Xiaomi is well known due to its competitive and affordable smartphones. However, the company also has a huge portfolio of products in various segments. Apart from the smartphone market, the company also has a solid presence in the market of smart TVs, wearables, and just recently is expanding its presence in the smart home business. Now, the company has given an important step to strengthen this latter segment.
The Chinese company has recently invested in Dongyi Risheng, one of China’s leading home decoration companies. Now, Xiaomi is one of the biggest shareholders in the company. The move probably means that Xiaomi will use Dongy Risheng’s expertise to empower its smart home business.
As per a report from KrAsia, Xiaomi invested around 139 Million Yuan (~$20.7 million) into the Dongyi Risheng. With this huge amount, Xiaomi has bought around 21 million shares from the home decoration company, at a price of $6.62 per share. At the moment, Dongyi Tianzheng Investment holds 256.4 million shares before completion of the deal. The home decoration company made the following statement:
“The company will leverage on Xiaomi’s wide presence in the Internet of things (IoT) sector, as well as its own accumulation in the home decoration sector and its own digitization capabilities, to explore how AI and IoT technologies can integrate with home appliances to provide a smart living for consumers.”
As the company states, it is also gaining from the transfer of share and will branch out to IoT products as well. As aforementioned, Xiaomi hopes to further solidify its presence in the market of smart home appliances. Perhaps, it can even expand and improve its products inside and outside of China. Worth noting that both companies have been cooperating since July 2020. After the new partnership, Dongyi will bring the smartphone maker and its partners products into its current sales channel. So both companies will collaborate to expand their product coverage and reach.
Xiaomi has a growing portfolio of smart home products like speakers and other related IoT products. Just recently, the company announced the Mi Leak Detector in China to help users to detect possible water leaks and ever flooding in their homes or workplaces. This is just an example of the interesting products the company can develop for home. We hope the new partnership further expands this segment.
Unfortunately, most of Xiaomi’s smart home products are limited to China. We also hope for a change in the future, after all, there are several products that could reach international markets.