REASON BEHIND XIAOMI RAPID GROWTH : Investments !!
Today We are providing you with all the Investments made by Xiaomi:
Xiaomi has self-designed four Smartphones, a Tablet, a Smart TV, Wi-Fi Routers, a Pressy-like Android button, and a Wi-Fi dongle. But the company cannot self-design and produce every connected device on the market, especially when smart gadgets are popping up everywhere. So here comes the Xiaomi's "100 Company Startegy".
Investing in third-party startups and helping sell their products on its online stores. Of course those products have to be compatible with and able to talk to other hardware products in the Xiaomi family.
The below chart only lists 17 companies that Xiaomi acquired or invested in. Xiaomi claims it has 25 companies already plugged into its ecosystem. Since 2012, Xiaomi has participated in deals amounting to over US$3 billion (mainly involving the companies in the chart below). It plans to invest US$1 billion into smart TV content and another US$1 billion into cloud services. In many of these deals, Xiaomi leads the investment or acquires the companies outright. This four-year-old smartphone startup already has dominion over a multi-billion dollar empire.
Total Investment Value : $ 300 Million
Strategy : To develop Online Video Content
At the beginning of November, Xiaomi CEO Lei Jun revealed that Xiaomi is going to invest $ 1 Billion Dollar in Building up the content for its Smart TV users. Soon after revealing this, Lei Jun announced that Xiaomi is to invest $ 300 Million in Baidu-backed online video portal iQiyi.
iQiyi is an online video platform in china founded 4 years ago by Baidu, the largest online search platform in China. The daily viewers on iQiyi are about 50 Million and it is the second largest online video site in China. iQiyi stared iQIYI Motion Pictures, to expand existing cooperative projects with overseas peers, including purchasing releases and co-producing movies.
This is the Biggest Investment made by Xiaomi till date and afer making this partnership, The two companies will jointly develop content and technology, including developing multi-screen online video services.. The iQiyi investment gives Xiaomi a stronger footing in China’s video-streaming market and Xiaomi will also license content from Youku Tudou, and the two companies will jointly invest in the production and distribution of online video content and movies.
Another investment part in the plan of investing $ 1 Billion in Video Content offerings is Xiaomi's partnership with Youku. Ealy in November, Youku announced that it entered into a partnership with Xiaomi to accelerate the development of its multi-screen media and entertainment ecosystem. But the value of investent is not yet disclosed.
Youku is China's largest internet video site founded in 2003. It provides Internet television and online advertising services. Its Internet television platform enables users to search, view and share high-quality video content quickly and easily across multiple devices.
Youku Tudou’s ability in producing original content will provide strong support to the Xiaomi family of hardware by making the user experience more compelling, and will help to boost average revenue per user. The two companies will jointly develop content and technology, including developing multi-screen online video services.
Xiaomi currently sells a Xiaomi TV, Mi TV and a set-top box, Mi Box, and hopes to replicate the success of its hardware business in the TV industry. It is the third-largest smartphone manufacturer in the world after Samsung and Apple. The above two investments made by Xiaomi will boost up the sales of Xiaomi Smart TV and also Xiaomi will now be able to provide the best video content to it's Smart TV users and their user experience now will be enhanced.
Total Investment Value : $ 204 Million
Strategy : To Produce Smart Home Products
Xiaomi earlier invested in some startup companies to produce Smart Home devices. Now, Xiaomi entered into a big partnership with Midea group to further its push into the Sart Home Market. According to Midea's official WeChat account, Xiaomi will acquire 1.288 percent shares of Midea Group for $ 204 Million.
Midea Group is a privately held Chinese electrical appliance manufacturer, headquartered in Shunde,China. Over the last 15 years, the company gradually expanded into a wide variety of other electrical home appliances, including refrigerators, washing machines, microwaves.Since the company established an e-commerce group in 2014, sales have been surging with a growth rate of 120% as on November 2014, compared to the same time last year.
Now, after investing in Midea, the two companies will cooperate on building their smart home ecosystem. That means Xiaomi products will likely integrate with Midea’s wide range of products, from refrigerators to air conditioners to washing machines.
Strategy : To Produce Mi Band
Mi Band is the first fitness device of Xiaomi launched in July, 2014. Though this wristband is under Xiaomi’s brand, it is actually an OEM product. Oh, it is not accurate if we say so, because Huami – the manufacturer which developed Xiaomi Wristband – has been invested by Xiaomi. Founded in 2013, Huami received funding from Xiaomi and Shunwei, the venture capital fund co-founded by Xiaomi CEO, before the Mi Band was launched.
So far, Xiaomi Technology has successively launched Xiaomi Phone, TV, Router, while the production of the pad was done by their own team and of the hardware products such as earphone, power bank adopted the investment holding pattern. This time, the production of Xiaomi Wristband breaks the routine and its development time is shortened by absorbing the third party with an open mind. This change of strategy is worth attention in the industry.
