[Asia Economy Reporter Jang Hyowon] Xiaomi, preparing to launch the Mi 10 Lite 5G, is promoting the expansion of consumer choice in the domestic 5th generation (5G) mobile communication market.
On the 15th, Korea Technology, a KOSDAQ-listed company and the official distributor of Xiaomi in Korea, revealed four sales strategies for the Mi 10 Lite, which will be officially launched on the 17th, expressing the opinion that consumer choice is necessary in line with the government's Digital New Deal policy.
Lee Byung-gil, CEO of Korea Technology, emphasized, “President Moon’s Digital (5G) New Deal policy will be completed by expanding consumer choice for cost-effective 5G phones.”
He also clearly stated the intention to expand consumer choice by presenting four sales strategies for Xiaomi’s 5G smartphone Mi 10 Lite: ▲expansion of 2-year free A/S centers ▲ultra cost-effectiveness (low cost, high efficiency) ▲launch with the same carrier versions as iPhone ▲linkage with ecosystem products such as bands.
CEO Lee said, “As a result of efforts to supplement the A/S issues pointed out as problems of foreign phones, we have implemented a 2-year free A/S service,” adding, “We have prepared extensively, so there is absolutely no problem with A/S.”
Currently, Xiaomi has A/S service center bases in 32 regions nationwide and operates a customer call center and website. In addition, considering the future launch of home appliances and other products domestically, they plan to densely expand the nationwide A/S network.
Furthermore, Xiaomi and Korea Technology have set a strategy to prioritize the launch price in the Korean market.
CEO Lee explained, “It is true that high fixed costs such as technical certification, nationwide A/S network, and marketing are incurred solely for the domestic market of 50 million people,” and added, “Nevertheless, to satisfy Korean consumers, who are among the best in the world, we insist on launching at the lowest price. This Mi 10 Lite is the first 5G phone priced in the 400,000 KRW range, which is also the lowest price compared to 4G smartphones.”
He continued, “Domestic consumers have essentially reclaimed the right to enjoy Xiaomi’s God-level cost-effectiveness.”
The Mi 10 Lite will be released for each carrier (SKT/KT/LGU+). Each carrier’s unique software and apps are pre-installed, allowing users to immediately use the carrier’s exclusive services without separate app installation. Except for the iPhone, this is the first case for a foreign device. Of course, even if the carrier differs, it can be used immediately by simply inserting the SIM card, just like existing unlocked phones.
CEO Lee said, “Xiaomi recognized the needs of domestic consumers who want carrier-specific app services and decided to officially release unlocked phones for each carrier,” adding, “It provides great convenience and advantages in that users can receive the same services as carrier OEM phones without mandatory activation or contract restrictions.”
Meanwhile, the company plans to actively promote the fact that Xiaomi’s strengths include hundreds of accessories and small to medium-sized home appliances that can be linked. Since the so-called ‘Xiaomi ecosystem products’ (bands, air purifiers, robot vacuum cleaners, batteries, scales, etc.) that can be remotely controlled by smartphones have a larger market domestically, this can help increase the competitiveness of Xiaomi phones.
CEO Lee stated, “We will make further efforts to expand linked marketing and infrastructure between Xiaomi ecosystem products and smartphones,” and added, “Launching three Xiaomi bestsellers together with the Mi 10 Lite is in the same context.”
The additional products Xiaomi disclosed are three items that were first released in Western Europe and have been verified for quality and preference: wireless Bluetooth earphones Mi AirDots S (Redmi AirDots S), Mi Smart Standing Fan Pro, and Mi Home Security Camera 360° 1080p.
Finally, CEO Lee said, “The reason for deciding on the Xiaomi distribution business was to provide various products with excellent performance at low prices, guaranteeing consumer choice and convenience,” and added, “We hope for coexistence rather than competition with domestic manufacturers, and will target only the vacant foreign low-price market, not the high-end product segment.”
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