Xiaomi condemns counterfeits like biggest culprits for low sales.

Xiaomi the more influent Chinese smartphone company who become the first on china sales, now faces a very familiar enemy of the bigger ones. Counterfeits.

Last year Xiaomi announced the Mi Power Bank battery pack for smartphones and tablets, for a very low price, the product has been highly accepted and the company expected to be a record breaker in sales.  However the product has hit the mark of 14.6 million units last year, and that was less than half that the total which has been expected by the company.


Asked about the cause for the low sales the CEO of the company, Lei Jun, said at a press conference in the company’s headquarters: “What is the biggest problem? There are many fakes,” Lei said. “If there were no counterfeits, our sales would be double or triple. The product has been recognized by everyone.”

The Chinese startup last year, overcame Apple and Samsung in the biggest market of the world, China, and now with a — $45 billion — value, Xiaomi must learn to deal with counterfeits of his products, and at the same maintain their focus investing in so many startups with its various products.

The revenue lost to counterfeit products would be equal to at least $115 Million. A high loss value for the company, especially considering the price of the product where quite possibly the profit margin is not so great. For you know, the Mi Power Bank can be find in three options now and the prices ranging goes of $7.90 to $21.


Another product of the company that is a big target of counterfeiters are their earphones, Xiaomi Pistons, we can find a lot of them being sold by on line resellers, for the originals price. And say which one is original or fake, is something hard. For that reason the most secure way to escape from counterfeiters as buyer, it’s buy only from trustful resellers or official retailers.

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Currently we must admit that the market in China, facilitates the production of counterfeits in China and even on other countries abroad. And this is not something new, but something that has been going on for years. Questioned by this subject, China’s Vice Premier Wang Yang ensure that this year there will be an extensive combat to this practice. However we know, not wanting to be pessimistic, this would take a few years to show a real result.

The company now supports at least 27 startups, aiming to expand his range of smart devices, 10 of them already have products in the market. Although people may say that the increasing range of products is risky, or even a loss of Xiaomi focus, investing in so many products, since a high range of them on the market may become something difficult to manage, especially its consequences, such as counterfeiting, The CEO Lei Jung ensures that is a great misunderstanding. Xiaomi now will stay focused on Smartphones, Televisions and Routers, while at the same time will support their partners with another products. And will stay focused on those products for a long time.

Counterfeits, and fake products will always follow the steps of the bigger companies, and still a threat to the good ideas that come from many startups.  The journey to discover how face them and deal with it is something that every company needs to learn. If the Xiaomi is coming to be a giant this will not be the last time their will have to face the fakes, and find a way to combat them efficiently is the best way that their good ideas, continue to succeed.

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