Total Investment Value : $ 25 Million
Strategy : To Make Blood Pressure Monitor
Connected health devices like glucose meters and heart rate monitors are becoming more important, because the cloud technology that might connect them to healthcare systems is becoming more advanced.One of the most prolific smart health devices makers is iHealth Lab Inc. Xiaomi has invested $25 million in iHealth Lab in the first round of funding.
After investing in iHealth, Xiaomi launched its first helthcare product "Blood Pressure Monitor" which was produced by iHealth Labs.This investment and partnership between Xiaomi & iHealth help to extend the Xiaomi's global leadership in the mobile health category by providing new capabilities to accelerate growth and new user acquisition.
Strategy : To Make Power Banks
For ost the people, Xiaomi's Power Bank is the most adorable gadget. Xiaomi launched aboout 4 variants of Power Bank. Like other gadgets, Power Bank was also made by Xiaomi's Start-up company ZMI. ZMI is well known for its quality Power Bank products. Xiaomi invested in ZMI Co. to produce Power Banks in the brand name of Mi.
Xiaomi is aiming to move furher in Smart Home market and so Xiaomi invested in another local chinese start-up company named Zhimi. Xiaomi’s own air purifier was developed in partnership with Zhimi Technology
Westhouse is a Chinese online game developer which only makes PC based MMOs. According to Sina Tech, Westhouse now values about $ 400 Million.
Westhouse Group and Xiaomi will further explore the opportunity of cooperation in the area of mobile games. Whereby Xiaomi would be a strategic distribution partner of Westhouse Group's mobile games.
Xiaomi invested $310 Million in Chinese Online Video Streaming site & Media Portal. This is Xiaomi's biggest ever investment in another firm. Xiaomi’s stake in Xunlei could give its TV-oriented gadgets a shot in the arm. For Xiaomi, Xunlei could prove to be a powerful ally as a content provider through its set-top box, smart TVs, and smartphones. The two companies already collaborated on Xiaomi’s smart wi-fi router, in which Xunlei contributed storage acceleration software and content services.
Xiaomi has self-designed four Smartphones, a Tablet, a Smart TV, Wi-Fi Routers, a Pressy-like Android button, and a Wi-Fi dongle. But the company cannot self-design and produce every connected device on the market, especially when smart gadgets are popping up everywhere. So here comes the Xiaomi's "100 Company Startegy".
Investing in third-party startups and helping sell their products on its online stores. Of course those products have to be compatible with and able to talk to other hardware products in the Xiaomi family.
The below chart only lists 17 companies that Xiaomi acquired or invested in. Xiaomi claims it has 25 companies already plugged into its ecosystem. Since 2012, Xiaomi has participated in deals amounting to over US$3 billion (mainly involving the companies in the chart below). It plans to invest US$1 billion into smart TV content and another US$1 billion into cloud services. In many of these deals, Xiaomi leads the investment or acquires the companies outright. This four-year-old smartphone startup already has dominion over a multi-billion dollar empire.
Total Investment Value : $ 300 Million
Strategy : To develop Online Video Content
At the beginning of November, Xiaomi CEO Lei Jun revealed that Xiaomi is going to invest $ 1 Billion Dollar in Building up the content for its Smart TV users. Soon after revealing this, Lei Jun announced that Xiaomi is to invest $ 300 Million in Baidu-backed online video portal iQiyi.
iQiyi is an online video platform in china founded 4 years ago by Baidu, the largest online search platform in China. The daily viewers on iQiyi are about 50 Million and it is the second largest online video site in China. iQiyi stared iQIYI Motion Pictures, to expand existing cooperative projects with overseas peers, including purchasing releases and co-producing movies.This is the Biggest Investment made by Xiaomi till date and afer making this partnership, The two companies will jointly develop content and technology, including developing multi-screen online video services.. The iQiyi investment gives Xiaomi a stronger footing in China’s video-streaming market and Xiaomi will also license content from Youku Tudou, and the two companies will jointly invest in the production and distribution of online video content and movies.
Another investment part in the plan of investing $ 1 Billion in Video Content offerings is Xiaomi's partnership with Youku. Ealy in November, Youku announced that it entered into a partnership with Xiaomi to accelerate the development of its multi-screen media and entertainment ecosystem. But the value of investent is not yet disclosed.
Youku is China's largest internet video site founded in 2003. It provides Internet television and online advertising services. Its Internet television platform enables users to search, view and share high-quality video content quickly and easily across multiple devices.Youku Tudou’s ability in producing original content will provide strong support to the Xiaomi family of hardware by making the user experience more compelling, and will help to boost average revenue per user. The two companies will jointly develop content and technology, including developing multi-screen online video services.
