We’ve all been told, or have learned the hard way, that if something seems too good to be true, it probably is just that. So it comes as no surprise that mobile buyers are on one hand delighted by, and enthusiastic about Redmi mobiles, and are on the other hand keen to know what the brand’s profit model is. 

For example, let us compare the Redmi Note 9 Pro’s price to its features. The smartphone comes with 4GB RAM that allows users to multitask with no hitches and hanging. The Redmi Note 9 Pro uses the Qualcomm Snapdragon 720G processor. These two features together make for a very fast smartphone. A quad-rear camera configuration of 48MP + 8MP +5MP +2MP, fairly unheard of in this price segment, is complemented by a 16MP front-facing camera. Internal memory of 64GB is available for saving one’s photos, videos and files. The phone is large, measuring 6.67 inches, and it comes with a powerful 5020 mAh battery. 

And with all those excellent features, the Redmi Note 9 Pro’s price is about Rs. 13,000! Mobile buyers apparently think that the brand could have gone with a higher price tag, and are therefore curious about why the brand decided to keep the prices of Redmi phones comparatively low. 

Fortunately, Xiaomi is very open about how and why it keeps the prices of Redmi mobiles so incredibly attractive. The brand pursues a combination of smart marketing, strategic retail channels and overall market roadmap, and app sales. 

Let’s take a closer look at how the brand is playing its cards in these areas. 

Smart marketing – Instead of investing heavily in brand ambassador partnerships, which are cost-heavy, the brand has its biggest and most socially active users market for it. Prior to several launches, Redmi engages users and gives out phones for testing and reviewing. They call these initiatives by various names: Mi fans, explorer program, fan beta testing and so on. But the point is that it costs the brand little to nothing. And voila! They’ve saved millions on advertising and marketing.

Strategic retail channels – You would have noticed that you do not see Xiaomi stores scattered all around, like you might for other mobile brands. The brand focuses on online sales, and instead retails its Redmi mobiles at unbelievable prices on Amazon, Flipkart, and even the Bajaj Finserv EMI Store. 

Overall market roadmap – It does not make a lot of R&D-related investments. Xiaomi produces a lower amount of units per model, which in turn keeps costs low. There’s another benefit to this; demand-supply economics mean additional demand and popularity, since prices are low. Xiaomi also ties up with e-commerce platforms. 

Also, the company isn’t looking to take in giant profits per phone, especially in the budget and mid range segment. It sells these at only about a 5% profit, offsetting lower profits in some categories with higher profits in other categories, and other business verticals. Through its low cost products, it gives users a “taste” of the brand’s standards. 

Don’t worry about saving up in order to pay the Redmi Note 9 Pro’s price either, because on the Bajaj Finserv EMI Store, you can pay for the phones in easy monthly instalments. You can shop for your favourite smartphone model from all the top brands, which are available at discounted prices.


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