Head of Xiaomi Auto charms buyers with decorum in personal marketing

Editor's note:

This is the second instalment of a two-part series looking at Xiaomi's successful transition from a consumer electronics producer to an electric carmaker.

The launch of Xiaomi's SU7 sports sedan in March 2024 sparked a new trend in how carmakers in China market their vehicles, with courteous salesmanship in and pompous one-upmanship out.

The new tone owes much to Lei Jun, founder and chief executive of Xiaomi. In a rare promotional ploy by a chief executive, Lei began to share videos on various social media platforms, showcasing himself commuting in the SU7 and highlighting its features.

Taking a step further, the suave billionaire turned this gig into regular live sessions, taking questions from netizens and winning them over with his relaxed, easygoing charm.

The humble and gentle demeanor of the Hubei Province native also garnered significant attention and goodwill toward the Xiaomi car brand.

A core focus of Lei's marketing prowess is on building emotional connections to convey brand value, rather than relying on grand narratives or pompous self-promotion.

Consumer-centric insights

For instance, the Xiaomi SU7 won the hearts – and substantial orders from women – with its attention to the needs of female drivers, such as incorporating ultraviolet protective sunroof glass.

Lei's hands-on salesmanship demonstrated to many business leaders – not just those in the auto industry – the importance of cultivating a strong personal brand.

Inspired by his example, numerous entrepreneurs last year began engaging in live broadcasts and personal marketing, saving their brands considerable marketing expense.

Historically, Xiaomi's success has hinged upon two pillars. The first is to build products, services and ecosystems around users, cultivating a highly loyal customer base.

The second is leveraging its years of experience in consumer electronics, enabling the industry behemoth to gain substantial supply chain advantages and achieve effective cost controls.

These early investments paid off handsomely. When the richly configured, stylish and highly intelligent SU7 was introduced at an attractive guidance price of 215,900 to 299,900 yuan (US$29,672-$41,216), consumers quickly recognized it as a value-for-money option.

Subsequent car reviews emphasized the driving pleasure of the Xiaomi SU7, dubbing it a "supercar for the masses," further solidifying its stellar reputation and sales.

Even Ford Chief Executive Jim Farley expressed his admiration for the Xiaomi SU7.

"I drive a Xiaomi (SU7)," he said in an interview last year. "We flew it from Shanghai to Chicago. I've been driving it for six months now, and I don't want to give it up."

The success of Xiaomi Auto is the result of a combination of the right product strategy, exceptional brand marketing, and hands-on leadership, none of which alone would suffice to put the young carmaker ahead in a tight race.

Partly due to Xiaomi's booming car business, Lei topped the February 27 list of China's richest people, with a net worth of 440 billion yuan.

Worthy opponents

From once being mocked as a laggard in the electric-car era to one now leading the industry, Xiaomi's transformation has left many automakers, some of whom have experienced significant losses, both envious and somewhat embarrassed.

When Xiaomi announced its intention to manufacture cars, it declared a budget of 100 billion yuan. However, during a year-end live broadcast at the end of December, Lei clarified rumors about a 10-billion-yuan initial investment, stating that nearly 30 billion yuan had been spent.

This serves as a further rebuke to automakers who assert that entering the car- manufacturing industry necessitates a minimum investment of 100 billion yuan.

Xiaomi's leadership is not just in sales, but also on racetracks. In a recent test, the newly released SU7 Ultra surpassed the Porsche Taycan Turbo GT's lap time at the Shanghai International Circuit, becoming the fastest production car on the track, Xiaomi said in a post on the Weibo platform on February 14.

Despite its somewhat exorbitant pre-order price of 814,9f00 yuan, the SU7 Ultra secured a stunning 3,680 orders within 10 minutes.

During the February 27 launch, Xiaomi further enticed consumers by slashing the pre-sale price by 35 percent to 529,900 yuan.

Lei remains humble, saying, "this doesn't mean we've surpassed Porsche. In my heart, Porsche is still the best car in the world and remains our benchmark for learning."

In response, Porsche graciously acknowledged Xiaomi's accomplishment on a Weibo post, saying, "At this moment, we applaud Chinese manufacturing and salute all dreamers and explorers."

The mutual respect between two competitors, who see each other as worthy opponents, has earned Xiaomi even more admiration.

Winning with decency

It's worth noting that when Xiaomi's car first debuted, it was flooded with criticism for allegedly copying Porsche's design, earning the nickname "Porsche-mi" – a play on the Porsche and Xiaomi names.

By contrast, some domestic automakers recently staged publicity stunts in which they tried to elevate their status by denigrating foreign competitors.

Once touted as a rare display of confidence among China's emerging carmakers, the slogan "We Are Far Ahead," heavily bandied about by Huawei auto group chairman Richard Yu, has become increasingly irksome to the public.

It's common for auto brands like BMW, Mercedes-Benz and Audi to playfully tease each other in advertisements, but they tend to do so while maintaining certain decorum.

There are lines not be crossed, such as fabricating facts, manipulating shills or engaging in underhanded tactics to undercut competitors.

As more consumers grow weary of "one-upmanship" marketing tactics, domestic brands that have no qualms about attacking or belittling their opponents will likely face a backlash.

This is why Xiaomi's Lei stands as one of the most revered entrepreneurs in China. Under this stewardship, Xiaomi has never been publicly associated with a smear campaign against a rival.

Beyond his modest demeanor, candor and so far unblemished ethical record, Lei embodies the relentless pursuit of excellence in Chinese auto space.

For Xiaomi, that pursuit has only just begun.

(The author, a former Shanghai Daily opinion writer, now works as a business analyst and communication strategist. He has no conflict of interests to declare.)