We’re focusing on making innovation that is aspirational: Sandeep Sarma

India’s smartphone market may have shown a glimmer of festive cheer in Q3 2025 with shipments touching 48.4 million units, a modest 3% year-on-year growth, according to research by Omdia, a research firm released on October 21, 2025. But behind that celebratory headline lies a more sobering reality: analysts warn that this early momentum may not sustain through the final quarter. With consumer sentiment still uneven and macro demand pressure lingering, the Indian smartphone landscape remains a high-stakes battleground where brands must innovate faster, localise deeper, and articulate value more convincingly than ever.

Few brands understand this urgency more intimately than Xiaomi. Once the undisputed leader of India’s smartphone market, Xiaomi lost pole position to Samsung in 2022. Since then, its market share has slipped from around 19% to nearly 13% by early 2025, a slide attributed to intensified competition, muted demand, and inventory constraints.

But instead of retreating, Xiaomi is charting a strategic reset, one that fuses premium aspirations with strong localisation, a stronger ecosystem play, and a renewed commitment to purposeful innovation and over the past two years, the brand has been rebuilding and recalibrating its move.

Xiaomi’s revival blueprint is anchored in a multi-pronged strategy that goes beyond smartphones. With over 20,000 retail touchpoints across India and deeper penetration into Tier II, III, and IV markets, the company is placing experience at the core of its business. Its product portfolio has widened from smartphones and tablets to wearables, robot vacuum cleaners, smart QLED TVs, and AIoT-driven home devices such as smart air purifiers.Premiumisation Becomes a Core Brand Pillar

Premiumisation remains a clear narrative driver. Recent and upcoming launches like the Xiaomi Pad 7, Xiaomi 15 Series, and the anticipated Xiaomi 17 Series slated for Q1 2026 underline the brand’s pivot toward design excellence, ecosystem synergies, and meaningful innovation. Experience-led, premium retail formats and a seamless omni-channel strategy spanning online, offline, and quick-commerce are central to this evolution.

Sandeep Sarma, Associate Director Marketing & PR, Xiaomi India, frames this shift by saying “Xiaomi has always stood for innovation for all, but today, we’re focusing on making innovation that is aspirational,” he says.

The Redmi lineup continues to play its role as the dependable, mass-market workhorse bringing durable, trustworthy technology to a large base. Meanwhile, Xiaomi has cemented itself as the premium face of the group, combining flagship cameras, refined design language, and high-end performance. Sarma quoted “ Xiaomi is now firmly positioned as our premium offering bringing together flagship camera, design, performance, and ecosystem experiences. Products like the Xiaomi 15 Series, Xiaomi QLED TVs, Xiaomi Pad 7, Redmi Note 14 Pro Series, and Redmi Watch Move have played a big role in redefining how consumers perceive us”.

Consumer Expectations Are Redefining the Upgrade Cycle

Market sentiment, Sarma notes, is tilting firmly toward “value-plus thinking”. Indian consumers no longer seek just affordability; they want meaningful upgrades that justify their investment. The ?20,000–?30,000 segment is expanding rapidly as users transition from aging 4G devices to powerful 5G and AI-driven smartphones.

Equally important are factors like durability, dependable after-sales service, and sustainability. For Xiaomi, these aren’t just buzzwords; they're embedded into product design and lifecycle planning. “It’s about long-term value and trust,” Sarma emphasises.

Influencers and Localised Storytelling Power the New Marketing Mix

As consumer behaviour evolves, so does Xiaomi’s media strategy. Digital remains its core, but the brand has doubled down on influencer partnerships, regional content creation, and offline experiential activations. Short-format storytelling, creator-led lifestyle-tech integrations, and regionally relevant narratives are now integral components of the mix.

Collaborations with creators who seamlessly blend tech with everyday culture have helped Xiaomi cultivate deeper, more authentic connections especially among younger audiences.

In a market where competition is fierce and expectations relentless, Xiaomi’s 2025 performance has offered encouraging signals. Sarma describes the year as one of “growth, learning, and recalibration.” The company has posted double-digit growth across several segments, boosted by the success of its premium smartphone lineup and its expanding ecosystem of smart TVs, tablets, and wearables.

Locally manufactured products like the Redmi Watch Move and the growing traction for QLED TVs and tablets have strengthened brand equity and contributed to improved profitability. “What’s most encouraging,” Sarma points out, “is that this growth has come with stronger profitability and a clear strengthening of our brand equity in India.”

HyperOS Becomes the Glue Holding the Ecosystem Together

Xiaomi’s long-term play is built around its ecosystem strategy. Whether it’s smart TVs, tablets, wearables, or home IoT devices, the brand aims to ensure a seamless, continuous experience across categories powered by Xiaomi HyperOS. “Once a user enters the Xiaomi ecosystem, they tend to stay because the experience across devices is seamless,” Sarma explains. This interconnectedness enhances stickiness and drives repeat engagement.

People-first decision-making remains central to Xiaomi’s product roadmap. The brand leverages insights from social media, community platforms, and its vast retail network to understand how users actually interact with their devices. Many upgrades such as larger batteries, enhanced camera systems, and improved displays in the Redmi Note lineup stem directly from consumer feedback.

“It’s an ongoing, two-way conversation,” Sarma says.

The Road Ahead: Personal, Purposeful, and Premium

Looking forward, Xiaomi’s ambition is to make technology deeply personal and fundamentally purposeful. The premium Xiaomi range will continue to lead with innovation, design excellence, and ecosystem connectivity. The Redmi series will democratise advanced technology for wider audiences. POCO will continue to cater to performance-focused users seeking powerful, dynamic experiences.

“Together, Xiaomi, Redmi, and POCO will complement each other to make advanced technology accessible to every Indian consumer,” Sarma asserts. The goal is clear: aspiration without alienation, innovation at every level, and an ecosystem where every consumer finds their ideal tech companion.