Paytm and Google Pay in the Indian market. Xiaomi will have to compete with this already established company in this market segment.
According to Xiaomi India managing director Manu Kumar Jain, company will invest Rs 3,500 crore fund to expand into these new market segment.
He further said that the Xiaomi made a profit of less than 1% margin from the mobile hardware business in 2018. According to him company never made more than 5% profit margin from hardware business. Now company is hoping to make money from internet services.
Xiaomi is globally making money from its three financial pillars namely devices, retail and services. Now company will yet to be explored retail and services business. Internet services will help company to grow fast.
Company will start monetizing by streaming content from Mi Video and Mi Music services. The file transfer tool of Mi Drop recorded a hit of 100 millions downloads which is a huge count.
The mobile technology giant Xiaomi has already launched Unified Payments Interface (UPI)–based payment application Mi Pay. Company will soon commercialise Mi Credit.
The Mi Credit platform is in pilot stage where finance is offered by partners. Company still don’t have a non-banking finance company (NBFC) licence.
Company is investing significant portion of Rs. 3,500 core fund infusion from the partners into Xiaomi India.
Company will also use the fund for offline expansion, open exclusive stores, localised R&D for India for devices, internet services and software, warehouses, service centres and to invest into manufacturing.
The sales of Xiaomi Technology sales in India grew during 2017-2018 by 175% to Rs 23,060 crore. Company made a profit of Rs 293 crore which 79% more as compared to earlier profit. As per the Xiaomi statement, over 40 million users per month in India is using the Mi Music application.
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