Besides Xiaomi’s scale, supply chain capability, IoT strategy, etc., I think the most underestimated strength comes from its competitors.
For all those merchants or companies who are “bullying” consumers, they will find themselves outcompeted by Xiaomi’s products – simply better, cheaper.
Xiaomi is not copying. Xiaomi doesn’t enter a new category if it thinks the product is good enough. Xiaomi usually executes with better efficiency, offers more value, or adds some differentiation.
Another noticeable change for Xiaomi in recent years is its brand value. It used to be more associated with low to mid income consumers as its products offer value.
However, as its car business picking up, people find its brand attractiveness quickly expand into the premium segment. Those who won’t buy Xiaomi phone can buy SU7 or SU7 Ultra etc. – this greatly expanding Xiaomi’s consumer base.
It’s like Walmart + Sam’s Club in terms of capturing more consumers.
Xiaomi could be China’s Tesla.