Xiaomi currently sells a Xiaomi TV, Mi TV and a set-top box, Mi Box, and hopes to replicate the success of its hardware business in the TV industry. It is the third-largest smartphone manufacturer in the world after Samsung and Apple. The above two investments made by Xiaomi will boost up the sales of Xiaomi Smart TV and also Xiaomi will now be able to provide the best video content to it's Smart TV users and their user experience now will be enhanced.
Total Investment Value : $ 204 Million
Strategy : To Produce Smart Home Products
Xiaomi earlier invested in some startup companies to produce Smart Home devices. Now, Xiaomi entered into a big partnership with Midea group to further its push into the Sart Home Market. According to Midea's official WeChat account, Xiaomi will acquire 1.288 percent shares of Midea Group for $ 204 Million.
Midea Group is a privately held Chinese electrical appliance manufacturer, headquartered in Shunde,China. Over the last 15 years, the company gradually expanded into a wide variety of other electrical home appliances, including refrigerators, washing machines, microwaves.Since the company established an e-commerce group in 2014, sales have been surging with a growth rate of 120% as on November 2014, compared to the same time last year.
Now, after investing in Midea, the two companies will cooperate on building their smart home ecosystem. That means Xiaomi products will likely integrate with Midea’s wide range of products, from refrigerators to air conditioners to washing machines.
Strategy : To Produce Mi Band
Mi Band is the first fitness device of Xiaomi launched in July, 2014. Though this wristband is under Xiaomi’s brand, it is actually an OEM product. Oh, it is not accurate if we say so, because Huami – the manufacturer which developed Xiaomi Wristband – has been invested by Xiaomi. Founded in 2013, Huami received funding from Xiaomi and Shunwei, the venture capital fund co-founded by Xiaomi CEO, before the Mi Band was launched.
So far, Xiaomi Technology has successively launched Xiaomi Phone, TV, Router, while the production of the pad was done by their own team and of the hardware products such as earphone, power bank adopted the investment holding pattern. This time, the production of Xiaomi Wristband breaks the routine and its development time is shortened by absorbing the third party with an open mind. This change of strategy is worth attention in the industry.
Total Investment Value : $ 25 Million
Strategy : To Make Blood Pressure Monitor
Connected health devices like glucose meters and heart rate monitors are becoming more important, because the cloud technology that might connect them to healthcare systems is becoming more advanced.One of the most prolific smart health devices makers is iHealth Lab Inc. Xiaomi has invested $25 million in iHealth Lab in the first round of funding.
After investing in iHealth, Xiaomi launched its first helthcare product "Blood Pressure Monitor" which was produced by iHealth Labs.This investment and partnership between Xiaomi & iHealth help to extend the Xiaomi's global leadership in the mobile health category by providing new capabilities to accelerate growth and new user acquisition.
For ost the people, Xiaomi's Power Bank is the most adorable gadget. Xiaomi launched aboout 4 variants of Power Bank. Like other gadgets, Power Bank was also made by Xiaomi's Start-up company ZMI. ZMI is well known for its quality Power Bank products. Xiaomi invested in ZMI Co. to produce Power Banks in the brand name of Mi.
Startegy : To Make Air Purifier
Xiaomi is aiming to move furher in Smart Home market and so Xiaomi invested in another local chinese start-up company named Zhimi. Xiaomi’s own air purifier was developed in partnership with Zhimi Technology
Total Investment Value : $ 20 Million
Strategy : To Develop Mobile Games.
One of the first investments made by Xiaomi is in its CEO Lei Jun's parent company Kingsoft. Early in 2014, Xiaoi invested in Westhouse, a subsidary company of China's giant Kingsoft.
Westhouse is a Chinese online game developer which only makes PC based MMOs. According to Sina Tech, Westhouse now values about $ 400 Million.
Westhouse Group and Xiaomi will further explore the opportunity of cooperation in the area of mobile games. Whereby Xiaomi would be a strategic distribution partner of Westhouse Group's mobile games.
Total Investment Value : $310 Million
Strategy : To Provide Online Video Content
Xiaomi invested $310 Million in Chinese Online Video Streaming site & Media Portal. This is Xiaomi's biggest ever investment in another firm. Xiaomi’s stake in Xunlei could give its TV-oriented gadgets a shot in the arm. For Xiaomi, Xunlei could prove to be a powerful ally as a content provider through its set-top box, smart TVs, and smartphones. The two companies already collaborated on Xiaomi’s smart wi-fi router, in which Xunlei contributed storage acceleration software and content services.
Some other collaborations of Xiaomi :
Xiaomi almost invested in about 20+ companies to produce various producs. In addition to the above mentioned investments, Xiaomi also invested in some other local companies to produce gadgets and they include:
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