China investing in India?
Yes, you read it first right here!
One global superpower is seeking another superpower’s tech expertise.
Normally Indians thrive on the Chinese market’s offering in India due to cheaper prices and a variety of products in almost all production segments you can think of! But, here is a new twist to the tale… the tables seem to be turning somehow.
China’s leading smartphone manufacturer Xiaomi has robust plans of investing in Indian technology based startups which specialize in overseas media content.
Hugo Barra, VP of Xiaomi’s global division has expressed his desire to invest in such companies to expand their company’s outreach into the billion dollar TV and home appliance market for better brand cognition. Xiaomi has already earmarked USD 1 billion for Internet TV content to be invested in such companies that deliver quality content.
“Where we really want to make significant investments is in content, particularly in the Chinese market to start with but beyond that in other markets as well. One area that we are also looking to make some investments in is startups in India. India is already the largest market for us outside of mainland China,” Barra opined.
However, this may not be a win-win situation for India at all as the world’s No.3 smartphone plan eventually seeks to invade Indian homes with Xiaomi branded TVs and appliances. This is a bane to our ‘Make in India’ campaign being currently flooded by the ruling Government.
Xiaomi is set to benefit from this venture since after only a year of entering the Indian market it raised billions of dollars in revenue from introducing feature-loaded phones at breakneck prices with quality that questioned Samsung and HTC’s quality and blatant pricing to shame. Most Indian users are slowly transitioning to Xiaomi because of this price-specifications factor since everyone wants a snazzy smartphone these days within an affordable price range.
Xiaomi’s success in unparalleled in India after the e-commerce website only ‘flash-sale’ hypes skyrocketed their popularity. They nearly ended up getting banned after intellectual property rights infringement complaints by Ericsson were filed but now sales have been permitted again for some time.
Xiaomi is already about to close a similar deal with China based Tencent holdings that develops security, entertainment and office suites for the Android Play store. This will offer feature-rich content to users worldwide.
Indian consumers will largely benefit from these ventures since every house wishes to have a television set within its confines.
This move by Xiaomi might help reduce prices of TVs and other entertainment media to entice more consumers into buying China-made products.